Business Strategy for KPMG: Internal and External Analysis, Competitive Environment Analysis, and Competitive Advantage Identification

Unit 32 – Business Strategy

Table of Content
Introduction 3
Part A: An internal and external analysis that provides a platform
for strategic decision making: 3-8
1. PESTLE and SWOT of the organisation and an evaluation of the
organisation’s resources and capabilities 3
2. Competitive environment analysis using Porter’s Five Forces model
6
3. Identification and justification of the organisation’s existing and/or potential
competitive advantage 7
4. Valid strategies and tactical objectives to achieve overall strategic objectives
8
Part B: On the basis of this analysis critically evaluate and justify
strategic options for the organisation: 8-10
1. Critical evaluation of the different types of strategic directions available to
the organisation 8
2. Justification and recommendation of the most appropriate growth platform/s
and strategies 10
3. Evaluate ways and means by which the chosen strategy/ies can be
monitored in order to ensure success 10
5.0 Conclusions 11
References 12

Introduction
Strategic management is the Continuous process which include
planning, controlling, evaluating of all the requirements of the businesses
through which the firms can be able to fulfill their aims and targets (Budisusetio
and et.al., 2019). Organizations have to analyze their business environment
regularly so that they can make their business strategies according the situation
of the businesses. This report contain the strategies which are implemented by
the consultancy firm known as KPMG. This company based in UK while the
headquarter of this company is in London. KPMG firm provides various services
like taxation, Auditing, legal and it is also work as management consultancy.
KPMG Firm provide their services in 144 countries all over the world. This firm is
also listed in the big four audit consultancy firms across the world. This report
includes the various strategies through which this company is able to achieve
the goals. The strategies which they have adopted are going to be discussed in
the below report.
Part A: An internal and external analysis that provides a platform for
strategic decision making:
1. PESTLE and SWOT of the organisation and an evaluation of the
organisation’s resources and capabilities
PESTLE analysis of KPMG
KPMG is one of the biggest consultancy firm among the top four
management firm of the globe while they have a mission to make their
footprint all over the world. Using Pestle analysis, companies wants to
analyze their related external environment which will make huge
implication on the whole industrial sector and specially it make impact on
KPMG like their model of business, market action plans and innovation
growth. By evaluating their external environment, company able to
reduced their threats while increasing chances of better opportunities. All
the factor of Pestle analysis are discussed below:
Political factors
This factor critically make analysis on how a business sector be influenced
by this element which help them in ascertaining the enterprise long term
sustainability (Dau, Moore and Kostova, 2020). Some of the political factors
are fiscal policy, governance trade policies, taxation system and political
stability. In reference to KPMG,
who have footprint in many countries which are affected badly by recent
political situation in UK. As there is change in Government, KPMG seeks to
ensure the new policies of new government which help them to grab the
opportunities. KPMG has to study the new corporate taxes which might get
reduced that assists in attracting new foreign direct investment.
Economical factors
In the Pestle framework, this elements directly influenced the business
sector through various variables which help them to accomplish their
economic targets. Economic factors includes inflation, interest rate,
exchange rate fluctuation and demand and supply of material. In context

to KPMG, they have targets only those nation which have high efficiency
financial markets where they can easily available with human resource and
financial.
Social factors
This is the third factor of Pestle analysis where culture of organization is
highly influenced by societal measures, worth and trends (Oliveira Claro
and et.al., 2021). Some of the examples of social factors are consumption
pattern, demographic trends and cultural norms. KPMG have to research
about their client perception, in depth study of societal norms and to
increase the brand image.
Technological factors
In today's developed market, constant innovation is generally required and
it also need huge amount of investment in technologies. It is necessary for
companies like KPMG in order to enhance their quality of audit and bring
audit team software which help in enhance their operation. Some of the
factors are infrastructure, innovation and research and development.
Legal Factors
This factor provides wider scope than political factor which provides
specific details about more information on different laws and regulatory
requirements, laws related to consumers and workers and intellectual
property laws. As KPMG has operating in many countries where they have
to comply with host country regulation in terms of facing lawsuits.
Environmental factors
The last element of Pestle framework where stakeholder increase their
concern on environment protection which required companies to follows
regulation regarding environmental laws. Due to this, KPMG has initiate its
global climate response which has goals to reduced enterprise global
impact. This system has help KPMG to work on it to reduce energy use by
some percentage.
SWOT analysis of KPMG
Swot analysis is a framework which help companies in evaluating their
performance so as to compared with benchmark. This strategic analysis
help them to evaluate the internal and external environment. In terms of
KPMG, as they are highly rely on excellence and quality in audit and
taxation (Dey, 2019). As KPMG serves to different sector like governments,
public sectors and not for profit organization where they offer consultancy
services and assurance practice. All the key elements of Swot analysis are
discussed below:
Strength
 It is a assets type resource or ability of the enterprise can utilize
efficiently in accomplishing their targets.
 This is internal analysis which help in building present and future
operation and also help in developing strategic goals.
 KPMG has various strength like extensive geographic range where
they have above 640 offices across 140 nations with 230,000
employees.
Weakness
 It is defined as organization not performing at their optimal level.
 These internal analysis factor help in increase brand position in the
market.