2010

Accenture

International
Academy
of
Management R. Priya
& PGPM/0911/002
2009-2011
Entrepreneurship
 Accenture
Nature of Business
Accenture, Ltd. provides management consulting, technology services,
and outsourcing services. The company operates in five segments:
Communications and High Tech, Financial Services, Products and
Services, Resources, and Government. Communications and High Tech
segment provides business intelligence, billing transformation, customer
contact transformation, sales force transformation, service fulfillment,
and network solutions; provides electronic commerce and strategy,
enterprise resource, customer relationship, and supply chain
management services; and offers digital content solutions. Financial
Services segment offers outsourcing strategies and customer relationship
management initiative services. Products and services segment includes
automotive, health services, industrial equipment, pharmaceuticals and
medical products, retail and consumer, and transportation and travel
service groups; and offers operating and supply chain, mergers and
acquisitions, channel management, product design, remote field
maintenance, enterprise application integration, outsourcing, value
creation, customer relationship management, procurement, electronic
business, maintenance, and repair services. Resources segment serves
the energy, chemicals, utilities, metals, mining, and forest products
companies. Its Government segment serves human services, justice,
postal, education and electoral authorities, and cities and other
municipalities. The company was founded in 1989 and is headquartered
in Hamilton, Bermuda.

History & Milestones

History of the Company
• Accenture is a global management consulting, technology
consulting and technology outsourcing company.
• It was previously incorporated in Bermuda but since 1 September
2009 has been incorporated in Ireland.
• It is said to be the largest consulting firm in the world.
• Accenture is a Fortune Global 500 company with more than
186,000 people in 52 countries.
• Accenture's clients include 96 of the Fortune Global 100 and more
than three quarters of the Fortune Global 500.

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 Founded : 1989
Key people : William D. Green (Chairman) & (CEO)
Headquarters : Ireland
Area served : Worldwide
Industry : Management consulting, Technology service, Outsourcing
Revenue : US$ 23.170 billion (2009)
Net income : US$ 1.589 billion (2009)
Total assets : US$ 12.255 billion (2009)
Total equity : US$ 2.886 billion (2009)
Employees : 177,000 (2009)
Website : Accenture.com

Business model
The firm's free cash flow guidance demonstrates that its service
business model throws off plenty of excess capital. So much that
management felt comfortable enough to raise its annual dividend 50% to
75 cents per share. Going forward the company will pay a semi-annual
dividend, instead of on an annual basis. This will place the dividend yield
close to 2%. The weaker sales and profit trends served to send the stock
down slightly after Thursday's after market financial results release. This
could be a buying opportunity and the shares are already reasonably
valued at under 13-times forward free cash flow estimates. Despite the
more tepid outlook, Accenture's business model remains fully intact and
will only benefit during the next uptick in global activity. Recent buyouts
of smaller rivals serve to demonstrate the appeal and lucrative nature of
Accenture's operations.

Organization Structure

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Product Profile

Target Customers

Customer Relationship Management

Accenture Customer Relationship Management (CRM) consulting
services help clients achieve high performance by efficiently
anticipating, meeting and exceeding their customers' expectations.

Marketing Transformation
Accenture helps chief marketing officers achieve their objectives for
organic growth, by prioritizing strategic investments and
addressing the most critical gaps in marketing capability gaps.

Sales Transformation
Accenture helps organizations improve sales performance by
realigning strategic resources, managing sales force behavior and
enhancing operating capabilities.

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Service Transformation
Accenture helps organizations evaluate current service operations,
segment and analyze the customer base and devise a customer
contact blueprint that balances the cost of service with the current
and potential value of customer relationships—what we term the
"perfect" customer experience.

Accenture maintains alliances with key technology providers to

extend our capabilities. These providers include Microsoft, Oracle,
SAP and others.

Nature of Competition

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 Financial Analysis

Balance Sheet
All numbers in thousands
PERIOD ENDING 31-May-09 28-Feb-09 30-Nov-08 31-Aug-08

Assets
Current Assets
Cash And Cash
4,002,459 2,978,000 2,782,961 3,602,760
Equivalents
Short Term
40,363 13,450 13,117 20,282
Investments
Net Receivables 4,127,657 4,059,946 4,571,356 4,941,254
Inventory - - - -
Other Current Assets 454,347 475,552 463,178 594,832
Total Current Assets 8,624,826 7,526,948 7,830,612 9,159,128
Long Term Investments 112,501 40,430 46,289 62,661
Property Plant and
717,422 708,643 734,597 800,164
Equipment
Goodwill 803,748 771,899 786,847 839,957
Intangible Assets - - - -
Accumulated Amortization - - - -
Other Assets 368,729 355,739 368,408 382,816
Deferred Long Term Asset
1,200,438 1,153,700 1,165,302 1,153,799
Charges
Total Assets 11,827,664 10,557,359 10,932,055 12,398,525

Liabilities
Current Liabilities
Accounts Payable 4,199,882 3,909,390 4,493,077 5,030,647
Short/Current Long
17,687 1,021 1,249 6,570
Term Debt
Other Current
1,690,867 1,550,207 1,529,917 1,810,661
Liabilities
Total Current
5,908,436 5,460,618 6,024,243 6,847,878
Liabilities
Long Term Debt 6,626 529 1,198 1,087,952
Other Liabilities 1,706,178 1,632,078 1,745,925 681,827
Deferred Long Term
598,877 557,074 555,269 588,193
Liability Charges

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Minority Interest 658,126 521,154 533,213 652,169
Negative Goodwill - - - -
Total Liabilities 8,878,243 8,171,453 8,859,848 9,858,019

Stockholders' Equity
Misc Stocks Options
- - - -
Warrants
Redeemable Preferred
- - - -
Stock
Preferred Stock - - - -
Common Stock 17 17 18 18
Retained Earnings 3,958,429 3,593,007 3,179,837 3,120,515
Treasury Stock (1,817,160) (1,745,135) (1,778,381) (1,405,732)
Capital Surplus - 46,400 179,830 -
Other Stockholder Equity 808,135 491,617 490,903 825,705
Total Stockholder
2,949,421 2,385,906 2,072,207 2,540,506
Equity
Net Tangible Assets $2,145,673 $1,614,007 $1,285,360 $1,700,549

Ratio Analysis
SHORT-TERM SOLVENCY RATIOS (LIQUIDITY)
Net Working Capital Ratio 23.17
Current Ratio 1.5
Quick Ratio (Acid Test) 1.1
Liquidity Ratio (Cash) 0.74
Receivables Turnover 6.8
Average Collection Period 53
Working Capital/Equity 98.4
Working Capital pS 3.70
Cash-Flow pS 2.72
Free Cash-Flow pS 3.27
FINANCIAL STRUCTURE RATIOS
Altman's Z-Score Ratio 4.78
Financial Leverage Ratio (Assets/Equity) 4.2
Debt Ratio 76.4
Total Debt/Equity (Gearing Ratio) 0.00
LT Debt/Equity 0.00
LT Debt/Capital Invested 111.5
LT Debt/Total Liabilities 0.0
Interest Cover 166.0
Interest/Capital Invested 0.23

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PROFITABILITY RATIOS
Free Cash Flow Margin 10.84
Free Cash Flow Margin 5YEAR AVG 8.96
Net Profit Margin 6.9
Net Profit Margin - 5YEAR AVRG. 6.1
Equity Productivity 8.03
Return on Equity (ROE) 55.1
Return on Equity (ROE) - 5YEAR AVRG. 58.1
Capital Invested Productivity 8.03
Return on Capital Invested (ROCI) 55.1
Return on Capital Invested (ROCI) - 5YEAR AVRG. 57.7
Assets Productivity 1.90
Return on Assets (ROA) 13.0
Return on Assets (ROA) - 5YEAR AVRG. 12.0
Gross Profit Margin 32.2
Gross Profit Margin - 5YEAR AVRG. 30.6
EBITDA Margin - LTM 14.8
EBIT Margin - LTM 11.8
Pre-Tax Profit Margin 11.6
Pre-Tax Profit Margin - 5YEAR AVRG. 11.9
Effective Tax Rate 27.6
Effective Tax Rate - 5YEAR AVRG. 29.6
EFFICIENCY RATIOS
Cash Conversion Cycle 35
Revenue per Employee 130,909
Net Income per Employee 8,983
Average Collection Period 35
Receivables Turnover 6.8
Day's Inventory Turnover Ratio 0
Inventory Turnover 0.0
Inventory/Sales 0.0
Accounts Payble/Sales 3.10
Assets/Revenue 0.53
Net Working Capital Turnover 8.16
Fixed Assets Turnover 7.10
Total Assets Turnover 1.9
Revenue per $ Cash 5.10
Revenue per $ Plant 33.05
Revenue per $ Common Equity 8.03

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Value Chain
Our Core Values

Since its inception, Accenture has been governed by its core values. They
shape the culture and define the character of our company. They guide
how we behave and make decisions.

"Through the years these simple, yet powerful values have continually
guided our decision making as well as our interactions with our clients
and each other."
—William D. Green, Chairman & CEO, Accenture

Stewardship
Fulfilling our obligation of building a better, stronger and more durable
company for future generations, protecting the Accenture brand,
meeting our commitments to stakeholders, acting with an owner
mentality, developing our people and helping improve communities and
the global environment.

Best People
Attracting, developing and retaining the best talent for our business,
challenging our people, demonstrating a “can-do” attitude and fostering
a collaborative and mutually supportive environment.

Client Value Creation

Enabling clients to become high-performance businesses and creating
long-term relationships by being responsive and relevant and by
consistently delivering value.

One Global Network

Leveraging the power of global insight, relationships, collaboration and
learning to deliver exceptional service to clients wherever they do
business.

Respect for the Individual

Valuing diversity and unique contributions, fostering a trusting, open
and inclusive environment and treating each person in a manner that
reflects
Accenture’s values.
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SWOT Analysis

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Future Outlook
Accenture expects diluted earnings between $2.64 and $2.72 for the
coming year, as net revenue could either grow or decline slightly. Free
cash flow should come in slightly above reported earnings, in the range
of $2.1 billion to $2.3 billion.

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