2. Why do you believe Accenture broadened its consulting focus from financial issues to a broad range of business processes? What positive and negative effects could that have on a business?

Accenture is the world’s largest management and technology consulting firm. In 2005 it had revenues of more than $17 billion and net income of $940.5 million. Its clients include 87 of the Fortune Global 100, more than two-thirds of the Fortune Global 500, and government agencies in 24 countries. Accenture focuses on helping its clients identify and enter new markets, increase revenues in existing markets, improve operational performance, and deliver products and services more efficiently. The firm is organized around 18 industry specialties ranging from utilities, insurance, and technology to e-government, human resources, and learning.
The success of Accenture is remarkable considering its short history as an independent company and the problems it faced in its development.
Accenture started as a consulting division of Arthur Andersen, the international accounting firm that failed as a result of its work with Enron. Arthur Andersen was one of the first accounting firms to recognize the need to offer financial consulting services to its clients. Its first major consulting client was General Electric in 1953. It worked with GE to determine the feasibility of an automated manufacturing and financial management system at a time when computers were first being used in business.