Ernst and Young Global SWOT and PESTLE Analysis
COMPANY PROFILE -Ernst & Young Global Limited
Business Sector :Consulting, Advisory and Auditing Services
Operating Geography :United Kingdom, Europe, Global
About Ernst & Young Global Limited :
Ernst & Young Global Limited headquartered in London, England is an international professional services network. Its main services to clients include assurance (which includes financial auditing), tax, consulting, and advisory. The corporation was formed in 1989 when Ernst & Whinney and Arthur Young & Co. merged; the oldest component which traces back to 1849. EY is a global network of member businesses organized as separate legal entities in a partnership with over 300,000 workers in over 700 offices in over 150 countries. It has grown into industries other than accounting, such as strategy, operations, HR, technology, and financial services consulting. The four core services of the organization include, Assurance which includes financial Audit, financial accounting advisory Services, and Forensic & Integrity Services; Taxing which comprises Transfer Pricing, International Tax Services, Business Tax Compliance, People Advisory, Global Trade, Indirect Tax, Tax Accounting & Risk Advisory Services, Tax Technology and Transformation, Transaction Tax; Consulting which is divided into two subcategories. - business and technology consulting; Strategy and transactions which comprise Business Valuation and Economics, Due Diligence, Real Estate Advisory, M&A, Restructuring (financial and operational), and Corporate Finance Strategy. On April 20, 2022, Ernst & Young announced that it has expanded its partnership with CrowdStrike, a leader in cloud-delivered endpoint, cloud workload, identity, and data protection, to India. The alliance aims to integrate cybersecurity operations and risk management across the enterprise in a seamless manner.
Ernst & Young Global Limited's Unique Selling Point or USP lies in its being one of the largest professional services networks in the world. Ernst and Young’s mission statement reads, "At EY, our purpose is Building a better working world. The insights and quality services we provide help build trust and confidence in the capital markets and economies the world over. We believe a better working world is one where economic growth is sustainable and inclusive".
Ernst & Young Global Limited Revenue :
US$ 40.0 billion - FY ending 31st June 2021 (y-o-y growth 7.5%)
US$ 37.2 billion - FY ending 31st June 2020
Competitive Analysis of Ernst & Young Global Limited
Strength | Weakness |
1. Strong growing financials ensures sustainable growth 2. Development of new frameworks to adapt to situations like COVID 3. Among the first to foray into block chain and AI technologies in Big 4 4. Well trained human capital to deliver on the projects of clients | 1. Strong competition with Big 4 reducing the capability to grow 2. Regulatory pressure on company’s operations due to varying and complex tax laws across all countries |
Opportunity | Threat |
1. Outsourcing of taxation by businesses may generate more opportunities for EY 2. Growing demands for consultants in emerging markets | 1. Multiple lawsuits being filed on the company may hamper its reputation 2. Rise in R&D facilities of companies reduces the need for consulting |
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Detailed SWOT Analysis of Ernst & Young Global Limited
Strength
1. Strong growing financials ensures sustainable growth: Ernst and Young's revenues increased by 4.1 percent to $37.2 billion over the year, up from $37.1 billion the year before. It also increased its global headcount to nearly 300,000 employees.The company operates in more than 150 nations allowing it to generate revenues from a diversified geographical space and not be dependent on a particular region. The Assurance division of EY generated $12.8 billion in revenue, up 4.4 percent from the previous year. Revenues from its Advisory division totaled $10.5 billion (up by 9.2 percent). EY's tax division brought in $9.8 billion in revenue, up 8.6% from the previous year. Finally, Transaction Advisory Services brought in $4.1 billion in revenue, up 15.5 percent from the previous year. Having achieved growth in each of its service lines, EY can be able to get sustainable growth for its operations.
2. Development of new frameworks to adapt to situations like COVID: The COVID-19 Enterprise Resilience Framework, developed by Ernst & Young, is a tool that can be used to help clients assess their risks and preparedness for a pandemic. This Framework serves as a road map for companies to understand not only what they need to do right now to deal with immediate pressures, but also what they should do next and beyond to reframe their future. This framework enabled EY to assist clients during the COVID outbreak while also remaining operational. Teams of EY worked across borders and service lines to re-route clients’ supply chains, manage liquidity, guide them through government stimulus packages, and advise on the impact on stakeholders. Currently post the lockdown, EY is helping the clients to innovate and build resilience for the financial, societal and regulatory challenges, and opportunities from the pandemic.
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Weakness
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Opportunity
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Threat
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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Download the Sample SWOT & PESTLE.com Report for free. You also agree to receive email updates from us on our new reports and solutions.
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Download the Sample SWOT & PESTLE.com Report for free. You also agree to receive email updates from us on our new reports and solutions.
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References used in Ernst & Young Global Limited SWOT & PESTLE Analysis Report
1. Emerging Markets - https://www.bcg.com/en-in/capabilities/international-business/emerging-markets
2. EY fights fires on three audit cases that threaten its global reputation - https://www.ft.com/content/576e4c7f-93e5-4e8a-b5ba-5e1161533c5a
3. Impact of the end of the Brexit transition period on audit rights in the UK and Ireland - https://www.icaew.com/regulation/working-in-the-regulated-area-of-audit/the-impact-on-brexit-on-audit-rights-in-the-uk-and-ireland
4. Management Consulting Post COVID-19: Building Resiliency and Agility - https://www.tcs.com/blogs/management-consulting-firms-business-model-post-covid19
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Ernst & Young Global Limited SWOT and PESTLE analysis has been conducted by Amit Kabi and reviewed by senior analysts from Barakaat Consulting.
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