Strategic Management - Strategy Evaluation for Deloitte

This report evaluates the strategic management of Deloitte through critical evaluation of clear motive, vision, objective, mission, VRIO analysis, PESTLE analysis, Porter's five forces model, and more. It provides insights into the external environment of the company and its competitive advantage. The report is a valuable resource for students studying strategic management.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Critical evaluation of value of clear motive, vision, objective as well as mission in setting out
strategic direction of company....................................................................................................1
Assessment of competitive advantage which could be evaluated by implementing four
attributes by using VRIO analysis...............................................................................................3
PESTLE analysis for analysing external environment of company...........................................4
Appraisal of attractiveness by using porter's five forces model for company............................6
Review of chosen strategy..........................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic management is defined as method of setting up goals, methods as well as ways
for making up companies more effective (Zorlu and Ezin, 2021). It basically comes under a field
of management that could consists of formulation as well as implementation of main objectives
as well as initiatives which are taken by company's manager on behalf of stakeholders that are
related to considerations of resources. It is assessment of internal and external surroundings
where companies are operating. This report is based on strategic management of a consultancy
company Deloitte which is a multinational professional services networks with offices in over
150 countries and territories around global world (Valentin, 2021). This report consists of
analysis of value of clear objective, vision, mission as well as purpose of company. It consists of
competitive advantage by VRIO analysis and external analysis by PESTLE evaluation, appraisal
of attractiveness through porter's five forces analysis, review and analysis of chosen strategy
followed by its conclusion.
MAIN BODY
Critical evaluation of value of clear motive, vision, objective as well as mission in setting
out strategic direction of company.
In order to evaluate various for having effectiveness it is necessary for companies to
evaluate their purpose, objective, vision and mission and according to that formulate strategies so
that companies could be able to sustain in markets for longer terms. These elements helps
companies in providing strategic direction of company (Kumar and Duggirala, 2021). In relation
to Deloitte value of clear motive, vision, mission as well as objectives are explained as follows: Purpose: It is necessary for companies to identify its purpose so that it could help in
carrying out business practices effectively with its clear goals. In accordance with
Deloitte, company is carrying out purpose of making an impact which could matters. This
purpose of company inspires company professionals and helps them in accomplishing
their global strategy by being undisputed leader in providing professional services
towards customers. Vision: It helps in carrying out business practices with an idea that could identify
objective and purpose of companies in an effective way (Rastgar, Alikarami and Jabari,
2021). In accordance with Deloitte company's vision as well as strategy as developed in
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collaboration through leadership as well as staff members from around global world
which could focus on working together across functional as well as national business
borders for delivering excellence in all services that are provided by working members.
Their vision is unchanging and it keeps on aspiring a standard of excellence as a first
choice of their customers as well as talent. Values: Deloitte is carrying up shared values that are timeless and it could describe their
core principles which could differentiate their culture. Company's values carries on
integrity that believes that nothing is essential than their goodwill along with behaving
with higher levels of integrity which is fundamental towards who they are. They are
carrying up values of outstanding values to markets as well as their customers by playing
a critical role with more effectiveness (Barno, 2021). They are considering different
values which could help their capital markets for operating well. Mission: This element of company helps them identify where customers wants to
achieve. It helps in providing an accurate strategy direction so that their vision could be
accomplished in a well manner. In relation to Deloitte, company is carrying out mission
of helping their customers and their customer excel. They believes in having the one of
most of world's most leading business advisory company (Aazami and Ahmadi, 2021).
This mission of company shows that their customers are considered to be priority as well
as they are transforming their business strategy together with redirection of their growth
path in order to achieve their primary objective. Mission statement of company includes
enhancing quality, transforming company as well as helps in building wider reach.
 Objective: Another element that could help in serving customers with effective services.
Objective relates in providing effective performance. In relation to Deloitte company is
having major objective of providing effective services. They are carrying up impact of
providing undisputed leader in their professional service so that they could be able to
provide satisfaction towards customers.
It has evaluated that these elements of Deloitte helps in providing clear direction in terms
of formulation of strategies. As when purpose and objectives of company is clear they could be
able to achieve their aims within specified period of time.
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Assessment of competitive advantage which could be evaluated by implementing four
attributes by using VRIO analysis.
It is necessary to examine competitive advantage which are designed to deal with present
competition in markets for making out profit margins in higher number. In order to evaluate
competitive advantage it is necessary perform VRIO analysis that could help in evaluating core
competency of companies (Obel and Gurkov, 2021). In accordance with Deloitte, VRIO
framework is used which is a strategic analysis technique which is formulated to help companies
for uncovering as well as protecting resources and potentialities which could provide them long
term competitive advantage. VRIO analysis of company is explained as follows:
Valuable Rare Immitable Organized
Competitive
disadvantage
No No No No
Competitive parity Yes No No No
Temporary competitive
advantage
Yes Yes No No
Unused competitive
advantage
Yes Yes Yes No
Sustainable competitive
advantage
Yes Yes Yes Yes
 Valuable: Competencies which are valuable could help Deloitte in exploiting
opportunities that are present as well as in neutralising threats from internal as well as
external surroundings. These competencies generally allows business to grow, develop as
well as expand further activities. Rare: This element of VRIO framework shows that competencies which are rare in
nature are possessed as well as developed by only a handful of companies in this sector
along with it could help in building competitive advantage for Deloitte. As company is
having global presence by operating in different countries (Erceg, Kovačević and Krunić,
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2021). Along with they are keeping their focus on having problem solving skills for
developing their goals. Immitable: These competencies could help in adding value to competitive advantage as
well as long term sustainability for Deloitte. As company is providing quality product
offering by having different locations of their stores along with having marketing
communication in a strategical manner.
 Organised: These resources are uniquely developed by company and they cannot be
competing players in consultancy sector. Deloitte is carrying financial strength in
addition to its brand strength. Along with there is technological integration and
advancement at workplace which is an essential resource for developing competitive
advantage (Greer, 2021). Deloitte is having development of management that is
depending on company's execution measure as well as team. Hence, it polishes
capabilities of company by time based fir development of its strategic capitals.
By carrying out this analysis it has been evaluated that Deloitte is carrying capability to
exploit their resources for analysing their purposes of growth as well as competitiveness. Deloitte
is closely linked to non substitutability that is present in their working practices along with they
are providing an edge over other distinct competitive players. As company's competitive strategy
is based on over other players in distinct market for dealing with competition.
PESTLE analysis for analysing external environment of company.
In order to evaluate business strategy for companies it is necessary for companies to
analyse external environment so strategies could be formulated and evaluated according to
market demands. In order to external environment factor of companies PESTLE analysis is
performed that states different outer which could affect business practices. In accordance with
Deloitte, PESTLE analysis for examining external environment of company are as follows: Political factors: Some of political factors states that Deloitte could face impact on its
profitability as well as chances of survival in markets. Company is having European
markets after Brexit that are impacting its sales revenues (Collins, 2021). There is also
trump administration policies that are affecting its business practices. Deloitte is having
political stability which country is receiving in recent present years. Along with there is
integrity of politicians and their likelihood which are taking part in acts of corruption that
could be faced by companies.
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 Economic factors: With economic factor it has examined that there is base erosion as
well as profit shifting project which could affect their business practices. There are some
economic factors that are affecting business practices of Deloitte are could be of
fluctuations in global real gross domestic product along with currency fluctuations
(Etemadian and Parhizgar, 2021). Currently Deloitte could face economic issue of
operational working in their sector where monopoly is being carried. Exchange rate of
country where Deloitte is operating in could affect its profitability margins. There is
stability of currency is essential with different fluctuations that could discourages its
working. Social factors: This factor could lead in changing of preferences of Millennials. It
basically reflects on society where they are operating in, that could encompasses culture,
belief, attitude as well as values that states that majority of population could hold as a
type of community. There are different demographics of population that are affecting
working practices of Deloitte. These factor could affect working practices of company
that could directly create an impact on brand image of company in market place. So for
that company requires to be keep themselves aware about societal trends for
accomplishing their goals. Technological factors: As technology is quickly dismantle their price structure as well as
competitive advantage that are constantly creating an impact on company. As Deloitte is
facing technological challenge. It has identified that social media involvement along with
there is block chain along with advanced payment technologies that is faced by company
and it could affect their working practices. There is digital disruption that could be face
by Deloitte. Another technological impact that could impact its business practices is that
it requires large amount of cost which are being used by company that could affect their
budgets in higher amount. Legal factors: As government basically issues rules and frameworks according to
different law that are to be followed by company on regular basis. As by abiding these
laws and regulations it could lead Deloitte in legal disputes and creates problems for
them. There is Espionage practices which is carried by Deloitte along with they facing
case issues of DMX Taylor, Bean and Whitaker and Carillion case (Freund, Al-Majeed,
and Millard, 2021). There is diversification acquiring digital marketing as well as
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analytics. There is also intellectual property laws as well as other data protection laws
that are affecting their business practices of Deloitte in higher terms.
 Environmental factors: There are various sectors that are indulged in holding on
different environment standards for keeping protection of surroundings as well while
carrying their business practices. As Deloitte is having a breakthrough for their
sustainability in its commercial real estate working. Along with present weather situation
could significantly impact ability of managing transportation of their products as well as
resources. These factors could affect working practices of Deloitte by changing on
environment conditions on regular basis.
Appraisal of attractiveness by using porter's five forces model for company.
It is essential for company to attract customers so that they could be able to generate
revenues in higher numbers. As in order to attract customers it is necessary to determine
competition that is present in markets. For analysing competition porter five force model could
be carried. In accordance with Deloitte, Porter's five model of company are as follows: Threat of new entrants: This aspect of Deloitte states that economies of scale is highly
crucial for accomplishing their goals where they are operating in. along with access to
distribution networks makes its easy for new entrants inn order to set up their new
distribution channel as well as coming into business. With only retail outlets it could sell
their products on easy basis. So in that case it becomes easy for any new entrants for
getting its products on their shelves. For this Deloitte could take an advantage of
economies of scale with in their sector by fighting of new entrants with their cost
advantage. Along with company could take up a focus on having innovation in order
differentiate their products from their new entrants. Bargaining power of suppliers: This aspect of five forces could create an impact on
Deloitte that number of suppliers that have a less control over their prices and it could be
compared to other individuals which have a less control over their costs that could make
bargaining power of their suppliers a weak force (Kravchenko, 2021). In Deloitte their
suppliers do not give a credible threat for having a forward integration into consultancy
sector where they are operating in. For dealing with that situation company could
purchase their raw material from their suppliers at a lower costs. If their cost are not
suitable they could switch its suppliers due to switching their cost that are low.
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 Bargaining power of purchasers: As bargaining power of buyers basically defines to
aspect that relates in purchasing potential of buyers. It has identified that the number of
buyer where Deloitte is carrying its business practice could be of lot more than number of
company of producing of products. This indicates that purchasers has new companies to
choose their offerings. It could make their bargaining potential of customer a weak force
in consultancy sector. In order to deal with situation Deloitte could focus on innovation
as well as differentiation for attracting more amount of customers. There is product
differentiation along with quality of their products which are essential in consultancy
sector. As Deloitte could attract more customers by focusing on these strategies. Threats of substitutes: This aspect of porter five forces model states in determining
threats of companies that are providing substitute products. In relation to Deloitte
company is having very less amount of substitute company present for products as well
as services that are produced in consultancy sector where Deloitte is operating
(Rosenbaum-Elliott, 2021). There are very less number of substitute and they are also
manufactured by having low profit earning sectors. For handling that Deloitte could
focus on giving out a wide quality at a lower cost as compared to other substitute
products which could provide wide quality but at a higher price.
 Rivalry among present companies: This aspect of porter's five force model states that
there is rivalry which is present in consultancy sector. It identifies that Deloitte is having
low competition in consultancy sector where it is operating in. it indicates that
consultancy sector could not move without being unnoticed and as a result it could make
rivalry and competition among present company a weak force. There is very less
competition which is present in that sector with a weak force. As company is having less
competitor that they are carrying large market share which could make their rivalry
among present company a strong force in consultancy sector.
As by carrying out this analysis it has been evaluated that for attracting higher amount of
customers Deloitte could use product development and differentiation strategy where they could
make innovation in their services on constant basis. Along with they could focus on
differentiating their products so that actions of competitors could create a less impact on their
customers which could seek their unique products.
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Review of chosen strategy
It is necessary for companies to review their selected strategy that could help them in
formulating their objectives and goals so that companies could be able to sustain in markets for
longer terms. In accordance with Deloitte company could implement product development and
differentiation strategy in their business practices so that they could be able to accomplish higher
profit margins by sustaining in markets for longer term. This strategy could focus of making
generating new customers rather than winning satisfaction from present customers. For
implementing product development and differentiation strategy company could focus on carrying
out market research for understanding supply demand conditions with in consultancy sector. As
could create competitive advantage by attracting appraisals towards customers of company
which could helps in generating more customers for earning higher profit margins.
Along with there is also some of implications by using these strategies that could be
faced by Deloitte is that strategic planners could be able to understand how variants aspects
could carry under different aspects along with it could affect its profitability of consultancy
sector (Argyres and Zenger, 2021). As a stronger force could lower down profitability level as
well as weaker force could create higher profitability. And from that it could be evaluated that
consultancy profitability could be made as well as used for having strategic planning. By
reviewing strategy it is beneficial more for company to identify present trends as well as
according to that make relevant strategies so that could able to achieve profits and sustain in
markets for longer term by fulfilling requirement of their customers as well.
CONCLUSION
It has been concluded from above discussion that strategic management is said to an
essential element for companies in order to accomplish its objectives in an effective manner. In
order to accomplish objectives it is necessary for companies to formulate strategies. This report
clearly explains about purpose and objective of Deloitte with its mission statement. It also
identifies about competitive advantage for sustaining in markets by taking use of different
frameworks. There is also brief explanation of external analysis by taking up implementation of
PESTLE and Porter's five forces model. By evaluating this Deloitte could be able to formulate
strategies and goals could be achieved in an effective manner. At last it explains review of
chosen strategy for company so business practices could be carried better.
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