Strategic Management for PwC: Offshoring Jobs for Competitive Advantage

Running head: STRATEGIC MANAGEMENT
Strategic Management
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1STRATEGIC MANAGEMENT
Executive summary
The purpose of this assignment is to discuss about the strategic impact of offshoring jobs for
PwC, Australia. This report has elaborated to business leaders by analysing its ongoing
external and internal issues, which are responsible for employing strategy of moving the jobs
offshore. They are thinking to expand a part of customer service and accounting operation to
foreign locations as well. This strategy has a deep impact on different stakeholders and this
report has analysed the company’s benefit from moving the jobs offshore in terms of gaining
competitive edge and improving the business. Apart from various benefits, this strategy has
invited risks as well. Evaluating those issues, this given report has made an effort to analyse
its relevancy in terms of increasing revenue.

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Table of Contents
Introduction....................................................................................................................2
External issues: strategically moving jobs to offshore...................................................2
Internal issues: strategic consideration for moving jobs offshore..................................4
Impact on stakeholders for shifting jobs offshore..........................................................5
Identification of stakeholders.....................................................................................5
Impact of offshoring...................................................................................................5
Gaining competitive advantage by expanding the business offshore............................6
Risk of offshoring jobs and probable solutions..............................................................7
Mitigation procedure..................................................................................................7
Conclusion......................................................................................................................8
References......................................................................................................................9

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Introduction
PWC, Australia operates as a global network in no less than 157 countries with
massive workforce working together to deliver quality solutions in assurance, advisory and
tax related services. In Australia, PWC works following a code of conduct to build a
relationship of trust within society by solving critical issues within their industrial boundary.
Understanding the nature of customers is important while providing solutions in finance and
accountancy. As argued in Ebiringa and Kule (2014), based on the core business model, they
seek for continuous improvement aligning with the client company’s value of services. This
report will enlighten the business leaders by analysing its ongoing external and internal
issues, which are responsible for employing strategy of moving the jobs offshore. Inevitably,
this strategy will have a deep impact on different stakeholders and it will further analyse the
company’s benefit from moving the jobs offshore in terms of gaining competitive edge and
improving the business. As described in Grappi, Romani and Bagozzi (2013), apart from
various advantages, this strategy will invite risks as well. Evaluating those issues, this given
report will try to analyse its relevancy in terms of increasing revenue.
External issues: strategically moving jobs to offshore
The central issue with PWC is, after successfully re-entering into consulting business,
they are facing immense competition from newly emerged businesses. They are consistently
trying to get hold of the current market position in midst of such increasing competition (Tate
et al. 2014). They have a requirement of keeping their market share in a stable place to ensure
sustainability as the business place is consistently increasing.
Political factors in developed countries are stable and fairly reliable in most of the
cases yet in case of developing countries the company needs to verify closely the areas of
taxation policy, labour law, trade and environmental regulations or tariff systems. The current