Strategic Management Plan for Deloitte: PESTLE Analysis, Competitive Environment, and Strategies

This report provides a strategic management plan for Deloitte, including a PESTLE analysis of the external environment, evaluation of the competitive environment using Porter's Five Forces, and strategies to achieve overall objectives. The report also includes a stakeholder mapping analysis and a SWOT analysis of the internal environment and capabilities of the organization.

Strategic management plan

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
1(a)PESTLE analysis on Deloitte and its strategies....................................................................3
2. Analysis and evaluation of the competitive environment......................................................6
3. Justification of organization existing competitive advantage.................................................7
4. Presenting the strategies and to achieve overall strategic objectives.....................................8
5 Presenting strategic planning of Delitto:................................................................................11
REFERENCES..............................................................................................................................14

INTRODUCTION
Business strategy is must for every organization to achieve its objectives and goal. It is
plan which is decided by the top management for the good perforce and more profit. Business
strategy is the integral part of an organization to find its way to achieve thrives. In this modern
era, most of the businesses are implementing different strategies in order to gain high
competitive advantage (Song, 2017) Thus, business strategy refers to the set of plan, action and
goals that helps an organization to operate effectively. The current report will shed a light upon
different theories and concepts used regarding businesses strategy.
The present report is based on UK based Deloitte Consultancy, it provides many services
such as Audit & Assurance, Risk advisory, Financial advisory and tax alerts. Further, the study
will identify the micro and macro factors that affect the business performance by using SWOT
and PESTLE analysis. Along with this, the study also analyse the internal environment and
capabilities of quoted firm. Moreover, the study will critically evaluate competitive environment
by using Porter five forces. Lastly, it will identify different types of strategic directions for the
chosen firm and then recommend the same for its future growth.
MAIN BODY
1(a)PESTLE analysis on Deloitte and its strategies
In order to determine the factors which are directly or indirectly affect the environment
with the help of PESTLE analysis. Such factors are:
Political Factors: This deals with the factors such as political stability, taxes, trade
policies etc. In current situation, if government increases taxes due to political instability the
prices of the quoted firm would be increased which will have negative impact on sales of the
services. Deloitte is affected by taxation and frequent changes in government policies that harm
business performance through environmental uncertainty. Also, company is influence by
corruption and bureaucracy which impact business environment unpredictably. Also, due to free
trade policy goods can be travelled easily from one place to another(Sahani, 2020). Deloitte
would face difficulty in importing foreign goods at cheaper prices at the store which will result in
higher services cost for the customers.

Economic Factors: Economic factors such as inflation rates, foreign exchange rates,
economic patterns etc. affects the business either positive or negative. Further, low inflation in
UK has proved to be positive for marks and Spencer as it has allowed to sell quality products to
its customers. Moreover, rise in the employment level in the country due to pandemic,
customers are ready to spend more which will help in increasing the sales of the product.
Combining these factors, it last greater and unavoidable impact on organization. Company is
affected by inflation, employment, interest and exchange rates. Increases in GDP indicates the
consumer have to pay more on offered services. High rate of unemployment indicates that the
Deloitte will pay comparatively lower wages to the labour.
Social Factors: Alteration in demographic patterns such as migration, ageing,
population, socio-economic and trends affects the Deloitte consulting group. Demographic
patterns impact through choosing right market segment with high growth potential and also
understand the attitude towards migration which can influence the ability of firm and bring
international managers to host the country. Income inequality and hierarchy affects the company
directly and also get the bad impact on it. Deloitte consultancy studied about the gender roles to
align its communication and marketing practices. Apart from these, company focuses on e-
commerce and social media for promoting their services.
Technological factors: With the present era of social media, the quoted firm should
focus on increasing its revenue through online purchasing as services are made easily available at
one click. Moreover, Deloitte currently aims in introducing the best technology and so it has
introduced a full self-checkout office to save time and labour costs. Such innovative ideas help
the firm to remain competitive in the market. Technology can help in savings huge costs needed
for promotion and selling(Quix, 2019). The rapid growth technology affects the entire company
during the strategic decision-making process. The change in technology need to invest more for
creating new products and services.
Legal Factors: This includes securities laws, employment laws, health and safety laws
etc. laid down by the government which every firm has to follow. Company conducted training
sessions on health related areas to remain updated every year with the current laws. Moreover,
legal disputes can create problems for the firms to operate smoothly therefore there must be
transparency in work and decision-making activities. This will further help in creating loyalty as

well as brand image among the customers. Besides this, ensuring the correct wage system is also
major responsibility as well as challenge for the firm.
Environmental Factors: Using sustainable methods is the major concern in today
economy as people now are more concerned in protecting the environment. The quoted firm is
adopting sustainability by limiting the carbon emissions, recycling the waste products, improving
energy efficiency through solar panels and much more. Also, it is investing in projects that
develops parks, gardens and play areas for children. Moreover, market share can be increased by
developing eco-friendly products that cause less harm to the environment. Therefore, organizing
and involving employees in the CSR activities helps in future growth and job satisfaction.
Stakeholder mapping analysis on Deloitte
This is the process of categorizing and identifying key stakeholders those are involved in
achieving a policy objectives of the organizations.
Keep satisfied
 Government
Manage closely
 Directors
 Contractors
Monitor
 Consultant
 Coordinator
Keep informed
 Customers
 Employees
 High power, highly interested people are Manage closely that are engaged directly with
organization such as Director HR, Sales team of Delloite etc. They help in decision-
making for company.
 Low power, less interested people are those people who are monitor and least important
for company like, Coordinator, consulting admin etc. Organization are not communicated
with them because they are less interested .
 Low power, highly interested people are keep informed people such as customer,
employees etc. Delloite adequately informed those people, so they can buy product and
services.

 High power, less interested people are (keep satisfied) such as government, they have
high power, but they are less interested in the organization. They put enough work on the
organization in order change in tax rates or make new policies.
2. Analysis and evaluation of the competitive environment.
Porter 5 force is a framework which includes business strategies that helps business to
analyse the competition in market. Deloitte can use this framework to expand their business
strategies in retail industry. Company can prospect the profit-making opportunities with help of
customer service. These five force includes:
Threats of new entrants (low): A Deloitte power is also affected by the force of new
entrants into its market. Competitive firms bring new ways and innovative ideas in company but
along with ideas they bring challenges for company like low price strategy and reduction in cost.
Organization has to make effective strategies to safeguard its competition(Haryanti, 2019). So
this make threat a weak force for fresher because production cost is high for fresher (research
and development). So government permission and all legal licensee is required to be full fill
before selling of services.
Competition in the Industry (High): Intense competition with existing competitors can lead
company to decrease the profit and slow down the price rate. If the competition is high, then
company will not be able to manage the feasible profit. Deloitte has to focus on innovation of
services and differentiate their services from the competitors. If the services of cited firm are
different from its competitor than action of competitors will have less effect. Average switching
cost also affects the company in regard to invested more on upgrading the products. Consultancy
firms are a growing company they should focus more on new customer as compare to their
existing customer.
Power of Suppliers (moderate): Every consultancy company purchase their raw materials
(software) form various distributors. If superior suppliers will reduce their margins by which
quoted firm can earn more profit(Christodoulou and Cullinane, 2019). In this field dominant
suppliers use their bargaining power to pull out high prices in-customer service sector. Higher
negotiation power of supplier can rise to price of the services. Organization can deal with more
suppliers as compare to buyer. This means that distributors have less control over the prices. The
distributor provides more standardized product and switching cost of product is also low. So it’s
easier for company to shift on other supplier.

Power of buyer (High): The bargaining power of customers is fluctuating, so they decided
to purchase services in low price and at best offer. They put a lot of pressure on profitability of
business in long run(.Aithal, 2017). Higher bargaining power of customer slow down the price
limit of organization and customer seeks for offer and discount. Company can attract large
number of customer if they focus more on innovation and standardized product & services. For
buyer quality of services is more important so it can focus more on developing brand loyalty.
Threats of substitute (low): Deloitte have to pursue new-innovative ideas to keep the
business and to maintain the brand position in the market to meet the new demands of consumer.
Nowadays software companies are large and also has close substitutes(What is bowman's
strategy clock, 2019). If rate of substitute is high, then organization has to invest more in
research and development.
By inspecting all the 5 force of porter, Deloitte can make maintain their strategies and opt for
profit gaining strategies. They can identify changing trends which can affect business and can
utilize new opportunity.
3. Justification of organization existing competitive advantage.
Deloitte is a company which collaborates with thousands of organization in terms of
consulting, financial advisory, provide audit and tax related services. Cited firm has gain
competitive advantage by providing variety of services at low value prices than the competitor
prices. If consumer purchases such goods at higher price because of the quality of the services,
the company will make the services accordingly. Also, during the sale, company will offer more
discounts and incentives to old stock to attract larger group of people. It has also gain
competitive advantage by adding more premium brands in its outlets as people now have more
options to 'shop under one roof'. Quality products at high price creates brand image and
maintains customer loyalty which may be not be found in market which offers cheaper products
at very low prices. Further, the competition can be across against the increase in consumer base
and due to technological factors the company have to adopted new people for advancement
andtrained other employees. Deloitte is a very much successful company as compared to other
services provider company in terms of profitability and market share. Actually it has a low level
of threats for new entry because it has its own customer base.

Moreover, the company aims to sustain and increase company value while taking into
consideration the overall growth rate of the market. The Porter five forces analysis the factors
which are affecting internally and externally the organization. In order to face the challenges, the
company will focus on performance and ethical practices.
4. Presenting the strategies and to achieve overall strategic objectives
The main objectives of Deloitte consultancy are to increasing the sales by 20% and
increasing the customer satisfaction by 10%. There are various strategies the company will
follow in order to meet the organizational goals. The cited firm used Pestle analysis in order to
observe the environmental factors which directly affect the company. Further, it will enter into
new market based on the external factors such as government taxation and level of competition
exists. Organization will require extensive research to successfully operate the business(Adhari,
2020). For substantial growth the company will increase and maintains the position in
competitive market. Moreover, The up-gradation in skills and knowledge will make delivery
service smooth and will lead to great quality available at company which will help it to gain
benefit from the market. The Company has only one aim to increase the sales of the company
and satisfy the consumer without compromising with the quality which they offer. The objective
of Deloitte is to deliver enhanced value to the customers with the innovative products and quality
service. Based on this objective, the substantive growth strategy can be useful in order to attract
the customers and to increase the business turnover. Currently organization is lying behind the
Accenture in UK and for that reason substantive growth strategy can be useful which will
enhance the scope of utilizing the resources in a better way by the added growth.
Presenting the internal environment and capabilities of organisation using appropriate
frameworks.
Swot analysis:
Strength: The company huge expertise in area of audit and Tax along with these they provide
services all over the world. The company have good global presence in approx 150 countries.
The organization keep their customer satisfied as they serve them good quality of services. The
firm has huge work force approx 240000 employees which help firm to reach their goals and
objectives. Deloittte have collaboration with various global events which helps the company in
increasing the visibility in the global market (Ahmed, 2021).

Weaknesses:The company have many competitors and because of that the firm have limited
market area. The huge weakness of the company is that they have many legal disputes and
because of that firm reputation has been effected. The organization has faced the cyber attack
and because of that employees trust was affected. Which is also considered as the weak point of
the firm.
Opportunities:The company has many experts in the audit and finance department which
overall improve financial services globally. The company have an opportunity to expand their
product and services in mid market which will help the company in providing their services to
large customer. The firm can also build an opportunity by acquiring the small firm which will
help the company in expanding their business globally.
Threat: The market share of the Deloitte is reducing due to high competition in the external and
internal environment of business. The consistency department of the company will get effected
if other competitors open their own knowledge centre. Many large company is gaining
monopoly in the market which can also be threat for company. The litigation and lawsuits can
be the threat to organization as it will affect the brand image of firm.
VRIO Analysis:
VRIO analysis is a tactical tool which is use to evaluate the overall resources and certain the
advantages and competition of company. The tool is used in evaluating the external and
internal resources of organizations. Thus, it help the company in developing stability in
competitiveness of market. The VRIO analysis the evaluation of company on basis of the firm
characteristics such as valuable, rare, inimitable and non-substitutable (Cardeal and Antonio, .,
2012).
Basis Valuable Rare Inimitable Organized
Competitive
disadvantages
No
Competitive party yes no
Temporary
competitive
advantages
yes yes no
Sustainable yes yes yes yes

competitive
advantages
Unused
competitive
advantages
yes yes yes no
Valuable : The Delitto make use of competitiveness value to explore the opportunity and
neutralize threat of external and internal environment . This allow a business to grow and
expand their business.
 Brand of image: The company has maintain the goodwill by engaging in social
responsibility function and make them transparent. They also inform employees about
the activities through official documents and by website so that they can actively
participate in them. Moreover, the CSR strategies will help the company to grow the
business and build the sustainability.
 The brand image of organization has unquie integrity it represent trust and honesty of
the company. The goodwill of firm has been developed over long time, through great
quality of product and services served to customer. Thus, it is great sources of the
competency to company as it cannot be copied by other competitors.
Rare:
 Rare competencies have helped company on building competitive advantages for the
Deloitte such as global presence which allowed company in expending consumer base
and generate profitability of the organization through various regions along with this it
has given the Delitto culture exposure and international brand recognition beside this it
has increased the financial stability.
 The innovative problem solving skills of Deliitto is rare competencies because it help
organization in maintaining the healthy relation within employees and management. The
innovation leads to higher competitiveness which benefits the company to remain in
market for long and short run. Thus, helps company in removing the threats and gaining
the advantages (VIRO Analysis, 2021).
Inimitable:

 The inimitable competencies is adding value to competitive advantages of company.
Such as firm offer quality product to the customer which help firm in attracting large
customer and increase in sale of their services. Along with this company offer their
services from multiple stores available locally and internationally which allow company
to cover the global market.
 The company also follow cost saving process which allow the company to maintain the
lower price of the product compare to other competitors. Further, for reducing the cost
the company also make use of technology which improve operational process of
organization which overall the help the firm in expanding the business.
Organization:
 The organization has as unique resources which has no substitute that allow company to
explore the opportunities and increase profitability of the business. Such as financial
strengths which support the company in finding the opportunities in introducing the new
product which allow the company in remaining in the market and fulfil the new trends of
the customer. Along with this financial stability allow the company to merge with small
or large companies which overall expand the business of the Delitto. It also manage the
large distribution channel of the organization which help the company in distributing the
quality services. This, it helps in satisfying the customer.
 The company also invest in research and development which enables them to know new
trends and preferences of customer. The research and development department make
product according to needs and demand of the customer which overall help company in
maintaining their brand image and build the strong relationship with the customers.
5 Presenting strategic planning of Delitto:.
Porter's generic strategies: This is tactic that help company in gaining profit and
increasing the sales through lowering the price of the product. Along with this it contributes
organization in grabbing the market shares through cut down market price process. This
strategy is divided into four part such as cost leadership, differentiation, cost focus and
differentiation focus (Islami and et.al., 2020).
1. The cost leadership strategy: this strategy helps in developing the competitive edge,
increase sales of company and improve brand image of the product. So, there are two
ways of achieving this strategy such as increasing the revenue either by reducing costs or

by charging average price set by company. Secondly, the company can increase market
share by reducing the price to make best use of cost leadership strategy.
2. Differentiation: it is a type of competitive strategy that allow company to make unique
product and services which distinguish the firm from the other competitors. It help
company in reducing rivalry with competitors if customer of company are loyal beside
of this the process allow organization usually to charge the high price of services.
3. Focus: This strategy allow the company to concentrate in market or the customer this
tactic either use the differentiation or cost leadership to attract the particular regional
market or the purchaser (Anwar and Shah., 2021).
RECOMMENDATIONS
It has been suggested for Deloitte to use differentiation strategy as it has many
advantages that may help the company develop unique opportunities within the industry. Such as
it allow company to compete in marketplace with low price. For instances, the organization can
can reduce their tax and audit services at lower price to customer and provide the innovative
consultancy to consumers. Although the competitor will provide the same services but it will not
be at the lower rate which will increase the demand of Deloitte. The strategy allow the company
in building the unique services which will attract customer in large thus, it will help firm in
achieving high profit margin. Moreover, this technique allow the organization to maintain
strong relationship with the customer as they are fulfilling the needs of buyer with new trendy
services. Beside this the company will not have any substitute of their services which will not
allow their customer to replace the company. Thus, this strategy allow firm to maintain the
brand authority and keep a hold in market with new development of services (Deshpande,
2021).
Strategic plan of the Deloitte:
Mission: The mission of company is to help their clients by providing the great quality of
services along with excelling the employees of the organization. So, to become the world leading
business advisory firm. The company also have great resources which helps the organization to
carry out the present and future mission.
Vision: Deloitte aspire to excel in quality of the services their providing compare to the
customer and talent.

Objectives: The first purpose of the company is to serve the customer with the good quality and
unique product so to make impact in the market. They second objective of the Deloitte is to
inspire their employees to deliver the fast service to the customer and maintain the healthy
relation with them. The company third purpose is to contribute in society for building trust with
community and upholding values of the organization. Lastly, the company object is to accept the
challenges operate from external and internal environment and solve them by making new
innovative ideas. Thus, reflect their unique abilities to the consumer (Conley and Shaker, 2021).
Tactics:
The manager will implement tactic by communicate main plans to the employee and
plan objective will be align with the values of the organization. The research and development
department will then research related to condition of market such as demands and preference of
customer. Along, with this the firm have to pay attention to the new trend going on in the market.
After the research manager will assign work to employees to make unique services that
differentiate from the competitors. Thus, the new service will be provided to the customer at the
lower prices for high sales.
Monitor and control:
Manager controls and monitor the task by ensuring that task is approved and authorized
within limits of time and budget so that company operates with less risk. In this operation the
manger will compare the actual performance of task with the planned goals of the decided
project. Thus, it will take corrective action to achieve the desired results of the company.
CONCLUSION
From the above report it has been concluded that with help of the macro environment any
business organization can evaluate their needs and can assist how these needs are important. The
organization like Delitto can serve unique services which help in overall development of
organization. Further more, the study also summarized about various strategies such as
PESTEL, SWOT, POTER FIVE FORCE and VIRO which allow company to develop new
tactic to enhance business. Moreover the report summarized strategic plan of company which
include the mission, vision and objectives of organization. Along with this study also suggest
the Porter Generic Strategy to increase the sale of the company. Thus, the report sums up that
by evaluating the external and internal environment and company can improve the profitability
as well as brand image of firm.

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