Accenture PESTEL Analysis pdf
Added on 2020-12-14
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AccentureAccenture is a worldwide technology management consultancy, infrastructure services andprocurement firm with over 259,000 staff in over 120 countries servicing customers. Withunmatched expertise and extensive skills in all sectors and sector positions, Accenture partners withconsumers to make them become high-performance corporations and governments.Accenture VisionThe annual technology roadmap of Accenture offers a view on the future of technology beyond thepresent cloud, connectivity, and Big Data conversations. The roadmap of this year outlines thetechnical developments for future-minded CIOs (chief information officer) to position theirorganizations, not only to rely on cost savings and productivity enhancements. It gives specific stepsthat CIOs are likely to take today and in the future to counter these phenomena.Why we select the Accenture CompanyAccenture provides broad distribution to centers in Europe, India and the United States, as well as acommitted, 2500-member application and development team. Their profound experience of how toimplement new technology and their long-standing partnerships with all large providers ofapplications helps to provide opportunities across multiple innovations and platforms. Accenturenow has more than 10,000 seasoned human resources leaders working as a national network ofexpertise, with activities in 35 countries. Accenture will increase the productivity of the political,financial and tactical decision-making of clients with a focus on analytics by helping to transformknowledge into insights, insights into actions and activities into performance. Accenture develops,develops and runs the fundamental database system, software and governance that allows all data,wherever it exists, to be a "true source of the reality."The report should include the following:1.Explain and examine the external factors affecting.Businesses cannot operate in silos. Rather, they are connected to an external environment which isdynamic and ever changing. This constantly evolving external environment impacts anorganization’s internal culture, strategy and processes.
Organization’s external environment includes a range of determinants that affect is decisions andprocesses, as well as, multiple stakeholders who are directly or indirectly impacted bytheorganization’s decisions. These determinants are termed as external factors, and these can range fromsocial to economic, to political in their nature. While each organization has its own set of externalfactors depending on the market it operates in, following are a few common external factors whichimpact most business to a varying degree directly or indirectly;Accenture PESTEL AnalysisIn the macro world, there are several variables that can influence the actions of every organization’smanagers. All examples of macro transition are tax increases, progressive regulations, traderestrictions, population change and adjustments in government policy. Managers should categoriesthem using the PESTLE model in order to better evaluate these causes.PESTLEis a strategic analysis approach that offers a practical context for evaluating a team or anorganization’s environmental pressures. It defines a system of macro environmental factors used instrategic management in the environmental scanning portion. When carrying out a strategy review orconducting market research, it is part of the external analysis and provides a certain description ofthe various macro environmental variables to be taken into account by the organization. It is avaluable analytical instrument to consider demand rise or downturn, competitive environment,organizational capacity and path. Factors from PESTLE play an essential part in a strategy’s valuedevelopment potential. They are generally beyond the corporation's influence, though, and maytypically be treated as either risks or opportunities.Kotler (1998) concluded that PESTLE analysis is a valuable strategic instrument for recognizingdemand rise or decrease, company role, organizational capacity and course. In comparison to theSWOT and Porter Five Powers models, the PESTLE headings are a method for evaluating a scenarioand can be used by businesses to review strategic directions, including campaign ideas.1.Political (Brexit effects on Accenture’s activities )The rise in the politics of protectionism has influenced global free trade. A large amount ofAccenture's income comes from the United Kingdom and the IT sector will be seriously impacted byBrexit. Low market exposure and economic instability in the economy have an immediate impact.The new initiatives in the area would have a direct impact on Accenture’s sales and operational
costs. Ireland-based Accenture could also move some of its overseas activities to Dublin to takeadvantage of the supportive Irish market climate. Brexit has boosted economic uncertainty which,leading to a sharp depreciation in GBP since the referendum, has contributed to a drop in incomefrom UK operations.Institutional stability: Australian political system is viewed as reasonably stableUnited States. U.S. The state said U.S. businesses working other than U.S. IT outsourcingwould not earn tax benefits.Government-owned firms have agreed to send Australian firms further programs.2.EconomicEconomic considerations include shifts in economic policy, i.e. rising tax reductions, excise taxeslevied by the government, incentives from the government and tax cuts that will affect the company'soperating costs.Australia 's overall economy is booming at this point, apart from China's greatest threat, mostof its economic factors favor IT-related enterprises and thus also appeals to investors fromother countries.In Australia as well as worldwide, demand for IT is growing.Domestic IT (demand) expenditure: In the next five years, domestic markets will rise by20%.Movement of money Prices of real estate: a decline in the values of rentals resulted in lower leasing rates.Attrition: Unemployment has ensured that the number of vacancies and employment losseshas been poor.3.SocialCustomer desires, cultural changes, sporting activities, etc. can have a psychological impact that canimpact the market cycle, impacting the overall sales that prestige of companies.Education: IT education is provided by many national technical institutes and universities.Population of working age.
4.TechnologicalIn the near future, automation in the IT sector will affect the organization. Automation can assistenterprises such as Accenture to identify additional revenue opportunities, actionable data, andshortened time to market and decreased costs. In its internal activities, such as app development,Accenture leverages technology and also supports consumers through sectors such as banking,financial care, engineering and others. This leads to considerable cost savings and increasesperformance, market resilience and process intelligence.IT market automation would have an impact on the sector in the immediate future. Automation canassist enterprises such as Accenture to identify additional revenue opportunities, actionable data, andshortened time to market and decreased costs. In its internal activities, such as app development,Accenture leverages technology and also supports consumers through sectors such as banking,financial care, engineering and others. This leads to considerable cost savings and increasesperformance, market resilience and process intelligence.In the technology sector, Accenture has been aggressively seeking acquisitions to develop itstechnical capabilities throughout areas such as internet, cloud and security and others. In August2017, VERAX Solutions, a boutique Toronto-based technology and systems integration consultingcompany, was recently acquired in the financial services room. Clearhead, a data optimization firm,was also acquired to improve its capability for personalization services. In 2017, the companyexecuted many other acquisitions across areas such as cloud, internet, analytics, ERP, consultancyand several more.5.LegalNew laws and additional requirements which may impact the costs for the company Accenture’s andtheir supply chain activities include regulatory considerations.IT SEZ requirements: SEZ should be set up by IT corporations with a gross surface area ofminimum 10 hectares, with revenue incentives and tax incentives at their disposal.Contract / Bond requirements: immense controversies over the responsibilities for employerswho do not have to practice lawfully.IT Act: the Indian Government is improving the IT Act 2000 in order to offer businesses,especially data protection for transmission and storage, a sound legal climate.
6.EnvironmentAccenture is committed to environmental protection that goes beyond enforcement requirements andsets new criteria. Sustainable ecosystems help healthier cities thrive. Accenture has also investedextensively in research and development to help its consumers boost their sustainable efficiencythrough initiatives and solutions. In addition, Accenture also promotes initiatives through its officesworldwide to minimize energy usage through the use of solar energy. The organization will reduceits carbon emissions by an average of 2.0 tons, from 4.04 metric tons in 2007, on average by 2020,by each employee.These external factors affect the internal environment of the organization and its overall strategy aswell. Organizations must respond to changes in the external factors and adjust its strategic planningto ensure continued market competitiveness, and profitability. Depending on the market anorganization operates in, changes in any one of the abovementioned factors would require adjustmentin the organizational strategy. For example, an increased in the minimum wage by the governmentmight mean increased cost of labour per unit which would drive up the overall cost per unit. Thiswould impact the competitiveness of the product and decrease the revenue earned from the sales.This change in the economic policy would require the organization to review its strategic planning. Itwould either have to cut down its cost (by perhaps laying off workers or decreasing fixed cost etc.)or to increase the price per unit which would make the product less competitive in the market andmay decrease sales and revenue. This is a small example considering only one external factor. Oftentime’s businesses have to deal changes in multiple external factors, and this requires adjustment inthe strategy planning in order to ensure that business continues to flourish as achieve its mission. 2.List the important stakeholders of your chosen organization. Stakeholder is any person, group or entity that have a direct vested interest in the performance andfunctioning of an organization. Some of the stakeholders are internal i.e. owners, staff, workers,while others are external i.e. consumers, government, community. Stakeholders take a keen interestin the way an organization operates as they have either attached their risk to the organization or aredirectly impacted by the activities. E.g. employees in an organization are a key stakeholder, as theyare directly impacted by the organization’s decisions. In case an organization decides to diversifyinto new market or sub- contract work to employees in other countries, a lot of employees may losejobs, therefore, they have a stake in the organization’s decisions. Similarly, owners of a companyinvest capital into their business thereby attaching the risk of loss to the company’s performance. Inreturn for their investment, they expect their manager to make decision that will earn them high
profits and ensure continued high performance. Therefore, by virtue of their vested interests,stakeholders exercise a lot of influence on an organization’s decision making.This year in Davos, corporate managers have entered a new era of doing business — one in whichprofit is not the sole guiding factor. The executives of today continue to recognise theirresponsibilities as corporate accountability guardians and to take care of the needs of all theirpartners and not just customers.A recent report of the World Economic Forum has established, in collaboration with Accenture, fivecore elements in a modern paradigm of responsible leadership, based on good operational outcomes,combined, with meaningful social and environmental effects, for a stakeholders' entrepreneurshipage.The report indicates that solving the problems of the next decade in order for development toincrease and boost the social outcome allows the study's leaders to provide a broader variety ofcharacteristics and functionality.The graph reveals additional terms in profit calls in the past two years correlated with the five items,calculated in proportion. Note: Technology firms will emphasize connections to fundamentallytechnology and engineering principles, as they reflect a relatively large proportion of profitable astrusted developers. Therefore we ran again the study of omitted technology firms, which meant thatadditional mentions of technology & innovation stood at 97%.
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