Phase Report on PWC
Phase 1- Basic Demand Conditions
In all the regions where PWC operates, similar consumption patterns have been recorded in relation to consumer purchasing trends. Consumers have shifted to the online platform to purchase the company’s products. Specializing in offering professional services, PWC has experienced stable demand cycles. The expansion of the middle class in various regions in which PWC operates has seen a rise in demand for its services. According to Knapp (2012, p.35), the company has also faced numerous challenges related to shifts in the market conditions and intense competition in the market. However, the company has been able to adopt new operational models to respond to changes in consumption patterns.
Consumption Patterns – Amount of Consumption By Type and Trends, Fluctuations and Cycles in Demand
With shifts in market conditions and intensification of competitive pressure, PWC has been compelled to adopt various challenges and new models of operations in response to changing consumption patterns. Rising business complexity and volatility, which have made operational transformation difficult, have been created by an increase in the global middle class, with more consumers being expected to join the class in the next few years. The expansion of the middle class has strained PWC’s supply chains, with business scholars projecting that the traditional operational model will be subjected to increased strain in the coming years (Knapp, 2012, p.57).
Normally, PWC’s daily operations are managed to generate peak performance, so that the company minimizes losses, costs, and risks, while maximizing returns. To maintain PWC’s operating infrastructure in line with its present approach, the business has been forced to make frequent trade-offs in equating loss-costs-risks. In addition, the changing market conditions have forced the company to be clear on operational goals and the development of key metrics for performance. These developments will allow the company to handle its procedures within defined tolerances (Earnshaw, 2005, p.32).
Companies like PWC that provide a wide range of services are reshaping their operations because of the changing consumption patterns. These changes are enabling the company to become more flexible, agile, and responsive to the changing conditions in the market. In the last ten years, PWC has been able to reduce operational waste. However, the company has not been able to build on its gains because of the lack of an appropriate leadership to foster efficiency improvement, the failure of leaders to align the vision of the company with its operations, and the lack of the management to demonstrate skills necessary for operational excellence (Rasche and Kell, 2010, p.57).
Environmental Impacts on Demand
PWC is a firm specializing in offering professional services. Hence, the firm’s influence toward the environment is minimal relative to other industries. The firm’s clients, major shareholders, and other stakeholders still expect the firm to minimize its impact on the environment. Rasche and Kell (2010, p.87) claim that for PWC to be a responsible business with operations that entirely rely on natural resources, it has to adopt the relevant strategies to ensure that its impact on the environment does not have a negative effect on the demand of its services.
According to White (2005, p.40), minimizing environmental effects from the company’s operations is among the main objectives for sustainability. Moreover, the strong relationship the company has with the employees, suppliers, and clients is important in helping it achieve the sustainability objectives. The operational impacts of PWC mostly emanate from the carbon emissions that are produced by energy in the buildings the company operates in and through business travel. In view of that, a carbon mitigation program is one of the solutions the company has implemented. However, the company also works relentlessly to reduce waste generated and the resources consumed; among such resources include paper and water.
Concerning the company’s approach, its guiding principle on the environment outlines the approach adopted to manage and ameliorate the related ecological impacts. The policy also offers a structure for the company’s objectives as well as targets. There are ten-year targets that the company observes keenly. The aforesaid targets are linked with the major environmental impacts. Salierno (2006, p.15) claims that since 2010, the operational structures that PWC has implemented inside various locations have an ISO certified system for managing the environment. ISO certification is the global standard for systems on environmental management and offers assurance that the company has the capacity to manage its environmental impacts and risks. Also, this certification indicates that the company is committed to its ecological policies.
PWC prides itself for having achieved a number of documented standards in managing the environment, benchmarking, and reporting. Information on its achievement is found in its environmental credentials. The company also engages with its people to increase awareness on issues concerning internal sustainability. Subsequently, it encourages the people to take action in mitigating environmental impacts, with its main focus being the reduction of the number of flights. The company measures its progress against various targets that are set at the beginning of the year. Furthermore, a report is made externally at the end of every year in the company’s annual update of its corporate sustainability plans. Its operational scorecard documents all the results (Kirby, 2012, p.78).
To maintain the demand for its professional services, the company educates people on sustainability. Kumar (2014, p.198) claims that in 2011, PWC launched a broad sustainability program dubbed ‘building PWC’s blueprint for enhanced business’. To raise interest of more people, the company used a move of many employees who raised awareness on the company’s efforts in fostering environmental sustainability. Some of the company’s buildings in various headquarters have been given outstanding ratings for designs on sustainable building.
Kirby (2012, p.78) mentions that PWC has a blueprint program with two chief objectives in ensuring the staff is thoroughly informed on issues related to sustainability, and supporting as well as encouraging the employees to take the necessary steps in reducing the company’s impact on the environment. The company’s present campaigns center on using online meetings in the place of travel. This helps mitigate carbon emissions and promotes the acquaintance of social effect assessment as well as collective enterprises as vital parts of the company’s program on community affairs. PWC has already implemented the program in its various regional offices; the program has reached above 6,000 employees.
With regard to service innovation, Kumar (2014, p.197) claims that the company is shaping the contest on vital environmental issues and forging collaborations with its clients on the impact of its activities on the environment. Kirby (2012, p.80) mentions that PWC helped Puma to establish its revolutionary environmental loss and profit account in 2011. Presently, the company has launched a framework for measuring and managing the total impact on the environment. This framework goes further to help the clients to value their tax, social, economic, and environmental contributions toward the society. The company has published its report in a document that highlights the extent to which countries are falling behind targets on international carbon reduction, and the necessity to consider the reality of a warmer world.
Kirby (2012, p.80) claims that PWC has served as an international advisor on the project for carbon disclosure, besides contributing to value chains and sustainable consumption. In the recent past, the company has estimated the value of its impact on the environment to be close to $100m. A large part of the impact comes from its operations; the company’s spending in relation to its supplier is a major contributor to the impact. In this regard, the company has reinvigorated its sustainability program for its delivery chain to tackle the impacts. In 2008, PWC saw some of its regional operators become carbon neutral. Those regional operators that are yet to achieve this feat are expending efforts toward the commitment. Carbon neutrality has been achieved in some regional operators through important steps, such as the reduction of environmental impacts, the purchasing carbon offsets for residual omissions, and remaining committed to and engaging with members of the society in which the firm operates.
A look at the preferences and habits of the shoppers from differed markets where PWC has operations reveals that the consumption patterns are the same. Such markets include the United States, Hong Kong, China, France, the United Kingdom, and Germany. Attempts to help retail clients and customers in these locations spot emerging trends in the markets is important in giving them a better chance of planning and identifying patters they can respond to. Looking at the consumption patterns of the company’s customers, it is apparent that international online shoppers are keenly following their favorite brands using the various social media platforms. This comes as a surprise for regional operators who have confirmed anecdotal evidence that regional teams have been seeing the various markets subjected to studies on consumption patterns (Earnshaw, 2005).
One of the basic conclusions after the surveys is that the company’s consumers are on the forefront in multi-channel shopping and many retailers are failing in relation to meeting the needs of the customers in a prompt manner. Presently, global retailers are faced with a big opportunity to enhance the mechanisms that are necessary in being at par with each other, with shoppers demanding extra customization with regard to returns and delivery, choice of products, and the number of channels that customers can choose from. The company’s regional retailers need to leverage insights from data on consumption patterns to make critical observations on how retailers can offer supports to online customers, while attracting new ones (Rasche and Kell, 2010).
Regional operators need to be more innovative concerning their online presence. This calls for rebooting their physical approaches to emphasize customer gratification and quality, and not selection and price. Subsequently, the regional providers need to align themselves with how the emerging and thriving middle class in various markets shop, in addition to researching on their products. From the findings on consumption patterns for PWC’s goods, one can deduce that consumers in regions where the firm has its operations have similar purchase patterns, with the online means being the most preferred because it is less ambiguous. Shoppers in the major regions where PWC operates employ multiple channels across various categories of products. However, the reasons for using those channels differ from one country to another (Kirby, 2012).
One of the implications of PWC attempting to expand its market is, firstly, it requires a deep and broad value scheme to address the needs of its customers in different markets. Achieving the status of a favored service provider, notwithstanding the country of location, demands knowing the products and services customers value, and delivering the expected experience in an effective manner. Moreover, an appropriate customer experience should be delivered across the various channels. The aforementioned move is not enough on its own because retailers require to get acquainted with the basics across value chains, delivery, price, and products. The factors that make companies like PWC successful in their regional operations can make them successful across various channels (Kumar, 2014, p.200).
In summary, this paper has focused on various issues exclusive to PWC. The company has seen the emergence of similar consumption patterns in its areas of operations, with majority of its consumers shifting toward the online platform. The company’s prowess in offering professional services has seen it experience stable demand cycles in line with the expansion of the middle class in various regions in which it operates, sparking an increase in the demand for its services. Nevertheless, the company has also witnessed challenges because of shifts in the market conditions and intense competition. New operational modes have ensured its success in professional services. With regard to environmental sustainability, the company possesses documenting standards in reporting, benchmarking, and managing the environment. The company’s success is also partly because of its engagement with its customers to increase awareness on issues that concern environmental stability. Hence, the company has been able to encourage its customers to take appropriate measures in reducing environmental impacts, mostly through flight reduction. The company is also ISO certified because of its environmental management endeavors. This certification offers assurance that PWC is able to manage its impacts on the environment.
Earnshaw, G., 2005. China business guide 2006. Beijing: China Economic Review Publishing.
Kirby, S. L., 2012. Implementing the principles of responsible management education: examining understandings of economic, social, and environmental sustainability. Journal of Strategic Management Education, 8(1), pp.77-92.
Knapp, M. C., 2012. Contemporary auditing. Boston, MA: Cengage Learning.
Kumar, K., 2014. Sustainability performance measurement: an investigation into corporate performance through environmental indicators. International Journal of Management Research and Reviews, 4(2), pp.192-206.
Rasche, A. and Kell, G., 2010. The United Nations global compact: achievements, trends and challenges. Cambridge: Cambridge University Press.
Salierno, D., 2006. Six trends to drive sustainability. The Internal Auditor, 63(3), pp.1-16.
White, G. B., 2005. How to report a company’s sustainability activities. Management Accounting Quarterly, 7(1), pp. 36-58.