Business Strategy of KPMG ( Australia)

A corporate strategy is a blue print to plan long term growth of any business where as a business strategy is a blue print to plan development of each service offered by the organization. Corporate strategy is concerned with competitive advantage of the organization as a whole where as Business strategy is concerned with the competitive advantage related to only one business in the corporation. An effective business strategy ensures a successful corporate strategy. Therefore a clear distinction between the two becomes crucial for any enterprise. 

Every business continuously strives for sustained performance and economic results. This results through a right business model, strong cash flow and a balanced cost structure. Specialized skill in financial management, optimal utilization of technology and other resources and overall cost management become very important for any business unit.  Thus, Business strategy is achieved by any organization when it has achieved either cost leadership or differentiation in their offering or both  (White, 2006).  

KMPG, Australia has been catering to the small and medium firms for services such as taxation, auditing and business consulting. Moreover, it has been profitably offering auditing services in Australia where almost 80% of the market is occupied by the four (Deloitte Touche Tohmatsu, KPMG Australia, PricewaterhouseCoopers and Ernst and Young) audit firms  (Mayhew, 2002)   It has been able to differenciat its services from its competitiors in the sense that it provides industry specific business performance services which assists organizations (clients) in development and management of the strategies crucial to the development of the business  (Francis, 1984). 

Business unit strategy is concerned with the competitive advantage related to only one business in the corporation. It is limited to a specific vertical of KPMG in a specific market. However KPMG has been able to successfully incorporation of all the businesses strategies into one major corporate strategy and hence has been able to make its position in the Big Four in the Australian market.

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