Internal and External Environment Analysis of Deloitte

Business Environment
BAM 4009
Assessment 2
Individual Report

Table of Contents
Business Environment.....................................................................................................................1
Introduction .....................................................................................................................................3
Internal environment analysis of Deloitte...................................................................................4
External environment analysis of Deloitte..................................................................................6
Risk assessment with the identification of risks and action plan showing how these risks can
be managed in context to Deloitte.............................................................................................8
Action plan to mitigate the risk...................................................................................................9
Conclusion ....................................................................................................................................11
REFERENCES..............................................................................................................................13

Introduction
Business environment is the sum total of all internal and external factors such as
employees, customer desires, demand and supply, innovation in technology, government policies
and others which influence the operations of an organization. For this report Deloitte is the
chosen organization. It is an international professional services network headquartered in
London, UK founded by William Welch Deloitte in 1845. It provides management consulting,
risk advisory, financial advisory and other services worldwide. It serves in more than 100
locations including Honk Kong, China and India and its target market is urban businesses and
corporate organizations. In this report, SWOT and PESTLE analysis of Deloitte is covered and a
risk assessment is taken to identify how the company manages its risks through risk management
process and tools.
Internal environment analysis of Deloitte
SWOT analysis and VRIO analysis of Deloitte has been covered in this part. SWOT is
the analysis of company's strength, weakness, opportunity and threats. SWOT analysis enables
the company to standardize its business and performance in contrast to its competitors. VRIO is
the analysis that helps the company to identify the resources and advantages. It stands for value,
rarity, inimitable and organization.
SWOT analysis for Deloitte is below:
 Strength: It represents at what the company is well and unique than its competitors.
Deloitte has been a popular reach to its clients as it has business-led and IT enabled. It
has been providing various kinds of services worldwide and expert in audit having over
1,90,000 employees. It is among the Big Four professional services organization which is
the greatest strength of the company(Teoli, Sanvictores and An, 2019).
 Weakness: It shows the deficiencies of the company compared to its competitors which
could be improved by the firm. Deloitte has less market share growth as there is very
tough competition in the market. There are various legal issues and work related
conflicts that has spoilt the reputation of Deloitte brands. It ached by an E-mail hack
which broke the trust of its clients.
 Opportunity: It represents what another options are available for the company in the
market and what advantages could the company could take. Deloitte can help in global

financial services as it is expert in finance and audit. As it serves various products or
services and has many customers, it could proceed in to mid-market businesses. It could
acquire small firms to expand its business.
 Threats: It shows the weaknesses which could expose the company either if the
company is not performing well or its competitors are doing much better. There are
strong competitors of Deloitte in market which reducing the market share of the company
and the fluctuation in the currency is influencing the internal projects of the company.
There are some new start ups in the market which may be a threat for the company and
many firms are establishing their own knowledge centres that can reduce the business of
consulting firms.
VRIO analysis of Deloitte is below:
Resources Value Rare Inimitable Organized
Financial
resources
Yes Yes No Yes
Local food Yes No Yes Yes
Employees Yes Yes Yes Yes
Distribution
network
Yes Yes No Yes
 Value: The financial resources of the Deloitte are used to invest at right places
strategically. This will help the company into external opportunities. Local food in the
company is highly differentiated. The employees of the company are well trained and are
more productive for the organization and the distribution channel allows the company to
approach more customer. Hence, these all are highly valuable for the company.
 Rare: Deloitte posses the strong financial resources. The employees of the firm are well
trained and are highly skilled than the employees in other field and the distribution
channel of the company is better than other companies. Hence, these are rare for the
company. But, the local food is not rare as it can be easily provided by the other
competitors in the market.
 Imitable: Local food can be easily imitate as it can be acquired by competitors and it is
also temporary in competitive advantage. Employees can also be easily imitate as other