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Overview of the Industry: Professional services
Professional services are occupations in the tertiary sector of the economy requiring special training in the arts or sciences. Professional services include a range of different occupations which provide support to businesses of all sizes and in all sectors. Some professional services require holding professional licenses such as architects, accountants, engineers, doctors and lawyers. Other professional services involve providing specialist business support to businesses of all sizes and in all sectors; this can include tax advice, supporting a company with accounting, IT services or providing management advice. The professional services industry is usually the largest employer and contributor to GDP in most developed economies. Professional services are critical to the success of the UK economy, representing 15% of UK GDP, 14% of employment and 14% of exports.

About the Organization: EY
Ernst & Young (EY) is a multinational professional services firm headquartered in London, England. EY is one of the largest professional services firms in the world and is one of the “Big Four” accounting firms. EY operates as a network of member firms which are separate legal entities in individual countries. It has 250,000 employees in over 700 offices around 150 countries in the world.

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EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

Services provided by EY:
Assurance
It comprises Financial Audit, Financial Accounting Advisory Services, Fraud Investigation, Dispute Services, and Climate Change & Sustainability Services.

Advisory
It consist of four subservice lines: Actuarial, IT Risk and Assurance, Risk and Performance Improvement.
Tax
It includes Transfer Pricing, International Tax Services, Business tax Compliance, Human Capital Customs, Indirect Tax, Tax Accounting, Risk Advisory Services, Transaction Tax.

Transaction Advisory Services:
It deals with companies’ capital agenda- preserving, optimizing, investing and raising capital.

It deals with the transactions side of the business. Transaction services are the third party services provided by a professional services firm or an investment bank when a business transaction takes place.

TAS includes:
Advisory for Mergers and Acquisitions: Merger is when two or more companies combine into one company. Acquisition is a corporate action in which the company buys another target company.

Diligence Services: Due diligence is an investigation of a business or person prior to signing a contract, or an act with a certain standard of care.diligence services helps to ensure that all the financial statements are correct and reduce the risks of frauds.

Valuation Services: business valuation is a process and a set of procedures used to estimate the economic value of an owner’s interest in a business. Valuation is used by financial market participants to determine the price they are willing to pay or receive to affect a sale of a business.

Debt Restructuring Services: this is the final stage before transaction. This involves analyzing the debts of the two merging companies and insures that the debts are equally distributed. This service not only applies to M&A but also to banks in which they are advised ways to recover their lent money.

History:
Early History:
EY is the result of a series of mergers of ancestor organizations. The oldest originating partnership was founded in 1849 in England as Harding & Pullein. In that year the firm was joined by Frederick Whinney. He was made a partner in 1859 and with his sons in the business; it was renamed Whinney Smith & Whinney in 1894.

In 1903, the firm of Ernst & Ernst was established in Cleveland by Alwin C. Ernst and his brother Theodore and in 1906, Arthur Young & Co. was set up by the Scotsman Arthur Young in Chicago.
As early as 1924, these American firms allied with prominent British firms, Young with Broads Paterson & Co. and Ernst with Whinney Smith & Whinney. In 1979, this led to the formation of Anglo-American Ernst & Whinney, creating the fourth largest accountancy firm in the world. Also in 1979, the European offices of Arthur Young merged with several large local European firms, which became member firms of Arthur Young International.

Mergers:
In 1989, the number four firm Ernst & Whinney merged with the then number five, Arthur Young, on a global basis to create Ernst & Young.

In October 1997, EY announced plans to merge its global practices with KPMG to create the largest professional services organization in the world, coming on the heels of another merger plan announced in September 1997 by Price Waterhouse and Coopers & Lybrand. These plans were abandoned in February 1998 due to client opposition, antitrust issues, cost problems and difficulty of merging the two diverse firms and cultures.
EY had built up its consulting arm heavily during the 1980s and 1990s. The U.S. Securities and Exchange Commission and members of the investment community began to raise concerns about potential conflicts of interest between the consulting and auditing work amongst the Big Five and in May 2000, EY was the first of the firms to formally and fully separate its consulting practices via a sale to the French IT services company Capgemini for $11 billion, largely in stock, creating the new company of Capgemini Ernst & Young, which was later renamed Capgemini.
21st Century: Expansion and Future
In 2002, EY took over many of the ex-Arthur Andersen practices around the world, although not those in the UK, China, or the Netherlands.
In 2006, EY became the only member of the Big Four to have two member firms in the United States, with the inclusion of Mitchell & Titus, LLP, the largest minority-owned accounting firm in the United States.
In April 2009, Reuters reported that EY launched an initiative encouraging its staff in China to take 40 days of low-pay leave between July 2009 and June 2010 due to the economic turndown. Those who participated got 20% of regular salary plus benefits of full-time employee. The initiative applied to employees in Hong Kong, Macau and mainland China, where the firm’s employees are 8,500 in total.
In 2010, EY acquired Terco, the Brazilian member firm of Grant Thornton.
In 2013, EY agreed to pay federal prosecutors $123 million to settle criminal tax avoidance charges stemming from $2 billion in unpaid taxes from about 200 wealthy individuals advised by four Ernst ; Young senior partners between 1999 and 2004.
In 2013, EY changed its brand name from Ernst ; Young to EY and tagline to “Building a better working world”.

In 2013, the Pope of the Roman Catholic church hired EY to help review Vatican City State’s finances and help “verify and consult” the institution’s administration, including the museums, post office and tax-free department store. EY expanded further and acquired all of KPMG Denmark’s operations including its 150 partners, 1500 employees and 21 offices.
In 2015, EY opened its first ever global Security Operations Centre at Thiruvananthapuram, Kerala in India and will invest $20 million over 5 years to combat increasing threat of cybercrimes.
In 2016 EY audited 947 public companies which are registered with the US SEC, more than any other auditing firm.
In 2017 EY announced it was opening an executive support center in Tucson, Arizona, creating over 125 new jobs. In 2017 the company began looking for a location for a new, $4.35 million professional services center in Louisville, Kentucky, creating 125 new jobs, due to open in mid-2018.

1.2.1 Profile of the Organization:
Ernst & Young, one of the world’s leading professional services organizations, helps companies across the globe to identify and capitalize on business opportunities. We deliver the value that clients care about; we provide ideas and solutions tailored to meet clients’ needs; and we produce tangible results. Ernst & Young’s depth and breadth of service and our global reach mean that we have the resources to serve any client, anywhere in the world.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst ; Young Global Limited, each of which is a separate legal entity. Ernst ; Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

Our people (employees) are united by our shared values, which inspires our people worldwide and guide them to do the right thing, and our commitment to quality, which is embedded in who we are and everything we do. The member firms of the global EY organization are separate legal entities that help companies in businesses across a range of industries- from emerging growth companies to global powerhouses- deal with a broad range of business issues. Our people around the globe pursue the highest levels of integrity, quality and professionalism to provide clients with a broad clients with a broad array of services relating to audit, advisory, tax and transactions. Ernst ; Young LLP professionals based in offices across Globewho provide audit, tax, advisory and transactions advisory services to a range of industries, including power and utilities, industrial products, consumer products, media and entertainment, the public sector, oil and gas, manufacturing, real estate, technology, financial services, life sciences, healthcare, hospitality, software and telecommunications.

The firm dates back to 1849 with the founding of Harding ; Pullein in England. The current firm was formed by a merger of Ernst ; Whinney and Arthur Young ; Co. in 1989. It was known as Ernst ; Young until 2013, when it underwent a rebranding to EY. The acronym “EY” was already an informal name for the firm prior to its official adoption.

In 2017, Fortune magazine ranked EY 29th on the 100 Best Companies to Work for list. In 2017, EY was the 9th largest privately owned organization in the United States.

Mission Statement:
Our purpose: Building a Better Working World

Everything that they contribute helps to building a better working world with their world class and quality services. From every tax, advising, auditing services that they provide and helps client to meet to meets its purpose it helps generate results and build a better working world for their people, client and community.

Vision Statement:
Our ambition: By 2020 we will be a US$50 billion distinctive professional services organization.

Our ambition is to be distinctive; to be recognized for having the best brand; to be the most-favored employer on university campuses, to have the number one or number two market share in our chosen services and geographic markets; to enjoy market-leading growth with competitive earnings; and to have the best relationships with all our stakeholders. As a result, we will achieve a scale to our business in keeping with our bold ambition.

As EY created Vision 2020, it became clear that a sense of purpose runs strongly through our organization. When we looked at the work we do for clients and what motivates all of us each day, we could see that everything we do contributes to building a better working world. Every audit, every tax return, every valuation and every interaction helps our clients fulfill their purposes and contribute to building a better working world.

Values:
People who demonstrate integrity, respect, and teaming.

People with energy, enthusiasm, and the courage to lead.

People who build relationships based on doing the right thing.

Fast Facts about EY:
Global Headquater: London
Global Chairman and CEO: Mark Weinberger
Number of peope globally: 247,570 (as of 30 June 2017)
Global revenues: US$ 31.4 billion (Financial Year’17, ending 30 June 2017)
Geographic areas: Americas, Europe, Middle East, India, Africa, Asia-Pacific, Jaipan
Offices: 700+ in more than 150 countries.

Service lines: Assurance, Advisory, Tax, Transaction Advisory Services
Founded: 1989 through the merger of Ernst & Whinney and Arthur Young & Co. Oldest component from 1849
Revenue (2017): US$ 31.4 Billions
EY in India at a glance
Country headquarters: Gurgaon, Delhi-National Capital Region (NCR)
Chairman (India Region): Rajiv Memani.

Number of people: More than 37000 people in 32 offices across 17 cities including personnel from other member firms of EY Global in India.

Locations in India: Delhi (NCR), Chandigarh, Kochi, Mumbai, Bangalore, Kolkata, Hyderabad, Chennai, Ahmedabad and Pune.

Competitive Status : STP
It is virtually impossible to satisfy all customers, so it is up to the company to select the specific parts of the market which they can best serve. Therefore, businesses could identify market segments, select a few profitable segments, and develop products and marketing mixes that are aimed at particular customers. Target marketing is made up of three stages: market segmentation, marketing targeting and product positioning.

Segmentation is the identification of customer groups who share similar characteristics. This process has a number of advantages, and enables a marketing manager to design an effective plan for each segment. The chosen segments ought to be measurable, accessible, substantial and actionable. Three market coverage alternatives including; undifferentiated marketing; differentiated Marketing and concentrated marketing were also put forward in this chapter. Businesses should consider the most appropriate market coverage strategy according to their resources, the type of service to be offered and the diversities within the market. However, they should also evaluate their competitors’ market coverage strategies.
The final stage in target marketing is product positioning. Consumers have different perceptions of products or services. Therefore, business should underline their products’ unique attributes, features and value propositions to differentiate themselves from other competitors in the marketplace.

The STP Model helps to position a product/service to target different groups of customers more efficiently. This three-step approach helps quickly zoom in on the most profitable parts of the business, so that it can fully exploit the opportunities these offer.

Segment: All industries
Target (group): Fortune 500 companies and other big organizations
Positioning: Financial consulting firm providing quality solutions globally
SWOT Analysis of the Organization
It helps you focus on your strengths, minimize threats, and take the greatest possible advantage of opportunities available to the organization.

Strength:
Well-capitalized
Long-term contracts
Established clients
Developed technology : Fast to react to market changes
Strong reputation
Large market share
Educated staff: Workforce consists of the best talent pool from across the world. Over 150,000 employees form a formidable workforce at Ernst & Young.

Brand Position
Service Delivery Network: Accenture have global service delivery network with presence in more than 200 cities, 56 countries & employing 390,000 passionate employees continuously working to give optimum service delivery to end customers. EY have an extensive global reach covering over 140 countries.

Continuous improvement: Like Kaizen of Toyota, EY is always looking towards improving its capabilities, hiring better and more talented manpower, thereby matching their promise to the end customers
Diverse capabilities: With its five operating groups namely communications, Media & technology, financial services, health &public services and product resources it has created diverse capabilities within its team. Dedicated and trained manpower for each vertical is what differentiates Accenture from the rest.

Expertise: With its client base stretching out from health care to automobile to IT services, Accenture has a lot of experience and the talent behind it to get things done. Hence, Accenture has become the “specialist” or “experts” across different industries.

Recognition: EY was ranked by Forbes magazine as the 8th largest private company in the United States. They were ranked No. 1 in the Forbes The Best Accounting Firms to Work For
EY offers expert services in assurance, tax advisory, consulting, financial advisory and legal solutions
Weakness: These are the internal areas of your business that need improvement.

Strong competition from other major players means growth is slow for EY.

Companies setting up their own research centres affecting business.
EY have been unable to penetrate into some of the international markets like some its competitors.

Tough competition means market share is limited.

Opportunities: These are usually external factors that help your business grow. When you can identify your key opportunities, the organization will be able to create or take over market share.

Getting into more diverse areas of business and evolving new concept there rather than sticking into only strategy.

New marketing tactics have emerged (e.g., Social Media)
Competitors are behind in technology (IoT, etc.)
EY have immense opportunity in emerging economies.

The more EY spend on infrastructure the more clients they will get.

Companies continuously looking for consulting solutions.

Acquiring smaller consulting firms can establish EY’s position strongly.

Threats: These can be internal or external factors that represent a potential issue for your company. Knowing them allows you to create a contingency plan.

Social trends are diminishing the need for your products or services.

Economic decline has reduced your prospect list.

Government regulations are forcing you into costly compliance.

The global recession could affect EY’s consulting business
Fluctuating global currencies affects operations (Fluctuations in currencies affects international projects)
Increasing competition can reduce market share of Ernst & Young.

Stiff competition from existing industry players means reduction of EY’s market share.

Companies setting up their own knowledge centers.

Changing in the regulations can impact the business.

Competitors of EY:
McKinsey and CompanyAccentureDeloitte ConsultingPwC PricewaterhouseCoopersKPMGBoston Consulting Group (BCG)
A T KearneyBooz and CompanyBain ; CompanyAbout the topic: Last Mile IT Enabled Services (ITES) in India
The last mile is the final leg of delivering connectivity from a communications provider to a customer. This actual distance of this leg may be considerably more than a mile, especially in rural areas. Providing last mile connectivity to the end users in the developing world is an economically challenging problem especially given the low income levels.

Research Methodology
Research is defined as a scientific and systematic

Corporate Finance Strategy:
As part of our Corporate Finance Strategy team, you will help clients develop their investment strategies and evaluate potential transactions. Working with EY’s proprietary Capital Agenda framework, you will help clients determine the best way to raise, invest, optimize and preserve their capital. This includes developing growth and market entry strategies, conducting strategic portfolio reviews and undertaking commercial due diligence studies. The client base spans all industry sectors and includes blue chip corporate, multinational investors and Private Equity firms.

Today, leading companies are seeking the most effective ways to grow while optimizing their portfolio of businesses and products. As part of the Corporate Finance Strategy team you will help companies develop strategic objectives to reach their growth goals by identifying opportunities in new markets, explaining synergies between new and existing customer bases and identifying unforeseen sector or deal counterparty opportunities and risks.

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