A Comparative Analysis of Business Structures: Accenture and Capgemini

This report provides a comparative analysis of the business structures of Accenture and Capgemini, two prominent professional services companies. It examines their organizational structures, including leadership styles, diversity programs, and employee demographics. The report explores the influence of economic factors, such as GDP growth and unemployment rates, on their decision-making processes. It identifies key challenges faced by both companies, including employee retention, growing competition, and client expectations. The report concludes with recommendations for improvement, such as implementing AI, enhancing employee monetary and non-monetary satisfaction, and improving customer service. The report uses various sources to support its claims and provides a comprehensive overview of the two companies.

MANAGEMENT AND BUSINESS CONTEXT
STUDENT DETAILS
STUDENT DETAILS

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Contents
Introduction................................................................................................................................2
The business structure of Accenture and Capgemini.................................................................3
Identical business structure....................................................................................................3
Different business operations.................................................................................................3
Influence from the environmental factors on the decision making............................................5
Top three risk or challenges Capgemini and Accenture faces in the market.............................6
Recommendations......................................................................................................................7
Conclusion..................................................................................................................................9
References................................................................................................................................10

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Introduction
Two organizations are selected for this report which are Accenture company and
Capgemini company. Accenture plc, it an Irish-domiciled company that provides professional
services for making effective business strategies, digital technology and other professional
services related to business operations. The headquarter of the company is established in
Dublin. The company is found on the 1st of September, 2009 (Brightnetwork.co.uk, 2019).
Another selected company is Capgemini. This company is a French multinational company
that also provides the business strategy services such as consulting, technology and
outsourcing services. The headquarter of the company is situated in Paris
(Brightnetwork.co.uk, 2019). In this report, there will be a discussion about the difference
between the corporate governance structure of both the company and environmental factors
that are influencing the decision making of the corporation will also be discussed. Apart from
this, three specific associated risks or challenges with the management will also be marked.

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The business structure of Accenture and Capgemini
Business structure defines the working of an organization. Every organization
incorporates different methods for conducting effective and efficient operations such as task
allocation, coordination, supervision, leadership style, etc (Aithal, 2016). Below are the
similarities and different business structures of both the selected associations. Accenture and
Capgemini both provide identical services but still, their business structure is slightly
different from each other. The Capgemini company is listed in the EPA stock exchange with
the current stock price of €110.20. On the other hand, The Accenture company is listed on the
New York Stock Exchange with a stock price of $205.76 (Brightnetwork.co.uk, 2019).
Identical business structure
Accenture and Capgemini both incorporate the identical business operations thus they
both have the identical integrity policy which governs their human resource in the effective
direction. Both organizations have an identical diversity program because of the deeply
ingrained in the culture. Moreover, Capgemini’s diversity program is present in 40 countries
with employees from a different culture who incorporates 100+ different languages. On the
other hand, Accenture’s diversity program presents in the 120 countries with more than
482,000 employees. Both the organization incorporate the major gender ratio where both men
and women get equal respect from the management (Capgemini.com, 2019). Capgemini
adopted the Women@Capgemini global program in the year 2012 to guide the stakeholder
and other associated people about the benefits of the gender balance (Ali, Sainju &
Baasanjav, 2018).
Different business operations
The CEO of the Accenture (USA) Julie Sweet incorporates the democratic leadership
style as she believes in indulging her teammates in the decision-making process. Employees

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of the company also rate her CEO by 78/100 based upon her leadership style and her
capability to handle the operations. On the other hand, the CEO of the Capgemini, Paul
Hermelin incorporates the Autocratic leadership style. Based upon his leadership style his
teammates rate him the average score of 69/100. This score is 9% lower as compared to the
CEO of the Accenture (USA) (Macrotrends.net, 2019).
In Accenture, there are 144 promotes, 112 passives and 90 detractors. On the other
hand, in the Capgemini, there are 34 promoters, 32 passives and 43 detractors. Employees at
the Accenture rate their gender score by 76/100 because of their business development and
communication strategies (Macrotrends.net, 2019). On the other hand, employees at the
Capgemini give a gender score of 60/100 by including the experience of their Human
resource and Engineering department (Capgemini.com, 2019).
In Accenture, they believe in giving effective training to fresh college graduates
people in order to sharpen their minds. Their training and development team provides the
training to the new people to develop them as per the standards of the company. On the other
hand, human resource department of the Capgemini is planning to only hiring the
experienced candidates so that they will get the developed mindset and their training
department will also incorporate fewer efforts because now they will not need to out
unnecessary efforts to sharp and train the human resource from the sketch (Chiambaretto &
Dumez, 2016).

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Influence from the environmental factors on the decision making
Under the economic factor, the rate of GDP growth plays a significant role in the
profitability of the company. As both companies incorporate the operation to design the
business management strategies for the clients as per their needs (RTTNews, 2019). Slow
GDP growth implies less business establishment in the nation. In the year 2017, the GDP
growth rate of the United State changes to 2.3%, in the year this change increases to 2.9% in
2018. This positive GDP growth rate positively impacts the growth rate of the company
(Macrotrends.net, 2019). As in the year 2018, the annual gross profit of the company was
$12.492B which is 12.84% higher than the year 2017 (Macrotrends.net, 2019). In this same
way, the economic growth rate affects the business operations of the Capgemini also. The
positive economic GDP growth enables the organization to create a revenue of €13,197
million which is 5.4% up to as compared to the year 2017 (Goia, Marinas & Igret, 2017).
Apart from this, the rate of unemployment level in the country also impacts the
business functioning in both the companies. For example, the rate of unemployment level in
the nation ensures the greater supply of the jobs then demand, in this case, the major concern
for the management is to figure out the talented workforce (Sharma, 2019). Currently,
482,000 employees are working in the Accenture and over 200,000 employees are working in
Capgemini (Heisig, et. al., 2016).

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Top three risk or challenges Capgemini and Accenture faces in the market
Employee retention: Both the organization incorporates the major challenges in the
employee retention segment. The management of both the company faces this
challenge because of the monetary dissatisfaction among the workforce. When the
employees find better workplace opportunity then they feel free to switch the
organization. This creates the major challenges for management as their trained and
skilled workforce goes away with the other major competitors (Mysova, Dovlatyan,
Belikova, Kostyuchenko & Troyanskaya, 2016).
Growing competitors: In the market, the competitors of both companies are going
rapidly. Due to growing competition, the companies fail to incorporate great
profitable results. Both the company are the competitors of each other. Apart from
this, the other competitors of the companies are Computer Science Corporation
(CSC), IBM, The Boston Consulting Group, Bran & Company, etc (Noe, Hollenbeck,
Gerhart & Wright, 2017).
Client’s expectation for low cost and high-quality results: The expectation of the
client for the high-quality services at the low cost creates another challenge for the
corporation. Due to the growing competition, the company has to make a contract
with the client because the client has many options available in the market for
completing their work (Rana, 2017).

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Recommendations
These recommendations are for both companies. These recommendations will help
the association in improving their process and improving their cash flow pattern (Salavoum,
2015).
Artificial Intelligence (AI): AI is developing from iPhone’s Siri to self-driving cars.
Both of the company can incorporate the application of AI into their system because it
will minimize their human resources efforts and it will enhance the client experience.
Moreover, AI and Machine learning are known to produce the 100% accurate and
reliable but it needs maintenance through human efforts. Implementing the AI and
ML process will initially increase the production cost or system cost but in the long
run, it will decrease their human resource cost (Uhl & Gollenia, 2016).
Monetary satisfaction to the employees: Monetary motivation is the biggest
motivation. The organizations should incorporate the non-monetary satisfaction
norms with monetary satisfaction norms. Non-monetary norms include team
appreciation, positive feedback, etc. Monetary satisfaction includes the higher
performance-linked incentive program. Both of the associations should incorporate
the combination of non-monetary norms with a performance-linked incentive
program. Apart from this, the human resource department of the association can take
the help of the various motivation theories, such as Maslow’s Need Hierarchy Theory,
Herzberg’s Motivation, McClelland’s Need Theory, McGregor’s Participation
Theory, Urwick’s Theory Z, Argyris’s Theory, Vroom’s Expectancy Theory, Porter
and Lawler’s Expectancy Theory, etc (Yeboah‐Assiamah, Asamoah & Adams, 2019).
Customer service parameters: In order to fascinate the customers, both companies
need to provide effective customer service. No doubt, currently both the companies

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are providing the best customer service with their highest potential efforts but in the
market, other competitors are developing, in order to fascinate their customers, the
company has to provide better customer service for gaining a competitive advantage
(Zaied, Louati & Affes, 2015).

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Conclusion
In this report, the suggested recommendations are both the business houses should
incorporate the norms of the AI and ML, both organizations should also offer better
performance linked incentive program to their employees and norms for better customer
services are also suggested in this report. Apart from this, the major challenge for both the
company arises from the growth or decline rate of the country’s GDP. Rate of unemployment
also adversely impact the operations of the company. Apart from this, the CEO of the
Accenture incorporate the norms of the democratic leadership and the CEO of the Capgemini
incorporate the norms of the Autocratic leadership style.

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References
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strategies, operating concepts & business systems. International Journal in
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Ali, A., Sainju, R., Aj, A., & Baasanjav, B. (2018). School of Business. International Journal
of Agronomy, 2018(4), 1-6.
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https://www.brightnetwork.co.uk/employer-advice/accenture/culture-accenture/
Capgemini.com. (2019). Revenues of €13,197 million. Retrieved from:
https://www.capgemini.com/in-en/news/building-on-excellent-2018-results-
capgemini-starts-2019-with-confidence/
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future research needs. Journal of Knowledge Management, 20(6), 1169-1198.

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Macrotrends.net. (2019). Accenture Gross profit 2006-2019. Retrieved from:
https://www.macrotrends.net/stocks/charts/ACN/accenture/gross-profit
Mysova, O. S., Dovlatyan, G. P., Belikova, I. P., Kostyuchenko, T. N., & Troyanskaya, M.
(2016). Systemic approach to business administration of innovation-oriented
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RTTNews. (2019). Capgemini 2018 operating profit up 6%. Retrieved from:
https://markets.businessinsider.com/news/stocks/capgemini-2018-operating-profit-
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estimates-raises-profit-forecast-1553771396082.html
Uhl, A., & Gollenia, L. A. (2016). A handbook of business transformation management
methodology. Abingdon: Routledge.

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Yeboah‐Assiamah, E., Asamoah, K., & Adams, S. (2019). Transdisciplinary public
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Aponte, "MSC Mediterranean"

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