Strategic Management - Strategy Evaluation

This report evaluates the strategic management and strategy evaluation of Deloitte, a multinational professional service provider network company. It includes a critical assessment of the methods and tools used by the company to determine their strategy, application of these tools to the company, and the relevance of change management. The report also includes a PESTLE analysis, Porter's five forces model, and VRIO framework.

Strategic Management -
Strategy Evaluation

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Critical assessment of method of process that are used by company for determine their
strategy........................................................................................................................................1
Evaluation of critical models as well as tools that are implemented by company for identifying
their strategy................................................................................................................................3
Application of tools to real company..........................................................................................3
Critical appraisal of relevance of change management which is based on complexity of
transformation method, its costs, risk as well as sustainability...................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic management is referred to be a process of planning objectives, measures and
manners for making company's performance highly effective. It generally comes under a field of
management which involves formulation and usage of major goals along with initiatives that are
taken by manager of company on behalf of stakeholders for assessing considerations of resources
(Widjaja, 2021). It is generally termed to be an analysis of external and internal surroundings
where companies are operating their business practices. This report is based on strategic
management and strategy evaluation of a consultancy company Deloitte which is a multinational
professional service provider network company with its offices in across 150 countries and
territories in global world (O'Shannassy, 2021). It involves critical assessment of ways which
are implemented in company and evaluation of different models that are used for determining
company's strategy. It also consists of application of tools and models with critical appraisal of
importance of change management which is based on complexity of transformation method
followed by its conclusion.
MAIN BODY
Critical assessment of method of process that are used by company for determine their
strategy.
In order to have a critical assessment of various methods for having effectiveness in
company it is essential for companies to analyse their motive, vision, mission, goals. So that they
could formulate according to goals in order to sustain in markets for longer time. These
components helps companies to provide effective strategic direction for well running of their
business. In accordance with Deloitte, relevance of having clear purpose, vision, mission and
objectives that could help in determining strategy are as follows: Purpose: It is essential for companies to determine their purpose so that it could help
them in performing their business activities. In accordance with Deloitte, company is
carrying their purpose of creating an impact that could matters towards their customers.
As purpose of Deloitte is to inspire company professionals and helping them in achieving
their goals by giving professional services to their customers (Ginanneschi, 2021). Mission: This component of company basically helps in determining goal that they want
to accomplish. It generally helps in giving a correct strategy guidance so that their
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planned vision could be achieved in an accurate way. In accordance with Deloitte,
company is performing their mission of providing help to their customer and customer
excel. It indicates that the company's customers are said to be its priority. Along with it
designs their strategy with a re guidance of their growth for accomplishing their primary
goal. It consists of improving quality, creating wide reach as well as transforming
company. Vision: It basically helps in performing business activities with an idea which could
determine their goals and motive of companies in an effective manner. In relation to
Deloitte vision as well as strategy of company is to develop with collaboration with
leadership and staff members from global world by focussing on working together with
functional and national business limit for delivering excellence in their all services which
are given by working individuals. As their vision keeps on aspiring standard of
excellence as their first choice of their customers. Objective: This component deals in serving customers with their effective services
(Arteaga, 2021). Goals helps in providing effective performance of company. In
accordance with Deloitte company is carrying major goal of providing effective customer
services. They are performing their business practices in providing professional service
so that company could be capable to provide satisfaction to their customers.
 Values: Deloitte is carrying their shared values which are timeless and core principles
that could be able to differentiate with their culture. Company's values carries on integrity
which could believe that nothing is important than their goodwill. They believes in
behaving with their higher levels of integrity which is fundamental towards who they are.
They are carrying values of providing outstanding value to markets and customers by
playing a critical function with more efficiency. They are taking various values that could
help their capital markets for carrying business practices effective.
It has been critically assessed that these component of Deloitte helps in giving out
effective strategic guidance in identifying their strategy in order to design them. When motive as
well as goals of company will be clear it will be beneficial for company to accomplish their aims
in particular period of time scale (Al-Hawary and Al-Rasheedy, 2021). As without analysing
goals, mission and vision it will be difficult for company to formulate their strategy in a well
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manner. These core components helps in providing direction for designing strategy that could
achieve desired goals.
Evaluation of critical models as well as tools that are implemented by company for
identifying their strategy.
It has been evaluated that there are some of critical models and tools that are used by
company for determining their strategy that could help in accomplishing desired plans. It has
been identified that for evaluating business strategy it is important for Deloitte to evaluate
external surroundings so that strategies could be designed and evaluated according to market
demands. For determining external surroundings aspects for Deloitte PESTLE analysis could be
carried which could be evaluated for analysing various external factors that affect their business
practices. There are different outside factors that could affect business practices. So in order to
deal with outer factor that could relate in change in economic, technological and other aspects
certain strategies could be formulated for maintaining relevancy of company. When external
surroundings are analysed it could help in formulating effective strategies that could meet
requirements of markets.
It is also important for company to attract customers so that they could be capable to
generate revenues in higher amounts (Abdallah, Hamdan and Shabib, 2021). In order to attract
higher number of customers, it is essential to identify competition which is available in markets.
By analysing present competition it could be beneficial for Deloitte to formulate effective
strategies by keeping in mind various components like potential of buyers and customers, rivalry
competition and other factors for dealing with market requirements.
Along with for having competitive advantage it is essential of evaluate core competency
which could help in designing effective strategies for dealing with present competition in
markets inn order to make higher profits margins. For this VRIO framework is to be performed
that could help in evaluating core competencies of Deloitte. It is a strategical technique that
could help company for preventive resources and capabilities that could provide them long run
competitive advantage. This analysis is beneficial for Deloitte for developing their competitive
strategies which are based on company's core strengths as well as resources that could help in
generating competitive advantage over competitors in marketplace.
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Application of tools to real company.
In order to perform application of above models and techniques towards company it is
essential to apply these frameworks on company so that effective strategy could be formulated
for achieving business goals. In accordance with Deloitte, application of above analysis are
explained as follows:
PESTLE analysis: Political factors: Some of political aspects identifies that Deloitte is facing an impact on
their profitability and possibility of carrying out survival in business markets. After
imposition of Brexit, sales revenues of Deloitte is impacted in European markets where
they are operating their practices. There are trump administration policies which are
affecting their business activities. Along with there is political stability in country which
is received by Deloitte in present years. There is integrity of various politicians and
company likelihood that are taking part in acts of corruptions which has been faced by
company. Economic factors: In this aspect it has been identified that there is base of erosion and
profit shifting project that could affect their business activities of Deloitte. There are
some of economic aspects which are affecting business operations of Deloitte that states
in fluctuation in real global real gross domestic product as well as currency change.
Presently Deloitte is facing economic challenge of operational working practices in their
consultancy sector where monopoly is performed (Hannah, Tidhar and Eisenhardt,S
2021). Along with fluctuation in exchange rate of country could affect profit margins of
company. Social factors: This aspect could deal in having change of preferences in Millennials. It
generally reflects on society where they are performing their business and that could
encompasses culture, attitude, belief and values. It could identifies that majority of
individuals could hold as a kind of community. There are various demographics of
individuals which are affecting working activities of company. These aspects could affect
working operations of Deloitte which could straightly generate an impact on brand
picture of company in market place. For that Deloitte needs to keep themselves aware
about their societal trends for achieving their objectives.
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 Technological factors: Deloitte is facing various technological challenge of social media
involvement as well as there is block chain which is faced by company that affect their
business practice. Along with there are certain technological development and
breakthrough that are made by competitors so it becomes essential for Deloitte to monitor
level of popularity with its disrupting competitors revenues. There is also impact of
technology which is carried because of costs that company is subject to have potential to
increase or reduce their resulting profits. Legal factors: Government generally issues various rules and regulations as per various
laws which are to be followed by Deloitte on timely basis. By abiding laws and
regulations that are set by government could lead company into legal conflicts and
generate issues for them in carrying their business practices. There is Espionage
operations that are performed by company and also they are facing case problems of
DMX Taylor, Bean and Whitaker and Carillon case.
 Environmental factors: There are different sectors which are basically indulged in
holding on various environment standards for maintaining prevention of environment
while performing their business operations. Deloitte is facing a breakthrough for their
sustainability in their commercial real estate practices. The present weather conditions
could impact capability of managing transportation of their products and services. These
aspects could affect working operations of Deloitte with change in surroundings
situations on timely basis.
Porter's five forces model: Threats of new entrants: This factor of Deloitte identifies that economies of scale where
company is operating is difficult in achieving their objectives. There is access to
distribution networks that could make it easy for new entrants for setting up their new
distribution channel and coming in business. In that situation it gets easy for any new
entrants for getting their products on shelves of markets. In order to deal with this
situation Deloitte could take an advantage of economies of scale with in consultancy
sector by handling new companies with their cost benefit (Smith and Gray, 2021).
Deloitte could focus on having innovation for differentiating their products from their
new entrants.
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 Threats of substitutes: This factor of five forces model defines in identifying threats of
companies that are giving substitute products. In accordance with Deloitte, they are
having less number of substitute company available for products and services which are
producing in consultancy sector. There are very less number of substitutes present in
market (ÖZSUNGUR, 2021). In that situation Deloitte could carry its focus on providing
large quality at low price as compared to other substitute products that could give large
amount of quality with higher cost. Competitive rivalry in present companies: This factor of five forces models shows
presence of competition in consultancy sector. It determines that Deloitte is facing less
competition in consultancy industry where they are operating their business (Wang,
Gibbons and Heavey, 2021). It shows that consultancy sector is a sector that could not
move without being unnoticed. Deloitte is having less competition and they are having
large market share which could make their rivalry between available company a strong
force in consultancy sector. Bargaining of suppliers: This factor of porter five forces model could create an impact
on Deloitte that number of suppliers which has low control over their prices and that
could make bargaining power of their suppliers a weak capability. In working practices of
Deloitte where they are carrying their business determines that their suppliers do not
provide a credible threat for providing a forward integration into consultancy sector. For
that condition company could buy raw material from their suppliers at a low price. And if
cost of suppliers are not proper company can change their suppliers because of their
price.
 Bargaining of buyers: This factor relates in purchasing capability of buyers. It has been
determined that where Deloitte is performing its numbers of purchasers could be of lot
more than number of company of producing products. This indicates that buyers has
options of new companies to choose their offerings (Bughin, Kretschmer and Van
Zeebroeck, 2021). This practice could make their bargaining power of customer a weak
force in consultancy industry. In order to deal with this condition Deloitte could keep its
focus on making innovation and differentiation for attracting more number of customers.
There is product differentiation strategy which could be used for attracting more number
of customers. There is product differentiation as well as quality of company's products
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which are important in this sector. Deloitte could attract more customers by keeping their
focus on making innovation.
VRIO framework:
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 that are valuable to Deloitte could benefit them exploring
opportunities which are present and neutralising threats from internal and external
environment (WAN HANAFI and DAUD, 2021). Deloitte is having brand image in
relation to corporate social responsibility role and their brand image contains high brand
integrity. Also company is maintaining effective relationship with their suppliers for their
distribution system. Company is focused in having propensity of making innovation in
their services that is valuable to them. Rare: This element of Deloitte evaluates that company is having global presence and it is
operating in multiple countries and regions. Also company fosters an organisational
culture of problem solving between their employees and management. Deloitte is having
rare competency of taking risks which is important for company to expand their practices. Immitable: This component of VRIO framework could help in adding value to
competitive benefit and long term sustainability in Deloitte. As Deloitte is offering high
quality products to their customers which are a source of their brand appeal. Also
company is operating through multiple stores in various countries and regions. Deloitte is
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immitable in its resources by making use of marketing communications strategically for
inducing higher consumption.
 Organised: These resources are creatively unique that are developed by Deloitte as well
as they cannot be competing players in consultancy industry (Mostafiz, Hughes and
Sambasivan, 2021). Deloitte is having financial strength towards its brand strength and it
supports company in exploring various opportunities for their new product development
and launches. There is also technological advancement and integration which is an
essential resource for developing competitive advantage. Along with company is
providing in house training for particular job roles and job designs to their employees that
could help them in accomplishing their desired job responsibilities.
Critical appraisal of relevance of change management which is based on complexity of
transformation method, its costs, risk as well as sustainability.
Change management is a process that could enables practitioners in company to leverage
as well as scale change management practices which could help in impacting individual as well
as groups by moving through transition (Mostafiz, Hughes and Sambasivan,2021). As purpose
of change management is to use strategies for effecting change, controlling change as well as
helping individuals to adopt to change. In accordance with Deloitte complexity of transformation
method are as follows: Cost: It has identified that complexity of cost is defined to a terms that could be caused
by introducing new services as well as products towards managing a variety of products
which are produced by Deloitte. It deals in attempting significant change in cost that
shows relationship among amount of cost which is required to manage individual side of
change along with their benefit of applying a structured method for enabling as well as
encouraging employees to adopt change in workplace of Deloitte. Risks: It has been identified that risk element of transformation method is carried because
of underlying difficulty that could be faced by Deloitte in higher terms in relation to
carrying out change management practices in their business practices. It has been
identified that common change risks is basically associated with change management that
could run into severe resistance with end users which are impacted by groups. It could
deal in mitigating risk as well as in parallel for developing competitive benefits.
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 Sustainability: This element has become important for today's corporate world as well as
it could support to present as well as future success of Deloitte. It generally helps Deloitte
in making conscious efforts towards change for establishing a new accepted way of
carrying out business. There is integration ecological, social as well as economic goals in
making corporate decisions in terms of providing services to customers.
CONCLUSION
It has been concluded from the above analysis that strategic management is an important
component for companies is used by the companies for achieving their goals in an effective way.
It is essential for companies to determine and implement correct strategies so that they
accomplish their goals(Hoelz and Bataglia, 2021). This report analysis helps in examining
strategies by examining motive, mission and vision of company. There is explanation of certain
models that is being applied to identify external surroundings and competitive advantage for
Deloitte. These application of models is being performed by PESTLE analysis, VRIO frame
work as well as Porter's five forces model that indicates that Deloitte is required to make
innovation in services by using product development strategies. At last it provides information
about change management and its relevance in meeting change with cost, risk as well as
sustainability in workplace.
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REFERENCES
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