ipl-logo

Disadvantages Of Dfk

1149 Words5 Pages

A firm's resources act as the fundamental determinants of its performance and competitive advantage. In order to achieve competitive advantage, the resources need to be valuable and rare. Important resources for professional services to achieve its competitive advantage are capabilities, competencies, skills, technologies and brand image.

The size of Folks DFK & Co is both its strength and weakness. The size of the firm is big enough for it to compete with other small and medium sized audit firm, but not that big enough for it to compete with Big 4 and several well known firms such as Crowe Horwarth, BDO, Grant Thornton and Baker Tilly. The existence of this firm is not well known to public although it is ranked as The Nation's Top 10 Accounting Firm. The limited public awareness on DFK's brand image causes some disadvantages to the firm. Firstly, the firm might face some disadvantages in the process of staff and talent recruitment. Prospective employees will prefer to work with other …show more content…

Big 4 firms have their own in-house software developed to better enhance their audit quality. The use of CAATs are also common in these firms for them to perform their audit works in the most effective and efficient manner. With the presence of CAAT, large volume of data can be tested quickly and accurately. Besides, by testing all source location of data from client's computer, it enhance the audit quality as compared to testing of those printouts documents which its actual sources will be in doubt. Due to limited financial resources, Folks DFK & Co. is unable to compete with these big firms to sustain in competitiveness especially from technological resources perspectives.

In a nutshell, it can be concludes that the firm is lack of competitive advantage for it to grow in this face paced business

Show More
Related

  • Nt1310 Unit 3 Quiz

    321 Words  | 2 Pages

    If yes, provide details below. 1.3 Does the client use various accounting software products from multiple vendors? (Refer to grid on page 3.) 1.4 Does the client do any programming in-house or hire consultants for this purpose?

    Read More

  • Goodwin Wealth Management Case Summary

    534 Words  | 3 Pages

    The diversification lowered the overall risk of the firm and created an information network among the divisions, which was critical for the company to gain competitive advantage. The loyal customer base was another strength. The $60 billion assets that under the company’s management provided the company a positive brand image and made it easier for the company to attract new customers. Weakness:

    Read More

  • Robert A. Bonavito Executive Summary

    129 Words  | 1 Pages

    Their audit will typically improve the credibility of the client’s financial statements with the lender, encourage capital providers to invest and/or approve loans, and assist with mergers and acquisitions.

    Read More

  • Premier Inn Swot Analysis

    1718 Words  | 7 Pages

    Resources and Capabilities VRIO Framework V R I O Competitive Implication Strong corporate culture + + + + Sustainable competitive advantage Strong investment in R&D + + + + Temporary competitive advantage Outstanding customer service + + + + Sustainable competitive advantage

    Read More

  • Babbba Box Case Study

    884 Words  | 4 Pages

    1.0 Introduction and Identification of Problems BabbaCo, Inc. is an American based company founded by a mother of three and serial entrepreneur Jessica Nam Kim. It started off by offering infant-related products and managed to grow the business to a few hundred thousand dollars in revenue in less than a year’s time. Soon after, the young startup encountered the problem of low repeat sales. Thus, the entrepreneur started to rethink BabbaCo’s business model. With the revamp of the product offerings, it changed to a subscription-based business model with the introduction of Babba Box.

    Read More

  • Competitive Advantage Of Disney

    924 Words  | 4 Pages

    Apply the concept of VRIN to analyse its value-creating ability. All resources that an organization has may not have strategic relevance. Only certain resources are capable of being an input to a value creating strategy which put the organization in a position of competitive advantage. Great brand identity gives Disney's parks an edge over its competitors. Applying the concept of VRIN (valuable, rare, inimitable, non-substitutable) on Disneyland theme parks- • Valuable-

    Read More

  • Disadvantages Of Direct Contracting

    503 Words  | 3 Pages

    Under direct contracting, providers must go beyond their traditional roles as suppliers of care to owners of integrated financing and delivery systems. This transition can be difficult for employers to compile and manage actuarial and legal mandates. A physician group can be presented as a threat to health plans, as it does business by obtaining an insurance license. This is because the subcontractor is a competitor. Providers must become active managed care partners with employers, instead of being reactive adversaries of managed care organizations on a contractual basis.

    Read More

  • Business Analysis: Costco's Business Strategy

    905 Words  | 4 Pages

    3.0 Concepts 3.1 Resources and Capabilities In order to achieve and sustain competitive advantage, a business needs both resources and capabilities. Resources are assets that are owned or employed by an organization. The organization utilizes and uses these assets to carry out their business operations. Resources can be grouped either tangible assets or intangible assets.

    Read More

  • Costco's Competitive Strategies

    729 Words  | 3 Pages

    What are the two types of core competencies that drive a firm’s competitive advantage? Which firms demonstrate a clear competitive advantage because of (a) major value-creating skills/core capabilities and/or (b) superior assets or resources? Which firms have demonstrated sustainable sources of competitive advantage? The two core competencies that drive a firm’s competitive advantage are cost leadership and differentiation.

    Read More

  • Competitive Case Analysis Of Wilkerson's Company

    1770 Words  | 8 Pages

    Now, like any other company out there in the corporate world, they all come across a point in business where they face a competitive situation, due to either their product line, pricing, or their financial system. According to our

    Read More

  • Competitive Advantage Of State Street Company

    1196 Words  | 5 Pages

    To do this it needs to have a competitive advantage over its its rivals. A competitive advantage is something a company does better than its rivals that gives it an advantage over its rival. Porter (1988) states that a firm performs many activities that can contribute to a firms relative cost position and create a basis for differentiation which can create a cost advantage that gives a firm a competitive advantage over its competitors. A company’s competitive advantage and competitive strategy are both interrelated. Competitive strategy is defined by Porter (1980) as a broad formula for how a business is going to compete, what its goals should be, and what policies will be needed to carry out those goals.

    Read More

  • PESTLE Analysis Of Zapp's Potato Chips

    746 Words  | 3 Pages

    The biggest financial worry is the presence of its challengers in the business. Also, the company has to research the goods, business approaches, and other characteristics of all possible

    Read More

  • Accounting Information System Literature Review

    1372 Words  | 6 Pages

    Particularly well experiences accountants work with AIS means to check the high-level accuracy of company financial transactions and to keep the records in safety manner. To make financial statement easiest way and easy to understand for all of them. AIS is one of the real-time application processes. The Data will be included in the AIS; it depends on the Nature of the Business. It consists of Customer billing statements, Sales orders, purchase Requisitions, Sales analysis reports, Register checking, Vendor invoices, general ideas, payroll information, timekeeping and inventory data, tax information.

    Read More

  • Case Study Analysis: Zara Fast Fashion

    1715 Words  | 7 Pages

    Resource based view is the tool that is used in order to evaluate the resources that are important for the organisation to make their performance effective. It is regarded as a significant approach that is used by the organisation towards attainment of competitive advantage. The aim of this paper is to evaluate the resource based view literature and then applying the knowledge on the evaluation of a case study organisation. The selected organisation is Zara Fast Fashion, which is analysed with the help of use of RBV towards achievement of sustainable competitive advantage. The theoretical concepts of the resource-based view is analysed and applied on Zara as a real world example.

    Read More

  • Four Building Blocks Of Competitive Advantage

    1014 Words  | 5 Pages

    The four building blocks of competitive advantage can be used to help a company become more profitable and stay ahead of their competition. The four factors are superior efficiency, quality, innovation, customer responsiveness. All four building blocks are important to any company. However, I believe that customer responsiveness is the most important because having loyal and happy customers can make or break any company. The four building blocks can help companies grow and become the leader in their industry over their rivals.

    Read More

More about Disadvantages Of Dfk

Open Document