The Research Of The Local Accounting Firm’s Core Competencies In Shandong Province

Shandong province is one of the biggest economic provinces, especially the coastalcities has important advantages in economic development. There are various kinds ofaccounting firms in our province, and the accounting market is well developed. Thecompetition is more serious now, though there are many native accounting firms, theyare not good at the management. Different kinds of accounting firms have differentproblems, all of them need to improve their core competencies in order to be fit forthe new economic situation. The main purpose of this paper is combining the corecompetition theory with the accounting firms, finding out the advantages anddisadvantages of the native firms according to the investigation and research. In theend of this paper, there is an advice of how to improve the core competition of thenative accounting firms in Shandong province.Based on the theory of core competence, in combination with many domestic andforeign research results, the characteristics of the CPA profession, and the accountingfirm’s business characteristics, this paper analyzes the competitiveness of its coreelements and core competencies for accounting firms Definition. And then doresearch for local accounting firms in Shandong Province to investigate the corecompetitiveness, the main core competencies for accounting firms and investigate theelements. To obtain real data, and do research about accounting firms in ShandongProvince to evaluate the analysis of core competence, this paper finally find theShandong Province characteristics of local accounting firm and give the direction ofthe development of recommendations and improvements.Firstly, this paper describes the researched result of the core competencies theoryaccording to academy’s successes both domestic and abroad. Then summarize thetheory of accounting firm’s core competencies according to the acquired researchresult, get the definition and confine spectrum to make sure the factors of theaccounting firm’s core competition. This article defines the core competencies ofaccounting firms as resources and abilities which can bring value to customs andadvantages to firms compared to the rivals in the accounting and auditing market. Itincludes human resource, brand, auditing quality, industry expertise and others. Nextthis paper discusses how to measure the accounting firm’s core competition andinstitutes the rules. At the end of the paper is the research of the local accounting firmsin Shandong province depending on questionnaires, interviews, internet and so on.Then it concludes the current situation of local accounting firm’s core competition inShandong province, and gives the advices of how to improve.The research brings lots of data of the real situation of local accounting firms inShandong province. It is very useful to combines the real data with core competitiontheory to find the core competition. According to the research, we can find the core competition factors and abilities of local accounting firms in Shandong province, andalso we can discover the disadvantages of them. Due to the analysis we can giveadvices of how to improve human resource, brand, auditing quality, industry expertiseand others. Through comparing to the international accounting firms, we can find thedisadvantages of local firms, the local accounting firms’ can enhance the competitivestrength. The advices and the way to improve can make the local firms stand steady inthe highly competitive auditing market.The improvement in this paper can increase the variety of proposals to enhance thelocal accounting services and the overall level of competitiveness of local accountingfirms in Shandong province. They should keep on improving and system change. Asthe environment in Shandong province opening to the outside world day by day, thelocal accounting firms should change the way of management and strain capacity tobe suitable to the changeable environment. And then they can gain the advantages tostand in the big market.Innovation of this paper has the following two aspects: First, by studying the theory ofcore competence and core competence of the local accounting firms in Shandongprovince, it can define the scope of the concept that the accounting firms’ corecompetencies related with fields of accounting and auditing industry market, createvalue for customers which related to its competitors. Then it brings a lot ofcompetitive advantages in resources and capabilities. The elements are humanresources, brand, auditing quality, industry expertise and others. Second, this paperfinds the strategy management of the enterprise’s core competitiveness of localaccounting firms in Shandong province. In order to obtain a large amount of real dataof the local accounting firms in Shandong province, this paper concludes the corecompetitiveness of the combination through theoretical analysis. This has practicalvalue. In Shandong Province, through the core competitiveness of the localaccounting firm analysis, this paper finds the competitive advantage of its resourcesand capacity factors, its own deficiencies and the gaps with the international, suggestimprovements and recommendations, making the local accounting firms in ShandongProvince stand steady in the fierce market competition.