The Big Four Accounting Firms

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                TABLE OF CONTENTS

1. INTRODUCTION…………………………………………………………… 2

2. MAJOR CLIENTS…………………………………………………………... 8

3. SERVICES…………………………………………………………………… 11

4. PEOPLE AND PROCESS……………………………………………………12

5. PRICING………………………………………………………………………13

6. MARKETING…………………………………………………………………16

7. DELIVERY…………………………………………………………………….29

8. COMPETITIVE ADVANTAGE…………………………………………….. 30

9. REFERENCES………………………………………………………………... 32

10. ACKNOWLEDGEMENT……………………………………………………. 33

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                           B2B PROJECT ON THE FUNCTIONING OF

                                  A PUBLIC ACCOUNTING FIRM

The Big Four are the four largest international accountancy and professional services firms,
which handle the vast majority of audits for publicly traded
companies as well as many private companies, creating an
oligopoly over the auditing industry.

This group was once known as the "Big Eight", and was
reduced to the "Big Five" by a series of mergers. The Big Five
became the Big Four after the near-demise of Arthur Andersen
in 2002, following its involvement in the Enron Scandal.

None of the Big Four accounting firms is a single firm. Each is
a network of firms, owned and managed independently, which
have entered into agreements with other member firms in the network to share a common name,
brand and quality standards. Each network has established an entity to co-ordinate the activities
of the network. In two cases (KPMG and Deloitte Touche Tomatsu), the co-ordinating entity is
Swiss, and in two cases (PricewaterhouseCoopers and Ernst & Young) the co-ordinating entity is
a UK limited company. Those entities do not themselves practice accountancy, and do not own
or control the member firms. The processes and the nature of business is same throughout the
BIG 4. In most cases each member firm practices in a single country, and is structured to comply
with the regulatory environment in that country. The figures in this article refer to the combined
revenues of each network of firms.

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PricewaterhouseCoopers (PwC) is one of the world's largest professional services firms. It was
formed in 1998 from a merger between Price Waterhouse and Coopers & Lybrand, both formed
in London. In the United States, where it is the fifth largest privately owned organization, it
operates as PricewaterhouseCoopers. PricewaterhouseCoopers earned aggregated worldwide
revenues of $28 billion for fiscal 2008, and employed over 146,000 people in 150 countries.


Sound governance and transparency form the bedrock of leadership. At PricewaterhouseCoopers,
they are committed to serving as a force for integrity, good sense and wise solutions to the
problems facing businesses and the capital markets today.


No organisation should pursue commercial success at the expense of the communities in which it
operates. There is a rising groundswell of opinion that
the private sector's obligations go beyond avoiding
doing harm, or even being willing to do good deeds
every now and then. Today, many people believe that
business has a positive responsibility to operate in
ways that benefit society and foster its well-being on a
sustained—and sustainable—basis.

The people of PwC are committed to playing a
leading role in achieving a sustainable future: We take
responsibility for our actions and promote responsible
business   practices;   support    the   growth     and
development of our people and communities; and
seek to minimise our impact on the environment.

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Deloitte Touche Tohmatsu (also branded as Deloitte) is one of the largest professional services
organizations in the world and one of the Big Four auditors. According to the organization's
website as of 2008, Deloitte has approximately 165,000 staff at work in 140 countries, delivering
audit, tax, consulting and financial advisory services through its member firms. Its global
headquarters are located in New York City, New York. European headquarters are located in

Deloitte is the brand under which tens of thousands of dedicated professionals in independent
firms throughout the world collaborate to provide audit, consulting, financial advisory, risk
management, and tax services to selected clients. These firms are members of Deloitte Touche
Tohmatsu (DTT), a Swiss Verein. Each member firm provides services in a particular
geographic area and is subject to the laws and professional regulations of the particular country
or countries in which it operates.

DTT helps coordinate the activities of the member firms but does not itself provide services to
clients. DTT and the member firms are separate and distinct legal entities, which cannot obligate
the other entities. Each of the member firms operates under the names “Deloitte,” “Deloitte &
Touche,” “Deloitte Touche Tohmatsu,” or other related names. Each DTT member firm is
structured differently in accordance with national laws, regulations, customary practice, and
other factors, and may secure the provision of professional services in their territories through
subsidiaries, affiliates and/or other entities.

To advance responsible globalization and good corporate governance, DTT member firms have
entered into strategic commitments with several organizations around the world. These
organizations promote responsible global citizenship, good governance and sustainable
development by encouraging business to recognize and commit to sustainable economic growth,
environmental protection and social equity no matter where they operate. They provide a

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valuable forum for discussion of corporate social responsibility and best practices for acting on
this commitment. In the case of the World Economic Forum, DTT's commitment includes a
range of activities with the Forum including a commitment to the Forum's Global Corporate
Citizenship Initiative.


Deloitte's commitment to the public interest goes back to the origins of our organization. Today
the Deloitte Shared Values bind the people of Deloitte together across cultures, customs, and
languages. Along with the Ethical Principles, of which one is "responsibility to society", these
values define the way business is done in every member firm. Deloitte member firms strive to
make social good a co-product of their work, alongside revenues and earnings—a business
strategy that they are confident will foster their success over the long term.

The corporate responsibility policy serves to reinforce the importance of corporate responsibility
to our businesses and to align the global organization around a common agenda.

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Ernst & Young (EY) is one of the largest professional services firms in the world and one of the
Big Four auditors. According to Forbes magazine, as of 2008 it is also the 9th largest private
company in United States. Ernst & Young is a global organization of member firms in more than
140 countries. Its global headquarters are based in London, UK. EY Global does not perform
client work. It sets global standards and oversees global policy and consistency of service. Client
work is performed by the member firms.

It has taken the bold leadership and countless contributions of people around the world to form
the leading global organization Ernst & Young is today. Their roots go back to the 19th century
and their founders Arthur Young and Alwin C Ernst. AC Ernst and Arthur Young never met in
life, but died within days of each other in 1948. However their philosophies lived on and, in
1989, were brought together when the firms they started combined to create Ernst & Young. The
new organization quickly positioned itself on the
leading edge of rapid globalization, new business
technologies and continuous business change.


Ernst & Young’s business strategy is founded on
engagement     with   our     people,   clients   and
communities to help them achieve their potential.
As    a   company      that    embraces     corporate
responsibility, we think carefully about how to
invest in society today to make sure there will be a
business context where both we and society can
thrive tomorrow and long into the future.

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KPMG is one of the largest professional services firms in the world and one of the Big Four
auditors. Its global headquarters are located in Amstelveen, Netherlands. KPMG employs over
136,500 people in a global network of professional services firms spanning over 140 countries.

KPMG provides audit, tax and advisory services and industry insight to help organizations
negotiate risks and perform in the dynamic and challenging environments in which they do

KPMG operates as an international network of
member firms offering audit, tax and advisory
services. They work closely with their clients,
helping     them   to   mitigate   risks   and   grasp
opportunities. Their network of member firms in over
140 countries worldwide share the same values. Their
reputation is created by the way the people within
their member firms act with clients, colleagues and
their communities.


Citizenship is embedded in the KPMG values and we
recognize our firms have the scale, influence and
business knowledge to make a significant and
positive contribution to the issues that affect our
communities and environments.

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According to the request of the interviewed industry professional we have not revealed the name
of the company.

Major clients

The continents of Europe and North America account for about 81% of the company’s annual
revenue, with Europe alone accounting for 45%. The firm's dominant practice, namely auditing,
accounts for over 50% of its revenue.

As of March 2005, its audit clients included four of the 10 largest public companies in the United
States (ExxonMobil, Ford Motor Company, ChevronTexaco and IBM). PwC also audits four of
the 10 largest companies in the United Kingdom (GlaxoSmithKline, Royal Dutch Shell, Barclays
and Lloyds TSB).

It audits 40 per cent of companies in the FTSE 100 Index and 45 per cent of the Fortune 1000
energy companies. The following are PwC audit clients that are part of the FT Global 500
(2006), grouped by FT industry:

The following are the audit clients that are part of the FT Global 500 (2006), grouped by FT

Aerospace & defence: Raytheon, United Technologies, L-3 Communications Corporation

Automobiles & parts: Goodyear,Toyota Motor, Volkswagen, Peugeot, Robert Bosch GmbH,

Banks: Afghanistan International Bank, Askari Bank, Bank of America, Bank of China (Hong
Kong), Bank of Ireland, Banco Itau, Banco Popular Español, Barclays, Commonwealth Bank,
Crédit Agricole, BB&T, BNP Paribas, Banco Bradesco, Commerzbank, Dexia, DnB NOR,
Eurobank EFG, Fortis, Goldman Sachs, JP Morgan Chase, Lloyds TSB, Nationwide Building
Society, Macquarie Bank, Sanpaolo IMI, Sberbank (Russia), SEB, Standard Bank, Westpac
Banking Corporation

Beverages: Anheuser-Busch, Miller, SAB

Chemicals: Albemarle, Bayer, E.I. du Pont de Nemours, Praxair, Rohm & Haas

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Electricity: RAO UES, Chubu Electric Power, FirstEnergy, Exelon, Unified Energy System,

Electronic & electrical equipment: Agilent Technologies, Kyocera, LG Philips LCD, Logitech

Fixed line telecommunications: BellSouth, BT Group, Etisalat, KPN, Nippon

Food & drug retailers: Krispy Kreme, Seven & I Holdings Co., Tesco

Food producers: Danone, Kellogg's, Kraft Foods, Unilever, Bunge

Gas, water & multiutilities: Centrica, E.ON, RWE, National Grid plc

General financial: American Express, Freddie Mac, Franklin Resources, Goldman Sachs, Nikko
Cordial, SLM

General industrials: 3M, Honeywell International, Hutchison Whampoa

General retailers: eBay, GUS, Marks & Spencer, John Lewis Partnership

Healthcare equipment & services: Baxter International, HealthSouth Corporation, Medco
Health Solutions, Medtronic, Zimmer Holdings, Southern Cross Healthcare

Household goods: Reckitt Benckiser

Industrial engineering: Caterpillar Inc., Volvo

Industrial metals: Alcan, Alcoa, Nippon Steel, Nucor, POSCO, Tenaris

Industrial transportation: Burlington Northern Santa Fe Corp., Deutsche Post

Insurance: Ace, American International Group, AMB Generali, AXA, Legal & General, Millea
Holdings, Progressive Corporation, Protective Life Corporation, Prudential Financial, Standard
Life, Swiss Re, Zurich Financial Services

Leisure goods: Nintendo

Media: CBS, CTVglobemedia, Thomson, Viacom, Walt Disney, Pearson

Mining: Barrick Gold, Newmont Mining, Rio Tinto, Vale

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Mobile telecommunications: Alltel, KDDI, MTN Group, Sonera, Telia, China Unicom,

Oil & gas producers: BG, Burlington Resources, Canadian Natural Resources Limited, Exxon
Mobil, Chevron, EnCana Corporation, Eni, Gazprom, Imperial Oil, Suncor Energy, Marathon
Oil, Royal Dutch Shell, Shell Canada, Attock Petroleum Limited, Stuart Petroleum

Oil equipment & services: Schlumberger

Personal goods: Colgate-Palmolive, L'Oréal, Nike, Richemont

Pharmaceuticals & biotechnology: Bayer, Biogen Idec, Bristol-Myers-Squibb, Genzyme,
GlaxoSmithKline, Johnson & Johnson, Merck & Co., Novartis, Novo Nordisk, Sanofi-Aventis,
Teva Pharmaceutical Industries, Wyeth

Retail: Abercrombie & Fitch

Software & computer services: IBM, Yahoo!, Satyam

Sports: Laureus World Sports Awards

Technology hardware & equipment: Cisco Systems, Corning Inc., Dell, EMC Corporation,
Ericsson,   Hon   Hai   Precision   Industry,   Nokia,   Qualcomm,     Samsung     Electronics,
STMicroelectronics, BMC Software

Telegraph and Telephone: PT. Telekomunikasi Indonesia Tbk., Saudi Telecom

Tobacco: Altria, British American Tobacco, Imperial Tobacco, ITC, Philip Morris International

Travel & leisure: Carnival, Las Vegas Sands, SKYCITY Entertainment Group

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      Assurance,
      Tax (international tax planning and compliance with local tax laws, human resourcing
       consulting transfer pricing)
      Advisory - mainly consulting activities which cover Strategy, Performance
       Improvement, Transactions Services, Business Recovery Services, Corporate Finance,
       Business Valuation, and Crisis Management in a range of specialist areas such as
       accountancy and actuarial advisory.

Its service lines face the market in each country by broad industry specializations such as:

      Consumer and Industrial Products and Service (CIPS)
      Financial Services (FS)
      Technology, Information, Communications and Entertainment (TICE)
      Infrastructure, Government and Utilities (IG&U)


The company has developed several broader consulting initiatives in the Enterprise Risk
Management (ERM) framework, including a global effort to assist corporations with
outsourcing, as well as a global political risk assessment with the political risk advisory firm
Eurasia Group.

Advisory services offered by the company also include two actuarial consultancy departments;
Actuarial and Insurance Management Solutions (AIMS) and a sub branch of "Human Resource
Services" (HRS). Actuarial covers mainly 4 areas: pensions, life insurance, non-life insurance
and investments. AIMS deals with life and non-life insurance and investments while HRS deals
mainly with pensions.

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The company is a reputed one and has hence invested a lot in their human resource in order to
maintain the same. Also the process and operation techniques are of high quality and order. It
can be explained as below:

   1. Well Trained Professionals: Unlike smaller audit firms, the big 4 only hire only highly
       qualified professionals. As mentioned earlier the company invests highly on its human
       resource. It is this pool of talent that sets them apart from small audit firms owned by
       individuals. The employees of this company are mainly from the CA, CPA, CIMA, ACS
       or CWA background. They are well trained and equipped to handle the accounts clients
       which include Fortune 500 companies. These professionals are also highly paid which is
       the reason behind the high cost incurred by the company.

   2. Identical Team Structures: Quality and structured functioning is an integral part of any
       company which has global presence. The company has set a standard in the industry
       when it comes to fulfilling the above mentioned criteria. They maintain identical team
       structures all over the world in order to facilitate clients in a better way. For example, if
       the team in Mumbai for merger and acquisitions’ consulting have 25 members it would
       the same in any other office across the globe.

   3. Organisational Structure: The organisational structure is more or less similar among
       the big 4 audit firms. They all follow the same pattern of management which is traditional
       in nature. The company is a Limited Liability Partnership. As such the global firm is in
       fact a collection of member firms that are run autonomously in their respective
       jurisdictions. The senior partners of member firms sit on a global board of partners and
       there is also an 'umbrella' organisation which provides co-ordination.

   4. Similarity in functioning: The Company has a policy to maintain similarity in
       functioning and operations all over the world. Even the offices are set up in similar
       fashion so as to appeal to the clients. This is mainly done to be convenient to the clients

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       across the globe. For example, the office in Delhi will be nothing different from an office
       in Durban. They offer similar services and even look the similar to some extent.

   5. Connected Thinking Approach: The company sets itself apart from the big 4 by the
       Connected Thinking Approach. The firm has a keen interest in how events, people and
       ideas are connected. They believe everything is interrelated and every action has its
       consequences. They aim to score higher than just “good” and want to see this vision
       reflected in the way they work. It is our conscious application of these principles that has
       earned the company its current leading position in the world of business. This is called
       ‘Connected Thinking’. It is done by bringing fresh perspectives to looking at an issue,
       new ideas, whether they are analysing or finding solutions to a client’s business issue.
       That is what is crucial to the assistance of clients. It is required in today’s rapidly
       changing business environment


Audit fees and costs of Indian Big 4 firms are influenced by various factors such as client size,
complexity, risk, and bargaining power. Audit pricing and cost strategies differ among these
firms. Much emphasis has been devoted to investigating audit fee determinants. Audit fee
determinants also influence audit costs, and whether the relationships between audit fees/costs
and the determinants differ among the large audit firms. Much emphasis was laid to examine not
only audit fees but also audit costs in terms of audit team size.

Client Size and Complexity

It is generally expected that when the client is larger and more complex, then the audit fees and
costs are also higher. This expectation is well supported by many audit fee studies and audit
production studies. That is, when a client is larger or more complex, more audit effort is
necessary to conduct the audit, and this leads to higher costs. As a result, audit fees are higher to
compensate for the higher costs. This relationship between client size/complexity and audit

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fees/costs is considered to hold true for all audit firms regardless of their audit pricing and cost

Client Risk

The effects on audit fees of client risk factors such as quick ratio, ROA (ROI), the ratio of long-
term debt (or liabilities) to total assets, and whether the client reported a loss in any of the past
few years, and they generally find evidence of a positive association between audit fees and
client risk.
However, some studies on audit planning decisions, using data from working papers, find that
audit planning decisions do not necessarily reflect auditors’ risk assessments, and that the
relationships between the planning decisions and the assessed client risks are moderate. These
findings suggest that even if client risk is higher, the higher risk may not result in higher costs
(more effort) in order to respond to the risk. When auditors identify higher client risk, they may
respond to the risk by increasing audit effort and, as a result, raising audit fees, or they may raise
audit fees only as a risk premium to cover possible future loss (e.g., litigation loss or loss of
reputation). Which of these two possibilities is the case is an empirical issue, and it depends
largely on the audit firm’s pricing and cost strategies.
The studies generally determine that audit fees are higher for the more risky clients. However,
such higher fees may be the result of the greater effort required to addressing higher risk or they
may be a risk premium for possible future loss (e.g., litigation loss or loss of reputation). Higher
fees involve higher costs in the former, but not in the latter case. Examining both audit fees and
costs makes it possible to determine which of the possibilities the case in each audit fee
determinant is.

Other Client-Related Factors
Some other client characteristics may also affect audit fees and costs. The three client-related
variables are whether the client is a SEC registrant, whether the client has its headquarters , and
whether the fiscal year ends in a busy season. If the client is a SEC registrant, its audit fees are
expected to be higher. The fees associated with IPOs are higher when the IPOs involve ADRs.
For a SEC registrant client, the audit firm may have to undertake more audit work to adapt the

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financial statements to the U.S. GAAP, and to ensure that they comply with other additional
regulations. In addition, the audit firm may charge a risk premium on the client and the litigation
risk for an audit firm is much higher when the client is a SEC registrant.

Auditor-Related Factors
In relatively, much attention has been paid to the effect of auditor-related factors, such as audit
market concentration, auditors’ industry specialization, and the auditor-client relationship (i.e.,
bargaining power), on audit fees. Higher audit market concentration results in higher audit fees.
The audit fees are lower after switching auditors when the auditors before and after the switching
are both market leaders, where the market leaders are defined as the three audit firms that have
the largest market share in the industry, and they conclude that there is strong competition among
the market leader audit firms.

Differences in Audit Pricing and Cost Strategies among Big 4 Firms
The audit fees differ between the large audit firms (i.e., Big N firms) and other firms and they
find evidence of a fee premium for the large firms. However, there are differences in audit
fees/costs and their determinants among the large audit firms have not been thoroughly
examined. Most prior studies seem to have an important assumption in common, the large audit
firms adopt the same strategies on audit fees/costs, client acquisition and portfolio, the audit
quality they provide, and risk preference. The existence of this assumption is evidence by the
fact that the analyses in the studies are conducted using a sample in which the clients of the large
firms are pooled. Whether an audit firm responds to client higher risk by increasing its audit
effort (and, as a result, raising audit fees), or by charging a risk (insurance) premium without
increasing audit costs, depends at least partly on the firm’s risk preference and the audit quality
that the firm intends to attain. In addition, while some firms may seek a higher reputation by
expanding market share and developing expertise in particular industries others may do so by
obtaining and maintaining large well-established companies as clients regardless of their
industry. These differences in strategy among the large audit firms should influence audit
fees/costs and the associations with their determinants. Premium Pricing is maintained as the
huge costs usually push the Final customer price higher

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In the beginning, accounting firms as well as other businesses used the Internet as a way to get
their name to customers and show the array of services that they provide. More recently, the
firms see Internet sites as a substantial resource in obtaining new business, meeting current
clients' needs, and publicizing themselves and information they feel is relevant. While some of
the earlier look may remain, all the sites have evolved to become more sophisticated than their

The presence of the company in the BIG 4 is seen as the biggest advantage when it comes to
marketing its services. Presently, Big 4 are applying following marketing strategy:

      Managers have Client Acquisition targets.

      Promotion is mostly by using One to One Interaction – Networking.

      It is usually through internet as this is one medium which can be extensively used at
       cheaper rates with a greater reach.

      All the managers have particular locations wherein they are supposed to acquire clients
       by developing relationships through informal meetings and socializing.

      The managers are supposed to reach their specified targets given by the higher

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All the firms' sites have international or global home pages. They also organize their sites by
country and allow for easy navigation through to the nation of interest. KPMG's first site had a
popular "tip of the day" which helped them to average 80,000 hits per day. Their site does not
include this any longer. As in the past, they still offer visitors the opportunity to review and/or
retrieve publications, and other writings. Ernst & Young past design featured a question and
answer format. "Ask Ernie" was a popular tool in which, for a fee, subscribers submitted
questions online for answering. Deloitte Touche offered tax release information.

These firms utilize the Internet as a marketing tool like so many other major companies in
promoting their business. These firms are leaders in the field of technology because they have to
be well informed and "cutting-edge" due to expectations from clients. All four firms have well
established websites with a wealth of information for internal and external users. The strengths in
each website far outweigh weaknesses.

Utilizing this marketing tool as a rapid, cheap, and efficient way to get out massive amounts of
information to potential and established clients, employees, and other interested parties is a
prime reason for organizations taking the time and effort to establish and maintain them.
Disseminating the same amount of information could not be accomplished as easily, shared, or
updated, through websites.

WEBSITE DEVELOPMENT: It is expected that the Big Four accounting firms be a leader in
their online realms. The future of e-commerce is bright, with boundaries only limited by
technology, the government, and competition.

Creating and maintaining a competitive advantage within these boundaries will rest in part on the
establishment of a firm's cyber presence. The website, in the evaluation of current and potential
customers, will have to deliver value, foster and nurture the customer-firm relationship, and be
responsive to customer needs as they evolve.

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According to Netraker Corporation, the top three factors that ensure repeat visitors to web sites
are content, speed and ease of use (www.WebCritique, 2003). PricewaterhouseCoopers, KMPG,
Deloitte Touche, and Ernst Young websites were accessed and critiqued in these areas. Web
content was reviewed for authority, updated subject matter, and relevant information. The review
measured to see if there were any substantial problems in using the search engines and
navigating the sites ensuring no broken links. In addition, usability testing looked at graphic
design, innovative use, and readability of content.


A website should reflect the personality of a business. Using a website as a marketing tool will
be highly effective when an enterprise gets serious about advancing customer relationships
though its online service. It should mirror the needs of its target market (McIntyre, 2000). It is
obvious that the firms use websites to present their image and as a promotional tool to share
information with current and potential clients, prospective employees, and other third parties.
Ernst Young uses phrases such "People First", "client trust" and "global village" in their site.
They not only address client confidence, they also speak highly of their relationship with their

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PriceWaterhouseCoopers' website also places a high emphasizes on its current and potential
client base. They convey a message that they put high importance on compliance and code of
conduct. Interestingly, Deloitte Touche, while their main target seems to be their clients, puts
emphasis on a site that "alumni" employees can visit and network when the site was first visited.
Six months later, Deloitte Touche's web site focused more on external customer and client
services. KPMG's homepage highlights books and papers they have written. They also offer
information about services and recruiting information.


Client referral is a major marketing tool wherein a company suggests the big4 to other
companies for any auditing service. The big 4 have already developed such a brand that most of
the fortune 500 companies are its clients. So every1 goes for big4. Hence advertising and
marketing is only for competition and to get top most position or rank amongst the accounting
firms of the globe.


Indirect advertising as the name indicates is a form of advertising wherein the companies do not
opt for direct comparison or conventional advertisements. Reports on Cost cutting measures for
an organization, on general topics like recession, advertising, media etc. it also comes out with
annual budget reports. One of its major advertising strategies is to give reports free of cost, just
to create awareness.

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   Deloitte has launched its largest ever advertising campaign in a determined bid to
     overtake PricewaterhouseCoopers (PWC) as the number one professional services firm in
     the UK.
   Marketing director Nick Pike says Deloitte intends to oust PWC from the number one
     spot by significantly ramping up the amount it spends on marketing the brand. Pike says
     Deloitte is in a prime position because "none of the other big four" have heavily invested
     in a corporate advertising strategy in the last five years.
   A five month long awareness campaign, launching outdoor, print and online platforms
     marks Deloitte's biggest advertising push in the history of the company, and is part of an
     overall global strategy to position itself as number one. It has branded 100 taxis across
     London with messages about the firm's client service approach, scheduled national press
     advertising, targeted key business websites such as the Financial Times and The Times
     and spent money improving its search marketing strategy.


   PWC is working hard on attracting graduates from a wider spread of backgrounds than
     just accountants. Major think tanking is directed towards improving the brand awareness
     of arts & marketing graduates. The main problem was diagnosed recently at the graduate
     fairs, when most students (outside Accounting) were unable recognize the brand or recite
     any of their community actions.

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   PWC has become more and more environmentally
     focused in recent times, trying to endear themselves
     to the societally minded youth of today. Continual
     attraction of the best and brightest graduates is
     essential to the ongoing success of PWC, on top of
     this, ingraining brand awareness at a young age is
     worth thousands of dollars of advertising years later

   The new campaign of E&Y aimed at rapidly growing dot com companies as well as
     established companies looking to transform into e-businesses, is an extension of the
     "From Thought to Finish" branding campaign. Initially, the focus will be on e-business
     themes including speed,
     growth, efficiency and
     trust, and the firm's
     strong track record in
     target industries. The
     campaign will include
     print, broadcast, cable,
     online and out of home

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    In March 1999, Ernst & Young said that it was embedding electronic commerce
       capabilities across its Consulting, Tax, and Assurance and Advisory Business services
       and had assembled a new team to drive a global electronic commerce push for the firm.


In order to build its brand the big4 usually go for sponsorships and events in order to give
visibility to the firms. Below is an example of E& Y sponsoring an event called entrepreneur of
the year.

PricewaterhouseCoopers (PWC) has been named as the first sponsor to support England's bid to
host the 2018 football World Cup. It is hoped the PWC deal is the first of a series of partner and
sponsor contracts. PWC has a strong regional network of offices which is very well aligned with
the list of applicant host cities, and the sponsorship therefore benefits the firm across the UK."

             David Beckham and Wayne Rooney launched the England bid at Wemble
                       MARKETING MIX FOLLOWED BY BIG4
At the beginning of the year Deloitte also confirmed that it would be investing more heavily in
Web 2.0 technology as part of its advertising strategy, in particular looking at how it can

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incorporate Internet TV into its marketing mix to build stronger relationships with clients, bolster
recruitment opportunities and communicate with new business prospects.

The global auditing and financial services firm says the medium is a "key focus" for it in 2008 as
it seeks to build stronger relationships with clients bolster recruitment opportunities and
communicate with new business prospects.

"Video content is very much in demand now and we will be pushing (the medium) and using
more of it this year," says Sharon Bennett, head of online solutions at Deloitte. "We currently
have a good library of podcasts and audio casts which we want to take to the next level."

Deloitte has recruited video production agencies CTN and Broadview to develop the multimedia
content, which will be rolled out later this year. Plans include using online TV content to
promote thought leadership and allowing Deloitte's graduate bloggers, which are key in
attracting new recruits to the business, to post video blogs.

As blogging and social networking sites
become increasingly commonplace B2B
marketing tools, brands must find new
ways of using Web 2.0 technology to gain
an edge, says Broadview programme
director     Nicholas     Walton.    "In     a
competitive        B2B    marketplace,     it's
becoming increasingly important to use
these      means     to   differentiate    the
organisation and educate prospects and
clients," he says.

ERNST        &     YOUNG       LAUNCHES

The campaign consists of print, broadcast,
cable, airport and Internet advertisements.
The campaign launches in editions of

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national and international business publications, general news and lifestyle publications. TV
spots using animation will appear on selected television programming in April.

The theme of the campaign is "New Rules for the New Economy." Ernst & Young will keep its
original tag line "From Thought to Finish" in this campaign as part of the major.

The campaign, which will include print, broadcast and billboard advertising, was created by
Lowe & Partners/SMS, in New York, part of the Lowe Group unit of the Interpublic Group of
Companies. It represents the initial phase of a $60 million worldwide branding effort for KPMG,
which operates in 155 countries.

''Our marketing strategy is to deploy a brand advertising campaign that will significantly increase
prospect and client awareness for KPMG, help us create a place at the table when there is
business to be won -- and help our partners and professionals win more of that business,'' said
Tim Pearson, chief marketing officer for the company. ''This is advertising that helps articulate
KPMG's strategy and captures who we are.''

KPMG will expand the television advertising to such channels as CNN, the Discovery Channel,
MSNBC, the Learning Channel and CNBC.

The company will also run commercials during golf and tennis tournaments and N.C.A.A.
football bowl games. Print advertising will appear in business newspapers and magazines and
special interest publications. The campaign will also include advertising on billboards at major

Deloitte meets agencies over 'non-advertising projects'. The project has a focus on non-
traditional advertising elements, and is understood to be strategically focused, bypassing
television, radio and press. It promoted Deloitte's services, with messages including a "complete
approach to business" and an "ability to view a problem from all angles".

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         The campaign included a 360-degree wrap that spanned 120x15 metres around the
         entirety of London's Imax Cinema, which is currently the largest outdoor site in the
         UK. It was implemented by Ocean Outdoor.

The campaign also included similar giant posters positioned outside of London and posters in
key commuter train stations across the UK, as well as national print and online media.

The campaign uses massive posters positioned outside sites in London, in key commuter train
stations across the UK and national print and online media over the next six months.

Deloitte launches ad campaign to build its brand and flag its ‘Always one step ahead’ position.
The first ad in Deloitte’s ‘Green Dot’ campaign will highlight the wide range of professional
services that the company is providing to its clients in Thailand.

                          COST REDUCTION MANAGEMENT

The PwC approach to cost reduction is outlined below. It should be noted that as part of the
spend analysis phase, we not only focus on identifying cost reduction drivers, we also focus on
cost management and control which reflects on the cost culture within the organisation.

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PwC’s consultants have significant commercial experience in driving performance improvement
initiatives across multiple industries. We offer a flexible approach to cost reduction that enables
clients focus on known areas of concern or on enterprise wide operations. The services we
provide include:

      Identifying cost drivers
      Benchmarking performance against peer groups
      Challenging cost management and control framework
      Establishing KPI’s that are aligned to corporate strategy
      Simplifying and standardizing business practices
      Structuring shared services and outsourcing arrangements for Finance, IT, Treasury,
       Logistics, Operations, etc
      Adapting IT to support business needs
      Embedding a culture of continuous improvement within Organizations
      Benefits Realisation

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The key to successful cost reduction programmes is to focus first and foremost on strategic
priorities, linking these very closely to operational targets and the subsequent change
management activities. PwC’s client experience highlights the importance of designing,
developing and implementing a benefits realisation plan when implementing cost reduction
initiatives. By maintaining focus on target benefits, the opportunity to divert from pre-defined
cost reduction initiatives is limited.

Our Cost Reduction team focuses on identifying and validating sustainable cost reduction
opportunities for our clients and supporting them, as appropriate in implementing these changes.
Our focus is enterprise wide focusing on such aspects as procurement; IT; treasury; supply chain;
sales administration; finance, etc and includes an analysis of alternative sourcing structures, e.g.
shared services and/or outsourcing.

A well organised end-to-end program is needed – cost cutting programs must be aligned across
the organisation to avoid sub-optimal execution and must be championed by senior management.

PricewaterhouseCoopers has donated US$4 million towards the education of refugee children in
eastern Chad's camps, in the single largest corporate donation ever received by the UN refugee

The firm, also known as PwC, presented UNHCR with a cheque for US$4 million in New York
on Monday. The funds will be used to build and operate schools for refugee children who have
fled the conflict in Darfur, western Sudan. Specifically, more than 20,000 children aged between
six and 14 years in the refugee camps of Iridimi, Touloum and Am Nabak in eastern Chad will
have access to education in a safe learning environment. The children and their teachers will
receive a daily meal. Teacher training and school supplies will also be provided. The donation
from PwC employees is the largest single company donation UNHCR has ever received

More than 6,000 PwC staff members in more than 100 countries contributed to the 10-day
"Power     of   10"    campaign,         which   was   created   by   professional   services   firm
PricewaterhouseCoopers together with UNHCR to recognize the 10th anniversary of the
company's creation. UN

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PwC donates $1 million to University of Alabama accounting program New York-based
accounting firm PricewaterhouseCoopers pledged a $1 million donation to the University of
Alabama to support accounting education at its Culverhouse College of Commerce and Business


It was the Advisory operations of PwC that faced the hardest hit of recession. With this impact,
the service line earned revenues of US$6.1 billion and was down by only 3%. This fall was
actually driven by the clients’ reduction in their discretionary spending as well as by the drop off
in initial public offerings and transactions. However, it was partially balanced by the rise in the
restructuring work.

Dennis M. Nally, the Global Chairman of PwC said that the last 12 months was challenging for
the company. A number of member firms were facing major economic turbulence. Though the
revenues of PwC's FY 2009 have declined, they were good enough for the given circumstances.
Nally also added, "In addition the combination of first rate customer service and very
competitive pricing has allowed us to increase our market share in many of our markets around
the world".

Some of the member firms of PwC were less affected by this global recession than the others.
The revenues of South and Central American firms increased by 13.3% and the Middle East and

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African firms had revenue growth of 9.1%. In Asia, revenues increased by 5.4%. It was the
member firms of North America, Central and Eastern Europe and Western Europe where the
revenues declined. There was very good revenue growth in Russia, Sweden, Japan, Spain and


The company has an advantage of having branches across the world; hence the clientele are
directed to the nearest branch for services. Each branch has a field around it, the accounts of
clients within this field are handled by that branch. The reasoning behind this initiative is to
ensure that there is a personal contact with the client. The company assigns a “Go To person” or
an account manager for the client who not only acts as a liaison with the company but also is
their single point of contact. These account managers are people engage PricewaterhouseCoopers
to help them design, manage and execute lasting change. Increasingly, value is created across a
complex network of partners, suppliers, customers, regulators and stakeholders. Survival and
success depends on collaboration amongst them hence client preferences are given utmost
importance by the company. They deliver services locally and through our integrated network.
This well bound network helps in getting client referrals which is a great source of client
acquisition The account managers make sure that constant feedback is collected. The account
managers and professionals visit the company often as the service delivery does not stop with
rendering the service but a strong relationship has to be maintained.

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Standardised Process

Standardization of business processes helps to improve personnel efficiency and performance
and is aided by the information intensive nature of the process. The emphasis on similar
organisation set up and team structures facilitates rapid permeation of process standardization
throughout the company. Wladawsky-Berger states that standardization will occur for business
processes "where differentiation brings little or no incremental value". But, process
standardization may well give rise to a class of service providers that, while competing along
dimensions of process expertise, best practices and business improvement, may level the playing
field sooner and across a wide range of business processes. This transformation has happened in
the case of this company and they thrive on process standardisation.

Pool of resources

The company has access to a varied pool of resources which gives it the ability to compile
comprehensive reports as a part of its connected Thinking approach. The company has access to
approximately 1700 publications across the world. The company also has own publications
compiled by the professionals. The employees who are professionals with a compounding
experience adds value to the already existing pool of resources of the company.

People Expertise

Because PricewaterhouseCoopers' only product is the output of its employees, the firm has a
competitive recruiting program. PricewaterhouseCoopers was recently included in Fortune's
"100 Best Companies to Work For" list, coming in at number 58 in 2009. In the UK the company
has been voted number one in the Times Top 100 Graduate Employers for 5 consecutive years.
These measures have ensured that the best employees are intact with the company and the
expertise is maintained.

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Credibility as a criterion

The clients who avail the assurance services or audit services from the company gain the
reputation as the attestation of the company has high credibility. The high credibility also
increases the loan availability of the client. This is a great advantage to the clients in obtaining
project finance.

Other Factors

The other factors which provide a competitive edge to the company are the ability to mobilise
huge amounts of capital. The audit firms of different origins have come together in order to
exploit this benefit of being able to pool in huge capital in order to maintain a high quality by
employing skilled professionals as a part of the workforce.


The company despite its superior expertise in financial services has a very small market share in
Tax consulting services. The company faces severe competition from smaller audit firms when it
comes to tax consulting for select individuals. The smaller firms have higher expertise and also
charge lower prices. The company despite its cost cutting efforts fails to reduce the cost when
compared to a smaller firm because the cost of the professionals appointed and other
administrative costs are very high for a company which is part of the Big 4. The high costs iplies
that the services will be priced at a premium which means that only large MNC’s can avail its
services the small and medium enterprises cannot avail their services. The company makes sure
that the client gets the value for the huge premium price he pays by maintaining a good
relationship with client.

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We would like to express our deep sense of gratitude to Mr. Srinath Varadarajan (Account
Manager, Chennai), for his support and guidance in the course of data collection. We extend our
heart felt thanks and appreciate him for sharing his valuable knowledge, information, and