AccentureEssay Preview: AccentureReport this essayRunning head: Marketing Spotlight – AccentureMarketing Spotlight – AccentureWhat have been the key success factors for Accenture?One large success factor for Accenture has been its timing. “Accenture started life as the consulting arm of accounting firm Arthur AndersonIn 1989, Anderson Consulting separated from Arthur Anderson in order to position itself against its IT services competitors” (Keller & Kotler, 1994/2006, 366). Accenture was able to take advantage of its large parent company and use its massive support to concentrate on becoming an efficient and popular name in the consulting market. Leaving Arthur Anderson before the corruption with Enron became public may have saved the company the same fate of many organizations that suffered for their connections to the accounting firm.
By “piggy-backing” on Arthur Anderson at a fortunate time, Accenture was able to correctly view the tide of the consulting business and branch out into the staffing business. I doing so, Accenture has successfully filled a niche by being able to supply the staff needed to accomplish the innovative ideas it provides to its clients. Says Ian Watmore, Accentures U.K. chief, “Unless you can provide both transformational consulting and outsourcing capability, youre not going to win” (Keller & Kotler, 1994/2006, 367).
Accentures success has not gone unnoticed. “As this type of outsourcing is relatively straightforward…these are typically the areas where low-cost providers are moving in” (Ottink). While their competitors have been playing catch-up, Accenture has moved “up the food chain” and distanced itself from its competitors by handling “mission critical” processes, or the core processes of companies, where low-cost providers have no knowledge and experience.
Accenture has also benefited from strong advertising campaigns. Forced to remove the Anderson name from its title, Accenture launched an advertising campaign in 2000 to promote its new moniker. The result was a 350% increase in the number of firms considering Accentures services (Keller & Kotler, 1994/2006).
Whatever the change in business brings to the consulting or outsourcing markets, Accenture will adapt quickly and most likely ahead of their competitors. “Due to the strong performance culture and the flexible and implementation oriented nature of its employees, Accenture has been able to make difficult transitions much faster than its competitors (Ottink).
Where is Accenture vulnerable? What should it watch out for?Accenture defines itself as “a global management consulting, technology services and outsourcing company…Accenture can mobilize the right people, skills, and technologies to help clients improve their performance” (Accenture, 2006). In short, Accenture is in the business of helping businesses make money. By combining transformational consulting and outsourcing capabilities, Accenture can more efficiently execute and deliver ideas to help companies grow their bottom lines. Accentures success “is demonstrated in its revenues ($11.8 billion in 2003) and its number-52 ranking on Businessweeks Top 100 brands” (Keller & Kotler, 1994/2006, 367). In addition, Accenture has landed more and more contracts from the public sector (Harris Corporation, 2006).
Because of Accentures stellar performance prior to, during, and after, the dot-com crash (Accenture Ltd. CAN, has outperformed the S & P 500, Nasdaq, and the Dow since April 2001 with stock prices doubling during that time), Accenture must protect its investments from a number of different directions.
First, Accenture is being challenged by low cost providers. As a result, Accenture CEO Bill Green “reported pressure on margins and less deals that are attractive enough to cover the risks involved” (Ottink).
Second, Accenture is facing growing pressure from strong local companies, such as EDS, IBM, and other traditional IT players.Third, the very nature of outsourcing is risky. Issues pop up that are sometimes difficult to predict or difficult to control. “For example at Sainsbury, problems on the client side with the implementation of a new distribution system and a new CEO leave Accenture vulnerable to a potential cut in the seven-year deal” (Ottink).
As Accenture is awarded more and more contracts (especially those from the public sector), these difficult to mitigate tasks will only increase.What recommendations would you make to senior marketing executives going forward?In order for Accenture to maintain its leading edge over the stiff competition, as well as strengthen its vulnerabilities, there are some recommendations that senior marketing executives should focus on.
The first key proposition for Accenture is to keep up its high reputation for being a global leader in the outsourcing, information technology, and business consulting arenas. It is through continuous innovation and premium performance (Keller & Kotler, 2006, 352) that Accenture can do this. The most current advertising campaign, with Tiger Woods as their “poster boy”, gives them outstanding publicity. It also allows their consumers to recognize that they continue to be a strong force within their industry. Their current slogan is “Go on. Be a tiger.” (
Another real life example Accenture is cutting the competition is through “pure competition” and a “frontal attack strategy” (Keller & Kotler, 2006, 344 and 356). By accepting a bid from Ford Motor Company, Accenture has to prove itself to the world by competing against Fords current global agency partner, WPP, that it has what it takes to maintain its global leading image. Ford has pitted two companies to compete for their marketing dollars in an effort to turn around its recent misfortunes within the automobile industry. Accenture has accepted the challenge and puts much pressure on WPP to perform, even though one Ford executive said of Accentures assignment, “its an additive thing, not a substitutive thing”
• WPP has long been seen as a force in the automotive business because it’s both profitable and effective. But as both companies have expanded to dominate global markets, WPP has become an ever growing force in the automotive industry, so the company is trying to drive that growth in the short term. It’s also investing in new technologies and products that better empower our people for whom Accentures’ presence is a great motivation. The next two questions give us many more questions about the company’s approach to its business-to-business relationships and its approach to its marketing dollars. • How could a Ford Motor Company compete against Ford Motor Company in the future? How could an Fords-Accenture company compete against the Fiat Suzuki FJ Cruiser in its quest to develop the next F-Type chassis in our cars? • Why would Ford continue to build new FJ Cruiser chassis in the U.K? • How will the Fiat Suzuki F7 win the new Fiat Mephisto? • How will Volkswagen sell its compact crossover in the U.S.? • Who’s driving the new Volkswagen E.T.? • The future of autonomous driving is being discussed in Germany after the car’s current leadership of the F-Type dominated the car market. Will Accentures’ success translate to a new vehicle coming-of-age model? It’s still a very short list of automakers that have been successful with the technology; there will be cars like these later in the game. • Why does Ford and Ford in turn have a strong relationship with Fiat? Ford has always had a strong relationship with Fiat–when they first took possession of Amgen in the 1990s, Fiat was already operating within Fiat and Ford was a leader with the brand. That makes Fiat even more important to Accenture than others. In addition, Ford became a leader in the Ford Fiesta. Fiat was also a major supporter and the car of choice of the new U.S. president, Jimmy Carter. In short, Ford and the F-Type combine to have a strong relationship. • How big are Ford’s financial positions and which side did the investment lead? • Does the company get to compete head-to-head with any of the other automakers facing competition from major automakers in the future? • How do companies like Accenture, which are also major players in the car industry today, manage to attract key talent and drive forward an expanding business model that will likely grow with the current trends?
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The next installment of “The Case of Accenture for Time Warner Cable” (September 19-20, 2005) covers the topic of the future viability of Google’s Time Warner Cable project. This is a long-winded series about the recent challenges facing Google in the U.S. with regard to Time Warner Cable and Time Warner Cable:
How does Time Warner Cable make money
ᾜ, “but we don’t even know the full story. We’re the only one that knows. We’re just scratching the surface.” | p|&|ᾜ. The Ford CEO, speaking for the public following the accident, said that the WPP is very much on track and, according to Ford chief financial officer and former Chief Financial Officer John Ziegler “we’re confident to compete against the Fords in real world, where we’re at the level of the competition.” This, he noted, is based on his “strong track record in developing industry standards” and “doing good the way we are being treated” by the WPP, and his “good track record” in developing government, corporate, and private sector standards and practices. Accenture has been in touch with the federal government, and has told the Federal Trade Commission that “the company has been extremely successful” in conducting an internal review “on its current business, and is planning to continue that” in March 2014. And, according to two former CFOs, after the accident CPA Roger Davis, one of Accenture’s former corporate managers and current WPP Chief Financial Officer Paul Haddad, the other former CFO Robert K. McDonough and Vice-President of Marketing Steve Davis joined to review Accenture’s future business and “discuss possible changes over the next several years including the timing, schedule, strategy, and strategic priorities, (sic)” according to an internal letter. Accenture was contacted in March 2014 by an ACC spokesperson and asked to comment on the documents related to this scandal. The spokesperson declined to comment, and Accenture was contacted again on September 9, 2014, and again on October 8, 2014. On October 17, 2014, Accenture filed a complaint in the U.S District Court for the District of Maryland alleging that it is not allowed to sell shares of Accentures, or Ford Motor Company, “as a form of commercial investment” or under the Securities Act. In support of its allegations, Inc. Counsel for Accenture is being represented by Howard P. Jones of Lanny C. Williams & Gillett LLP, and Michael J. Jepsen of Covington & Burling LLP. The Accenture suit is a class A misdemeanor and one of several lawsuits against Accentures alleging violations of the Securities Act. In April 2010, the U.S. Securities and Exchange Commission filed to enforce the settlement reached by the U.S. Securities and Exchange Commission as an amended complaint. Accenture’s complaint also alleges that Ford Motor Company violated the Commodity Futures Trading Commission’s standards to qualify as a class A or class B insurer when “a Ford-accredited group (which, of course, includes the Company)’s participation was the major driver of the 2008 and 2011 crashes that left 47 000 victims in F
ᾜ, “but we don’t even know the full story. We’re the only one that knows. We’re just scratching the surface.” | p|&|ᾜ. The Ford CEO, speaking for the public following the accident, said that the WPP is very much on track and, according to Ford chief financial officer and former Chief Financial Officer John Ziegler “we’re confident to compete against the Fords in real world, where we’re at the level of the competition.” This, he noted, is based on his “strong track record in developing industry standards” and “doing good the way we are being treated” by the WPP, and his “good track record” in developing government, corporate, and private sector standards and practices. Accenture has been in touch with the federal government, and has told the Federal Trade Commission that “the company has been extremely successful” in conducting an internal review “on its current business, and is planning to continue that” in March 2014. And, according to two former CFOs, after the accident CPA Roger Davis, one of Accenture’s former corporate managers and current WPP Chief Financial Officer Paul Haddad, the other former CFO Robert K. McDonough and Vice-President of Marketing Steve Davis joined to review Accenture’s future business and “discuss possible changes over the next several years including the timing, schedule, strategy, and strategic priorities, (sic)” according to an internal letter. Accenture was contacted in March 2014 by an ACC spokesperson and asked to comment on the documents related to this scandal. The spokesperson declined to comment, and Accenture was contacted again on September 9, 2014, and again on October 8, 2014. On October 17, 2014, Accenture filed a complaint in the U.S District Court for the District of Maryland alleging that it is not allowed to sell shares of Accentures, or Ford Motor Company, “as a form of commercial investment” or under the Securities Act. In support of its allegations, Inc. Counsel for Accenture is being represented by Howard P. Jones of Lanny C. Williams & Gillett LLP, and Michael J. Jepsen of Covington & Burling LLP. The Accenture suit is a class A misdemeanor and one of several lawsuits against Accentures alleging violations of the Securities Act. In April 2010, the U.S. Securities and Exchange Commission filed to enforce the settlement reached by the U.S. Securities and Exchange Commission as an amended complaint. Accenture’s complaint also alleges that Ford Motor Company violated the Commodity Futures Trading Commission’s standards to qualify as a class A or class B insurer when “a Ford-accredited group (which, of course, includes the Company)’s participation was the major driver of the 2008 and 2011 crashes that left 47 000 victims in F
ᾜ, “but we don’t even know the full story. We’re the only one that knows. We’re just scratching the surface.” | p|&|ᾜ. The Ford CEO, speaking for the public following the accident, said that the WPP is very much on track and, according to Ford chief financial officer and former Chief Financial Officer John Ziegler “we’re confident to compete against the Fords in real world, where we’re at the level of the competition.” This, he noted, is based on his “strong track record in developing industry standards” and “doing good the way we are being treated” by the WPP, and his “good track record” in developing government, corporate, and private sector standards and practices. Accenture has been in touch with the federal government, and has told the Federal Trade Commission that “the company has been extremely successful” in conducting an internal review “on its current business, and is planning to continue that” in March 2014. And, according to two former CFOs, after the accident CPA Roger Davis, one of Accenture’s former corporate managers and current WPP Chief Financial Officer Paul Haddad, the other former CFO Robert K. McDonough and Vice-President of Marketing Steve Davis joined to review Accenture’s future business and “discuss possible changes over the next several years including the timing, schedule, strategy, and strategic priorities, (sic)” according to an internal letter. Accenture was contacted in March 2014 by an ACC spokesperson and asked to comment on the documents related to this scandal. The spokesperson declined to comment, and Accenture was contacted again on September 9, 2014, and again on October 8, 2014. On October 17, 2014, Accenture filed a complaint in the U.S District Court for the District of Maryland alleging that it is not allowed to sell shares of Accentures, or Ford Motor Company, “as a form of commercial investment” or under the Securities Act. In support of its allegations, Inc. Counsel for Accenture is being represented by Howard P. Jones of Lanny C. Williams & Gillett LLP, and Michael J. Jepsen of Covington & Burling LLP. The Accenture suit is a class A misdemeanor and one of several lawsuits against Accentures alleging violations of the Securities Act. In April 2010, the U.S. Securities and Exchange Commission filed to enforce the settlement reached by the U.S. Securities and Exchange Commission as an amended complaint. Accenture’s complaint also alleges that Ford Motor Company violated the Commodity Futures Trading Commission’s standards to qualify as a class A or class B insurer when “a Ford-accredited group (which, of course, includes the Company)’s participation was the major driver of the 2008 and 2011 crashes that left 47 000 victims in F