PWC Pakistan
A. F. Ferguson & Co.
Introduction:
• A.F. Ferguson & Co., a franchise that pioneered the market in
Pakistan in 1908.
• its status as the oldest professional accountancy firm in
Pakistan and its association with PricewaterhouseCoopers
(PwC).
• A.F. Ferguson & Co. has shaped its image on three
cornerstones: credibility, experience, and client satisfaction.
• The firm's diverse range of services, including audit, tax, and
advisory services
2
PESTLE
Analysis:
PESTLE Analysis:
Political Factor
Economic Factor
• Pakistan has experienced political
turbulence over the last decade, which
has impacted companies like PwC.
• Political instability often correlates with
economic challenges such as inflation,
affecting business strategies.
• Currency fluctuations, particularly the
depreciation of the Pakistani Rupee
against the US Dollar, have posed
challenges for PwC's dollar-based costing
system
• Economic challenges like inflation have
necessitated adjustments to PwC's
business strategies.
• Currency fluctuations have directly
impacted PwC's financial performance,
requiring skillful management to navigate.
• Increased expenses, such as higher
salaries and electricity costs, due to
economic changes have affected PwC's
operations
4
Continued..
Social Factors
Technological Factors
• Localization of management has
enhanced PwC's services in Pakistan,
strengthening ties with clients and
stakeholders.
• Leveraging Pakistan's talented youth has
stimulated innovation and creativity within
PwC.
• Educational and skills development
programs contribute to nurturing skilled
personnel and maintaining high service
standards.
• Technological advancement, including
digital transformation, has benefited PwC
by enhancing service offerings and global
reach.
• Cybersecurity concerns have arisen with
increased digitalization, leading to
significant investment in security
measures.
• Adoption of automation and AI has
improved productivity but requires
continuous investment in employee
upskilling.
5
Continued…
Legal Factors
Environmental Factors
• Compliance with legal and regulatory
requirements, including accounting
standards and tax laws, ensures
transparency and reliability in PwC's
workflow.
• Focus on compliance processes and
protection of intellectual property rights
demonstrates PwC's commitment to legal
adherence and ethical values.
• PwC has demonstrated commitment to
sustainability by adopting measures to
reduce its carbon footprint.
• Investment in solar panels and hybrid
vehicles showcases PwC's environmental
responsibility and cost efficiency efforts.
• Economic challenges like inflation pose
obstacles to environmental initiatives,
requiring careful decision-making and
budget management.
6
Cultural and Social considerations:
Cultural Sensitivity
• Emphasize the importance of understanding and
respecting Pakistan's diverse cultural landscape.
• Highlight how building strong personal relationships
through small talk and social gatherings fosters
trust and cooperation with clients and colleagues
Diversity and Inclusion
•
The firm's commitment to promoting diversity
and inclusion within the workplace.
• efforts to hire employees from diverse
backgrounds and create an inclusive
environment where all individuals feel valued
and respected.
Gender Dynamics & Language
• Acknowledge the traditional gender roles in
Pakistan and the firm's efforts to ensure inclusivity
and equal opportunities for all employees.
• Highlight the importance of English proficiency for
effective communication, especially with foreign
clients, alongside Urdu
Work-Life Balance
• Recognize the significance of work-life
balance in contributing to employee
satisfaction and well-being.
• Mention the firm's provision of flexible work
arrangements, remote work opportunities,
and supportive policies for parental leave
and caregiving
11
8
Demand level:
Increasing business 01
complexity:
02
Regulatory
requirements:
It has turned hard for
companies to operate, which
means that they need the
provision of advanced
accounting services
Because tax compliance and
financial statement get
dictated by regulatory bodies,
then it is advisable to contact
the professional’s
03
Growth of SMEs
Small and medium enterprises
(SMEs) add a diversity element
to the market with every
working hour they put in and
eventually introduce the
account book department too
among their features.
09
Mid-sized firms
Competition:
• Local accounting offices which are already
very tightly knit and close to the local
community and have an established position
on the regional playing field
Big Four
Boutique firms:
The group also involved the other Big Four firms
operating in Pakistan: (EY, Deloitte, KPMG).
• The firms that are more or less similar size
and they are the ones that operate mostly in
one industry or service area.
10
Competitive Analysis:
Things that make them unique from other firms:
Industry specialization: Targeting at precaution selected
sectors of the Pakistani economy.
Focus on SMEs: Developing cost-saving kits which can be
customized to the needs of both large and small
corporations.
Digitalization: Use technology to deliver timesaving, paperfree accounting support if this is what clients ask for
011
Market Entry Strategy:
Franchising Model
• A.F. Ferguson & Co. adopted the franchising
model as their mode of entry into the
Pakistani market.
• This decision provided immediate access to
a pool of local talent and resources,
expediting operational setup and service
delivery
12
Market Entry Strategy:
Trend in the Industry:
• The company observed a trend among
accounting firms in Pakistan and the wider
industry towards partnership-based market
entries.
• This strategy is particularly effective for
startups venturing into foreign markets, as
it leverages synergies and minimizes
barriers to entry.
13
Regulatory Framework:
Role of SECP
Influence on
Operations
Impact on Audit Firms
• The regulatory framework in Pakistan is overseen
by the Securities and Exchange Commission of
Pakistan (SECP).
• SECP regulations aim to ensure transparency,
protect investors' interests, and maintain market
stability within the financial and corporate sectors.
• SECP regulations significantly influence the
operations of service firms, including A.F.
Ferguson & Co.
• These regulations serve as yardsticks and open
doors to new business prospects while
addressing various challenges.
• The regulatory situation in Pakistan
undergoes frequent changes, impacting audit
firms and the service industry.
• More frequent SECP audits result in higher
operating costs for audit companies.
• Increased examination depth and frequency
require additional financial and human
resources to be allocated.
14
4Ps:
Place
• A.F. Ferguson & Co., part of the PwC network,
offers a range of professional services tailored to
the needs of various customers in Pakistan.
• Strategically positioned in Karachi, Lahore, and
Islamabad, the company efficiently serves clients
across the country, demonstrating a customeroriented approach.
Pricing
• A.F. Ferguson & Co. adopts a value-based
pricing strategy, considering market dynamics,
client requirements, and economic conditions in
Pakistan.
• Challenges such as currency fluctuations
necessitate a re-evaluation of the pricing
strategy to maintain quality standards while
managing costs effectively.
Promotion
• Promotion activities are regulated by the Institute of
Chartered Accountants of Pakistan (ICAP), with
strict adherence to rules by A.F. Ferguson & Co.
• Word-of-mouth promotion is a key driver, facilitated
by satisfied clients who share their positive
experiences, reflecting the company's commitment
to trust and high-quality service delivery.
Product
• A.F. Ferguson & Co. offers a diverse range of
professional services including audit, tax
advisory, and business consultancy, catering to
businesses of all sizes and sectors.
• Services are delivered to the highest standards
of quality and professionalism, emphasizing the
company's commitment to excellence and client
satisfaction.
11
Financial Analysis:
• AF Ferguson & Co. specialize in providing both assurance
and non-assurance services to clients.
• It play a crucial role in ensuring transparency and accuracy
in financial reporting for companies like Oil and Gas
Development Company Limited (OGDCL).
• Assurance Revenue ( Revenue earned from doing auditing)
• Non Assurance Revenue ( Revenue earned from doing
activities other than auditing e.g accounting, bookkeeping,
tax and financial planning.
• They mentioned that “we are a service organization where
there is minimal investment and major cost is employee cost.
We don’t have any ROI and IRR.”
016
Revenue Breakdown:
Revenue
2020
PKR(Millions)
2021
2022
2023
2024
Forcasted
2025
2026
2027
Assurance (OGDCL)
Assurance (Others)
Non Assurance(OGDCL)
Non Assurance(Others)
7.73
8.54
19.19
11.67
1,434.02 1,502.06 2,273.93 3,222.37
11.04
25.78
19.9
13.44
2,578.59 2,847.55 3,520.41 4,240.65
17.40
19.65
21.89
24.14
3642.32 4256.02 4869.71 5483.40
17.87
18.00
18.13
18.27
4711.56 5277.46 5843.37 6409.27
Total
4031.38 4383.93 5833.43 7488.13
8389.155 9571.13 10753.11 11935.08
17
Total revenue
PKR 14 000,00
Next four years:
PKR 12 000,00
PKR 10 000,00
PKR 8 000,00
PKR 6 000,00
PKR 4 000,00
PKR 2 000,00
18
PKR 0,00
year
2020
2021
2022
2023
2024
2025
2026
Revenue Breakdown:
Assurance (Others)
Assurance (OGDCL)
PKR 6 000,00
PKR 30,00
PKR 5 000,00
PKR 25,00
PKR 4 000,00
PKR 20,00
PKR 3 000,00
PKR 15,00
PKR 2 000,00
PKR 10,00
PKR 1 000,00
PKR 5,00
PKR 0,00
PKR 0,00
2020
2021
2022
2023
2024
2025
2026
2027
2020
2021
2022
2023
2024
2025
2026
2027
19
Continued:
Non Assurance(Others)
Non Assurance(OGDCL)
PKR 7 000,00
PKR 30,00
PKR 6 000,00
PKR 25,00
PKR 5 000,00
PKR 20,00
PKR 4 000,00
PKR 15,00
PKR 3 000,00
PKR 10,00
PKR 2 000,00
PKR 5,00
PKR 1 000,00
PKR 0,00
PKR 0,00
2020
2021
2022
2023
2024
2025
2026
2027
2020
2021
2022
2023
2024
2025
2026
2027
20
Corporate Social
Responsibility:
A.F. Ferguson & Co, under the
umbrella of PwC Pakistan,
demonstrates a strong
commitment to Corporate Social
Responsibility (CSR).
Our CSR initiatives reflect our
dedication to sustainability,
community development, and
employee welfare.
021
CSR:
Solar System
Integration:
01
By adopting solar systems at
our office premises in
Islamabad and Karachi, we
showcase commitment to
environmental sustainability.
Palestine Relief
Fund:
Flood Relief
Activities:
02
Donation Drives:
These initiatives symbolize
societal responsibility and
commitment to creating
solidarity for community
development and welfare.
Involvement in flood relief
projects demonstrates our
dedication to supporting
communities during crises.
04
Involvement reaffirms belief in
addressing humanitarian
issues on both national and
global scales, promoting peace
and equality.
Use of Hybrid
Vehicles:
03
05 Support for Children 06
Education:
Hybrid technology reduces
emissions and fuel
consumption, aligning with our
commitment to sustainability
and efficiency.
commitment to harnessing the
power of future generations
through quality education.
022
Thank You
Presented by: Group 1