Environmental Forces and Risks Impacting BDO Australia's Business

BUSINESS MANAGEMENT

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Contents
INTRODUCTION.....................................................................................................................................1
Structure of BDO...............................................................................................................................2
Internal and External environmental forces that is impacting their business....................................2
Risks that currently confronts the business.......................................................................................4
Decisions that are taken by the firm to enhance their performance.................................................4
Functions within the business organisation that will assist in achieving its strategy.........................5
Conclusion.............................................................................................................................................5
REFERENCES......................................................................................................................................6
INTRODUCTION
All across the globe, many kinds of changes are taking place in the operations of the
firms as many types of challenges are faced by the firms. It is crucial for the management to
take care of the risks that are posed to the firm in their future operations. Companies have a
defined structure that helps them in bringing smoothness to their work (Durocher, Bujaki &
Brouard, 2016). There are several internal and external environmental forces that are

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influencing the business of the organisations. In order to face the issues that are present in
front of the company management is taking many kinds of decisions so as to improve the
organisational performance. It is also essential that firm makes strategies for achieving their
strategies. BDO Australia is an international network of public accounting, consulting, tax
and business advisory firm that performs professional services under the same name. This
company has around 74000 workers working in 1500 offices in around 162 nations of the
world. It makes this company, fifth largest in the overall industry throughout the world. This
essay highlights the structure of BDO as well as the environmental forces that are affecting
the business of BDO. It also showcases the risks that are present in front of their business as
well as the decisions they are taking for enhancing the organisational performance. Various
functions that help in achieving the strategy are also illustrated in the report.
Structure of BDO
Every firm has their own structure (Jones, 2011). This structure is made according to
the type of work they are doing so as to bring efficiency in their work process. They have a
hierarchal structure from top to down while they have parallel structure between different
units. Every unit has a predefined role but are interdependent on each other. This helps them
in achieving their task in the given time frame. At the top most of the organisation there is
director and chairman of the board. Under them there are various executives and managers in
different cities. In these cities there are unit named natural resources, automotive, corporate
finance, cyber security, forensic services etc. Apart from this it is to be understood that
presently it is having 1340 workers working in around 10 offices. It is also having 168
business partners.
It is crucial for any company to understand the environment it is facing both internal
and external. This helps the company making their strategies for operation. For BDO there
are many forces that are impacting their business.
Internal and External environmental forces that is impacting their business
External forces
There are many political decisions that are changing in various parts of the world. This had
forced the accounting firms like BDO to rethink about their ways of doing business. The rules
and regulations related to the tax have changed especially after the formation of new
governments in a past decade (Horngren, Harrison, Oliver, Best, Fraser & Tan, 2012). To
manage their operation and of their clients is a difficult task.

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Even after the fact that Australia is a developed nation and having higher GDP, it is affected
by economic crisis that is going on in various parts of the world (AFRĂSINEI &
GEORGESCU, 2015). Since BDO is totally having business based on the finance and hence
any changes in the economic condition has a direct impact on the operations of the firm. A
more customised planning is required for both company and their clients.
There are huge amount of changes that are taking place in the society and hence it has
become crucial for the firms to fulfil the demands of their clients (Azim, 2013). More people
are coming under the tax range and larger numbers of smaller firms are demanding for
consultancy regarding their financial status. This has provided higher growth opportunities
for BDO.
Technologies related to accounting and finance has changed. It has become crucial for the
firms to make sure that they have installed best of accounting software. This will help them in
providing better experience to their customers and clients. Company needs to adopt these
technologies and upgrade it continuously so as to remain in the competition.
The competition in the industry has risen at very fast speed this has made it difficult for the
firms to ensure their long term growth (Nwogugu, 2011). In order to make sure that they
tackle competition easily they need to have effective strategies for their different operations.
Internal forces
The demands of the workers have increased especially in Australia (Xu, et al., 2013). This
has made it difficult for the companies to maintain healthy employee relations by fulfilling
their demands in the increasing competition. Recruitment of overseas employees in Australia
has become difficult. This has also created the diversity problem at BDO. It is a serious issue
as fulfilling personalised demands of each and every employee is difficult for every company.
Without giving importance to these factors a higher level of growth cannot be expected. The
most important demand that they need to fulfil is regarding the increasing salary demand of
the workers within Australia (Xu, et al., 2011).
It is also necessary that company prepares their staffs for their future endeavours. Providing
them training as per the individual’s requirement is a difficult task and hence company has to
implement performance analysis system so as to understand the requirements of the each and
every employee (Handley-Schachler, Al-Abiyad & Al-Hadad, 2012).