Deloitte: Strategies and Business Model

This report discusses the strategic implementation of Deloitte, a leading consulting firm. It explores the business model and strategies adopted by Deloitte, highlighting its successful implementation and ability to adapt to market changes.

Deloitte

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Executive summary
It is witnessed that many organizations make strategies to pursue their business and gain a
competitive market position but many of the planned strategies fail during the implementation
phase. The reason for this failure includes the factors like strategy translation failure, strategy
adaption failure and failure to preserve change over the long period of time. Strategic
implementation can help the organizations in overcoming the restrictions of the customary
authoritative methodology that serves to be the basis of these failures. In this context, this report
discusses the strategic implementation of the leading consulting firm named "Deloitte". The
business model and strategies adopted by Deloitte are presented in the main body of the report. It
is found that Deloitte has successfully implemented its strategies and is competent enough to
adopt any sort of changes that take place in the market. The business model adopted by this
company is a mass market type of business model.
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Contents
Executive summary.........................................................................................................................1
Summary of Deloitte Strategies.......................................................................................................3
Outline.............................................................................................................................................7
Recommendations..........................................................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13
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Introduction
The world is rapidly turning a global village because of corporate transformations taking place
all around. Companies are seen engaged in mergers, acquisitions and outsourcing activities in
routine. All such changes can only be tackled through strategic management. This requires a
balanced framework to make sure that all vital decisions pertaining to the future are taken
systematically and purposefully (Oskooee, 2017).
The strain of defining a successful strategy is very crucial and the most challenging task up
fronted by the managers or professional working in the companies. However, if the average
strategy is implemented very effectively then it has the tendency to beat average execution of an
extraordinary system each time (Genc, 2017).
The main objective of this report writing is to clearly express the Deloitte’s strategies and
business model. The report also aims to outline the different approaches pertinent to Deloitte
including operations, marketing, innovation, growth and products or services. Mainly the
strategic implementation and change are focused in this report.
Summary of Deloitte Strategies
Initially, this firm was established as an international accounting firm in 1845 with the name
Deloitte Touche Tohmatsu but slowly and gradually as it started growing; the firm was under
pressure to get separated from its parent accounting firms. For this, the company adopted a new
strategy and announced in 2003 that the company has dropped the idea of separating its
consulting system from the parent firm. Deloitte Consulting is currently completely converged
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over into its parent organization, which is presently referred to just as Deloitte. The organization
today contends with other expansive and average size consulting firms for the matter of
organizations that accomplish more than $500 million in deals. It is a very popular organization
to provide a one-stop solution to all their clients with executable strategies. It is considered as
one-stop solution because Deloitte provides multiple services such as consultancy, financial
advice, audit, tax, assurance and risk services and assist them with viable solutions. To name a
few popular known clients of Deloitte; the list includes Boeing, The Gap, Chevron Texaco etc.
Deloitte is a powerful organization that includes different types of services starting from research
until implementation. The employees of this company agree that this organization is balanced
and a wonderful place to work in, where talented employees are provided opportunities to rise
quickly (Goodman, 2019).
Differentiation and Positioning
Deloitte is one among the leading industry in consultancy solution provider and is competing
with many big giants and small size companies. The company holds the reputation of assisting
customers with quality services and commitment while providing them with general
management and IT consulting services. The biggest strengths of Deloitte include operations
consulting, strategic planning and its productivity. It is placed on the position among the top
three consulting firms across the globe along with IBM and Accenture. Then again, some
exploration firms have recorded Deloitte Consulting's income the most astounding among its
rivals; thereby ranking Deloitte at number six.
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Competitive advantage
One main reason why Deloitte stands beyond its rivals is that it provides its clients with a
progressively customized contract which takes into mind their short and long haul objectives just
as different elements. This company has employed skilled and trained professionals as
consultants who are competent to carry detailed research and analysis to upfront the strong
conversation with the clients. They can work together better and are increasingly receptive to
their requirements. This firm has the capacity to scale their business and information technology
consulting administrations to different suppliers who range over a few geological districts and
spaces. The company own stability as it has a solid balance sheet which is evident year after
year. Its consulting rehearses have outpaced the development of the counselling market for as far
back as five years, and I trust this acknowledgement is a demonstration of Deloitte's fruitful
execution of an expansive administration strategy conveyed through an engaged, collective
methodology.
Deloitte provides services in five different areas which are enterprise applications, human
capital, strategy and operations, outsourcing and technology with multiple lines further. Deloitte
has successfully integrated the process capacities and service lines into each administration
territory. The consultants of this firm function in three geographic areas with eight distinct
industry groups. At the time of new recruitment, the employee works at one regional office in a
specific geographic region. When the employee becomes familiar and used to with the company
environment and work strategies, he or she gets specialized in a particular service line and firm's
industry group.
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Deloitte has applied a Balanced Scorecard(BSC) strategy and has minimized the cost related to
the dissatisfaction and quit of their clients. This strategy helped the firm to spread the
information equally at all levels of the organizational hierarchy (Lawrie, et al., 2012). Different
business processes mix like accounting, learning, growth and customers were brought together
into a unified system which helped the firm to measure them in a reasonable structure got from
the vital destinations of an association. The performance of the firm in terms of financial and
non-financial aspects is measured through BSC (Kimaro, 2013).
Figure 1: Performance measurement process (Hempel, 2018)
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Outline
Business model
This firm has implemented a mass market type of business model, that too with no major
differentiation amid clients’ segments. The organization focuses on its contributions at firms that
look for consultation and advisory administrations (Štefan & Richard, 2014).
Proposed values
Deloitte is known to offer three main value propositions which are
 Accessibility
 Innovation
 Brand
Deloitte generates the first value that is accessibility by offering multiple options. A critical
component of its methodology is development through acquisition. This has empowered it to add
numerous capacities to its portfolio. Mainly the companies focus on innovation. For this, it
operates many innovation centres where programs are collectively designed to construct unique
and creative solutions in different industries.
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Deloitte's centres
The edge
Energy solutions
Financial services
Health Solutions
Regulatory strategies
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Figure 2: Innovation Centers of Deloitte
Deloitte has achieved great success due to which it built a strong brand image in the market. It is
considered as the second largest service provider in terms of revenue all over the globe. It has
employed more than 225,400 employees in more than 150 countries in different territories. 8o
per cent of its clients is among the Fortune 500 companies. Deloitte is honoured with the award
of "100 Best companies" by Fortune in 2016.
Channels
The main channels of Deloitte include the client relationships of its partners. The company is
very much active on social media and keeps on promoting its offers through media pages,
classes, workshops, preparation arrangement, webcasts, events like Olympics, sports campaigns
and through active involvement in conferences and forums. Deloitte is also indulged in
campaigns to increase its brand awareness. Recently the company arranged a brand campaign
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named “Deloitte Do” which made the people aware about the action-oriented company which
helps the leaders of companies in resolving issues by doing it not by just talking about it (Sproul,
2017).
Customer relationship
The consultants or employees working in Deloitte are dedicated persons with assistive nature.
Clients are provided one-on-one assistance and guidance through them. Well, it is also witnessed
that Deloitte also supports self-service element. The official website of the company has a link
by name Detroit University Press which incorporates self-help resources, for example, reports,
periodicals, researches, articles, graphs and case studies.
Main activities
The firm's business model involves planning and creating critical thinking administrations for
customers.
Partners
The business has alliances with more than 45 leading companies along with whom it develops
viable solutions and services for the welfare of the mutual clients. The list of partners includes:
 AT&T
 Cisco
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 Dell
 Hewlett-Packard Enterprise
 IBM
 NetSuite
 Salesforce
 Kira
 Informatica
Deloitte also operates IPP which stands for Innovation Partnership program in collaboration with
two other organizations. Through this platform, it gathers disruptive solutions from the mindset
of senior executives from Fortune 500 companies.
Cost structure
It follows a value-driven structure, expecting to give an exceptional proposition via huge
individual administration. Deloitte's greatest cost driver is the cost of services, which is a
variable cost. Other real drivers are in the territories of sales/advertising and R&D, both fixed
costs.
Income Streams
It has only one income stream that is the fees taken from its customers for the choice of service
made by them. This fees may vary according to the types of customer, service selected and the
individual project.
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Change
The practitioners of Deloitte are aware of the criticality of combining immense strategic change
wisdom with actual business strategy. The services of Deloitte comprise of an array of different
innovative tools and assets that are adopted the firm in order to meet the requirement of each and
every customer's unique situation(Ingenhoff & Fuhrer, 2010). Deloitte has the capability to
handle any sort of change that appears due to the internal or external changes. The organization
has change management system where both people and process are responsible to handle the
changes. The employees working in the firm are all time involved in the research activities and
they are encouraged to become good listeners to the problems mentioned by their clients. One of
the employees of Deloitte named Tanneasha Gordon shared her experience working in Deloitte.
She stated that while working in the company, she found herself always surrounded by technical
and learned professionals who were always ready to help her.
Recommendations
Being on the role of organizational consultant; I would recommend that Deloitte should also use
the disruptive type of marketing along with its existing marketing strategies such as social and
digital marketing. This might help the company in grabbing a major portion of the market share
and this may drive the company towards the topmost position among the consultancy solutions
(Rooney, 2015).
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Conclusion
Deloitte is the leading consultancy solution provider (consultancy, financial advice, audit, tax,
assurance and risk services) which has employed more than 225,400 employees in more than 150
countries in different territories. It holds an advantageous position among its competitors. It is a
competent firm which provides solutions starting from research until the final implementation.
The consultants hired by the company are highly professional and skilled which assist the
customers on the basis of the one-to-one approach. This firm has the capacity to scale their
business and information technology consulting administrations to different suppliers who range
over a few geological districts and spaces. The main strategy followed by Deloitte is that it
concentrates on developing key customer relationships. The value proposition of Deloitte
includes Accessibility, Innovation and branding. Innovation has become an integral part of the
company's culture. It has separate teams which work on innovation at different centres. For
measuring the performance of the company, it is utilizing balanced scorecard strategy. This has
resulted in putting all the important business processes in a uniform framework. The company
markets itself through social media platform, campaigns, seminars, workshops, events,
conferences etc. It believes in planning and designing problem-solving services for their clients.
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References
Genc, E. (2017) Strategy implementation, organizational culture and performance in turkish
local government.
Goodman, J. (2019) Deloitte Strategy: Future Confident. [Online]
Available at: https://www2.deloitte.com/ie/en/pages/strategy-operations/deloitte-strategy/topic/
deloitte-strategy.html
Hempel, S. (2018) Businessman drawing Performance Management Cycle schema.
Ingenhoff, D. & Fuhrer, T. (2010) Positioning and differentiation by using brand personality
attributes. Corporate Communications: An International Journal, 15(1), p. 83–101.
Kimaro, C. (2013) Application of balanced scorecard in strategy implementation at deloitte
&touche east africa.
Lawrie, G., Andersen, H. & Savič, N. (2012) Integrating Quality Management and Strategic
Control through 3rd Generation Balanced Scorecard.
Oskooee, H. (2017) Key Factors in Strategy Implementation.
Rooney, J. (2015) Branding: a trend for today and tomorrow. Journal of Product & Brand
Management, 4(4), pp. 48-55.
Sproul, D. (2017) Awards case study: How Deloitte differentiated its brand for the c-suite.
Štefan, S. & Richard, B. (2014) Analysis of Business Models. Journal of Competitiveness, 6(4),
pp. 19-40.
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