KPMG SWOT and PESTLE Analysis

KPMG firms serve the needs of business, governments, public-sector agencies, not-for-profit organizations offering audit and assurance practices in capital markets. KPMG is committed to quality and service excellence in all that they do, bringing their best to clients and earning the public's trust through their actions and conduct, both professionally and personally. By helping other organizations mitigate risks and grasp opportunities, they can drive positive, sustainable change for clients, people and society at large. Therefore, the SWOT analysis gives a report of the internal and external factors that impact the company. The SWOT analysis of KPMG highlights the company’s current major strengths and opportunities. The report also discusses KPMG’s internal weaknesses and external threats that can cripple its growth. The core strength of KPMG lies in the company being one of the big four accounting firms. Furthermore, trust and quality remains core to KPMG’s business. KPMG’s values-based corporate culture also goes a long way in imposing the same. KPMG consultants are expert practitioners in the fields of Audit & Tax, Business Transformation, Technology Transformation, and Risk & Compliance. Acquisitions and alliances help the firm to strengthen the business portfolio. Despite all the biggest strengths and core competencies, KPMG faces a crisis due to its internal weaknesses like reputational issues in a few of the member firms. The audit report qualities have also been questioned in several cases. KPMG with its acquisitions and alliances can adapt its business model to support clients with the challenges and opportunities they face in multi-disciplinary advisory segment. The Anglo-Dutch audit firm is in a good position to utilize the opportunity of capturing emerging markets and eye growth in consulting, audit and assurance services sectors. Furthermore, KPMG is steadily building technology-based solutions and services creating a growth opportunity for the firm. This multinational professional services company, faces huge threat from other members of the ‘Big 4’ and other consulting and technology players. Audit scandals involving Big 4 clients have raised serious questions related to auditor independence and audit quality. There is a growing negative perception about audited information which is a major threat to the industry in which it operates.

The SWOT analysis of KPMG is presented below:

SWOT & PESTLE (combined)
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Detailed SWOT Analysis of KPMG

KPMG is currently one of the member firms of the Big 4 accounting companies of the world, having a vision to be the biggest professional services firm. The company offers services like audit, assurance, taxation, management consulting, actuarial, corporate finance, and legal services. Hence, the PESTLE/ STEEPL/ PEST analysis technique is employed to analyze all pertinent external factors that create a huge impact on the industry and largely on KPMG’s business model, growth trajectory, its business case, and market strategy. The PESTLE analysis helps to understand influencers like political, economic, social, technological, legal, and environmental that impact the business of a company. By recognizing these outside environments, companies can benefit from the opportunities while reducing the threats to the organization.

Political factors paramount the extent to which a government may influence an industry or a company. Businesses are being badly affected by the current political situation, more so than was seen from many years. A tax reform boom has emerged owing to a rising civil interest in knowing the amount of tax, large companies pay and a global project to curb tax base erosion and profit-shifting. These developments will drive demand for consulting and advisory services benefitting firms such as KPMG.

Social factors are helpful for companies to better plan their marketing analytics and strategy. The Big 4 auditing firms are facing flak after their switch from conducting accounting based on historical cost to calculating based on asset fair value. This new method grants the senior management and finance executives of companies a greater freedom of judgment, but missed on ensuring that auditors match this greater discretion with an increased level of independent professional skepticism. KPMG thus faces the threat of seeing a loss of trust from customers which can lead to clients opting for other firms. The business of KPMG will be negatively affected as a result. KPMG is in the process of creating a comprehensive learning plan which will allow its professionals to fully utilize the opportunities presented before them. KPMG also continues to hire professionals already skilled in software, cloud capabilities and AI, in order to supplement the company smart audit platform with the best practices within the industry.

Constantly innovating is essential to improving audit quality and KPMG as an industry leader is investing in technology in order to make the quality and consistency of its audits even more reliable. The KPMG Clara smart audit platform is used world over, bringing its audit teams in direct contact with clients. Legal factors have both external and internal sides. Laws have an impact on the business environment. Auditing malpractices may lead to ban in some jurisdictions. The auditor independence and audit quality offered by KPMG member firms has come under question recently when several audit scandals involving Big 4 clients got revealed.

Economic factors are concerned with the effect of the surrounding environment and the influence of ecological aspects. Interest in sustainability reporting has been on the rise globally. All companies and industries are slowly recognizing the importance of maintaining sustainability. There is a demand for added transparency which is making it mandatory to achieve sustainability. As a result, KPMG launched its Global Climate Response which aims to lessen the company’s environmental impacts by working through its member firms. Such strategies have enabled the company to reduce its energy use (kWh) per square meter by 17%.

The PESTLE/PESTEL analysis of KPMG is presented below:

SWOT & PESTLE (combined)
Complete Report
USD 12.53

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Detailed Pestle Analysis of KPMG

• The SWOT and PESTLE analysis report provides a quick glimpse of the internal factors and external factors initially in a matrix format, followed by a detailed analysis.
• The SWOT analysis evaluates the strengths and opportunities that KPMG holds and how it strategizes itself to overcome its weaknesses and quash threats in its operating external environment.
• Comprehend the role of KPMG’s core competencies and source of competitive advantage that present the company with an edge over its competitors and shape its business.
• KPMG’s PESTLE analysis provides a detailed picture of the external factors and its influence on the company’s macro environment.
• The PESTLE/PESTEL/STEEPL Analysis for in-depth analysis of all external factors specifically, political, economic, social, technological, legal and environmental, highlighting their consequence on KPMG’s business model, marketing and growth strategy.
• Factors and trends affecting the professional service industry and its overall impact on the working of KPMG.
• Abstract information on KPMG’s history, founders, its corporate headquarters, owners and stakeholders and revenue jumps.
• Understanding of KPMG’s USP or unique selling proposition, vision statement and mission statement.
• Discussion on KPMG’s major competitors, brands and key business segments, and synopsis of its diversification.
• Synopsis of KPMG’s business model, business case study along with a peek into the firm’s key performance indicators, value proposition and success factors.