Research paper Apple Inc (2 to 3 pages)

Company I: Grant Thornton, LLP

Background, Product and Service, Company Relationships, and Culture

In 1986, Alexander Grant & Co. and Thornton Baker initiated a merger known currently as Grant Thornton (Grant Thornton, n.d.). Today, Grant Thornton has become one of the leading second-tier accounting firms in the United States. As a global organization positioned in seven states and nearly 35 nations, Grant Thornton employs over 35,000 people who provide service to clients in over 100 countries. Much of Grant Thornton’s reported revenue growth is due do to international businesses, yet it strives to find larger clients like the Fortune 500 (Grant Thornton LLP, 2014). To maintain growing success and distinguishing itself from competitors, Grant Thornton exemplifies global values in “collaboration, leadership, excellence, agility, respect, and responsibility” (Grant Thornton, n.d.). These values guide the firm in offering insightful, forward thinking advice to dynamic organizations (EMPLOYER PROFILE: Grant Thornton, n.d.). Through accounting, tax preparation, independent audit, and consulting services Grant Thornton’s clients will be able to make effective business decisions and realize their potential growth.

Grant Thornton prides itself in providing a friendly and supportive culture for its personnel. As such, there are endless opportunities for career advancement and professional growth. The workforce is diverse, intelligent, and well compensated through participation in 401(k) and a flexible work environment that offers individual enrichment in a team setting. In addition, it is not uncommon for personnel to work directly with clients and senior management very early in their careers. Grant Thornton is committed in offering ongoing opportunities for professional and personal growth, but places emphasis on creating a healthy balance between the two (EMPLOYER PROFILE: Grant Thornton, n.d.).

SWOT Analysis

Grant Thornton’s strengths lie within its diversified geographical presence, wide selection of services, and a strong presence in Asia Pacific. The company reports stable profits across 100 countries with networks of 121 interdependent firms and 30 international business centers (COMPANY PROFILE: Grant Thornton, 2013, p.5). Global presence combined with steady profits allow the organization to attract a broader scope of clients and reduce risks due to its strong global image. Grant Thornton’s variety of services also attracts numerous clients through assurance, advisory, tax, audit, financial management, IT, and performance management services. A large range of services allows the firm to provide cross selling opportunities in new and present-day markets. Moreover, Grant Thornton’s recent growth in Asia Pacific has generated an increase in revenue of $399 million in FY 2010 to $579 million in FY 2012. This caused an increase in the company’s overall revenue by 10.4% in FY 2012 compared to the previous year (COMPANY PROFILE: Grant Thornton, 2013, p.5).

The organization’s largest and most apparent weakness is its size compared to competitors. As a result, it is nearly impossible for Grant Thornton to compete with larger accounting and advisory firms like the Big Four. For instance, in FY 2012 Grant Thornton generated $4,182 million with an estimated 35,000 employees compared to Deloitte Touche Tohmatsu, one of the Big Four firms, who reported $31,300 million with over 193,000 employees (COMPANY PROFILE: Grant Thornton, 2013, p.5). This places the firm at risk of potential acquisition by larger firms carrying more financial muscle.

Along with Grant Thornton’s strengths and weaknesses, the firm also has opportunities for expanding into new and existing markets and rapidly growing in these emerging markets. In recent years, Grant Thornton has placed its focus on industry target markets. In July 2012 Grant Thornton appointed new members in Hati and acquired FPA Group, a Poland provider of outsourcing services. In October 2012, new member firms were appointed in Africa and Dominican Republic. The company also formed new member firms from existing firms in Armenia, Tajikistan, and Uzbekistan (COMPANY PROFILE: Grant Thornton, 2013, p.6). Development in these new markets will provide an opportunity for additional customer base and a future increase in revenues.

Intense competition, increasing regulation in government contracting, and a weak global economic outlook threaten Grant Thornton’s success. Grant Thornton operates in a highly competitive environment that is growing rapidly in additional competitors. This intense competition could wear down the firm’s market share and reduce profitability. The company is also exposed to risks regarding government contracting entities. Changes in government and political developments such as budget deficits and uncertainties, can cause price reductions in the firm’s services or termination all together. Another threat to Grant Thornton is the recent turmoil of the global economy. Global growth dropped to 3% in 2012 and dropped even further to 1.2% in 2013. Weak global economic growth coupled with economic and political uncertainties could potentially reduce the demand for services offered at Grant Thornton (COMPANY PROFILE: Grant Thornton, 2013, p.7).

MY OPINION

I like how Grant Thornton places importance on creating a great working environment for their employees. The firm offers an environment for employees to grow and develop their careers, while encouraging the importance of balancing your professional and personal life. Grant Thornton appears to truly care for their personnel’s wellbeing and strives to create meaningful bonds with each individual on a comforting and appreciative basis. I also like the abundance of locations Grant Thornton occupies. Having the opportunity to travel the world and experience different cultures through my career would be a dream come true. Although it appears to be one of Grant Thornton’s biggest weaknesses, I appreciate that the company is relatively smaller than its competitors because I feel it gives them more flexibility. Larger companies take much more time to incorporate major changes to the organization, whereas with a smaller company this process can happen much more quickly. One disadvantage of being significantly smaller than your competitors is the stability of the company. Job stability is very important to me and Grant Thornton’s significantly smaller size could result in a possible merger initiated by one of the larger, Big Four advisory firms.