Challenges Faced by Deloitte: A Strategic Management Analysis

Running head: STRATEGIC MANAGEMENT
Strategic management
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Executive summary
The aim of this report is to discuss about the challenges being faced by Deloitte in their global
business operations. In doing so, PESTLE analysis is being done and the major factors are
identified. It is also evaluated that resource based view will be the most ideal and suitable choice
of strategic management tool for Deloitte. This report recommended that Deloitte should follow
differentiation as their business strategy. The major advantages to be gained from the initiation
of the differentiation strategy are being discussed in this report. It is also recommended that they
should follow coaching and directing style of leadership for the employee management.

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Table of Contents
Introduction......................................................................................................................................3
Identification of the strategic management theory..........................................................................3
Justification for the choice...........................................................................................................5
PESTLE analysis.............................................................................................................................6
Political factors............................................................................................................................6
Economical factors......................................................................................................................7
Social factors...............................................................................................................................8
Technological factors...................................................................................................................8
Environmental factors..................................................................................................................9
Legal factors..............................................................................................................................10
Determination of the business strategy..........................................................................................10
Determination of the leadership styles..........................................................................................12
Existing leadership styles in Deloitte........................................................................................13
Implementation plan......................................................................................................................14
Recommendations..........................................................................................................................15
Conclusion.....................................................................................................................................15
Reference.......................................................................................................................................17

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Introduction
Strategic management process of the business entities will be effective only when it will
be well aligned with the expectations of the stakeholders and organizational performance. This is
due to the reason that the more will be the alignment between the different internal and external
elements, the more will be the effectiveness of the entire strategic management process. This
should also be noted that different business entities are having different external and internal
factors to consider and thus the strategic management approach should also be designed
accordingly (Hill, Jones and Schilling 2014). On the basis of the selected approach of the
strategic management, the other factors such as business strategy and leadership roles should be
designed. This will only ensure the long term viability of the management process
Deloitte is one of the leading consulting firms in the world and is having majority of the
Fortune 500 companies as their clients. However, with the emergence of other consulting firms
across the world, Deloitte is facing the challenge like never before. Hence, in this case, they are
having the need for effective strategic management process to deal off with the competitive
challenges. This report will discuss about the relationships between the stakeholder expectations,
organizational strategy and performance and will select the most effective one for Deloitte. In
addition, the pestle analysis will also be done in order to have the understanding of the impacts
of the external factors on the strategic management process along with the recommendations of
the most effective leadership style and business strategy for Deloitte. Implementation plan will
also be discussed to have the proper understanding about how to implement the process.
Identification of the strategic management theory

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The selected strategic management theory should have proper alignment with the
organizational performance and stakeholder expectations. This is due to the reason that the
selected theory should meet the expectations of the involved stakeholders as well as enhance the
performance of the organizations. According to Lin and Wu (2014), the business strategy and the
expectations of the stakeholders should be related because fulfillment of the expectations of the
stakeholders is the ultimate objective of initiating the business strategy. In addition, it is also
being stated by the authors that the initiated business strategy should also be beneficial in
enhancing the organizational performance. In this case, it is concluded that resource based view
method of the strategic management will be the most effective choice. This is due to the reason,
each of the internal and external factors is being considered in this theory. As per Wiengarten et
al. (2013), resource based view considers the internal stakeholders such as the employees as the
source of gaining competitive advantages and also as an intangible resource. According to the
resource based view, skills and expertise of the employees are considered as the resources based
on which the business entities can gain competitive advantages in the long term.
On the other hand, it is stated by Kull, Mena and Korschun (2016) that resource based
view also considers the different sources by which the entity can gain competitive advantages.
This refers to the fact that organizational performance can also be enhanced with the help of the
resource based view theory of strategic management. It is further identified that with the help of
the resource based view theory, the extent to which the organizational resources can put value for
the external stakeholders is considered as the competitive advantages. Thus, it can be concluded
that both the internal and external stakeholders along with their expectations are being
considered in this theory. Coleman, Cotei and Farhat (2013) have given the example of a new
firm where they stated that meeting of the expectations of the stakeholders by the strategy will