Business Strategy for KPMG: SWOT, PESTLE, Porter's Five Forces Analysis and Strategic Options

Business Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ................................................................................................................................3
Part A...............................................................................................................................................3
An external and internal analysis which provides a platform for strategic decision making..........3
1. SWOT and PESTLE analysis of the organisation and an analysis of the organisation's
capabilities and resources .....................................................................................................3
2. Competitive analysis of environment with support of Porter's Five Forces Model ..........5
3. Justify and identify the organisation's existing or potential competitive advantage .........7
4. Provide tactical objectives and valid strategies to achieve the overall strategic objectives 7
Part B...............................................................................................................................................8
On the basis of this analysis justify and critically evaluate the strategic options for the
organisation .....................................................................................................................................8
1. Evaluate critically different kinds of strategic directions which is available to the
organisation ...........................................................................................................................8
2. Recommend and justify the most appropriate growth strategies and platforms................9
3. Assess the means and ways through which the chosen strategies can be monitored for
ensuring success ..................................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy refers to the set of actions, plans and goals which outlines that in which
manner the business will compete into the specific market with the products or services. There
are different kinds of business strategies which basically include cost leadership, focused cost
leadership, differentiation and focused differentiation. In the present report, KPMG is taken into
consideration. It is basically the multinational professional services network and also one of the
big four accounting organisations as well(Aaker., 1984). The present report will cover
discussion about internal and external analysis which provides a platform for the strategic
decision-making. In addition to this, the report will cover analysis about the competitive
environment analysis with support of porter's five forces model and also about strategies and
tactical objectives in order to achieve overall strategic objectives. Moreover, the report will
cover discussion about different kinds of strategic directions which are available to the
organisation. The report also consist of the recommendations for the most appropriate growth
platforms and strategies.
MAIN BODY
Part A
An external and internal analysis which provides a platform for strategic decision making
1. SWOT and PESTLE analysis of the organisation and an analysis of the organisation's
capabilities and resources
The SWOT and PESTLE analysis of KPMG organisation is defined into the following
manner:
SWOT Analysis of KPMG: This analysis helps the brand through its strengths, weaknesses,
opportunities and threats as well. Within this kind of analysis, strength and weaknesses are the
internal factors whereas opportunities and threats are the external factors.
STRENGTHS
 It is one of the the big four accounting
firms
 The company has build the strong trust
and quality perception amongst clients
WEAKNESSES
 It has reputational issues in a few of the
member firms

 It has diversified revenue which has
spread across geographies and
industries
 The company has strong expertise in
tax, audit and advisory
 Alliances and acquisitions help in terms
of strengthening the portfolio of
business
OPPORTUNITIES
 The company has expansion and
growth opportunities in the emerging
markets(Amran and et.al., 2016).
 Building technology based solutions
and services key to growth
 Growth in multi disciplinary advisory
segment
THREATS
 The company has competition with
other members of the big four and other
technology and consulting players
 Client protection and attrition of
employees in audit segment
 Increasing lack of confidence in audited
information
PESTLE analysis of KPMG
Political Factors: These are the factors which has a strong influence on the profitability and
long term sustainability of of KPMG. It has been observed that the presence at the international
level enhances the company's sensitivity to changes in political environments. From the political
point of view, the main success into this dynamic international business environment is to
diversify the risks into systematic terms. There are certain factors which needs to taken into
consideration under the political head which include political stability, changing policies,
pressure groups, bureaucracy, taxation, trade restrictions and intellectual property protection.
Economic Factors: It is necessary for the company to understand the economic factors such as
labour market, foreign exchange, inflation rate and savings rate etc(Blumentritt and Danis.,
2006). There are certain economic factors which needs to be considered by the KPMG company
which include employment, interest rates, exchange rate, labour market conditions, economic
structure and financial market efficiency.