Business Strategy in Ernst & Young

Business
Strategy of Ernest
And Young.

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................2
Activity 1.........................................................................................................................................2
1.1. Discuss the Application framework to analyse influence of macro environment................2
Include a diagram of the PESTLE of Ernst & Young.................................................................2
Using PESTLE, critically analyse the impact and influence of the macro environment, on
Ernst & Young (E&Y) and its business strategies.......................................................................2
1.2. Organisation Audit................................................................................................................5
Explain briefly about what is Swot analysis................................................................................5
Using SWOT, critically analyse the impact and influence of the macro environment on Ernst
& Young (E&Y) and its business strategies................................................................................6
Activity 2.........................................................................................................................................9
What do you understand by strategic capabilities?......................................................................9
Identify the key components of strategic capabilities..................................................................9
Analysis the strategic capabilities of Ernest and Young by using VRIO Analysis...................10
Explain the McKinsey’s 7S framework.....................................................................................11
Include a Diagram......................................................................................................................12
Conduct a critical Evaluation of the internal environment using The McKinsey 7-S Framework
...................................................................................................................................................12
Activity 3.......................................................................................................................................13
Explain the Porter’s Five Forces Model....................................................................................13
Include a diagram......................................................................................................................14
Produce an industry analysis for Ernst & Young (E&Y) using Porter’s Five Forces model....14
Explain the Ansoff Matrix.........................................................................................................15
Include a diagram for Ernst & Young (E&Y)...........................................................................16
Apply the Ansoff Matrix to devise appropriate product/market strategy for Ernst & Young
(E&Y)........................................................................................................................................16
Activity 4.......................................................................................................................................17
Explain Porter’s generic strategies............................................................................................17

Apply the Porter’s strategy and Bowman’s Strategy Clock to devise strategic
planning/strategic directions for Ernst & Young (E&Y)...........................................................17
What is a strategic management plan?.......................................................................................19
Explain how this Strategic Plan will be used to implement the recommended strategies in
Activity......................................................................................................................................19
CONCLUSION..............................................................................................................................21
REFERENCES..............................................................................................................................22

INTRODUCTION
Business Strategy is a set of effective competitive moves and actions that business could
generates could use in better format to attract customers, enhancing performance, implement
tactics to attain better competitive advantages to organisational goals. This mainly outlines about
how business should be carried out for effective desired ends. It further explain about master
plan which is implemented through an individual so that high competitive positions can be
accomplished within marketplace (Kumar Mangla. and Goyal, 2021). This also creates more
better vision and direction for the whole organisation. It is important that all people within
company where it has clear about goals and objectives. In this report, the company has selected
Ernst and Young which is global and multinational business which provide service network
within network through headquarter in London, England. Ernst and Young is also one of largest
professional services network within world along with Deloitte, KPMG and PWC. As the topics
are highlight in following report different critical frameworks to acknowledge macro
environment is discussed. Internal capabilities and environment of organisation is acknowledged
along with evaluation through Porter's five forces. At last, different models, concepts and
theories to understand strategic directions are stated.
MAIN BODY.
Activity 1
1.1. Discuss the Application framework to analyse influence of macro environment.
Macro Environment: It is form of an organisation that is related within external and internal
factors which creates high influence through better working to decision making of company.
Furthermore, these elements within have impact on better strategies where firm have competency
to undertake risk and opportunities driven flow.
1

Include a diagram of the PESTLE of Ernst & Young
Figure 1: Pestle Analysis, 2020.
Source: https://www.istockphoto.com/vector/pestel-analysis-gm1264040171-370105318.
Pestle analysis: It is critical framework to better analyse about effective key factors such as
Political, Economic, Technology, Social, Environment and legal. These factor would better
influence through an organisation from outside (https://www.case48.com/pestel-analysis/13683-
EY., 2020). In following there is detailed pestle analysis regarding with Ernest and Young
company.
Using PESTLE, critically analyse the impact and influence of the macro environment, on Ernst
& Young (E&Y) and its business strategies
 Political: According to this factor it better reflect about political environment about
specific country, it influences about strategies and tactics that is adopted by the company.
As the UK political condition is quite stable in terms foreign exchange policy (Yuan., Lu
and Yu., 2020). Thye conducting pestle analysis the political impact to Ernest and Young
exert a strong better influence and long term sustainability and profitability of Ernest and
Young. As the major influence which EY need to consider about political chaos where it
derives about investors and harms effective stakeholder trust in economic and effective
conquest to mapping organisational culture. Currently, Ernest and Young is having its
existence in different countries where each branch of company having its own political
challenges. Through growing tensions and instabilities within global political
environment can affect the better gold industry growth limit growth opportunities
available through EY (Farrukh and Nawaz., 2020). The basic challenges which can face
2