Business Strategy Report: PwC's Competitive Analysis and Planning

This report provides a comprehensive analysis of PwC's business strategy, encompassing macro-environmental factors, internal capabilities, and competitive forces. The report begins with an introduction to strategic management, emphasizing its importance for organizational success. Task 1 applies the PESTL framework to analyze the macro-environment, focusing on political, economic, social, technological, and legal factors influencing PwC. Task 2 delves into the internal environment using a SWOT analysis to identify PwC's strengths, weaknesses, opportunities, and threats. Task 3 applies Porter's Five Forces model to evaluate the competitive forces within PwC's market sector. Finally, Task 4 interprets and revises strategic planning for PwC, applying various theories, concepts, and models to produce a strategic management plan with tangible objectives. The report concludes with a critique of the information and data, providing strategic direction based on environmental and competitive analysis, with references to support the findings.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Apply appropriate framework analyse the impact and influence of Macro-Environment. 4
M1 A critical analysis of the macro environment to determine and inform strategic
management decisions............................................................................................................6
TASK 2............................................................................................................................................6
P2 Analyse the Internal environment and capabilities of the organisation using suitable
framework ..............................................................................................................................6
M 2 A critical evaluation and analysis of the internal environment that will consider the
organisation’s internal capabilities.........................................................................................8
TASK 3............................................................................................................................................8
P3 Applying Porter's Five Forces Model evaluate the competitive forces of given market
sector for PWC.......................................................................................................................8
M3 Devise the appropriate strategies to improve competitive edge and market position based
on the outcomes....................................................................................................................10
Task 4.............................................................................................................................................11
P4 Applying a range of theories, concepts and models, interpret and revise strategic planning
for PWC ...............................................................................................................................11
M4 Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives..............................................................................................................................13
D 1 Critique and interpret information and data applying environmental and competitive
analysis to produce valid strategic direction........................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Strategic management refers to a process of strategically formulation and implementation
of overall planning of the organization. The strategy includes; planning, monitoring and
analysing various needs of the organization in order to meet all the objectives of the firm. The
strategic management helps and provide futuristic guidance that help in improving organizational
plans, leadership and its responsibility for upcoming time. The management of the overall within
the company find right direction to deploy its crucial assets to achieve the goals of the firm. The
plans in strategic management nit similar to any short- term as they are made keeping in the
mind the long term needs of the company (Antamoshkina and Zinina, 2019). In short the process
is never ending and seek commitment of the leaders and management for the successful
implementation. For current report, the chosen organization is PwC, a leading global accounting
firm known as, PricewaterhouseCoopers which is a multinational professional services network
of firms, operating as partnerships under the PwC brand.
TASK 1
P1 Apply appropriate framework analyse the impact and influence of Macro-Environment.
For any company to be strategically successful, it need to have a close eye on the
business environment. Without organized strategy it will be difficult for organizations to have
meaningful purpose of doing any task. For logical analysis of the environmental effect on the
business is imperative (Khan, Çera. and Nétek 2019). For PwC the managers must scan the
external environment as they have no control by any leaders other than accept them and mold the
strategies according to given situations. Therefore, external environment often considered as
uncertainties in the organization which are large and have visible impact in the performing of the
organization. These are the macro environment which involve a nation’s political, economic,
technological, legal and sociological factors. The overall analysis help organization to identify
the threats and opportunities for effective working of the business organizations. The analysis
commonly known as PESTL analysis.
 Political Environment: The environment focus on the all the political include the
all the regulations and restrictions imposed by the government. For example,
current market after Brexit which may have impact on the import -export of the
firms in UK. At PwC the company have analyses its impact on the Data’s of the

company. The management stated that “unless there is an "adequacy decision" in
relation to the UK- there will be an impact on personal data flows” which have a
significant impact on the business. Other than policies of government, the
stability of government and the ease of doing business etc. have an impact
 Economic Environment: The overall economic at local as well as global level
have a significant role. Impact such as climate, taxation, currency, GDP etc. of the
global economy play a vital role. For PwC to analyze these can help in
formulating strategies according to them. At PwC, have intensely realize the role
of climate change that world is going to face in the upcoming future and thus can
bring new opportunities as well as threats in every sectors of the businesses. The
leaders and the economist of the PwC have set objective of becoming “climate
smart”.
 Social Environment: The social environment is dynamic and the impacts of it on
organizational level is much broader meaning than any other environment. At
PwC, company have emphasized on social and environment assessments which
have both consequences i.e. positive as well as negative of plans, policy and
programs before moving to desired goal. Company disclose that it has significant
services are informed by the years of experience in environmental and social
assessments – across multiple geographical boundaries.
 Technological Environment: The rapid changes in technology and digital era in
businesses have bring transformation. These transformations are visible and thus
helps organization to be competitive in the current market. In PwC, have realize
its importance in their business and have identified the key essential technologies
such as, AI, Internet of things, Block chain, Virtual reality, Automation, 3D etc.
The company use technology to bring innovation for the customers to ensure
excellent delivery.
 Legal Environment: Any business who are operating in a country have some
legal formalities that need to be deal. whether her it is internal legalities or
external, for safe environment at firm companies are bound by some legal
restrictions that are mandatory for them. For effective working all legislation that

may influence the working and pose any kind of risks for non- compliance need to
minimize. For example, PwC have strategic plan regarding current global
exposure to environmental taxes and regulation which help in managing risks and
optimize tax position from a sustainability perspective. Increase corporate
reputation directly through Total Tax Contribution.
M1 A critical analysis of the macro environment to determine and inform strategic management
decisions
It is observed from above that micro environment and its factors have significant role to
play in strategic management decision (Ulubeyli and et. al., 2019). The managers at all level of
PwC have designated role to ensure the overall effective performance considering all the external
environment in order to be succeed at international level. The role of external environment is
keep getting dynamic and therefore it has urge the leaders at PwC to adept them to maintain the
competitive advantage. PwC follow a result oriented path that believed to be deliver success
only. The flow chart guides the overall growth capability, need for diversification and bringing
innovation within the organization.
PwC approach to Strategy:
Ambition define that how can be the company good.
Business Model Choice define the profit making ways.
Agenda define the priorities of the company.
Participation strategy define the stage that company need to employ strategies.
Competitive Strategy define the winning strategies for PwC.
TASK 2
P2 Analyse the Internal environment and capabilities of the organisation using suitable
framework
An internal environment analysis of the business firms helps to stay informed about the
key internal resources of the organisation. The analysis allows to identify the strengths and
weakness of the organisation. Thus it helps in strategic decision making by the monument of the
company while carrying out the whole process in formulation and at the time of execution. Once

the analyse is done, it clears the path ahead for further proceed and informed the company its
current position. This enables the managers to hone their power where it lacks and make them
perfect in every way with the help of analysing tool (Stoyanova and Angelova 2018). From
various tool the SWOT analyse is the one of the most usable and handy tool that any
management can rely on it. The tool has significant role to play in strategic plan making and use
at PwC for situational analysis. Since company is one the leading in the industry and therefore to
maintain the position company use this tool to review its overall position in the international
level. One the basic motive behind in use of SWOT tool is to identify and tap the external
opportunities, fight threats and build company’s strength and remove any weakness if found or
turn them into opportunity.
 PwC Strength: Since company have strong brand reputation around the world. The
brand has positive outlook that provide opportunity to grow its product line and offer new
service. PwC have successfully integrated number of companies in its past years to build
a trustable supply chain. The company enjoy large customer base its successful
relationship with them. PwC believe in delivering customer satisfaction and brand equity
for their potential customers. The company have proven track record of years in product
development as well as innovation. PwC have sufficient cash flows that do not block any
path for new project execution.
 PwC Weakness: The organisational structure considered as not much compatible with
present business model and this limit the business in growth and different product
segments. The company needs to invest in new technologies which can enable expansion.
The era of digital technology is demanding more investment in Research and
Development to be able to compete with its competitors. As compare to other
organisations in the industry PwC have high attrition rate which force company to spend
more as compare to its competitors on training and development of the employees. The
marketing of the products more desirous in the market. So the product in terms of
successful in sales but the unique position of the company’s is not clearly defined.
 PwC Opportunities: The company enjoy stable cash flow which bring opportunity to
invest in varied product segments. With sufficient cash in the bank PwC can invest in
new technologies as well as services. This provide an open window opportunity for the
company. Trends among customers of PwC cab open up new market which is great

opportunity for company to build new revenue path and diversify into new product
category. New policies on environment create new opportunity for a level playing fields
for all in the industry. It provides the good opportunity to PwC to drive out the advantage
of new method and gain new product category.
 PwC Threats: The company with its highly profitable products are mostly in seasonal in
demand and thus impact the profitability. Continue increase in price of raw material can
be threatening point to company. In the past year’s company have developed number of
products but most of them are made in response to competitors. So it is important to be
innovative in the market from rests. Supply of new products is not enough regular thus
result in low sales over the period of time. New regulations on environment under Brexit
2020, can pose threat to PwC and its management in the organisation. Since increase in
cut throat competition in the market put pressure on the Internal management to
encourage innovation in development of service is vital.
M 2 A critical evaluation and analysis of the internal environment that will consider the
organisation’s internal capabilities
From above analysis with the help of SWOT matrix helped in analysing the internal
environment to insight the strength and weakness. With the help of it now managers can develop
strategies as per the need. For example, a combination of the SWOT can be done like; Strength
and opportunities, weakness and threats, weakness or opportunities and finally strength and
threats. This can be beneficial to set them after analysing the while scenario of PwC with this
tool. However, the SWOT analysis doesn’t show competitive advantages. It only provides
initiation on how strategies can be impended after analysing. This analyse reflect the current
threats and weakness that can be turn into window of opportunities.
TASK 3
P3 Applying Porter's Five Forces Model evaluate the competitive forces of given market sector
for PWC
Porter's five force Model is a model that identifies the strength and weakness of the
company. Application of this model helps to ascertain the profit making capability of the
organisation and level of competition in industry. The model is used to overcome the weakness
and improve the mistakes of the Entity. This model can help PWC to determine the attractiveness

of the industry and understand its competitive positioning in the market (Bruijl, 2018). It can also
be used to make strategical decisions that could improve the performance and ensure the long
term survival of the company.
Porter's Five Forces model are as follows-
 Competitive Rivalry
It shows the number of competitors that give the tough competition to the PWC. The High
competitive rivalry shows PWC can face strong pressure from its competitors, which can limit
the growth potential of each others. In such industries, the profit margin of the firms are low as
they adopt pricing strategies and aggressive targeting against each other. PWC should focus on
the needs and expectation of its customers, they should raise the switching costs by developing
long term relationship with its customers. The company can also look to collaborate with
competitors for mutual beneficial.
 Bargaining Power of Suppliers
In Porters five forces model, the bargaining power of suppliers reflects the pressure by suppliers
on business by adopting different tactics like reducing the quality, Increasing price and reducing
the availability of product. By decreasing the dependency on suppliers, PWC can strength its
position in the market. The organisation must develop a long term contractual relationships with
suppliers so that it allows PWC to increase its supply chain efficiency (Suglobov and Semenova,
2017).
 Bargaining power of Buyers
Bargaining power of the buyers reflects the pressure that customers put on the business to get the
high quality product at reasonable price with good customer services. A strong bargaining power
makes the profitability low and the industry more competitive whereas if the buyer power is
weak it increases the profitability and makes the industry less competitive. Bargaining power of
the buyers can be managed by PWC by increasing and diversifying their customer base. The
organisation can introduce the new products, new segments and adopting the strategies of
product diversification.
 Threat of substitute products
It become challenging for PWC if the substitute product is available in the market. High threat of
substitute product reflects that the customers can use the alternative product from other
organisation. The threat of substitute product increases when the cheap services are available

from another industry. The substitute product or services offers a same or even a better quality of
products and performance offered by PWC services. The threat can be low for PWC when the
customers cannot get the same utility from substitute product as they get from PWC product or
services. The organisation can tackle the threat by raising the switching costs by working on
loyalty, they have to gain the loyalty of its customers. PWC can reduce the high threat of
substitute product by offering better quality of product or services than its substitute (Kharub,
Mor and Sharma, 2019).
 Threats of new entrants-
Threats of new entrants shows how new market players can affect the existing market players.
The threat of new entrants will be high when the industry is profitable and the barriers to enter
into the industry is low, it attracts more players. The threat can be reduce if existing regulatory
framework imposes the challenges to the new organisation interested to enter into market. The
new entrants will get discouraged if the distribution channels access is restricted. The
organisation can develop the brand loyalty by building a strong relationship with its customers.
PWC can also invest in research and development activities, it helps them to get valuable
customer data and introduce the innovative products. The organisation can develop the long term
contractual relationship with its distributors so that it helps to widen the access to the target.
M3 Devise the appropriate strategies to improve competitive edge and market position based on
the outcomes
Competitive edge is an attributes that helps the company to achieve superior margins
compared to its competitors and also generates value for the company (Nicholas, 2018). There
are strategies to improve the competitive edge and market position based on the outcomes they
are:
Leadership Strategy
In cost leadership strategy the main aim is to become the low cost producer. If a company is able
to produce the product at low cost than that of its competitors then they are able to establish a
selling price that is unable to replicate by other organisations.
Differentiation
In this strategy, the product of the company is differentiated by its competitors. This could be
done by offering a high quality or innovative products or services to the customers. Branding is

one of the most widely method to differentiate the company from another. If the company is able
to differentiate with others then they are able to set a premium price on its products or services.
Task 4
P4 Applying a range of theories, concepts and models, interpret and revise strategic planning for
PWC
PWC could use Bowman's strategy model to analyse its competitive position in
comparison to the competitors. Bowman's strategy model was developed by the two economists
Cliff Bowman and David Faulkner. This model helps the companies to get aware about its
position in the market as compared to their competitors. The companies use this model for
creating an edge against the competition. It illustrate the aspects on how a organisation can
position its products or services offerings in the market. It is based on the two dimensions- price
and perceived value. There are eight possible and effective strategies that a organisation can opt.
These all eight strategies determines what they offer to the customers at what prices. If the
management of the company is able to understand the eight strategic positions of the model, it
will help them to analyse and evaluate the current strategy in a better manner. This model helps
the organisation to make the necessary changes and increase its competitive position in the
market (Ong, Ismail and Yeap, 2018).
The Eight strategic positions of Bowman's strategy clock are outlined below-
 Low price/ Low added value-
In this position, the PWC can keep the price low to compete with its competitors in the market. It
is a bargain basement in which many companies doesn't want to be in the position. This position
is chosen by the organisation when their product lack differentiated value. The price of the
product or services offered by the company is low, it is not distinguished and the customers
perceives very low value.
 Low price-
The company using this strategy produces large quantities of the products and their products are
valued in the target market. The PWC can select this strategy for their product or services when
it will be low cost leaders. When the organisation use this strategy its profit margin will become
very low so the company needs to sale at high volume (Echchakoui, 2018). The high volume of
the output generates the high amount of profits for the company.

 Hybrid-
The company offers products or services to its customers at a low price but with a higher
perceived value than its other competitors. The company build a reputation by offering a product
or services at reasonable price. If the quality and value of the product is good then consumers are
assured of reasonable price. It helps to build a strong customer loyalty for the brand or services.
This strategic position allows to focus on the aspect of product differentiation which makes the
product highly valued in the market. The customers also get convinced by the company as they
are offering a good value product at low price that benefits them in a genuine way.
 Differentiation-
In differentiation strategy PWC can develops such product or services which offers a unique
attributes that are valued by the customers. When products or services are developed and
designed it differentiate it from competitors and always got a competitive edge. The companies
tries there best to offer a best quality product at an average price and also wished to offer a high
level of perceived added values that makes distinctive identity in the market (Kuncoro and
Suriani, 2018). Branding also plays a role in differentiation as its make their brand a reliable one
to gain the loyalty of the customers. The customers are ready to pay more for the products of
high quality of renowned brand in the market.
 Focused Differentiation-
In Focused differentiation, PWC have to offer a high perceived value products against high price.
This strategy is adopted when the customers buy products or services based on the perceived
value alone. It focuses on the luxury and exclusive products that are of high quality and also sold
at high price (Desai, 2019). The perception of the value of customers is enough to charge the
high premiums, it is not mandatory that the product have any real values.
 Risky High margins-
In this strategy a company takes a risk and increases their prices without any increase to the
value. It is very risky strategy and the position of the company is most likely to fail in the long
term. If the price increases and accepted by the customers, the company will enjoy the high
profit.
 Monopoly Pricing-
In this strategy, only one company offers the goods and services and they are the monopoly
leader in the market as they offers the specific type of product. There is no fear of the

competition and they are the one who determine the prices of the product. The customers have
no choices to buy the products or services as they are totally dependent on the products or
services offered by the monopolistic company.
 Loss of Market Share-
This strategy position is not very desirable one for company as it basically means that the
company is not able to give the products or services that are valued by the customers. This type
of strategy will definitely lose the market share (Helmold and Samara, 2019). The customers will
not purchase the products or services as the price is high. If the company has a low value of
product or services, they have to sell it on price only.
The PWC can opt for Differentiation strategy as this helps them to develop products or services
which offers a unique attributes and are valued by the customers. The customers get attracted
towards the unique products or services and also pay the high premiums for that services.
M4 Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives
 Executive summary
The PWC is laying out a new service of mutual fund advisory. They will give the advices to its
customers and outlines the proper investment procedure. The company will frame a financial
planning chart for its clients and helps to hinder the clients financial goals.
 Mission
The mission of the company is to add value and help clients to reach their long term financial
goals.
 Vision
The vision of the company is to make every individual an informed and help to achieve his
financial goals by offering services of credible financial distributors.
 Objectives
The objective of the company is to build trust and solve the problems of the clients.
 Strategy
The company can use the differentiation strategy, as it helps to develop the products or services
with unique attributes and the customers also get attracted with the products which are different
with others.
 Monitoring and controlling