Accenture: PESTEL Analysis, Stakeholders, and External Factors Impact

This report provides a comprehensive analysis of Accenture, a global technology management consulting firm. It begins by explaining the importance of external factors and their impact on businesses, followed by a detailed PESTEL analysis of Accenture, examining political, economic, social, technological, legal, and environmental factors. The report explores the effects of Brexit, economic conditions, technological advancements, and legal and environmental regulations on Accenture's operations and strategic planning. Furthermore, the report identifies and discusses Accenture's key stakeholders, including employees, customers, and governments, and how their expectations influence the company's decisions. The analysis considers the importance of stakeholder engagement and responsible leadership in the modern business environment. The report highlights the need for organizations to adapt to changes in the external environment and adjust their strategic planning to remain competitive and profitable. The report concludes by emphasizing the role of technology and innovation in Accenture's success and its commitment to environmental protection.

Accenture
Accenture is a worldwide technology management consultancy, infrastructure services and
procurement firm with over 259,000 staff in over 120 countries servicing customers. With
unmatched expertise and extensive skills in all sectors and sector positions, Accenture partners with
consumers to make them become high-performance corporations and governments.
Accenture Vision
The annual technology roadmap of Accenture offers a view on the future of technology beyond the
present cloud, connectivity, and Big Data conversations. The roadmap of this year outlines the
technical developments for future-minded CIOs (chief information officer) to position their
organizations, not only to rely on cost savings and productivity enhancements. It gives specific steps
that CIOs are likely to take today and in the future to counter these phenomena.
Why we select the Accenture Company
Accenture provides broad distribution to centers in Europe, India and the United States, as well as a
committed, 2500-member application and development team. Their profound experience of how to
implement new technology and their long-standing partnerships with all large providers of
applications helps to provide opportunities across multiple innovations and platforms. Accenture
now has more than 10,000 seasoned human resources leaders working as a national network of
expertise, with activities in 35 countries. Accenture will increase the productivity of the political,
financial and tactical decision-making of clients with a focus on analytics by helping to transform
knowledge into insights, insights into actions and activities into performance. Accenture develops,
develops and runs the fundamental database system, software and governance that allows all data,
wherever it exists, to be a "true source of the reality."
The report should include the following:
1. Explain and examine the external factors affecting.
Businesses cannot operate in silos. Rather, they are connected to an external environment which is
dynamic and ever changing. This constantly evolving external environment impacts an
organization’s internal culture, strategy and processes.

Organization’s external environment includes a range of determinants that affect is decisions and
processes, as well as, multiple stakeholders who are directly or indirectly impacted by the
organization’s decisions. These determinants are termed as external factors, and these can range from
social to economic, to political in their nature. While each organization has its own set of external
factors depending on the market it operates in, following are a few common external factors which
impact most business to a varying degree directly or indirectly;
Accenture PESTEL Analysis
In the macro world, there are several variables that can influence the actions of every organization’s
managers. All examples of macro transition are tax increases, progressive regulations, trade
restrictions, population change and adjustments in government policy. Managers should categories
them using the PESTLE model in order to better evaluate these causes.
PESTLE is a strategic analysis approach that offers a practical context for evaluating a team or an
organization’s environmental pressures. It defines a system of macro environmental factors used in
strategic management in the environmental scanning portion. When carrying out a strategy review or
conducting market research, it is part of the external analysis and provides a certain description of
the various macro environmental variables to be taken into account by the organization. It is a
valuable analytical instrument to consider demand rise or downturn, competitive environment,
organizational capacity and path. Factors from PESTLE play an essential part in a strategy’s value
development potential. They are generally beyond the corporation's influence, though, and may
typically be treated as either risks or opportunities.
Kotler (1998) concluded that PESTLE analysis is a valuable strategic instrument for recognizing
demand rise or decrease, company role, organizational capacity and course. In comparison to the
SWOT and Porter Five Powers models, the PESTLE headings are a method for evaluating a scenario
and can be used by businesses to review strategic directions, including campaign ideas.
1. Political (Brexit effects on Accenture’s activities )
The rise in the politics of protectionism has influenced global free trade. A large amount of
Accenture's income comes from the United Kingdom and the IT sector will be seriously impacted by
Brexit. Low market exposure and economic instability in the economy have an immediate impact.
The new initiatives in the area would have a direct impact on Accenture’s sales and operational

costs. Ireland-based Accenture could also move some of its overseas activities to Dublin to take
advantage of the supportive Irish market climate. Brexit has boosted economic uncertainty which,
leading to a sharp depreciation in GBP since the referendum, has contributed to a drop in income
from UK operations.
 Institutional stability: Australian political system is viewed as reasonably stable
 United States. U.S. The state said U.S. businesses working other than U.S. IT outsourcing
would not earn tax benefits.
 Government-owned firms have agreed to send Australian firms further programs.
2. Economic
Economic considerations include shifts in economic policy, i.e. rising tax reductions, excise taxes
levied by the government, incentives from the government and tax cuts that will affect the company's
operating costs.
 Australia 's overall economy is booming at this point, apart from China's greatest threat, most
of its economic factors favor IT-related enterprises and thus also appeals to investors from
other countries.
 In Australia as well as worldwide, demand for IT is growing.
 Domestic IT (demand) expenditure: In the next five years, domestic markets will rise by
20%.
 Movement of money
 Prices of real estate: a decline in the values of rentals resulted in lower leasing rates.
 Attrition: Unemployment has ensured that the number of vacancies and employment losses
has been poor.
3. Social
Customer desires, cultural changes, sporting activities, etc. can have a psychological impact that can
impact the market cycle, impacting the overall sales that prestige of companies.
 Education: IT education is provided by many national technical institutes and universities.
 Population of working age.

4. Technological
In the near future, automation in the IT sector will affect the organization. Automation can assist
enterprises such as Accenture to identify additional revenue opportunities, actionable data, and
shortened time to market and decreased costs. In its internal activities, such as app development,
Accenture leverages technology and also supports consumers through sectors such as banking,
financial care, engineering and others. This leads to considerable cost savings and increases
performance, market resilience and process intelligence.
IT market automation would have an impact on the sector in the immediate future. Automation can
assist enterprises such as Accenture to identify additional revenue opportunities, actionable data, and
shortened time to market and decreased costs. In its internal activities, such as app development,
Accenture leverages technology and also supports consumers through sectors such as banking,
financial care, engineering and others. This leads to considerable cost savings and increases
performance, market resilience and process intelligence.
In the technology sector, Accenture has been aggressively seeking acquisitions to develop its
technical capabilities throughout areas such as internet, cloud and security and others. In August
2017, VERAX Solutions, a boutique Toronto-based technology and systems integration consulting
company, was recently acquired in the financial services room. Clearhead, a data optimization firm,
was also acquired to improve its capability for personalization services. In 2017, the company
executed many other acquisitions across areas such as cloud, internet, analytics, ERP, consultancy
and several more.
5. Legal
New laws and additional requirements which may impact the costs for the company Accenture’s and
their supply chain activities include regulatory considerations.
 IT SEZ requirements: SEZ should be set up by IT corporations with a gross surface area of
minimum 10 hectares, with revenue incentives and tax incentives at their disposal.
 Contract / Bond requirements: immense controversies over the responsibilities for employers
who do not have to practice lawfully.
 IT Act: the Indian Government is improving the IT Act 2000 in order to offer businesses,
especially data protection for transmission and storage, a sound legal climate.

6. Environment
Accenture is committed to environmental protection that goes beyond enforcement requirements and
sets new criteria. Sustainable ecosystems help healthier cities thrive. Accenture has also invested
extensively in research and development to help its consumers boost their sustainable efficiency
through initiatives and solutions. In addition, Accenture also promotes initiatives through its offices
worldwide to minimize energy usage through the use of solar energy. The organization will reduce
its carbon emissions by an average of 2.0 tons, from 4.04 metric tons in 2007, on average by 2020,
by each employee.
These external factors affect the internal environment of the organization and its overall strategy as
well. Organizations must respond to changes in the external factors and adjust its strategic planning
to ensure continued market competitiveness, and profitability. Depending on the market an
organization operates in, changes in any one of the abovementioned factors would require adjustment
in the organizational strategy. For example, an increased in the minimum wage by the government
might mean increased cost of labour per unit which would drive up the overall cost per unit. This
would impact the competitiveness of the product and decrease the revenue earned from the sales.
This change in the economic policy would require the organization to review its strategic planning. It
would either have to cut down its cost (by perhaps laying off workers or decreasing fixed cost etc.)
or to increase the price per unit which would make the product less competitive in the market and
may decrease sales and revenue. This is a small example considering only one external factor. Often
time’s businesses have to deal changes in multiple external factors, and this requires adjustment in
the strategy planning in order to ensure that business continues to flourish as achieve its mission.
2. List the important stakeholders of your chosen organization.
Stakeholder is any person, group or entity that have a direct vested interest in the performance and
functioning of an organization. Some of the stakeholders are internal i.e. owners, staff, workers,
while others are external i.e. consumers, government, community. Stakeholders take a keen interest
in the way an organization operates as they have either attached their risk to the organization or are
directly impacted by the activities. E.g. employees in an organization are a key stakeholder, as they
are directly impacted by the organization’s decisions. In case an organization decides to diversify
into new market or sub- contract work to employees in other countries, a lot of employees may lose
jobs, therefore, they have a stake in the organization’s decisions. Similarly, owners of a company
invest capital into their business thereby attaching the risk of loss to the company’s performance. In
return for their investment, they expect their manager to make decision that will earn them high

profits and ensure continued high performance. Therefore, by virtue of their vested interests,
stakeholders exercise a lot of influence on an organization’s decision making.
This year in Davos, corporate managers have entered a new era of doing business — one in which
profit is not the sole guiding factor. The executives of today continue to recognise their
responsibilities as corporate accountability guardians and to take care of the needs of all their
partners and not just customers.
A recent report of the World Economic Forum has established, in collaboration with Accenture, five
core elements in a modern paradigm of responsible leadership, based on good operational outcomes,
combined, with meaningful social and environmental effects, for a stakeholders' entrepreneurship
age.
The report indicates that solving the problems of the next decade in order for development to
increase and boost the social outcome allows the study's leaders to provide a broader variety of
characteristics and functionality.
The graph reveals additional terms in profit calls in the past two years correlated with the five items,
calculated in proportion. Note: Technology firms will emphasize connections to fundamentally
technology and engineering principles, as they reflect a relatively large proportion of profitable as
trusted developers. Therefore we ran again the study of omitted technology firms, which meant that
additional mentions of technology & innovation stood at 97%.

Stakeholders’ expectation can influence organizations decisions directly or indirectly. Employees are
an internal stakeholder and they expect to be paid on time irrespective of the sales and profits.
Additionally, they expect to have job security, so they do not have to move jobs frequently. This may
influence businesses’ hiring policy and their employee benefits. Similarly, customers expect to be
provided with safe reliable products with correct label information. This may push the companies to
reveal all the ingredients in their products, regardless of their own preference to hide a few unhealthy
ingredients.
3. Use appropriate tools
The Porter Five Factors is a comprehensive planning paradigm that has not only examined the
emerging competition for strategic decisions. Porter Five Forces reflects on how to create a
sustainable strategic edge in the IT sector. In order to establish a competitive role in the IT services
market, the managers at Accenture Plc are able to pursue attractive prospects throughout the whole
technology market.

Threat of New Entrants
Newer IT Services stakeholders are introducing creativity, diverse approaches and exerting a lower
price policy on Accenture Plc, lowering costs and offering consumers new value-added ideas.
Accenture plc must face all these pressures and create successful hurdles to maintain its competitive
advantage.
 How Accenture Plc tackles new applicants' risks
Innovative digital services and goods. Not only does new product draw new buyers but it also
provides an incentive for old consumers to purchase Accenture plc products.
By building economy such that the fixed cost per unit can be reduced.
Capacity building and research and development money investment. New entrants are less likely to
join a competitive sector in which existing players such as Accenture plc periodically identify
expectations. This decreases the opportunity of exceptional profitability for new entrants
dramatically, discouraging potential competitors in the market.
Bargaining Power of Suppliers
Most of them all purchase their raw material from various vendors in the information technology
services sector. The margins Accenture plc can gain for market share decrease suppliers in the
dominant role. Powerful manufacturing providers use their bargaining ability to bring higher rates
out of IT businesses. The net consequence of higher negotiation leverage is that it decreases the
overall effectiveness of IT services.
 How Accenture plc should cope with suppliers ' bargaining strength
By establishing a multi-provider productive supply chain. By using different products to play with
product styles, if costs escalate from one ingredient then the business will move to another.
Establish dedicated suppliers that rely on the group. One lesson from Accenture plc is that Wal-Mart
and Nike have built third-party suppliers whose businesses rely entirely on them to build a situation

in which these third-party producer have considerably less negotiating power than Wal-Mart and
Nike.
Bargaining Power of Buyers
Buyers are typically a rough collection. By paying the lowest price you want to buy the best deals
available. In the long term, this placed pressure on the earnings of Accenture plc. The lower and
more strong the client base is, more consumers will negotiate and demand growing deals and rewards
at Accenture plc.
 Why Accenture should cope with the purchaser 's purchasing force
Through the construction of a large client base. In two cases, this is useful. It eliminates the
customers' negotiation leverage and allows the company the chance to streamline its distribution and
manufacturing processes.
Innovative new products fast. Customers also demand discounts and deals on existing goods,
meaning that if Accenture plc wants to manufacture new products, the negotiation potential of
customers can be limited. The defeat of existing Accenture plc clients on its rivals would also be
minimized by new goods.
Threat from Substitute Products
When a new product or service responds differently to a common customer's wishes, competition in
the market falls. For starters, services such as Dropbox and Google Drive may replace physical
storage drives. If a value concept is present that is uniquely different from present deals in the
market, the threat of a competing product or service is strong.
 Why Accenture Plc can do the management of replacements
By being geared towards service rather than commodity. Through knowing the consumer’s
fundamental desire regardless of what the consumer orders. The cost for the consumers is raised.
Rivalry among the existing players.

If the competition between the industry participants is high, the prices will decline and the overall
output of the industry will be reduced. In a highly competitive information technology market,
Accenture plc works. This rivalry pays off the company's overall long-term sustainability.
 How Accenture Plc will tackle extreme rivalry among the current IT services industry rivals
By establishing a durable distinction. Via construction, it is better able to compete. Act alongside
rivals to widen the market rather than just participate in the small market.
Implication of five factors
Accenture plc strategists can achieve a comprehensive understanding of what influences the
performance of the company in the information technology services market by evaluating the five
strategic powers. Early on, they can detect game-changing patterns and can adapt rapidly to leverage
the new potential. Accenture plc’s managers will mould these forces in their favor by knowing the
Porter Five Forces in great detail.
4. Use any two modelling tools
In case of Accenture, the Ansoff’s Matrix model is applied which provides it a four-way solution as a
basis to generate strategy options. In order to keep up the market share and grow business
worldwide, Accenture needs to focus on market penetration by marketing of already existing
products in a way that it attracts bigger market share (Cescau & Rivers, 2009). By entering into new
markets with existing products, market development is done. When a company has a market and gets
to know its needs, product development is required. When a new product is developed for a new
market, the diversification takes place. It requires consideration to both sides equally. Ansoff Matrix
proves to be a significant tool considered by organizations to formulate their strategy options in any
of the upcoming scenarios.

Market penetration by Accenture can be made with existing products in order to keep up the way
towards sustainability and gaining competitive advantage by increasing the awareness of its different
brands in strong markets with high demand. Adopting this strategy is important in such times when
the competitors are strong and the competition is neck to neck.
The Generic Technique of Porter:
Porter's generic strategy, cost savings and ideas of differentiation are very important and practical.
Cost leadership is that concept in strategic planning which works on the principle that the internal
capacity of product development costs minimum, which brings maximum profit to the organization
whereas it reaches to the market in lowest possible prices. However, the quality of that product is