Description of Ernst & Young (EY) company

Globalization is defined as the integration of economies throughout the world, mostly through technological flows, commerce, financial flows, movements of people’s commodities and services, and, eventually, information and technology interchange. It can also be characterized as a strategy for entering the global market through the provision of standardized goods and services. Globalization is typically multifaceted, with environmental, political-legal, and sociocultural components (Zorska, 2010). It is critical for a firm to include the concept of globalization into its operations because it will aid in the creation of countless chances. The opportunities help in sharing knowledge, social values, behavioral norms, and technology and it is essential for the promotion of development in different levels such as individuals, organization, communities, and societies drew from across different cultures.

The essay will mainly focus on the analysis of the Ernst & Young (EY) company regarding the business-related issues such the organization of the business, the brief history of the firm as well as the importance of the leadership structure to the enterprise. Also, the essay will analyze the scope of operation of EY company regarding their daily activities as well as the key products they supply in the market. Finally, the report will examine the importance of globalization to the selected company.

Description of Ernst & Young (EY) company

The origin of Ernst & young company can be traced back to the 19th century as a result of the merger of American firms known as Ernst and Whiney and Arthur Young company. Both the founders of the two companies were great innovators, and they both appreciated the importance of quality in their work. Ernst discovered the idea of using business accounting information in decision making and also to make differences in client’s organization. Youth, on the other hand, played a role of being the business advisor and also as the principal accountant. The two firms were so quick in entering the global market as early as 1924 through having alliances with prominent business firms. The two companies joined together and started working as Ernst and young. As a result of this combination, the newly created firmly quickly positioned itself on the leading age of rapid globalization through the implementation of new business technologies and making continuous rapid changes in the business activities they engage in at different parts of the world (Expanding The Electric Vehicle Experience — An Ernst & Young Report, 2013).

As a result of globalization, EY company has organized its leadership structure in such a way that leaders from each region often work directly with their area or global leaders in ensuring that the work runs smoothly. The streamlining of the organization structure allows management of EY company to make the decision quickly; it also enables them to execute their strategy and offer high-quality services to their clients regardless of their location in the world. The company is also involved in cooperate social responsibility in various places where it works mainly through launching Ernst & young entrepreneurship of the year award. This award encourages the development of enterprise activities to those with potential, and it also recognizes the various contribution of the people in society that plays a role in inspiring others by their leadership achievements and visions (FDI -Ernst & Young Report, 2011).

Ernst and young company have faced numerous challenges due to the globalization strategy they implemented. First, the firm had to organize his legal entity into 29 similar businesses units with the number of people and revenue allocation. In east Africa, the company has embarked on the expansion of its operations into different neighborhood countries starting with countries such as Rwanda, Burundi and the republic of southern Sudan (GST the Ernst & Young guide, 2000). Numerous customers of the EY company has spread their business activities in different countries that have the different governing framework. In offering services in various regions of the world, the company is expected to comply with both the international framework and the local ones hence causing a lot of challenges in the management of the business (Taylor, 2012). The business regardless of the location of its operation is also expected to adhere to the streamlined way of operation as required by the top management of Ernst & young company thus also causing difficulties in the method of conducting the business.

Operation of the firm in a global context is an essential element in the determination of the organizations fit the environment. In the cases of domestic that are being faced by the increasing global competition, the industry position usually imposes an additional competitive advantage that significantly differs from a pure local competition (FDI -Ernst & Young Report, 2011). The competitive benefit of a firm often draws on the company internal resources and competencies of the organization workers and thus has played a crucial role in the successes of the Ernst & young in different parts of the world.

The fundamental significance of globalization to Ernst & young company is that it helps the organization to meet new opportunities in the sector of their operation. Some of the opportunities the company has realized as a result of globalization include accessibility to new markets that were closed to them in the previous years due to cost, indirect barriers, and strict regulations. Accessibility of the new market has enabled Ernst & Young company to tap resources’ such as labor, capital and innovative knowledge from different parts of the world (Nederveen Pieterse, 2012). Globalization has also enabled the company to participate in the global production networks that are usually becoming prevalence in many industries across the world such as textile industries, automotive, electronics, and toy manufacturing industries.

Scope of Ernst & Young Company

Ernst and Young are worldwide company that offers services such as industry-focus assurance, tax, transaction and advisory services, the company has professionals with deep sector knowledge and technical experience who can accurately interpret the market, and that helps them to have a great competition in the market (Bäumer, Kreutter and Messner, 2012). Ernst & Young helps other businesses to realize their value for the various transactions and also helps in increasing an organization brand profitability, customers by driving down the cost and build an agile and resilient supply chain system of that particular firm.

Ernst & Young company always try to offer focus. Attention and rigor in ensuring their job to the clients are well done especially when the customer’s needs the following. Evolving their operational model, optimization of brand portfolio and improving customers profitability. Also, Ernest and young company helps their clients in building a resilient and agile supply chain, driving down the cost of operations to release cash, and finally they help their clients in addressing the sustainability agenda. The company mainly operates in service provision sectors as they mostly offer services to their customers such as taxation, advisory among others (Expanding The Electric Vehicle Experience — An Ernst & Young Report, 2013).

Involvement of EY company in the globalization has played a role in helping the expansion of cross – national cooperation. The as different government has agreed with the objective of gaining the reciprocal advantage for their own companies, to solve various that an individual country cannot solve alone and to help them deal with issues that are important in the business operation and are beyond the territorial borders. The existence of such forms of cooperation often takes place within the framework of internal agencies and bodies such as the united nation, international monetary firms, and the world bank.

Importance of The Globalization to Ernst & Young Company

Globalization has brought a lot of benefits to the company and also the changes in the strategic management of the enterprise. Globalization has enabled many customers that were being serviced by Ernst and young company to expand their business across the borders of their operation hence allowing them to increase their market cover resulting in the rapid expansion of the firm (Ernst, 1996). Accessing new markets enables a company to obtain resources such as capital labor and knowledge from different parts of the world.

Globalization also has led to the change of work environment of Ernst & young company. It is mainly from the fact that the context in which they were previously operating has become very volatile hence needs a high level of intelligence to make Ernst & young company to keep pace with the rapidly changing operating environment (Nederveen Pieterse, 2012). Globalization also has significant effects on the degree of competition of the Ernst & young company, and competition usually ranges from the scramble for resources to the scramble to get more clients and customers to be served by the business. For Ernst & young company to realize a competitive advantage, they implemented unique strategies that mainly focuses on the firm different activities.

Ensuring effectiveness of operation of the business is important for companies, but it is often not sufficient in achieving a sustainable business competitive advantage (Taylor, 2012). Involvement of Ernst & young company in globalization has enabled them to employ better and qualified staff to make them remain high in competition through delivering better and quality services to their clients across the world mainly because the customers usually have a variety service provider to choose in the market

Increased globalization by the company has also significantly affected the level of demands from their potential clients; increased globalization has made Ernst & young to invest in different countries and compare the services they offer with the services provided by the already existing firms in countries in which they have established their branches. In some occasions, the services that were being provided by such firms in their country of origin were of high quality thus making the expectation of customers from such companies to be high hence increasing demand for their services. For the company to realize this advantage, Ernst & company had to put more effort towards improving its advisory services to the clients to be able to meet those offered by other international firms in other well-developed countries.

For Ernst & Young to be able to satisfy the needs of their diversified customers brought about as a result of globalization, the firm saw the necessity of integration of standard business operation across all its branches in different part of the world. Such move of integration has ensured that the services offered by Ernst & Young to their customers in the various countries in the world are uniform (GST the Ernst & Young guide, 2000). This strategy of integration has enabled them to improve the financial performance, and the satisfaction of the client is hence making Ernst and young to remain on top of the competition in their business hence preventing its collapse and closure across the world. In summary, globalization has brought a lot of effects on the strategic management EY company that are mainly necessitated by the need to remain on top in the competitive market and to offers services that are aimed towards increasing customers to the enterprise (Gunawan, 2011).

The importance of globalization is that it helps in increasing the expansion of technology mainly through ensuring vast improvements in communication and transport technology used by the company in offering the quality services to their clients. The improvements primarily involve the enhancement of the use of internet in business that has a significant effect of increasing the effectiveness and efficiency of conducting business operations on an international platform. Involvement EY company in the international trade is also important since it has made the company to develop services that aim at offering support to the international business. These services include banking, transportation, and communication that has played a crucial role in facilitating business and reduces the risks of conducting business across the countries.

Finally, globalization has also played a critical role in the increasing the level of the Ernst & young global competition that has made them expand their operation in different parts of the world to enable them to access opportunities available in foreign countries thus resulting in the improvement of the company’s overall competitiveness and flexibility (Reinsdorf and Slaughter, 2009). Also Increase, globalization has led to the growth in the consumer’s pressures. This mainly due to rapid innovation in transport and communication technology, that makes consumers be well informed about the various products offered in the market and can easily access the different services through the use of the internet and other available technology.

Limitation of Globalization

Despite the numerous benefits of globalization to business, there few limitations that are likely to be experienced by Ernst & young company due to globalization activities. These involve the possible threats in which globalization will have on the sovereignty of the United Kingdom, the disparity in economic growths and finally the growing inequality of the income the different countries obtain from globalization (Gunawan, 2011). Globalization can impact negatively on the economy through causing the damages to the society, and the environment thus affects the production of that particular country. In term of growing inequality, globalization is likely to lead to a state referred to as offshoring, which mainly involves the shifting of the domestic production of the country to the foreign market with the objective of offering services to the local economy of the country (Zorska, 2010).

Conclusion

For the globalization to have positive impacts on the success of Ernst & young company, the management had to play an important that includes serving as the strategic for the EY corporation. The managers should also be the architects of the company worldwide assets and configuration of all the company resources in the different branches of EY business across the world. Managers also have the responsibility of monitoring of the Ernst & company transactions across the various departments to ensure transparency and accountability in operation of the business. The managers also help in furthering the Ernst & young global scale efficiency and competitiveness so as the company will remain on the top in the service provision sector. Finally, the managers play other roles such as supervisions, the delegation of duties, planning the activities of the company thus ensure the smooth running and management of the organization.

References

Bäumer, U., Kreutter, P. and Messner, W. (2012). Globalization of professional services. Berlin: Springer.

Ernst (1996). The Ernst & Young International Information Security Survey 1995. Information Management & Computer Security, 4(4), pp.26-33.

Expanding The Electric Vehicle Experience — An Ernst & Young Report. (2013). Auto Tech Review, 2(9), pp.22-25.

FDI -Ernst & Young Report. (2011). Africa Research Bulletin: Economic, Financial and Technical Series, 48(4), pp.19078B-19078B.

GST the Ernst & Young guide. (2000). Sydney: University of New South Wales Press.

Gunawan, L. (2011). Entrepreneurship: Entrepreneurs to Win Their Sustainable Competitive Advantages within Globalization Era. The Winners, 12(1), p.40.

Nederveen Pieterse, J. (2012). Periodizing Globalization: Histories of Globalization. New Global Studies, 6(2).

Reinsdorf, M. and Slaughter, M. (2009). International trade in services and intangibles in the era of globalization. Chicago: University of Chicago Press.

Taylor, S. (2012). Globalization and the cultures of business in Africa. Bloomington: Indiana University Press.

Zorska, A. (2010). Globalization of innovation activity by transnational corporations: and its importance in the present economic crisis. Perspectives of Innovations, Economics and Business, pp.11-14.