Ernst & Young: A Detailed Analysis of Business Issues & Challenges

This report identifies and analyzes the business challenges faced by Ernst & Young (EY), a multinational professional services network. The report clarifies EY's position in the market and examines the problems it faces, particularly in light of the COVID-19 pandemic. It conducts a competitive analysis, considering factors such as competitors, target customer markets, and external environmental influences using situational analysis. The report highlights the top three issues confronting EY: regulation, accounting technology, and bureaucracy. It concludes by emphasizing the importance of addressing these challenges to maintain EY's market position and suggests strategies for improvement. Desklib provides access to similar solved assignments and resources for students.

CW1 Research Report

Table of Contents
Introduction.........................................................................................................................................3
MAIN BODY.......................................................................................................................................3
1. Clarify who your client is, and what is the problem they are facing?......................................3
2. Critically analysing and presenting areas of importance to the client such as competitors,
target customer market and influencing factors from the external environment...........................4
3. From your above analysis, what are the top three issues that the client is facing?.................5
Conclusion............................................................................................................................................6
References............................................................................................................................................8

Introduction
As for the current scenario, it is mandatory for the companies to their market position
and takes proper direction to the experts and specialist who are more credible to provide right
direction for the development of the company. Companies need to consult with another
consultancies and advisory bodies so that they can take proper decisions in order to maintain
their performance (Adler, Pittz and Gomez, 2017). Basically business consulting is
mandatory for the company so that they can update themselves from the current scenario of
the market and improve their operational effectiveness. This project is based on the Ernst &
Young which is knowing as multinational professional service network established in the
year 1989 and its headquarters situated in London,UK. This service network is providing
various services related to assurance, tax advisory, financial advisory, strategy consulting and
legal services. The main purpose of this research is to identify the specific problem which
client is facings and critically analyze & present specific areas which are important for the
clients. Moreover, what are the top three issues that client is experiencing.
MAIN BODY
1. Clarify who your client is, and what is the problem they are facing?
This project a story based on the client that is "Ernst & Young". This client is
containing Islam position at the whole market place and also is reading their business
operations all around the world. Ernst & Young is the private company of the UK which
providing professional services to their customers so that they can improve their market
position. In this organisation more than 29 8965 employees are providing the contribution so
that company can effectively gain customer satisfaction. In 2019, Ernst &Young was
contained the seventh largest organization which are privately owned their services. After
that organization work continuously to maintain their high rank and company came under
100 best companies in the Fortune magazine list. Companies continuously work from the last
few years and providing their best services to the people (Bentley-Goode, Newton and
Thompson, 2017).
Due to covid pandemic, company experiences various fluctuating conditions which
provide adverse impact on its performance. Now company is facing various problems and

also trying continuously to rebuild their market position so that company can take more
competitive advantages. There are various problems which are facing by the company like
regulation, accounting technologies, branding with recruits, bureaucracy and many others. All
these problems can provide negative impact on the performance of the company. Ernst &
Young is the well known brand so it is a very challenging situation which company is
experiencing.
2. Critically analysing and presenting areas of importance to the client
such as competitors, target customer market and influencing factors
from the external environment
To overcome the problem and get appropriate results, it is mandatory for the company to
apply various theoretical models so that company can easily target their customers & improve
their brand effectiveness. Ernst & Young is facing various problems and in order to overall
and breakdown all these problems, it is mandatory for the company is to conduct and
preparing competitive analysis so that company can effectively take competitive advantages
and rebuild their market position (Caetano and et. al., 2017). Company need to conduct
research, collect competitive information, analysis of competitive data, determine the
competitive position. With the help of research, company can effectively identify some
specific factors like customers services, quality of the products, pricing policies, initiative,
resources and many other factors. Ernst & Young Company need to utilize specific theories
and analysis which can helpful to break the problem in an effective way. The explanation
about specific theories and models are given below -
Situational Analysis
This analysis is considered as a collection of specific methods which are utilized to
analyze the position of internal and external factors in the organization. This analysis is
helpful to use the market research and evaluate the development of the company so that
company can maintain a strong customer base and take more competitive advantages. This
analysis incorporated with 5 key components which can useful to specify the business
environment situation. Explanation about all these five components in context of Ernst
&Young is as follows - Customers - This component is all about demonstrating the involvement of the
customers in the marketing activities of the company. Customer analysis is considered

as the critical component which can work like an organizational strategy. Ernst &
Young it is considered that customer are the king of the market so the main focus of
the company is on their customer’s requirement (Cordero Cachay and et. al., 2019).
Company need to conduct small scale market research so that company can
understand what exactly customer need. Competitors - In the modern time, competition is taking wider place in the market so
there is a requirement that all the companies need to adopt a specific strategy in order
to take more profit advantages. Ernst & Young is facing various problems which are
providing direct impact on the marketing of the company. In that situation company
need to conduct competitive analysis so that company can effectively identify the
current position of their competition which can useful to take more competitive
advantages to improve the financial and overall performance of the company. Suppliers - This component is all about generalizing the impact of suppliers on the
productivity of the company. Company is operating their business in various locations
and also providing high quality of professional services to their customers. Ernst &
Young is a private organization which are dealing various kind of suppliers related to
the technologies and other field (Franceschelli, Santoro and Candelo, 2018).
Company need to make some changes in their resources and also adopt specific
technologies so that company can maintain good relation with their supplier in order
to overcome their problems. Government - Government is taking various initiatives so that company can improve
their financial position and enhance their market for the convenience level of the
customers. UK Government provides their specific involvement in the working
conditions of the organization so that they can maintain all the regulatory protocols in
order to reduce the uncertainty of risk (Jerónimo, Pereira and Sousa, 2019).
 Legal issues - This component is all about maintain the regulation , advocacy and
support group so that organization can work effectively with the legal considerations.
Ernst & Young is providing professional services to their customers so to maintain all
the services it is necessary to follow all the legal guidelines which can reduce the
problem and improve the quality of services (Vukotić, Aničić and Vukotić, 2017).
Company need to analyse the impact of external environmental factors like political,
economical, social , technological, legal and environmental factors. Company can
determine these factors so that company analyse the influence of these factors in their

working operations so that they can reduce the impact of specific issues and get
appropriate solutions.
3. From your above analysis, what are the top three issues that the
client is facing?
As per the above analysis about the specific issues which client is facing, company is
experiencing various issues and in all of these, top three issues are facing by the company
most. Ernst & Young is facing top three issues which are related with accounting technology,
regulation, bureaucracy. The description about all these issues which facing by client are
given below - Regulation - Ernst & Young is privately owned company which belongs to
accounting industry. Due to various controversies in the accounting industry, most of
the accounting firms are facing various problems in context of regulations. In all these
companies, Ernst & Young is one of them which are facing more regulations. Some
regulations maintained rigid working protocols which are very critical to follow.
Company is facing various adverse situations and also come in danger of being
broken up that is demonstrate that this company e is container as a single form that
would cease to exist (Maslennikov and et. al., 2017). Accounting Technology - This problem is also facing by the company' because
technologies are changing rapidly and customers want latest technologies in order to
make their life more comfortable. Technologies related to the auditing and also
accounting can create the less value in front of customers because they want high
level of technology in order to take the services of the company. Company is
continuously trying to improve their technological infrastructure and adopt new
technologies and automation so that they can provide best services to their customer
(Perales Vallejos and et. al., 2019).
 Bureaucracy - This problem contain hand-in-hand with the regulation. As per RBI
regulation in the accounting industry can provide adverse impact on the bureaucracy.
Bureaucracy can involve in the comparing with the companies regulations. There is a
critical situation that company become more bloated with keeping up a specific
regulations that 8r not effectively regulate and create huge risk in the working

environment (Tang and Karim, 2017). This company is mainly consists of specific
partnership and those partners who are responsible to maintain the working situations
of the company. Ernst & Young is dealing with more than 2 lakh employees so it is
very hard to manage all the employees. This issue affect the working operations of the
company it is mandatory to resolve this issue in an appropriate manner.
Conclusion
As for this project it can be concluded that, it is necessary for the companies to
maintain their position otherwise they can experience use competition. This report is
discussed about specific clients and various problems which that particular client is facing.
This report also determined various factors which influence the performance of the company
and provide adverse impact. This report also conducted situational analysis so that company
can effectively identify the whole market situation in order to break down the specific
problem. Top three issues are also discussed in the support which are experiencing by the
company.

References
Books and Journals
Adler, T.R., Pittz, T.G. and Gomez, C., 2017. Organizational hazards when a business unit
goes rogue: The case of Andersen Consulting. Journal of Managerial Issues, pp.121-
136.
Bentley-Goode, K.A., Newton, N.J. and Thompson, A.M., 2017. Business strategy, internal
control over financial reporting, and audit reporting quality. Auditing: A Journal of
Practice & Theory, 36(4), pp.49-69.
Caetano, A. and et. al., 2017. Representation and analysis of enterprise models with semantic
techniques: an application to ArchiMate, e3value and business model
canvas. Knowledge and Information Systems, 50(1), pp.315-346.
Cordero Cachay and et. al., 2019. Business consulting-empresa Calessi propuesta de mejora
para el incremento de las ventas de la empresa Calessi.
Franceschelli, M.V., Santoro, G. and Candelo, E., 2018. Business model innovation for
sustainability: a food start-up case study. British Food Journal.
Jerónimo, C., Pereira, L. and Sousa, H., 2019, June. Management consulting business
models: operations through and for digital transformation. In 2019 IEEE International
Conference on Engineering, Technology and Innovation (ICE/ITMC) (pp. 1-6). IEEE.
Maslennikov, V. and et. al., 2017. Application of organizational and managerial innovations
in activities of Russian companies. In Russia and the European Union (pp. 415-423).
Springer, Cham.
Perales Vallejos, A.G. and et. al., 2019. Business consulting-Hialpesa reducir el reproceso de
teñido de tela en la unidad de tintorería.
Tang, J.J. and Karim, K.E., 2017. Big data in business analytics: implications for the audit
profession. The CPA journal, 87(6), pp.34-39.
Vukotić, S., Aničić, J. and Vukotić, R., 2017. The importance of consulting in contemporary
business management. Journal of Process Management. New Technologies, 5(3).