NEW ERA UNIVERSITY

GRADUATE SCHOOL OF BUSINESS

MASTER OF BUSINESS ADMINISTRATION (MBA)

MARKETING MANAGEMENT
MBA 124

INDIVIDUAL ASSIGNMENT

“CASE ANALYSIS ON ACCENTURE”

Submitted to:

DR. LEMUEL RODOLFO B. BRAÑA

Submitted by:

PATRICIA KAYE C. SACDALAN

February 02, 2021

 Module 7: Case Analysis onAccenture

A. Background of the case

Accenture PLC is a worldwide professional services company which provides consulting

services in digital, technology and operations.It is one of the leading multinational companies in
the field of management consulting and outsourcing and has now become the worldwide leader
in consulting services which is also recognized as a Fortune 500 Company. Besidesbeing on
Fortune’s list, the company also offers efficient services and solutions to multiple companies
who are on the Fortune Global 100 and Global 500 lists.

Initially, Accenture was a business and technology consulting division of Arthur

Andersen, which is an accounting organization. The first undertaking was automating payroll
processing and manufacturing for a client in Kentucky. In 1989, Arthur Andersen and Andersen
Consulting became separate units of Andersen Worldwide Société Coopérative (AWSC) and
eventually on 1 January 2001, Andersen Consulting adopted its current name, "Accenture".

Today, Accenture has approximately 204,000 employees with approximately 4,500

senior executives.The company can safe to claim their global reach which consist of offices and
operations in more than 200 cities in 53 countries situated in the Americas, Asia-Pacific, Europe,
Middle East and Africa. Currently, the chairman and CEO of the company is Pierre Nanterme, a
French business executive.

Accenture is headquartered in Dublin since 2009. It offers services in widely 5 categories

namely Communications, Media and Technology, Financial Services, Products, Resources,
Health and Global Resources. Within these broad groupings, Accenture also provides strategic,
technological, business, operational and digital solutions to numerous sub-industries.
 Accenture has been known for utilizing its technology capabilities and industrial
knowledge. It uses this strength for the establishment of new business and technology trends and
developing solutions to help globalcustomers enter new markets or to increase revenues in
existing markets. Another specialty area of Accenture is improving operational performance and
teaching clients how to deliver their products and services more effectively and efficiently.

Accenture's experience in consulting, technology and outsourcing is the company’s basis

for its high-performance business strategy to improve its client's performance. The key to this is
its Matrix organizational structure which works on a project basis. In Accenture, each project has
a project manager and a functional manager. Thus, each employee or project worker has two
managers who ensure that work is done smoothly and efficiently.

While on the outside Accenture looks like a ruthless and robust clockwork machine, the
company in reality has an extremely harmonious and comfortable work culture. Cultural
diversity is always promoted and placed due emphasis on team building initiatives, which keep
in line with Accenture’s core value of attracting, developing and retaining the best talents for
their business.

The company obtained recognition as a Global Leader when it achieved a ranking of 47

on Interbrand’s Best Global Brands study. It was also announced to be included in the Top 20
highest performing tech company in 2009. Additionally, Accenture was named inUniversum’s
2010 World’s Top 50 Most Attractive Employers, ranking in the top 25 on both Business and
Engineering lists.Newsweek also ranked the company No. 11 overall and No. 1 in the Industrial
Goods sector in its 2010 Green Rankings.In 2010, Accenture was recognized in CIO Magazine’s
“CIO 100” in the “Business Services/Consulting” industry. With multitudes of experience and a
talented workforce, Accenture today is leading global corporation providing solutions to clients
spread across the world.
B. Main Problem of the case

Wanting to increase exposure and awareness, Accenture initiated a global marketing

crusade, targeting every senior executive within their circle of influence. Targeting existing
relationships reduces the overall market, leaving a customer base that is more likely to purchase.
The success of this campaign expanded Accenture’s global awareness from 76 percent to an
impressive 96 percent.

In 2002, Accenture identified a gap in the market and implemented a marketing plan
designed to take full advantage of the opportunity. A number of companies in the market offered
strategy development services, while others specialized in the technological implementation, but
none could successfully do both. Accenture framed itself as the company that shined
indelivering both by activating the “Innovation Delivered” campaign. The ability to identify and
then satisfy a fundamental need within the market is often the key to marketing success. To
further entice clients, Accenture linked their ability to meet their client’s business objectives to
incentives.

Wanting to build on the success of the “Innovation Delivered” campaign, Accenture

started the “High Performance. Delivered” campaign, featuring the golfing sensation, Tiger
Woods. A large volume of research has shown that celebrity endorsements are an effective way
of influencing product perception. Research has also shown that having the right celebrity
endorsement can positively affect product awareness and sales. Accenture poured six years and
$300 million dollars capitalizing on Tiger Woods international recognition.

In 2009, the relationship between Accenture and Tiger Woods came to a

screeching halt as news of a scandal surfaced. Tiger Woods stellar reputation took a swan dive
as reports of numerous extramarital affairs came to light. In an attempt to distance themselves,
Accenture ended all dealing with Mr. Woods. This was a smart move as research has shown that
any transgressions committed by an existing celebrity endorser will negatively influence
customer’s purchase intentions for the brand.

Fig 1.Revenue of Accenture plc worldwide from 2009 to 2020

C. Strengths Weaknesses Opportunities and Threats (SWOT)

 Internal Environments

Strengths

1) World’s Biggest Consulting Organization

As far as the revenue, it's the world's largest Consulting company which has IT and
business consultancy. It has business morals and uncompromising benchmarks for managers.It
also has a large customer base with some first-class companies having Accenture as their
specialists. About 90 out of the fortune top 100 companies and in excess of seventy-five percent
of fortune worldwide 500 organizations have Accenture as a consulting company.

2) Service Delivery Network & Client-Driven Procedures

Accenture has worldwide company conveyance coordinate with the presence in excess of
200 urban communities, 56 nations and utilizing 390,000 enthusiastic representatives ceaselessly
attempting to give ideal administration conveyance to end clients.The strong business relations
and customer-driven approach initiated and maintained by Accenture causes them in making
industry based, supportable incentive for their Consulting accomplices.
3) Diverse Abilities & Expertise
With its five working gatherings specifically interchanges, Media and innovation, budgetary
administrations, wellbeing &public administrations anditem assets it has made various capacities
inside its group. Committed and prepared labour for every vertical is the thing that separates
Accenture from the rest.With its customer base extending from social insurance to vehicle to IT
benefits, Accenture has a ton of experience and the ability behind it to complete things. Thus,
Accenture has turned into the "authority" or "specialists" crosswise over various ventures.

Weaknesses

1) Lack of Coordination

Accenture has 19 specialty units cooperatively working with the customers and with each
other. This prompts clashes because of the absence of inward coordination.

2) Dependency on its Consulting Business

Although its business is in administration Consulting, innovation, and BPO, yet the
Consulting part frames the significant wellspring of income for Accenture. This can be risky for
the organization over the long haul since running such a huge task requires, to the point that the
firm is prepared for terrible money related days.

External Environments

Opportunities
1) Expansion of Business
By focusing on little and fair-sized ventures and extending to other creating economies
(Market improvement), Accenture can build its income much more.

2) Acquisitions

Accenture as of late gained 'Gaspo", an investigation arrangement supplier based out of

Brazil. It likewise gained Agilex advances, which is a computerized and IT administrations
supplier for U.S Govt. offices. Such acquisitions can build the scientific quality of Accenture
along these lines helping it in development.

3) Focusing on Different Organizations

More spotlight on innovation and BPO, and making the income comparable to
consulting, can assist the firm in penetrating the market far and away superior. Likewise, this
expansion will give a pad amid brutal monetary circumstances.

Threats

1) Competition with Giants

Tough rivalry from IT big companies like IBM, Capgemini, Infosys is the territory of
worry for the organization.

2) Improper and Un-efficient Monetary Circumstances

During the subsidence time frame it was intense for the organization due to over reliability on
premium customers. The vast customers were the initial ones which got influenced severely by
the budgetary downturn. What's more thus the income drive to Accenture dropped gravely.

Alternative Courses of Action

1. Eliminate Projects and Processes that Don‘t Work

Advantages

1. This will ensure that the projects and processes it is most profitable in are given
more focus thus increasing the probability of success for the company.

2. Eliminating the less profitable projects and processes could not only boost the
profitable ones but this could also help with cutting the cost thus increasing the
budget for investment in more segments that could be more beneficial to the
company.

Dis-Advantages

1. The removed projects and processes could potentially boom in the future thus
could be a missed opportunity in which the company would definitely regret.

2. Diversification, which is a highlight for the company would then be a lost

strength. Having diversified expertise and abilities could balance out the profit
and loss of the company as each projects and processes has its own highs and
lows in the market at some point.

1. Collaborate with More Technology-Related Industries and Companies

Advantages

1. Strategic Alliances bring together complementary capabilities to mutual

commercial benefit. This create access to a wider range of expertise for the
different parts of the business.
2. Partnerships and joint ventures can open new markets or improve your offer to
existing ones.

Dis-Advantages
 1. When 2 or more companies work together, what the one partner does may
reflect on the image of the other. Any issues that one partner face may directly
result to the customers linking the alliance companies together and tie them
both down.
2. Even the best partnerships today experience problems with implementation if
they are unable to coordinate their services and products effectively. If issues
do occur, it may allow rival companies to gain a competitive edge, negating the
other advantages which come with a partnership.

2. Make Operations Environment Friendly

Advantages

1. Having an environmentally conscious business could not only save the

environment but also lead to lower productions costs. This includes recycling
and reusing materials and choosing paper bags over plastic bags.
2. Going “Green” could give the company a better public image to stand out from
competitors and it will affect how customers perceive the business which could
automatically attract more as well.

Dis-Advantages

1. The company might experience decrease in productivity in employees. Saving

mother Earth usually requires effort from individuals. This includes sorting out
trash than throwing them as usual or doing more research and verification
before purchasing equipment to ensure eco-friendly materials.
2. The switch can be expensive. An investment in green technology like
switching to solar panels might strain your budget which leads to less money
for other investments. This can initially decrease the quarterly earnings as well
as strain the company’s budget.

D. Recommendation
 The company business strategy is a model for other companies in this industry and
teaches that every company should follow the long-term goal, planning, correct decision making
at right time, maintaining good relations with employees, customers and stakeholders for
prosperous growth. Further, building team coordination in a correct way, use of better
technologies in production and making the right decision at right time to improve the product are
essentials for a sustainable company. These points are useful for the success of the organization
in the market. The Accenture business strategies are discussed as per the guidelines are given in
the Company analysis case study methodology to understand its sustainable business strategy.

F. Conclusion

The accounting firm Arthur Andersen created the Administrative Accounting Group in
1942 as a business and technology consulting division. In 1989, the Administrative Accounting
Group became Andersen Consulting, as a way of separating the two businesses. Andersen
Consulting struggled with low brand awareness and was often mistaken for its former parent
company. In order to correct this, Andersen Consulting launched an extensive advertising
campaign, targeting the professional services market. This campaign led Andersen Consulting to
become the largest business and technology consulting firm in the world. In 2000, Andersen
Consulting completely separated from the accounting firm Arthur Andersen. This total
separation led to the organization to change the name from Andersen Consulting to Accenture.
Today, Accenture operates on a global scale, dominating the business consulting and technology
services market.
Case Questions

1. What has Accenture done well to target its B-to-B audience?

Within the business market of developmental and information technology system

consulting, Accenture has done very well in targeting its business to business audience. It has
done so by targeting companies with high future potential. Technology driven companies
worldwide are generally the fastest growing and most profitable entities or “business sectors with
the greatest growth prospects, most profitable customers, and most promising opportunities”,
which is Accenture’s target audience. Once Accenture identified its target audience, it acquired
99 of the World’s Fortune 100 companies, meaning their focus was successful. They’ve
successfully overcome competitors such as McKinsey and IBM by bridging the gap between
those two service industries, offering both business consulting and outsourcing implementation.
With a clever brand transition from its father company and inspiring slogans accentuating its
emphasis on success and the future, Accenture has impressively directed itself to potentially
successful technology driven companies.

2. Has Accenture done the right thing by dropping Tiger Woods as its spokesperson? Discuss
the pros and cons of its decision?
 Initially, Tiger Woods was a great face for the Accenture name because he was a well-
known model of success in the golf world, which is quite a transitive playing field in the world
of business. After all, the golf course is a significant place of business within many industries.
When the Tiger Woods scandal was revealed, he became a negative representative of the
Accenture brand. Based on potential “vendor analysis” used in supplier selection, supplier
reputation can be a large reason for selection, almost as much as price and reliability. By ending
his contract with Woods as the face of the company and reinventing itself using a non-offensive
campaign, Accenture was able to re-establish itself as a trustworthy entity. Unfortunately
however, by ending the contract with Woods, Accenture lost its association with the golf
identity, potentially losing its association with a commonly used business tool.