Accenture: Strategic Position, Challenges and Recommendations

This report provides a comprehensive analysis of Accenture, a global management consulting, technology services, and outsourcing company. It begins with an executive summary and table of contents, followed by an introduction outlining Accenture's mission and business model. The discussion section delves into the impact of software and digital transformation on business strategy. The report then analyzes Accenture's business model, value proposition, and revenue streams, examining its strategic position through political, social, technological, and economic factors. It explores three strategic options, comparing them critically, and assesses Accenture's current strategy and strategic challenges. Recommendations for adjustments to the current strategy are provided, along with a critical assessment and comparison of strategic options. The report concludes with a final recommendation and references.

Running head: ACCENTURE-THE ANALYSIS
Accenture-The Analysis
Name of the Student
Name of the University
Author Note

1ACCENTURE-THE ANALYSIS
Executive Summary
Extension, development and rivalry will keep on quickening in developing markets, tricking
more organizations into entering the creating scene. Firms with worldwide aspirations who
need to understand the guarantee of developing markets should create a technique intended to
execute accordingly to the basic achievement factors special for each objective market,
accommodate adaptability in the midst of market advances, and position them for long haul
achievement. In this report, the strengths, weakness and threats towards the new changing
technology world and its impact on Accenture’s business and strategic position with
comparison with other top competitive firms of the U.S market structure has been
highlighted.

2ACCENTURE-THE ANALYSIS
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Accenture business model analysis........................................................................................4
Value added proposition.....................................................................................................4
Revenue..............................................................................................................................5
Accenture strategic position analysis.....................................................................................5
Three strategic options and their critical comparison.........................................................7
Firms current strategy and strategic challenges..................................................................8
Advise on possible adjustments to the current strategy....................................................11
Critical Access and Comparison.......................................................................................12
Recommendation for the strategic option to be implemented first...................................13
Conclusion................................................................................................................................14
References................................................................................................................................15

3ACCENTURE-THE ANALYSIS
Introduction
Accenture is a worldwide administration counseling, innovation benefits and
outsourcing organization, with around 2,59,000 individuals serving customers in more than
120 nations (Harvardbusiness.org 2018). Joining unparalleled experience, far reaching
capacities over all enterprises and business capacities, and broad research on the world's best
organizations, Accenture works together with customers to enable them to end up noticeably
superior organizations and governments.
Accenture's image line is High Performance Delivered. This by itself demonstrates
that it is an organization that is centered around execution and turnover and thus, the system
it takes after is to expand them both - straightforwardly or in a roundabout way (Perrine, Tar
and Asper 2002, pp.59). Accenture is following the worldwide pattern of building up itself in
developing economies. Likewise, Accenture is volume and effectiveness centered.
Accenture additionally encourages its customers to cut expenses and outsource
innovation capacities. Representatives contain involvement in a decent variety of ventures in
key business zones, together with client relationship administration, inventory network
administration, business system, innovation and outsourcing. The business worldwide central
station is in Bermuda (Bury 2018).
Discussion
Programming Software is currently a reason for separation and development. It's a
channel to new administrations and income streams, consistent client encounters and venture
into new markets. Like never before, the product methodology is the business technique. The
capacity to take off business abilities constantly will be the distinction between organizations
that stagnate and ones that advance (Motohashi 2015, pp.22). Each innovation with change

4ACCENTURE-THE ANALYSIS
potential begins in disconnection, and computerized is no exemption. Portable, cloud,
process, client, production network, and so forth. Each had its own particular technique
before it mixed into business system (Gupta, Rudd and Lee 2014, pp.3). Because of these
technique waves the terms 'advanced' and 'procedure' have moved toward becoming abused
and twisted terms.
Accenture business model analysis
Accenture is in partnership with customers to enable them to end up plainly a
predominant business. Significant European suppliers are the biggest primary customer of the
organization. Because of evolving inclination, taste, and progression in innovation, clients
tend to move their regard for those organizations that give these administrations in view of
their tastes and decisions. The customer figures out how to progress and adapt up to these
progressions by examining potential results of consultancy and master administrations. The
organization means to give quality administrations and magnificent customer association.
Value added proposition
Accenture expounds answers for customers hardest difficulties by recognizing
business openings. To do as such Accenture is sorted out in five specialty units: Strategy,
Consulting, Digital, Technology, and Operations. To tailor its answers for the particular
needs and difficulties of its customers, Accenture gives its administrations through industry
focused working gatherings spreading over the specialty units having some expertise in 13
unique businesses (Harrin 2007, pp.2). The organization teams up with driving innovation
organizations. This system empowers inventive arrangement conveyance, which makes an
incentive for customers.

5ACCENTURE-THE ANALYSIS
Revenue
Income or Revenue could be driven by Nemours factors including development,
workforce, key extension; powerful authority etc. Analysis demonstrates that high quantities
of representatives could prompt high income. Accenture's worker numbers have been
expanded by 44.5%, and the income has likewise developed by 34.4% (Benn et al., 2014).
Be that as it may, in light of business hypotheses, income pattern could have been driven by
different variables. As per Ghezzi (2013), the present business condition is quick, shaky and
ceaseless change. Thusly, the business sectors develop speedier and accordingly, the rate at
which the business can enhance, decides its achievement in the market. Accenture is
effectively engaged with development, the foundation of advancement focuses, labs and runs
development challenges, and by 2020 Accenture goes for an opening around ten development
center point (Accenture.com 2018). Additionally, According to Forbes, counseling represents
55% of the aggregate estimation of the organization. Amid the monetary year of 2017 the
compound yearly development rate of counseling raised from $ 15.4 billion to $ 18.75 billion
(Forbes 2017). Also, Accenture's reports for quarter 2 out of 2017 show 5% year over year
development. The outsourcing division contributes around 39% of Accenture's aggregate
esteem and interest for outsourcing is high (Nasdaq 2017).
Accenture strategic position analysis
Political factors: the current political improvements including the choice for the UK
to leave EU union have prompted expanded vulnerability in the market. Be that as it may,
organizations are endeavoring to adjust to the dubious condition by recognizing the potential
dangers and openings, this is finished by the help of consultancy firms. As indicated by Peter
Richardson the overseeing executive of UK, (Nicholas and Steyn 2017, pp.190) They ought
to likewise keep on moving far from the conventional time-and-materials model of valuing
and towards a business recommendation in light of characterizing and conveying results, and

6ACCENTURE-THE ANALYSIS
sharing their customers dangers and prizes (Callahan and Brooks 2004, pp.11). For that
reason, Accenture as a consultancy firm should comprehend the complexities of the
connection between their clients` organizations and the questionable condition they work in.
Social factors: as indicated by national measurements, the aggregate populace of the
UK is 65 million in which the instruction education in the UK is 99% (Callahan and Brooks
2004, pp.11). Subsequent to leading a review on 62000 graduates, comes about demonstrated
that 54% of understudies who wanted to work in consultancy firms has business related
involvement and the graduates are expecting a normal yearly pay of £28,145 (Consultancy.uk
2018). Additionally, counseling Industry in the UK is prospering with time, as per an article
distributed by (Small Business, 2017); SMEs are burning through 60 billion pounds a year on
getting to master advisors. Accenture is positioned 59th for ladies work in
2017(Accenture.com 2018).
Technological factors: a few mechanical variables influencing the consultancy
business in the UK, as indicated by a report by, plans of action that are advanced and in view
of development for instance crowd sourced counseling firms impacted by new innovations
and more quick witted customers are as of late rising and intensely influencing the division
(Jeffery et al. 2017, pp. 12). Besides, crowd sourcing is a model controlled by cutting edge
innovation and web-based social networking that is utilized by counseling firms to source
exact ability and give administration to anyplace on the planet by means of the web(Grant
2016, pp.25). Moore (2017) claims that for diagnostic sort counseling firms crowd sourcing is
helpful.
Economic factors: Monetary components as indicated by analysis distributed by
Source Global Research from a market knowledge supplier on the area of consultancy,
recommended that the Economic condition for administration consultancy firms in the UK is

7ACCENTURE-THE ANALYSIS
sound. The source likewise uncovered that industry thrived around 4 times in 2017 than that
in 2015, up 8.2% from £6.02 billion to £ 6.79 billion(Accenture.com 2018). The source
additionally recommended that the consultancy firms in the UK outflanked the market by
growing 11.5% to £2.55 billion (Knickrehm, Berthon and Daugherty 2016, pp.7)-this
position was come to because of the administrative condition the business works in
particularly in the money related administrations
Three strategic options and their critical comparison
Danger of substitute items or administrations: Accenture not being the main firm
offering the supply of vitality draws in substitute items dangers and through these,
administration should be innovative and furnishes clients with administrations at positive
costs or participate with these organizations so to control the market (Schmidt 2009, pp.19).
Focused opponent: Competitiveness among match organizations additionally delays
dangers to the company's administration and as because of these dangers it implies that the
firm chiefs need to pick the procedure that will enable them to accomplish consumer loyalty
and additionally giving the best an incentive to clients than the contenders to empower them
to make due in the market and charge a higher piece of the pie and furthermore acquire an
upper hand (Khan 2018).
Risk of new contestants: Careful examination of contender moves enable the firm to
distinguish what contenders intend to accomplish and the systems they have, and through
these, firm needs to embrace and actualize methodologies that will enable the customer
association to counter these moves and get vital fit (Peppard and Ward 2016,
pp.18).Coordinated effort with contending firms in a similar industry will enable the firm to
accomplish a vital fit and go about as a block to new contestants as new confinements will
give them imposing business model power and control in the market.

8ACCENTURE-THE ANALYSIS
Firms current strategy and strategic challenges
Accenture's industry aptitudes and experience is esteemed by customers as Accenture
comprehend customer's business as much as they comprehend and can convey some unique
bits of knowledge to them and can indicate how innovation can be connected to business
advantage in their associations (Moore 2009, pp.11).Accenture knows this and put resources
into industry abilities to separate further, win more, and convey better and to have a higher
customer fulfillment.
Accenture is having procedure to put a great deal in
a) Thought authority and advancement,
b) Resource based separation to offer more, convey better and convey higher customer
fulfillment (Harrin 2007, pp.21).
c) Skills and ability.
d) Institute for High Performance and Accenture Research important to the business.
To attempt the Strategic Group investigation of Accenture, this examination utilizes
the information of its rivals including Deloitte, IBM, KPMG Earnest &Young and Kearney

9ACCENTURE-THE ANALYSIS
and more. Especially, the examination analyzes the strategy analysis of the top competitive
firms.
Figure: 1 shows Employee Number vs Diversification
Source: Accenture.com. (2018).
Among the following six companies Accenture records of having the highest number of
employees about 425,00.IBM on the other hand are the most diversified company with
employee number around 380,000,it provides two different types of services .Accenture ranks
second and has around 17 business units (Bury 2018). Capgemini has around 14 units,
KPMG and
Earnest&
Young have the
same number of
business units around
12.
Figure: 2 shows the impact of this diversification

10ACCENTURE-THE ANALYSIS
Source: Consultancy.uk. (2018).
Figure 2 demonstrates that in 2016, the most broadened organization IBM, which has
workers that number not as much as Accenture's, created income ($ 79,9 bn) over double the
one produced by Accenture around ($ 34 bn). Newsroom.accenture.com. (2018) this may
suggest that IBM is more proficient at annoying its workers for higher profitability. In this
manner, Accenture ought to enhance and propel its representatives keeping in mind the end
goal to produce higher income. Deloitte which is from diagram 1 above is slightest enhanced
produced income around ($ 36 bn) (Bury 2018). Sincere and Young and KPMG are less
expanded than Capgemini, yet produced higher income. Broadening ought to consistently be
a wellspring of economies of degree and create better income.
These figure demonstrates that while expansion measurement not specifically relate
with income, take note of that the organizations with most astounding number of workforce
are additionally most astounding income generators; that is IBM, Accenture and Deloitte
versus Capgemini, KPMG and Earnest and Young.
Advise on possible adjustments to the current strategy
According to porter’s five-factor forces, managers need to be strategically positioned
for them to attain a strategic fit and enable them to achieve competitive advantage (Gelles
2011). Dynamic condition and changes in innovation offer open doors and additionally
dangers to the customer firm as they are expected to act rapidly and to maintain a strategic
distance from contestant of new contenders.
Risk of substitute items or administrations: Accenture not being the main firm
offering the supply of vitality draws in substitute items dangers and through these,
administration should be innovative and gives clients administrations at great costs or
participate with these organizations so to control the market (Moore 2009, pp.14).

11ACCENTURE-THE ANALYSIS
Power of the suppliers: Suppliers from production forms alliances that create a
bargaining power which will make the client organization pay more for them to attain higher
profits and these will lead to firm charging higher prices to final consumers hence leading to
shifting of suppliers to a less priced products offered by competitors.
Power of the Customers: Customers negotiating influence also makes the firm
manager of the client company shift their strategies to help the firm not to operate at a loss
and through this diversification strategy is necessary to maintain the firm increase spread the
risk level and increase profits of the company(Segerberg et al. 2014, pp.3).
Competitive rival: Competitiveness amongst rival companies also pauses threats to
the firm's management and as due to these threats it means that the firm managers have to
choose the strategy that will help them achieve customer satisfaction as well as providing the
best value to customers than the competitors to enable them to survive in the market and
command a higher market share and also obtain a competitive advantage (Khan 2018).
Danger of new participants: Careful investigation of contender moves enable the firm
to recognize what contenders intend to accomplish and the techniques they have, and through
these, firm needs to embrace and execute systems that will enable the customer association to
counter these moves and acquire vital fit (Nicholas and Steyn 2017, pp. 346). Joint effort with
contending firms in a similar industry will enable the firm to accomplish a key fit and go
about as an obstruction to new contestants as new confinements will give them imposing
business model power and control in the market.
Critical Access and Comparison
Potential paths to entry:

12ACCENTURE-THE ANALYSIS
A. Consistency with the strategic objectives and vision (strategic portfolio balance and
fit)
B. Creation of competitive advantage
C. Financial viability (e.g. profitability (max 5-year timeframe), cash flow, financing,
shareholder value, capital investment)
D. Satisfaction of current and future customer needs
E. Potential response of competitors
F. Feasibility of implementing required organizational changes
G. Robustness under different future scenarios
A B C D E F G
Suitable 2 1 1 1 -2 0 -1
Acceptabl
e
-2 0 -1 1 0 -1 2
Feasible -1 1 1 2 2 2 0
Figure 3: Evaluate potential paths to entry of Accenture
Source: Accenture.com. (2018)
Recommendation for the strategic option to be implemented first
The preceding patterns from the above evaluation show that the best option is D,
organizations need to quit respecting the open door, or doing (the wrong) things better, and
utilize the wellspring of their difficulties—computerized—as an empowering influence and
impetus to enable them to start doing things another way to take advantage of new income
development potential (Store.marketline.com 2018). At the end of the day, they have to

13ACCENTURE-THE ANALYSIS
embrace new client driven practices that can enable them to wind up plainly a multispeed
client association, one that demonstrations at an indistinguishable pace from purchasers now
act. That requires taking three essentially new activities:
As opposed to proceeding to underline the customary "client to organization" show,
suppliers need to utilize computerized capacities to make a consistent, Omni-channel and a
conclusion to-end client encounter over the present new relationship mode.
Striving for targeted digital experiences not simply scale. Organizations need to quit
pursuing scale and, rather, work to enhance how they associate with clients contributing to
address the client's needs, not the association's issues (Khan 2018). Rather than seeking after
projects designed for enhancing inward measurements, organizations must endeavor to build
the esteem produced by the client encounter.
The Accenture market is relied upon to develop by 25% until 2022 and achieve a
surmised estimation of $510.4 billion of every 2022(Nicholas and Steyn 2017, pp.201).
Subsequently, Accenture is building up this region through a huge portfolio including
portability methodology, versatile advancement, and plans to draw in new clients and
additionally new pieces of the overall industry.
Conclusion
Concerning the Critical Success Factors of the market in which Accenture works, one
should see that the organization participates by creating collusions with showcase pioneers in
various nations, subsequently getting an entrance to and a decent comprehension of different
districts and wide scope of clients. This contributes in no little path to the achievement of
Accenture and gives it an upper hand over its rivals. At long last, the most huge basic
achievement factor related with the procedure of the business is the capacity of the

14ACCENTURE-THE ANALYSIS
organization to go into key acquisitions. This enormously affects the development of
Accenture and the administrations they offer, yet above all it supports their position in the
counseling market (Accenture.com 2018).The greater part of the previously mentioned basic
achievement factors are indivisibly associated with each other and enable the organization to
pick a productive way in which they need to contend with their companions.
Accenture has made considerable progress since its partition from Arthur Anderson in
2000 to develop into amber outer specialist organization with its underlying foundations in
different businesses, districts far and wide. Accenture has numerous chances to pick up
advertise administration in different nations which should be possible by means of
little/medium measured acquisitions. This will enable the organization to extend it capacities,
benefit, nearness around the world.

15ACCENTURE-THE ANALYSIS
References
Accenture.com. (2018). Accenture Strategy. [online] Available at:
https://www.accenture.com/ng-en/strategy-index [Accessed 11 Jan. 2018].
Bury, R. (2018). UK small businesses wasting 120 days each year on admin. [online] The
Telegraph. Available at: http://www.telegraph.co.uk/business/2017/09/11/uk-small-
businesses-wasting-120-days-year-admin/ [Accessed 15 Jan. 2018].
Callahan, K.R. and Brooks, L.M., 2004. Essentials of strategic project management. John
Wiley & Sons, pp.11-12.
Consultancy.uk. (2018). 25 advisory firms in most popular UK companies for graduates.
[online] Available at: https://www.consultancy.uk/news/13593/25-advisory-firms-in-most-
popular-uk-companies-for-graduates [Accessed 15 Jan. 2018].
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley &
Sons, pp.23-27.
Gupta, S., Rudd, J. and Lee, N., 2014. Business sustainability through successful integration
of marketing and operations. Industrial Marketing Management, 43(1), pp.3-5.
Harrin, E., 2007. Project management in the real world. British Computer Society in
association with CAPDM,pp.2-35.
Jeffery, M., Jeffery, M., Fisher, D., Fisher, D., Granot, M., Granot, M., Kadyan, A., Kadyan,
A., Pho, A., Pho, A. and Vasquez, C., 2017. Strategic IT transformation at
Accenture. Kellogg School of Management Cases, pp.1-18.
Khan, A. (2018). Final Presentation. [online] Academia.edu. Available at:
http://www.academia.edu/4919799/Final_Present [Accessed 11 Jan. 2018].

16ACCENTURE-THE ANALYSIS
Knickrehm, M., Berthon, B. and Daugherty, P., 2016. Digital disruption: The growth
multiplier. Accenture Strategy, Tech. Rep, pp.6-7.
Moore, S., 2009. Strategic project portfolio management: enabling a productive
organization (Vol. 16). John Wiley & Sons,pp.11-14.
Motohashi, K., 2015. Global business strategy: Multinational corporations venturing into
emerging Markets. Springer Open, pp.22.
Newsroom.accenture.com. (2018). Accenture Acquires Maglan, Expands Security Services in
Israel | Accenture Newsroom. [online] Available at:
https://newsroom.accenture.com/news/accenture-acquires-maglan-expands-security-services-
in-israel.htm [Accessed 15 Jan. 2018].
Newsroom.accenture.com. (2018). Accenture Closes Acquisition of Cimation, Expanding
Consulting, Digital and Cyber Security Services to Better Serve Oil and Gas, Pipeline,
Chemicals, Metals and Mining Clients | Accenture Newsroom. [online] Available at:
https://newsroom.accenture.com/news/accenture-closes-acquisition-of-cimation-expanding-
consulting-digital-and-cyber-security-services-to-better-serve-oil-and-gas-pipeline-
chemicals-metals-and-mining-clients.htm [Accessed 15 Jan. 2018]
Nicholas, J.M. and Steyn, H., 2017. Project management for engineering, business and
technology. Taylor & Francis, pp.190-346.
Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a
digital strategy. John Wiley & Sons,pp.18.
Schmidt, T., 2009. Strategic project management made simple: Practical tools for leaders
and teams. John Wiley & Sons,pp.19.

17ACCENTURE-THE ANALYSIS
Seals, T. (2018). Cyber-attack Volume Doubled in First Half of 2017. [online] Infosecurity
Magazine. Available at: https://www.infosecurity-magazine.com/news/cyberattack-volume-
doubled-2017/ [Accessed 15 Jan. 2018].
Segerberg, P., Simchi-Levi, D. and Rothstein, A., 2014. High performance in procurement
risk management,pp.3.
Store.marketline.com. (2018). Marketline Report Store - Accenture plc - Strategy, SWOT and
Corporate Finance Report. [online] Available at:
https://store.marketline.com/report/8465b971-b3f0-4fc6-8cb8-1f305b17b79f--accenture-plc-
strategy-swot-and-corporate-finance-report/ [Accessed 15 Jan. 2018].
Perrine, C.L., Tar, J.J. and Asper, A.E., 2002. Accenture. interactions, 9(2), pp.59-61.