POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Assignment #2

Firm Analysis: Accenture, Inc.

In Partial Fulfillment of the Requirements for

3MBA638 Strategic Management

By:

John Darwin Macatulad

Submitted to:

Dr. Antonio G. Maralit

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Accenture, Inc. is a global professional services company and provides strategy, consulting,
digital, technology and operations services. It has been incorporated in Dublin, Ireland since
2009. Its five main business are:
• Accenture Strategy provides business strategy, technology strategy and operations strategy
services.
• Accenture Consulting provides technology, business and management consulting.
• Accenture Digital provides digital marketing, analytics and mobility services.
• Accenture Technology focuses on technology solutions, implementation, delivery, and
research & development, including its Technology Labs for emerging technologies.
• Accenture Operations focuses on an "as-a-service" model of service delivery. This includes
business process outsourcing, IT services, cloud services, managed operations, security and
infrastructure services.

Combining unparalleled experience, comprehensive capabilities across all industries and

business functions, and extensive research on the world’s most successful companies.
Dedicated to bring modernization, Accenture work together with its clients to help them
become high performance businesses and governments.

Accenture also helps its clients to cut costs as well as outsource technology functions.
Employees contain experience in a diversity of industries in key business areas, together with
customer relationship management, supply chain management, business strategy,
technology and outsourcing.

The company divides its practice keen on five core operational groups: communications and
high technology, financial services, public service, products, and resources which encompass
more than 15 industries.

The business global headquarters are in Bermuda. It has administrative center in more than
200 cities in 52 countries around the globe. 96 of the top Fortune Global 100 companies are
Accenture clients.

Segment Large companies looking for five main businesses being offered by
Accenture, Inc.
Target Group Fortune 500 companies and other big organizations
Positioning Multinational professional services

Primarily know as Andersen Consulting, Accenture was formally recognized in 1989 when a
group of partners from the Consulting division of a variety of Arthur Andersen firms around
the world shaped a new organization determined on consulting and technology services
associated to running large-scale systems integration and attractive business processes.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Accenture changed its name from Andersen Consulting in 2001 past severing ties from its
parent company Arthur Andersen. The company went public on the New York Stock Exchange
in April, 2001.

SWOT Analysis

Strengths

1. Accenture provide technological solutions

2. Accenture have extensive geographic reach in over 120 countries
3. In the consulting sector, Accenture has one of the largest revenues in the world
4. They use the same procedures and processes in approaching projects, making it easy for
employees to move from location to location without need for retraining due to global
delivery model.
5. Effective marketing and branding strategy
6. Strong workforce base of nearly 500,000 people in Accenture
7. Accenture has a strong worldwide presence with offices in every continent
8. Leading with research and innovation
9. Long term relationship with key accounts

Weaknesses

1. Accenture has been trying to break into serving small to mid-size companies but faces stiff
competition.
2. Stiff competition from across the world means slow market share growth
3. Majorly known as consulting firm
4. Favors large sized projects

Opportunities

1. Accenture will benefit from its standing as one of the leading IT companies as the technology
is constantly evolving
2. Due to the recession businesses are going to be looking for ways to cut back and streamline
their operations. Thus, Accenture stands a great chance as it is expert in outsourcing.
3. Global penetrations and offering special fees for smaller projects can help increase the reach
4. Strategic acquisitions to strengthen capabilities and drive growth

Threats

1. Premium offering may not resonate with midmarket customers

2. Increasing presence of Accenture's competitors
3. Growing impact of online databases and companies can affect revenues
4. High attrition rate
5. Volatile, negative or uncertain economic conditions
6. Cybersecurity and other risks
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

PESTLE Analysis

Political

1. Impact of Brexit on Accenture’s operations

2. Government new policies in taxation, workforce mandatory benefits and wage legislation
3. Level of corruption
4. Bureaucracy and interference in IT Services industry by government
5. Intellectual property protection

Economical

1. Type of economic system in countries of operation – type of economy and how stable
2. Exchange rates and stability of country currency
3. Skill level of workforce
4. Education level in the economy
5. Labor costs and productivity in the economy
6. Unemployment rate
7. Inflation and interest rates

Social

1. Adoption of automation and digital technologies

2. Demographics and skill level of population
3. Class structure, hierarchy and power structure in the society
4. Culture (gender roles, social conventions, etc.)
5. Attitudes (health, environmental consciousness, etc.)
6. Leisure interests

Technological

1. Growing trend of digitalization across industries

2. Impact of automation on operations
3. Acquisitions to enhance technology and domain competency
4. Impact on cost

Legal

1. Criticism and negative publicity for Accenture’s Irish incorporation

2. Discrimination law
3. Copyright, patents
4. Consumer protection and e-commerce
5. Employment law
6. Health and safety law
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7. Data privacy law

Environmental

1. Committed to reduction of carbon footprint and greenhouse emissions

2. Weather
3. Climate change
4. Laws regulating environment pollution
5. Air and water pollution regulations
6. Recycling
7. Waste management
8. Attitudes towards “green” or ecological products and support for renewable energy