To split or not to split

: a business strategy case study on EY’s proposed break up under Project Everest

Abstract

The thesis develops and analyzes a Case Study on Ernst & Young's global leadership's proposition of splitting its audit and consulting divisions to seize new growth opportunities under Project Everest. The case's central issue concerns a well-performing firm reviewing its strategic and organizational dimensions to address uncertainty in external factors and unlock growth potential by separating its businesses. The primary consideration in the strategic decision is whether the benefits of separating businesses outweigh the risks of the separation and if sufficient managerial alignment can be created to execute the split. The analysis concludes various internal and external factors that make a separation feasible and exemplifies the changes in internal capabilities and competitive forces for separated businesses. It uncovers a highly competitive environment that exposes the firm to risks despite its stable historic performance. A Literature Review on topics related to the main issues raised by the Case Study, and a Teaching note offered to help instructors using the Case Study for in-class discussion show that in addition to competitive forces, managers' individual incentives are decisive in strategy development and bias their strategic evaluation.

Date of Award	1 Jul 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Nuno Magalhães Guedes (Supervisor)