BDO and Governance Options and Issues †MyAssignmenthelp.com

Question: Discuss about the BDO and Governance Options and Issues. Answer: The organisational structure of a company describes the flow and direction of activities in order to accomplish aims of the organization as well as assures the growth of the company BDO is an international system that provides accounting services, tax and business consultative services to the firms functioning professional services under the supervision of BDO. BDO is abbreviated as Binder Dicker Otter having its member firms in more than 162 countries and it has headquarter in Zaventem, Belgium. BDO Global is one of the top five organisations providing professional accounting services with more than 1500 offices all over the world. BDO along with its partners employ nearly 75000 employees across the globe and has announced global revenue of nearly $8.1 billion in the year 2017. This essay focuses on the organisational structure of the firm, internal and external environmental factors, existing risk factors, the steps that should be taken to enhance the business and key functions ass isting the achievement of strategy(Kingdom, 2015). The BDO Global is administrated by the Council, the Global Board and the Executive of BDO International Limited. Council involves one representative from each voting member, and signifies the members of BDO International in annual general meeting. The Council is responsible for approving BDO and its networks budget and conducting changes in the Regulations and Articles of Association of BDO International Limited. BDO consists a range of global committees who are responsible for reporting directly to the CEO and particular member of the Leadership Team. International committees of BDO are named as Executive, Board Audit, Compensation, Corporate Governance, Nominations, Risk management, Trust, IT Steering and Related Party Transactions Committee. The number of members in these committee can be decreased and increased by the board as per requirement. Along with this, to simplify the coordination and communication of tasks, BDO is also separated in three regions named as EMEA (Europe, Mi ddle East and Africa), Americas (Latin America, Caribbean and North America) and Asia Pacific. These are facilitated by individual regional board which meets with the Global Board once in a year(Global, 2018). Being a financial organization, BDO trusts that right of participation and ethical behaviour motivates the strength and assurance of the investors and partners. Since industry of accounting and financial services provider is categorized by regular changes in environment because of rules, regulations and laws, BDO also have various external and internal factors that effects its working. The major external factors are pricing structure prevailing in the market, presence of internet facilities, community involvement, quick changes in information technology, changes in governing compliance, disaster management, and economic recession. For the purpose of community involvement, management should focus on branding its services in context with customers view(Maverick, 2018). It will help in increasing customer base and also increase in profitability of the firm. Along with this unusual expectations of customers with limited resources in one of the important business affecting aspect because management has to fulfil the demands of customer without any excuses. This consumes a lot of time and other important tasks get delay in this process(Burbidge, 2016). Similarly internal forces that impact the business of BDO, are management of safety security, effectiveness of internal control system, internal relations of employees as well as management and working atmosphere within the boundaries that affect the working capability of the employees. Successful management of confidential information of the customers is one of the major inter factor and responsibility of the firm. In order to successful application of strategies, both internal as well as external sources should be well managed and linked to each other. For this purpose different strategies are required to be formulated in accordance with the impact environmental factors. Therefore, the mission and objectives, value system, financial factors and internal relationship get impacted as a result of external and internal environmental forces(Organisation, 2018). BDO facilitates organisations to achieve consistent performance and reliable improvement in their operations by assisting optimisation of business procedure and services development. In order to increase productivity and reducing cost, management of BDO has to face a number of risks prevailing at present. One of the main of those factors are breaches or theft of private and technology security, which may result into loss of financial data of its member organisations (SimpliLearn, 2018). Fluctuation of stock and revenue, diversification of products, war, natural disasters and terrorist attacks are some factors which may lead to failure execution of corporate strategy. While the U.S. government is observing a controlling renovation, a bunch of compound regulations and procedures can surely create a concern for the organisation. Beside this, increasing competition is the biggest risk associated factor which includes market sharing and struggle for contracts as well as to retaining and f ascinating the talent(Sand, 2016). Management of BDO can take various actions in order to enhance the performance of the organisation. The first step should be taken by the management is improving the class of accounting services and the positioning of accounting properties. For this purpose, more resources should be allocated to management and the functions that are not beneficial, should be eliminated. For efficient working performance of the employees, training programme should be organised for accounting staff and budget managers to keep them updated about all new changes. It will result in improve in performance as well as elimination of conceptual errors. Along with this, training programmes should also be planned that will help in expand user knowledge about available accounting services. Board of BDO should develop a fresh portfolio indicating performance of employees on quarterly, half yearly and yearly basis. Management should revise the planning activities of accounting for excluding the codes that are not relevant in present accounting functions and should introduce new codes that are beneficial to attain objectives of the organization(Goffin Mitchell, 2016). The crucial aspect that should be followed by the BDO for becoming a successful accounting and financial service provider is facilitating high quality services with no errors. For this purpose systematic methods and procedures should be introduced for reducing time and errors. In order to increase profitability BDO should use techniques like profit mapping and reduction in cost which will automatically result in increase in revenue and management of overpaid taxes which are to be recovered this year. Such decisions related to business practices will assist in enhancing the organizational performance of BDO(Chron, 2018). The strategy of BDO is not only profit oriented but also service oriented because it is an accounting and assurance service providing organisation. It cannot focus only on sales since this will distract form the area of service. For the purpose of achieving this strategy, Management of BDO should integrate its business functions with the strategy. The main functions of BDO includes preparation and planning of Tax, valuation and development of business, payroll and operational bookkeeping, audit assurance and preparation of financial accounts representing true and fair view of the member firms. Equal consideration is required to be given to all the functions for the achievement of strategy(Tobago, 2018). BDO Global has introduced some new functions and strategies to meet challenges and to capture new opportunities. They established such process that consist enhancement of profitability, understanding of interactions and value creation. Their key function is to enhance profitability, working diligently with customers and create a sense of taking care of customers. Recently BDO Global has adopted a new strategy named as Go-To-Market Strategy for achieving its objectives. It refers to the bundle of incorporated tactics which a firm will use to associate its business and customers. BDOs Go-To-Market Strategy is a way by which they offer to provide unique and valuable services to the target market(Kerzner, 2018). BDO majorly assist on the tax planning, auditing and assurance, bookkeeping, payrolls, finance and succession planning. For tax preparation and planning managers use expertise knowledge to draw up effective tax plans that can defer and reduce taxes from the business. The professionals of BDO monitors the strategies of their clients so that they can assist at the time of any changes in legislation. To assist in payroll, the team of BDO is always remains up to date on ever changing regulations. The main function of BDO also includes focusing on the business, customers and reorganised governance. For this purpose, management have expanded its market penetration along with the maintenance of flexible and lean structures(Bradley, 2016). Therefore, it can be concluded that BDO is an emerging financial service provider with its effective functioning. Although there are many internal and external environmental factors but the management of BDO has adopted some key strategies that will prove beneficial in the fulfilment of objectives. In this competitive environment, BDO provides stability and security to its clients when it moves to the business management which is helpful in gaining faith of clients. Since there are some risk associated in the environmment but with effective management techniques and elimination of unnecessary procedures, such risks can be converted into opportunities. References Bradley, G. (2016). Benefit Realisation Management: A Practical Guide to Achieving Benefits Through Change. Gower Publishing. Retrieved March 31, 2018 Burbidge, N. (2016). Risk and Opprortunity. Retrieved March 31, 2018, from Global Risk Landscape 2016: https://www.bdo.es/getattachment/7c2311ad-5b3e-44ee-8f86-b63adbb4fdfe/BDO-Global-Risk-Landscape.pdf.aspx?lang=en-GBext=.pdfdisposition=attachment Chron. (2018). Five ways to manage financial risk. Retrieved March 31, 2018, from https://smallbusiness.chron.com/five-ways-manage-financial-risk-4564.html Global, B. (2018). Council. Retrieved March 31, 2018, from https://www.bdo.global/en-gb/about/governance/council Goffin, K., Mitchell, R. (2016). Innovation Management Effective Strategy and Implementation. Palgrave. Retrieved March 31, 2018 Kerzner, H. (2018). Project Management Best Practices: Achieving Global Excellence. New York: Wiley Sons. Retrieved March 21, 2018 Kingdom, B. U. (2015, May 26). Survey: International Report 2015. Retrieved March 31, 2018, from https://www.bdo.co.uk/en-gb/insights/industries/manufacturing/international-report-2015 Maverick, J. (2018). What are the major categories of financial risk for a company? Retrieved MARCH 31, 2018, from https://www.investopedia.com/ask/answers/062415/what-are-major-categories-financial-risk-company.asp Organisation. (2018). Retrieved March 31, 2018, from BDO Finland: https://www.bdo.fi/en-gb/about/why-choose-bdo/organisation Sand, J. (2016, July). BDO analysis reveals risks facing big technology companies. Retrieved March 31, 2018, from BDO Global: https://www.bdo.global/en-gb/blogs/tech-media-watch-blog/july-2016/bdo-analysis-reveals-risks-facing-big-technology-c SimpliLearn. (2018). Financial Risk and Its Types. Retrieved March 31, 2018, from https://www.simplilearn.com/financial-risk-and-types-rar131-article Tobago, B. T. (2018). Outsourced Finance Function. Retrieved March 31, 2018, from BDO Trinidad and Tobago: https://www.bdo.tt/en-gb/services/business-services-outsourcing/outsourced-finance-function