Accenture is an American based global firm which was founded in the year 1913 and is specialized in management consulting and providing technology related services to its clients as well as outsourcing. The company has grown as the market leader globally in its own industry and has some of the biggest companies as its clients from fortune Global 100 and 500. It employs around 186000 employees and operates in 52 countries.
The external factors of the firms are the ones which are present in the external environment over which the company has relatively less or no control yet again they tend to affect the business and the decision making of the company. These include the social, economical, political, cultural, environmental and legal issues of a country. These external factors tend to give opportunities and threats to the company.
Accenture is affected by the economic factors such as the changes in the rate of employment in the country where it is operating. This affects the availability of skilled workforce and the amount of wages paid to them. The recession in the country has a direct impact on the businesses. When there is recession the production decreases of merely all the companies because the inflation rate rises and the spending power of the consumers fall due to which the sales fall and the profitability of the companies too.
The Essay on Apple Company Internal And External Factors
... this paper I will explain how the internal and external factors affect the four functions of management inside Apple. I will ... made. The competitors, consumers and wealth of the country play the external role. In the Bloomberg Business article it states ... organizing, leading, and controlling built the success of this company. The factors mentioned throughout this paper described each characteristic of ...
This leads to less investment in the business and hampers the growth of the company. Moreover at times of recession the company is forced to lay off some of the old employees in order to cut costs. The company has to re evaluate its strategies and goals.
The changes in the exchange rate also affects Accenture, when the value of dollar appreciates in comparison with the other country then the demand for Accenture’s products and services is likely to fall because other countries have a substitute to give their contracts to a low cost region.
The change in the tax rates by the government affects the cost and profitability of the company and leads to a rise in their cost of production. This rise in cost is passed on to the consumers in the form of increased prices or else the company cuts down on its profits and bears the burden of high cost. Moreover if the government increases the income tax on the consumers even then it indirectly affects the sales and profits of Accenture. Similarly changes in the interest rates will make borrowing and financing difficult for firms therefore they will be reluctant to invest or outsource their business to Accenture due to the lack of finance.
These days all the firms are growing globally, they are expanding their business operations in other markets to diversify the product portfolio as well as diversify the risk. Accenture does not have a control on the competition in the external environment. If new firms enter the market or already established ones enter the same market then the competition will increase for the company and they will have to look for strategic planning in order to live up to the performance and maintain the market share. The only way it can discourage other firms from entering its market is be setting high standards and quality of their work which would make it difficult for them to compete with Accenture.
The culture of a different country where Accenture operates will have an impact on its own culture. Sometimes the company has to be flexible and adopt to the to the working environment of that country because the workers there are used to that and feel more comfortable with the existing working environment and will have adjustment and settling down issues is Accenture carries on business like the home country. The company has to deal with cultural differences.
The Business plan on Strategic Management And Business Policy 2
Strategic management is a systematic approach of analyzing, planning and implementing the strategy in an organization to ensure a continued success. Strategic management is a long term procedure which helps the organization in achieving a long term goal and its overall responsibility lies with the general management team. It focuses on building a solid foundation that will be subsequently achieved ...
The role of government and their policies and regulations also have an impact on the businesses. Different governments have different policies so the changing government also has an impact.
The favorable policies of the government such as tax relief and less laws governing work or government assistance in providing technical support to the company can help the company grow. Moreover favorable policies on the education and training of the workforce can help Accenture get skilled and trained workers, whereas government policies such as an increase on the minimum wage can lead to a rise in the costs of the business and discourage them from hiring more employees. Then there are other policies about the environment and social responsibility towards the society which includes ethics and code of conduct while decision making.
Some form of favorable policy from some other country such as benefits given by their government to come and establish in their country can provide Accenture with an opportunity to further expand globally. Moreover taking over a firm is also an opportunity for Accenture as it has the capability and the finance to do so.
The company has no control over the demographics of the nation which will indicate that how many consumers will be interested in buying the services of Accenture. Changes in technology is another factor, if there is some change and the competitor adopts it first then Accenture will have to suffer, therefore Accenture in order to stay ahead in the market need to invest in the research and development because the nature of this business is such that products can become obsolete.
There are ecological factors that have an impact on the business such as the shortage of raw materials and the availability of suppliers, the role of pressure groups and their development. They can have am impact on the company’s decision, such as the environmentalist do not let Accenture set up in a region where it will have to cut down trees, these pressure groups tend to have an influence as they try to gain media and public support.
The Report on How Government Policies Affecting Business of Sunrype Juice
How government policies affecting business of Sunrype Juice Among these three countries, Japan had most stabilized inflation rate over past four years, which was only varying within three percent. Comparing to Thailand's 9 percent and Pakistan's 23 percent in 2008, Japan has much more stable economy among three countries. Hence, the economy environment is more ideal for our venture in Japan. ...
It is on the company that how effectively it is able to handle these factors and utilize its opportunities for the growth and development and is able to overcome threats. The company has the opportunity to expand moreover, it has a brand name and image which help it, and also the demand for technology related services is rising so the demand for Accenture is expected to rise too. Therefore company’s plan ahead while keeping these factors in mind so that they do not come across any unforeseen circumstances. These factors can further be shown through the external evaluation matrix.
