Business Strategy Evaluation: Deloitte Consulting Services

This report provides a comprehensive strategic analysis of Deloitte, a prominent consulting firm. It begins by evaluating the significance of clear purpose, mission, vision, and objectives in setting the strategic direction of a company, using Deloitte as a case study. The report then assesses Deloitte's competitive advantage using the VRIO framework, examining its resources in terms of value, rarity, imitability, and organization. Furthermore, it analyzes the external environment of Deloitte's business through a PESTLE analysis, considering political, economic, social, technological, environmental, and legal factors. Porter's Five Forces model is applied to assess the competitiveness of the firm within its industry. Finally, the report reviews and synthesizes the findings to offer an overall evaluation of Deloitte's strategy, including an examination of market penetration, product development, market development, and diversification strategies.

Strategy evaluation

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Q.1. Critically evaluate the value of clear purpose , mission, vision, objectives in setting
strategic directions of company .With the help of examples explain the views of organisation
Deloitte to put forward?..............................................................................................................3
Q 2. In the process of assessing a competitive advantage, this can be evaluated using four
attributes under the acronym VRIO. As a matter of example, assess the competitive advantage
of the company you selected, using the VRIO framework.........................................................5
Q.3. With the help of PESTLE external factor of business you selected is analyse?.................7
Q.4 Porter's Five Force Model?..................................................................................................8
Q.5.On the basis of analysis review strategy of organisation.....................................................9
CONCLUSION .......................................................................................................................10
REFERENCES..........................................................................................................................11

INTRODUCTION
Business strategy is a plan which is made for long term for our firm to reach towards
desired objectives. As goals of the company are cover in this strategy. In this type of services we
plan to build, clients whom firm wants to give services and the market that company serve to
earn profit. The consulting firm that was selected in this assignment is “ Deloitte ”. As it is part
of one of the most famous audit and consulting firm big four. It provide services like financial
advisory, consulting firm, audit, tax services, risk management , etc with the help of their firm
members. It operate their services in around one hundred and fifty countries. In the year 1845 it
was founded by William Welch Deloitte. He was first accountant who was appointed as
independent auditor in public company '' Great Western railway''. In 1880 his first office is
opened in London. Their Professional give independent financial statement as well as perform
internal audit control, as per latest standards which tends to make focus on quality. A part of top
most management consultancy firm in world, Their consultant offer global experience and local
knowledge to support focus on big picture and also try to succeed in private and public business
environment. The topics that were included in this report are Evaluation of value of clear
purpose, vision, mission and objectives in setting strategic direction of company. With suitable
examples from chosen organisation explain the views that put forward. With the help of acronym
VRIO assessment of competitive advantage of Deloitee firm is done in this report. External
environment of Deloitte business is to be analysed with the help of PESTLE. To access
competitiveness of firm porter's five forces model is done in this project. On the basis of analysis
organisation strategy is to be review.
MAIN BODY
Q.1. Critically evaluate the value of clear purpose , mission, vision, objectives in setting
strategic directions of company .With the help of examples explain the views of
organisation Deloitte to put forward?
Purpose: The main purpose of Deloitte is to design services in such a manner so that it
help clients to achieve measurable benefits. Advancing skills and continually develop as
professional and making a difference over course of career. To serve the purpose Deloitte
heavily invest large amount in leadership skills and development training.

Mission: Main mission of company is to give expert advice as well as effective solution.
Deloitte plays an important role to help both capital market and our member firm clients who
operate effectively. The main mission of firm is to help clients as well as our people excel. As it
is most famous advisory firm , their resources, size helps to achieve mission now as well as in
future also. To act with integrity and earned public and client trust is the mission of Deloitte. The
statement mission include various component like transforming organisation, global reach and
improving quality of services.
Vision: To become client's partner of choice. In collaboration with member firms
partners and leadership , firms vision and strategy is developed. It focuses on working together
as on across functional , geographic and business border to deliver excellence in services which
is provided by member firms. Excellence standard is the first choice after client and talent
sought. Deloitte aim as first choice of clients in financial professional services as it aspire to set
excellent standard in industry.
Objectives of the company:
 To attract and engage large number of clients
 To provide excellent consultancy services regarding taxation, auditing, accounts.
 Try to maintain and create progressive work environment.
 Solving problems of the clients
 effectiveness of organisation improving permanently
Ansoff model
1. Market Penetration: In such type of strategy , company take entry in new competitive
market with their already exist product and services. Expansion of business means
expanding into region, customer segment, new geographies etc.
2. Product and service Development: In this new services and product is developed by
company to offer services to those market which is already exist. Additionally in this
strategy innovative solutions are also provide to clients. In many ways respective strategy
can be implement such as Joint venture with other firms to meet the objectives. To do
partnership with various other big firms to achieve the goals.
3. Market Development: In this firm take entry into new market with their already exist
products and service . Introducing in new market means making expansion in new
geographies. Regions etc.

4. Diversification: In this , company with new services and products take entry in new
market. As it is most risky strategy. There are three type of diversification that are present
in it as these are related and unrelated diversification.
5. Effectiveness: Each step incremental cost beyond market penetration should be
evaluated clearly against uncertainty in industries. Many consultant use grid of none box
for sophisticated analysis.
The Consulting firm Deloitte use strategy of market development. As it provide their services to
client of different locations. Regarding taxation, audit, accounts the firm give information and
recommend solution of issues also.
Q 2. In the process of assessing a competitive advantage, this can be evaluated using four
attributes under the acronym VRIO. As a matter of example, assess the competitive
advantage of the company you selected, using the VRIO framework.
VRIO stands for Valuable, Rare, Imitable and Organise which are considered as its four
attributes. It is a model used by the companies for the internal analyses of their organisation and
examines the competency level of their resources which companies uses for its business. The
resources such as Human Resource, Goodwill, Finance Department, The four attributes of the
model are discussed below:
Valuable: This answers to few questions such as are the company's resources valuable or did
they add any value to the products or services offered to customers. Are the resources of
company is enough capable to be considered as the strengths of business.
Rare: This answers to the question such as are the company's resource rare or unique in the
market or is available in other organisations too.
Imitable: This is placed third in the model which answers the questions about are the resources
easily imitable or copied. Is the cost of copying is low to other organisations or takes huge
cost to imitate.
Organise: The last in the model is organise. This includes questions like is the company have
the ability to exploit its resources to the full extent, do the resources brings ny advantage to
the business, etc.
The application of VRIO model in case of Deloitte company is done under:
RESOURCES VALUABL RARE IMITABLE ORGANISE COMPETITIVE

E ADVANTAGE
Finance √ √ x √ Sustainable
competitive advantage
Human Resource √ √ √ √ Temporary
Competitive advantage
Goodwill and Patents √ √ x x Unused competitive
advantage
Distribution Network √ √ x √ Sustainable
competitive advantage
Deloitte VRIO framework
From the above table it is analysed that:
 Valuable: For Deloitte company Finance and Distribution network is valuable and
presents a sustainable competitive advantage to the firm. The company's human resource,
goodwill and patent also creates value for the organisation. Human resource, goodwill
and patents does not creates sustainable competitive advantage for Deloitte.
 Rare: The company's resources such as Finance, Human resource, Goodwill and Patent,
Distribution Network are rare for the company. The finance and Distribution network
resources creates a sustainable competitive advantage whereas Human resource is
concerned with temporary competitive advantage and its goodwill, patents depicts unused
competitive advantage.
 Imitable: Deloitte's financial resources, goodwill and patents and distribution networks
are expensive to copy for its rivalries and for new entries. Whereas Human resource is
not so costly as compared to other resources hence can be easily copied by other firms in
the industry.
 Organise: Deloitte organizes its financial resources, distribution network and human
resources to represent value of the firm. On the other hand the company's goodwill and
patents are not organised. This shows that Deloitte does not takes its patents and goodwill
into its full consideration by the use of its full potential. The patents and goodwill gives
an unused competitive advantage tot he company.

Q.3. With the help of PESTLE external factor of business you selected is analyse?
The consultancy firm that was selected in this project is Deloitte. To analyse external
environment PESTLE is perform as it is describe in detail as follows:
Political factors: The political factor include various factors such as employment laws,
environmental regulations, trade restrictions, tax policies, tariffs, reforms and political stability.
The federal government continuously functioning towards brining Deloitte industry as per global
criteria . Policies like employment of sophisticated skills were introduce in industry from year
1996 to 2001 on the other hand in year 2000 R & D efforts have actually been a concern.
Economic factor: The Deloitte Touche consulting Group economic factors includes cost
of living, interest rate, exchange rate, inflation, working hours , wage rate, cost of living etc. In
the respective industry recession is a major problem as it can cause low manufacturing.
Improvement in effectiveness degree can cause increased manufacturing that cause recession
more time due to reduced demand and excess supply results as firm closure because of reduced
revenue.
Social factor: The social as well as culture influences certain business as it tends to vary
in different countries. It is important for every business to consider these factors . Few examples
of social factors are health & safety consciousness , cultural aspects, population growth rate,
various different demographics etc. As government focused most on growth of human capital ,
through training it tends to enhance understanding of resources in industry.
technological factor: Deloitte Touche consulting group technology is important method
to being competitive in highly competitive market arena. In Deloitee consulting Industry there
are many technological problem exist as Deloitte touch group manufacturer in Taiwan as it don't
have their technology and skill depend on foreign technical companions. As government take
initiative step on changing Deloitee consultancy market to reduce dependency.
environmental factor: The factors include in this are terrain variation, seasonal change,
global warming, extreme weather etc. As Talwan is considered as highly favourable region for
Deloitte Touche consulting group manufacturing as noticeable with capacity expansion ease in
Deloitte Touche consulting group Industry.
legal factor: The legal factors Deloitee consulting firm includes various regulation and
laws that effects business operation of company. It also covers current legislation which make

impact on industry like employment , competition etc. consultancy firm should consider
influence of international as well as national where the firm do business operation. Deloitte
consulting group give great value to lawful contracts as micron's rate of interest in deloite may
not emerge as previous business legal agreement with nanya and Inotera.
Q.4 Porter's Five Force Model?
The Porter's model is intensively used for the purpose to identify level of competition in
industry and profitability drivers are also need to be identified. The respective model identifies
the forces that can make impact on organisation hardly. The Deloitte Porter's five Force analysis
is as follows;
Threat of new entrants : As it is in existing company's favour to create barrier for new
arrivals to prevent them from entering into industry. The barrier that involves are may be legal
or industrial. As reputation and size of existing company also play crucial role in market.
Furthermore entry cost, access to raw material , different barrier related to technical and culture
standards also perform major role and effects decision of new entrants in market.
Substitute product Threat: As their substitute alternatives are available in market at low
prices . These product exist due to innovative and technological advancement . Due to this
company produce product which is already present in the market. Using same technology are
than replaced by products of different company which is good in terms of quality and price . As
substitute items are dangerous because companies faced threat of replacement. High substitute
threat tends to provide low profitability because it limits profit of industry by placing prices
celling with the fear of being substituted through other items.
Bargaining power of supplier: more power is posses by powerful suppliers to capture
value which is significant for themselves through demanding high prices and limiting quantity
and quality of services by transferring cost on participants of industry. As so many conditions
supplier imposed such as increase in prices and compromising quantity and quality. As as
suppliers bargaining power is strong if it is not rely heavily on industry for their profit, the
suppliers product which is offered are are highly differentiated.
Bargaining power of audience: The buyers have strong power of bargaining that tends
to influence suppliers profitability who operate in market. By imposing those conditions which
are not favourable to suppliers in terms of services, quality, price, so selecting clients often

become crucial for company to avoid such situation which is highly dependence on buyers.
Deloitee customers are consider strong if they contain specifically negotiating leverage if
industry is most sensitive to price , the buyers can force suppliers for more price reduction. The
audience are assumed to have good buying power if no. of customers are limited and every buyer
buy large number of quantity relative to size of suppliers. And if switching cost is comparatively
low.
Rivalry among existing Firm: As E&Y, Kpmg, Pwc are top three Deloitte competitor. It
is commonly known as ''big four'' as these firms provide same type of services like taxation,
audit, consultancy and some other services also and all they earned similar annual revenues. On
the field of auditing , firm Pwc focused more and ranked number one audit firm in respective
industry.
Q.5.On the basis of analysis review strategy of organisation.
Strategy lies at heart of firm success , need hard choices regarding the moves it will make
at present or in future . To set strategy that helps in winning , firm must understand dynamic
change in the business environment,tools , innovations to secure growth opportunities and tends
to reduce risk also. As cutting edge approaches are used by the firm Deloitte , it requires deep
knowledge of industry and has experience to execute as well as develop integrated, tailored
strategies for the purpose to meet future with great confidence.
The consulting firm Deloitte adopts marketing strategy, pricing strategy in business. The
effectiveness of these strategies are describe in detail in below mentioned paragraphs. Deloittes
business plan and strategies are design by practitioner by combining deep industry insights along
with cutting edge methods as it also help leaders to resolve most critical decisions , as well as
achieve transformational success.
Advantage of market penetration-
 Improve visibility of services: Unique strategies related to market penetration can
increase service as well as product visibility in market segment and unexplored
geographies. However firm should only enter buyer segments where it easily create best
and superior customer value as it helps to take more advantage over their competitor.
 increase Brand image and quality: brand equity of firm can easily be enhance with the
help of market penetration.

 Improve service of positioning: Consultancy company provide higher client value either
by charging low fees as compare to their competitors.
Benefits of pricing strategy
◦ Pricing strategies I tends to be a key element of plan. For growth Deloite offer under
leveraged and opportunity can be neglected for the purpose of margin improvement
and sustained revenue. Improvement in price realization and better execution ,
approach can translate to substantial enhancement of profitability of firm.
Deloitee pricing strategy team is part of largest finance management consulting
practice in World , through spanning Asia, Europe, North America. Clients change, manage the
way they deliver value to their clients as it helps to build interrelated capabilities.
Bottom line benefits-
 Implement policies, processes and organisational design which align with profit growth
objectives and revenues.
 Business model can be redesign to address better the requirement of rapid changing
market place.
 Transactional profitability can be increase through active management of pricing
execution and also to improve control.
CONCLUSION
After deep study and analysis it is conclude that every organisation must plan some
strategies to achieve objective of the company. Ansoff model is great framework to structure
various options organisation has in order to grow. External environment of Deloitte business is to
be analysed with the help of PESTLE. To access competitiveness of firm porter's five forces
model is done in this project. If firm manage to enter successfully in various unrelated market ,
it also has advantage of well balanced portfolio of the services that tends to decrease risk.
Consulting includes wide range of activities and many firms as well as their members define
practices quite differently. It is also conclude that consultant in firm of consultancy first do
diagnosis and than give recommendation to clients. In every business consultant also play a
significant role because all the important decisions are given by them only. To analyse external
environment of business that makes positive as well s negative impact on business it is necessary
for firm to do PESTLE analysis. To identify competition level in industry it is necessary to study

by using model porter's five forces. Competitive Advantage of Deloite can easily be evaluate by
using four attributes under VRIO.

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