Capstone project
Kwame Darko-Mensah
Professor Easter
MGMT 439
November 2, 2019
Overview/Background/History KPMG accounting company
KPMG is an accounting firm that was established in 1987 after Peat Marwick International (PMI) merged with Klynveld Main Goerdeler (KMG) including their individual member firms. The name of the company is derived from its the parent companies. KPMG is one of the leading companies in its area of specialization. Positioning KPMG is a global financial consulting firm. Admirably, KPMG maintains its strongly dominant position in the industry through the use of extensive and carefully executed SWOT analysis. It offers consultancy especially in management and consulting. Its tagline is Cutting through complexity while its unique selling proposition is KPMG are global experts in audit and tax services. KMPG serve clients from all industries that are looking for business solutions. It helps firms looking for strategic solutions.
Reasons behind its Success
As one of the leading dominant firms in its market, KPMG enjoys a number of strengths that support its competitiveness and market position. Its Strengths help it maintain a loyal customer base and colonize new markers with relative ease. Some of its strengths include highly skilled workforce, triumphant track record, well established supply chain management and a strong brand portfolio.
Issues Facing KPMG
Despite its success story, KPMG face a number of issues in its internal and external environment. For instance, KMPG is cannot address the challenges that are presented by the new entrants in the its area of specialization and as a result is slowly its market share to new entrants. Recently, KMPG has had limited success outside its core business. It has not diversified its business away from its core business. Its profitability and market resilience is undermined by high risks. The companys investment in research and development is limited and its that of best performing players in the sector. Despite its heavy investment in research and development, it is beaten by entrants at innovation. Its profitability is also diminishing spelling hard times.
Externally, KPMG is facing the risk of increasing competition as a result of easing regulatory restrictions. These relaxing regulations may foster competition. Additionally, the U.S economy is slowing. Any recession may hinder the growth of businesses and hence operations of KPMG. Competitors are increasingly colonizing customer segments KPMG previously served.
Data Collection
For the research, data will be collected from secondary sources and primary sources. For example, yahoo finance and Morningstar websites will be used to collect the financials of the company and that of its rivals. Additionally, the KMPG website will be used to collect information on its strategies while the websites of its competitors will be used to identify the comparative advantages of its rivals. Secondary sources such as secondary sources will be used to support internal and external analysis of the company and back recommendations on effective solutions that can be used by KMPG to solve the problems it is facing.
