Strategy & Analysis

For a successful operation of companies and state institutions, it is indispensable that executive decisions are made with due consideration of all significant circumstances and using historical data, forecasts and expert opinions. KPMG assists its private clients as well as those in the public sector with their executive decisions, providing help in managing strategic, regulatory, policy-related and market challenges.

KPMG’s global strategy methodology allows for the current strategic framework of companies to be broken down into their elements, followed by a structured analysis, and the successful redesign of their business activities. Our strategic support is provided with a unified approach and with the participation of KPMG’s experts in strategy, analysis, operations, client experience, organisational development, HR, IT, finance, risk management, industry, and if required, transaction or taxation experts. Strategic support can cover the following areas:

• Formation and revision of corporate strategy,
• Financial modelling (financial ambitions, financial plan),
• Business modelling (market position, competitive environment, value proposition, clients, sales channels),
• Operational modelling (business processes, infrastructure, IT, organisational structure, governance model, controls, human resources and culture),
• Measurement, feedback, incentives.

KPMG’s Government Strategic Requirements Framework (GSRF) provides an environment for the future-oriented planning of government policies, strategies and concepts in alignment with the requirements of the government sector. Key areas of strategic support:

• Situation analysis (analysis of specialist area, legal, policy-related and institutional environment, horizontal topics, SWOT),
• Goal-setting (vision and target status, strategic directions and alternatives, target hierarchy, system of indicators),
• Implementation (system of tools, regulation, financing),
• Back-testing (evaluation and monitoring).

During the vertical and horizontal integration of their activities and also when launching entirely new services, our clients often have the need to obtain a picture of the situation and the expected directions of development in a given sector. Our methodology and industry experts provide a picture of the current situation of given market sectors in the following areas in the required depth:

• Historical and current situation of the market, trends, forecasts,
• Demand analysis, price elasticity estimates, market segmentation,
• Market competition, competitor analysis, market participants, concentration, geographical coverage,
• Analysis of legal, technological, administrative environment, entry/exit barriers,
• Partner markets, supplementary products, trends in other geographical locations, regional models,
• Analysis of customers and suppliers (concentration, bargaining position, geographical distribution),
• Geographical analyses, spatial regression analyses (for example, for optimising the client’s geographical coverage or for geographical segmentation),
• Commodity markets (key factors impacting market movements, forecasts), price forecasts based on modelling.

Our experts facilitate the successful implementation of corporate investments, whether they involve the expansion or relocation of Hungarian companies, or the investments of foreign companies in Hungary. Our experts provide support in these fields among others:

• Selecting the investment location (based on macroeconomic, logistical, HR, infrastructure, educational, labour market, commercial, cultural, etc., aspects),
• Identifying one-off or periodical state and EU funding schemes,
• Funding granted by Individual Government Decisions (Hungarian abbreviation: EKD): preparation, arrangement and follow-up of funding application,
• Large Enterprise Investment Support Program (Hungarian abbreviation: NBT): preparation, handling and follow-up of funding application,
• Preparing special business plans to apply for funding,
• Advisory services relating to grant applications in the context of central European Union programmes.

With market regulation services, KPMG experts compile comprehensive analyses on the impact of EU and Hungarian regulation amendments on market participants, essentially based on the following objectives:

• Supporting political decision-makers and policies in effective legislation,
• Supporting market participants regarding market-oriented compliance with regulatory requirements.

An economic impact analysis means the complex examination of the economic impacts of a company, project or sector on the national and/or local economy. In harmony with the objectives of the engagement and the nature of the client’s activities, the analysis covers, among other things, the following areas:

• Key economic performance indices (for example gross added value, number of jobs, tax payment, trading, etc.),
• Indirect economic impacts (supplier value chain, local companies, economic multiplication),
• Environmental and social aspects related to economic activity.

We support our clients with preparing, planning, executing and evaluating European Union development fund programmes, legislative changes and reforms. Our clients include several Directorates-General of the European Commission (DG REGIO, DG REFORM, DG COMP, DG GROW), EU agencies (EISMEA), national ministries, authorities in Hungary and other Member States of the European Union.

Our services include:

• Programme assessment (preliminary, interim, ex post);
• Impact assessment (preliminary or ex post assessment of the impact of development programmes or other initiatives, even with counterfactual methods or in other model frameworks);
• Supporting programme execution (decision support, monitoring, risk management, quality assurance);
• Compilation of thematic analyses and studies to prepare for decisions (for instance in relation to SME support, innovation policy, rural development, taxation).