Accenture's Business Strategy: PESTLE, SWOT, and More

This report provides a comprehensive analysis of Accenture's business strategy, examining the impact of the macro environment through a PESTLE analysis, and evaluating its internal environment using SWOT and McKinsey 7S models. The report delves into Accenture's competitive landscape by applying Porter's Five Forces model, exploring the company's strengths, weaknesses, opportunities, and threats. It also outlines the company's strategic growth management plan, considering various strategic directions, objectives, and tactics to recommend appropriate strategies for growth. The analysis covers political, economic, social, technological, legal, and environmental factors, along with internal factors like culture, structure, and skills. The report emphasizes Accenture's strengths in client relationships and diverse capabilities, while also addressing weaknesses and potential threats from competitors. Finally, the report discusses theories and models for strategic planning, offering a holistic view of Accenture's strategic positioning and future growth prospects.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
PART -A..........................................................................................................................................3
Impact of macro environment......................................................................................................3
PESTLE of Accenture.....................................................................................................................3
SWOT analysis of Accenture..........................................................................................................4
Analyse internal environment......................................................................................................6
McKinsey 7’s...............................................................................................................................6
PART -B..........................................................................................................................................8
Porter’s five forces.......................................................................................................................8
Theories and models for strategic planning...............................................................................10
CONCLUSION..............................................................................................................................11
REFRENCES.................................................................................................................................13

INTRODUCTION
The report is about the company Accenture. The environmental analysis and the strategic growth
management plan is made based on the use of the external and internal analytical tools. The
Pestle and Swot analysis are conducted and the capabilities of the organization are identified.
The competitive environment of the organization is analyzed using the Porter’s Five Force
model. The plan was made based on the different strategic directions available for the
organization, objectives and tactics. The appropriate strategies and platform are recommended
for growth.
PART -A
Impact of macro environment
PESTLE of Accenture
Accenture is a consultancy service of technology management worldwide. It is headquartered in
Dublin, Ireland.
Political factors
The introduction of Brexit will influence the free global trade of the company. The large
part of the income of the company is coming from UK and the IT sector of the company will be
highly affected by the Brexit. The company will be impacted by the instable economy and low
market exposure. The operational cost and the sales of the company will have direct impact of
the new initiative.
Economic factors
The factors such as excise taxes, levied by the government and rising tax reductions
affect the operational cost of company. The economy of Australia is booming instead of the
threat from China. The economy factors of Australia have favored the IT sector and have been
promoting the investor from the other countries to join them. The worldwide demand for the IT
sector is growing significantly. The domestic market will rise by 20% and that is a positive point
for the company (TENTI, 2020).
Social factors

The sales and the market cycle of the company gets affected by the cultural changes,
customers’ needs, etc. The IT education is being promoted and been taught in the national
technical universities and institutes. The state has more population of working age that is helping
the company to develop and grow.
Technological factors
The automation in the IT sector will help the company to grow more in different ways.
The actionable data, additional revenue opportunities, decreased costs and the shortened time of
market can be identified by the automation in Accenture. The company for its internal activities
like app development leverages the technology along with supporting the customers with the
sectors like financial care, banking and engineering. This will help in the increasing the
performance, cost saving, processing intelligence and market reliance. The future of the
company will get affected by the automation.
Legal factors
The supply chain activities and the costs are impacted by the addition of new laws by the
government along with the regulatory considerations. The company should set SEZ for the
surface area of 10 hectares having the tax and the revenue initiatives at the disposal. The bonds
and contract requirement for the employers in the company who are not practicing the activities
lawfully (Pereira, 2019).
Environmental factors
The company is committed in protecting the environment and goes beyond the
enforcement requirements along with setting new criteria. The sustainable development of the
company is needed by various countries. The company invests in the development as well as the
research for helping the customers of the company by providing them solutions and initiating
steps for boosting their sustainable efficiency. The company also promotes initiatives of saving
energy in other offices present worldwide to reduce the usage of energy and use solar energy. All
these steps help the company in reducing the carbon footprint.
SWOT analysis of Accenture
Strengths
Accenture is the largest company in the world working as the consultancy service
company that focus on the business and the IT consultancy. It provides high performance to the
customers. The company has the top companies as their clients. The company is working to

provide the customers with the optimum services and have presence in more than 200 cities and
56 countries, to serve worldwide. The employees at the company are passionate workers. The
sustainable value is increased for the company as they have the strong business relations and
approach that is client driven. The company is always into improving the capabilities of the
company by hiring better as well as more talented employees, and hence they are able to match
the increasing demand of the customers. The company has created a team with diverse
capabilities by operating in five groups that are media and technology, communications, health
and public, financial services and product resources (Alva and Bhat, 2018). The company has
become the expert in different countries due to experience in different fields like health care to
IT services to automobile.
Weakness
Accenture has total 19 business units that are working collaboratively with the clients as
well as each other. The company results in conflicts due to the lack of internal communication of
the company. The company has parts in the management consultancy, BPO and technology but
the major source of revenue for Accenture is consultancy. This can be dangerous for the
company as running such large businesses during bad financial conditions can get the company
into crisis as there is only one major source of income.
Opportunities
Accenture can expand in the developing countries and target the small and medium size
projects. The company acquisition with Gaspo as an analytics solution provider that is based out
of Brazil. The company acquired the IT and digital service provider of US government agencies
that is Agilex technologies. All this can help increase the company in the expansion by
increasing the analytic strength. The company can focus on the BPO and technology for making
them equivalent to consultancy for increasing the revenue sources this will help the company to
penetrate in the market better. The diversification will provide support to the company in the
instable financial conditions.
Threats
The area of concern for the company can be the big giants such as IBM, Infosys and
Capgemeni. The company is over dependent on the premium clients during the recession period
and that went tough on the company (Declaration, 2019). Due to the financial turndown the big

clients of the company were affected directly and the revenue drive of the company is decreased
badly.
Analyse internal environment
Internal environment refers to factors which affect an organisation and they are present
within the company. Managers has to make plans so that they can face challenges or issues
which will affect working of firm and if they are not controlled then company has to suffer loss.
Internal factors includes, culture, members, events, customers, finance and technology. These
affect company as if technology changes then managers has to make plans or strategies which is
beneficial for growth of organisation (Bai, Cordeiro and Sarkis, 2020). For every company it is
necessary that they should analyse internal and external factors that can affect working of a firm
and make plans to run business smoothly. Accenture company is one of the well- known
organisation but to maintain its position in market managers have to take some essential steps for
growth of company. There are some factors which are present within the organisation, managers
have to find that and make strategies accordingly to achieve goals and objectives. It is crucial to
identify elements which are affecting working of company and it can be controlled by taking
correct actions.
McKinsey 7’s
It is a model which can be used by companies to identify internal factors of company and it
will help in making good plans or strategies which is beneficial for growth of industry and
employees will be motivated to perform well. There are 7s which are defined by McKinsey such
as, strategy, style, skills, structure, system, staff and shared values (Barbosa and et.al ., 2018).
Strategy
It refers to strategy which can be used by companies so that they can make good plans to achieve
goals and objectives. It is important to make strategies so that an organization can perform better
than competitors. In Accenture company managers apply penetration pricing strategy so that they
can attract more customers and this help in increasing profit. In penetration pricing strategy
initially prices are kept low as compared to other company to gain competitive advantage and
after some time prices are increased so that they can earn more profit and this will help in
generating more profit. It helps in building good image in minds of customers and helps in
attracting more customers to purchase products.

Structure
It means that there should be an organizational structure which a company must apply so that all
employees can work properly and it will help in increasing productivity of firm. It is important
for every company to make structure because it helps in clearly defining goals and objectives of
organization (Carp and et.al., 2019). In Accenture company divisional structure is applied in
which roles and responsibilities are divided according to specialization and different
departments. It helps in defining goals and objectives of company, employees are knowing their
roles and they know what work they have to complete. In the structure managers describe roles
and divide work so that workers can work properly and there will be no confusion or
misunderstanding among employees.
Systems
It refers to daily activities which is used by staff members so that work can be done properly and
it will help in increasing productivity of the company. When work is done on time then it builds
good image in market. In Accenture organization managers are dividing work according to
strengths of employees and time limit is given in which they have to finish their work.
Staff
It is the responsibility of managers to select right person for the right job and they have to
manage day to day activities so that business can run smoothly. All employees should have
necessary skills so that they can give their best and it will help increasing productivity of
company. When qualified employees are recruited and selected then it help company in
achieving goals and objectives and helps in generating more profit. It is crucial that employees
should learn new skills and enhance their knowledge which will be beneficial in gaining
competitive advantage. Some time, work should be given in groups so that employees can learn
how to work in a team and it helps in competing work on time and it reduces confusion
(McAdam, Bititci and Galbraith, 2017).
Style
In every organization it is important to apply some leadership style so that work can be done
properly and it will help om achieving goals and objectives of company. In Accenture company
democratic leadership style is applied as it helps in motivating employees. In this leadership,
leaders delegate their powers to team members and give rights to them to take decisions so that

in case of emergency employees can take decisions. There are other styles which can be used by
companies such as, autocratic, participative and other which will help in growth of company.
Skills
There are many skills which an employee should have so that work can be done properly and it
will be beneficial for company. Employee should develop some skills which is essential for
development of company. Some skills required at workplace are, good communication skills,
ability to handle issues, teamwork skills, give new and creative ideas so that good plans can be
made which is useful for company. Some skills are developed by employees while working in
the organization (Moktadir and et.al., 2020).
Shared values
It refers to rules and regulations which should be applied so that employees can work properly. It
is important to make policies and procedures which is to be followed by every worker as it helps
in maintaining safe and healthy environment. All employees should get equal treatment and there
must be no discrimination among workers on the basis of gender, income or any other basis.
PART -B
Porter’s five forces
Porter’s five forces refers to some factors which will help in identifying strength and
weakness of company. There are some forces such as, competitive rivalry, bargaining power of
buyers and suppliers, threat of new entrants and threat of close substitute goods. These are
factors which can affect working of a company and managers should take necessary steps so that
organisation can generate profit and it will help in increasing productivity of company
(Nadanyiova and Das, 2020). Managers of Accenture should take actions which is beneficial for
growth of company and identify market situation to make plans for growth of organisation.
There are many competitors and everyone want to achieve goals and objectives by satisfying
needs of consumers.
Competitive rivalry – It means that managers should identify competitors strategy so that
they can make good plans which is beneficial for growth of company. Competition is increasing
day by day so to earn profit organisation should take some necessary steps to generate more
revenue and it will help in gaining competitive advantage in market. It is crucial to determine
competitors plans so that managers of Accenture company should take essential steps and take

correct decisions. It is the responsibility of all employees to work effectively so that goals and
objectives can be achieved. When managers conduct market survey they should identify what
type of products is being made by other companies and at what prices they are selling, any
discount is given to customers or not (Oldman and Tomkins, 2018). Marketing tools and
techniques which is used by competitors to attract customers and this will help in making plans
better than other companies and organisation can earn profit by satisfying needs of consumers.
Bargaining power of buyer – It can be refer to as buying power of consumers like, how
much they can spend to purchase a particular product. It is important that managers should
conduct market analysis before making any product so that they can know about choice of
consumers and how much they can spend for buying a product. When managers will conduct
market survey or analysis they will determine taste and preference of consumers and their buying
power. It will help organisation in making product according to buyer’s need so that they can
increase their sale and more revenue can be generated. Managers of Accenture company should
also analyse market condition and take necessary steps for development of organisation. They
should try to provide good quality products and services to consumers so that they can satisfy
need of people and more profit can be earned. It is the responsibility of all employees to work
efficiently and suggest ideas which is beneficial for growth of company (Park and Mithas, 2020).
Bargaining power of supplier – It refers to power of suppliers which means that
managers should try to make good relationship with suppliers so that they can supply raw
material or goods on time. If a company is making products whose raw material is not available
easily then managers of organisation should make good relationship with suppliers for proper
working of company and there will be no problem while making products and raw material will
be supplied on time. If there are less suppliers of raw material then they will charge price
according to their need because they are knowing that no close substitute is available and if
company want to make products then they have to purchase it from the particular supplier. So,
before making any goods managers of Accenture company should identify that there are many
suppliers of raw material and no problem will eb faced by company in future (Pucheta‐Martínez
and Bel‐Oms, 2019).
Threat of new entrant- In this fast moving world, it is important to make new and
innovative products so that more customers can be attracted. Everyone want to increase their
sales and profit. In market there are many new businesses who want to enter into the market and

they are providing good quality products or services. Existing companies are having threat of
new entrant because if new company will enter into the market then may be customers will get
attracted and this will lead to loss for other organisations. It is important that a company should
make plans or strategies so that they can maintain their position in market and generate more
profit. Mangers of Accenture company should try too provide good quality products and services
to customers so that they will not get attracted towards any other industry and they should
maintain good relationship with customers. It is important that new products should be delivered
to consumers so that people can be attracted and it will help in earning more profit. So, managers
should analyse market situation and also determine new entrants who are entering into the
market (Verbeke and Yuan 2021). It is crucial to make plans or strategies better than competitors
to build good image in minds of consumers and it is beneficial for growth of company.
Threat of close substitute goods – According to Porter, there are many companies who
are making similar products and it lead to increasing competition in market. Nowadays, everyone
wants to earn profit and they are trying to provide good quality products or services to customers
so that they can satisfy needs of consumers. It will help in building good image in market. Threat
of close substitute goods means that there are many companies who are making same products so
every organisation want to earn profit. They will try to make good products to increase their
sales and fight against challenges (Wahyuni, Fahada and Atmaja, 2019). So, mangers of
Accenture company should take necessary steps to face competition and make better plans or
strategies to earn profit.
Theories and models for strategic planning
For growth of company it is important that necessary steps should be taken by managers so
that goals and objectives can be achieved. For success of organisation, plans should be made and
strategies must be applied so that company can run its business and they can work smoothly. In
this digital world, competition is increasing so to earn profit and to gain competitive advantage it
is important that good plans must be made. It is difficult to run business easily, there are many
challenges that a company has to face and after sometime they will earn profit and build good
image in minds of customers. For attracting consumers managers have to make good plans and
evaluate performance of employees. If workers are not performing well then training should be
provided to them so that they can improve their performance and work efficiently to achieve
goals and objectives of organisation. Theory which can be applied by managers of Accenture

company for strategic planning and it will help in increasing more profit is McClelland theory
(Xie and Cooke, 2019).
According to McClelland theory, there are three need i.e., need for power, achievement and
affiliation. This is the best way to motivate employees and strategic planning can be done so that
targets of Accenture company can be accomplished. It will organisation in making plans or
strategies which is beneficial for growth of employees as well as for company. Need for
achievement refers to a person want to get good position in an organisation and takes calculated
risk so that goals and objectives can be achieved. In this feedback or reviews can be collected as
it will help in improving skills and mistakes that were done. Managers should analyse problems
or issues that were face by company and necessary steps should be taken so that targets can be
achieved. Need for affiliation refers to need of people and they are not taking risk. Managers
make proper plans and decide ways by which goals can be accomplished and make changes in
strategies so that an organisation can perform best. They can fight against competitors and gain
competitive advantage. It is necessary that correct actions should be taken so that goals are
achieved. Need for power means to give some power to employees so that they can work
efficiently and good decisions can be taken (Yuan and et.al ., 2020). It will help in making plans
or strategies which is beneficial for growth of company and when power is given to members,
they are motivated and work effectively. This theory will help in making plans and company can
earn profit.
This theory is helpful in motivating employees and good plans can be made so that they can
perform better than competitors. It is important to identify market condition and make plans
according to need of consumers. When workers are motivated they give their best and work
efficiently to accomplish goals and objectives. It is important to apply some models so that profit
can be earned and helps in building good image in mind of customers.
CONCLUSION
From the above discussion it can be concluded that, there are internal and external factors
that affect working of company. Internal factors refer to elements which are present within the
organisation and it can be controlled by managers. External factors can be defined as factors
which are outside the company and it cannot be controlled. Some steps can be taken by managers
to handle these issues has been described. Further, PESTLE, SWOT, Mc Kinsey 7s framework,
porter’s five forces has been discussed. Its impact on organisation and how managers can control

it so that business can run smoothly. Theories and models for strategic planning has described
and its importance in making plans or strategies which is beneficial for growth of company.