KPMG LLC, US is one of the leading and largest professional firms that deal with tax, audit and advisory services. It is one of the biggest auditing firms alongside Ernst & Young, Deloitte Touche Tohmatsu and PricewaterhouseCoopers. The establishment has its presence in more than 148 countries and has approximately 113,000 employees. KPMG has a strategic marketing plan that involves a partnership with other companies. The paper will, therefore, delve deeper into KPMG’s global marketing plan, metrics, and financial goals to enhance a better understanding of how it functions as an international business.
Global marketing plan
KPMG has partnered with E2open to offer cloud-based solutions. The move to sign a strategic alliance agreement has made it possible for KPMG LLP to engage in execution and collaborative planning across the globe. A combination of the services provided by KPMG and the E2open’s software platform enhances the automation and acceleration of the supply chain initiatives which are demand driven thus companies are in a better position to align procurement, replenishment and planning to experience changes in demand and consumption (McKee et al. 110). A supply chain that is demand driven helps the company to transform the traditional one to a multi-tier supply network, which is highly integrated hence, the ability to minimize operating costs, improve customer service and profitability as well as eliminate information latency.
Secondly, KPMG incorporated innovation in its global marketing plan. Tibbr, a social media platform employed by the company enabled the company get in touch with client service teams worldwide. This especially so for the ‘Brave Banana’ crowd that sought to source for clients in order to render creative solutions to their business problems thereby marketing their brand to people of diverse backgrounds (McKee et al. 101). Moreover, the introduction of the “Workplace of the Future” project promoted innovative culture that allowed employees to embrace a stimulative working culture. This involves productivity, flexibility, and collaboration of employees thus making it easier to execute its global plan of selling its brand worldwide.
Another dimension taken by KPMG in its global marketing plan is to develop a culture of high performance. In this way, KPMG has managed to achieve its marketing goals. For instance, in 2013, the company managed to integrate a merger of the practices in four countries (Singh 54). Given that Asia is extremely important for the firm’s prosperity KPMG Australia took the initiative to integrate China, India, South Korea, and Japan to form a single Asia Business Group. This move was effective especially for those clients who look at Asia as a region. Consequently, a double digit growth in revenue was recorded because of this arrangement.
According to Curry (90) KPMG’s greatest financial goal, is to strengthen its market position given that by so doing it will increase its brand and profitability in the market. To do so, the company has set out to expand its clientele by providing a wide range of services. One of the services provided are such as fighting fraud and thus the organization has come up with ways to achieve the same. Through the establishment of the website for fighting fraud, the company has been able to collect information on current issues that have affected this area negatively. As such, KPMG is able to advise their clients appropriately about the best ways to mitigate themselves against by using the right controls and risks to avoid the same. Secondly, the company aims to have a sense of financial perspective and has been able to do this by providing valuable advice on a wide range of issues related to pensions and taxes (Curry 95). Customers face new challenges in their businesses especially with regards to regulation both globally and locally. In this regard, KPMG strives to offer comprehensive advice that will see client companies remain competitive and compliant.
Finally, the company has set to achieve its long term goal improve the cash flow by outsourcing. The company has been able achieve this aim by outsourcing skilled manpower to assist in marketing of its products. For instance, KPMG can employ the services of IT professionals in order to effectively provide auditing services. Professional lawyers are also needed to keep the company informed about changes in tax regulations within a given geographical area. Consequently, the firm will be able to achieve its financial goals efficiently.
KPMG has consistently recorded a growth in its revenue and this is what has led it to be termed as the fastest growing ‘Big four’ company at the international level. As at the financial year ended 30th September 2011, the company had recorded a revenue growth of 10.1 percent globally. A look at its performance in different places gives a clear picture of its performance in various places. For instance, in 2012 the company experienced a 5.3 percent increase in revenue in Australia as its income stood at $1.12 billion (Holler 72). Additionally, the company uses other metrics like cost management, process improvement and business outsourcing services to determine its performance. Another metric that gives helps to ascertain the progress made by KPMG is the ICPAC quality check. Usually, this quality assurance is undertaken by ACCA on behalf of (ICPAC) Certified Public Accountants of Cyprus. As a result, KPMG Cyrus managed to scoop an award as the best tax team in 2008 during the New Economy First Annual Awards. KPMG was also awarded for financial and business excellence in 2009. This shows that the company observes high quality standards in its service delivery by applying the “best practice” procedures.
Another scenario can be observed in the case of KPMG Luxembourg. In 2012, the revenue obtained from the audit section stood at 5 percent. This was achieved because the firm reinforced its activities in the banking sector and that of asset management. Moreover, the revenue realized in tax rose by 12.5% during the same year (NRC 67). This has been possible because the company provides a wide range of tax services like the international tax planning. Finally, KPMG Luxembourg’s revenue in advisory increased by 13.5%. This strengthened the company’s brand given that showed that the firm had value for funds the areas of auditing, tax and accounting.
KPMG has been able to attain the admirable position as one of the ‘Big four’ companies because it has embraced a global marketing strategy that is effective. Through the use of partnerships and the social media, the company has been able to reach many customers. Additionally, high quality service delivery has seen the company improve its overall profitability. This is made possible through providing a wide range of services like tax advisory and the performance of auditing functions. Therefore, there is no doubt that KPMG has lived up to its slogan that says “cutting through complexity’ as evidenced by its marketing plan, metrics and financial goals.
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Singh, Nitish. Localization Strategies for Global E-Business. Cambridge: Cambridge University Press, 2012. Print.
Holler, Annette. New Metrics for Value-Based Management. Wiesbaden: Gabler, 2009. Internet resource.
National Research Council (NRC). Industrial Environmental Performance Metrics: Opportunities and Challenges. Washington, DC: National Academy Press, 1999. Print.