Thursday, December 12, 2019
Deloitte free essay sample
The number of total staff working on the consultancy market did not change at all, it was 10 000 in 2010 and 80% of those worked as consultants, 20% as supporting staff. HIS ECONOMIC CONTRIBUTION OF ROMANIAN ECONOMY Finance and professional services is one of the key sectors of competitive advantage for the Romania and Deloitte play its part in delivering economic performance in the sector and the wider Romanian economy, helping drive the RomanianÃ¢â¬â¢s economic recovery. The firm has contributed, through its direct activities, just over 1 RON in each 1000 RON of romanina economic output. Deloitte has created 175 new highly skilled jobs over the last year, with a total increase of 6 per cent in net job in 2012, while the total number of employees in the Romania has descreased by 0. 2 per cent over the same period. In addition to jobs and economic output, we make a significant contribution to tax revenues and the Romanian;s balance of payment. We will write a custom essay sample on Deloitte or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Deloitte make a major contribution in preparing future business leaders, and through this, enhancing corporate governance and public confidence and contributing to wider business success. In the last year, Deloite have spent much money on learning and development, and as part of this supported more than 740 of our people to attain professional qualifications. This investment has also provided more than 600. 000 hours of formal learning, which included specialist skills development and management and leadership training, providing a significant contribution to the Romanian skills base. The firm has established policies and procedures designed to give reasonable assurance that it has enough partners and professional staff with skills, capacity and commitment to ethical principles: Perform tasks in accordance with professional standards and applicable legal and regulatory requirements; Ã¢â¬ ¢ To enable the company to issue reports that are appropriate in the circumstances. The company is committed to attracting talented people in the organization by organizing workshops with future graduates of top universities, the recommendations of internal staff and recruitment of e xperts. Hiring process is managed by the Department of Human Resources, together with Audit Department to identify suitable candidates. Final interviews are held by the Company for recruitment partners at all stages of their careers. Policies and procedures for advancement have been established to give reasonable assurance that professional personnel selected for advancement have the qualifications necessary to fulfill the responsibilities they will have to assume. Below are some of the policies and procedures identified. Ã¢â¬ ¢ Have been established different levels of professional staff within the company and descriptions of relevant skills to work effectively at every level. Policies and procedures for progression identifying performance experience and qualifications for advancement at every level have been established and communicated to the Companys professional staff. Ã¢â¬ ¢ Have been established procedures for periodic evaluation of performance. Ã¢â¬ ¢ It was established a program of counseling to adjust professional staff to identify realistic career paths and develop action plans to achieve professional g oals. SWOT ANALYSIS OF DELOITTE STRENGHTS Value driven approach DeloitteÃ¢â¬â¢s value driven-approach is one of the attributes that sets it apart. For Deloitte, this is an explicit part of its strategy, day-to day client approach, offering and messaging, embodied in the models and artifact it uses. It is evidenced, for instance, by use od its Value map to identify priority opportunity areas within client organizations for improving the value of the enterprise. Deloitte claim to stick to the client engagement until there is improvement in the chosen variable. A value-based billing approach is not an absolutely necessary consequence, but Deloitte does offer value-based billing, sharing risk and reward with the client. The company has a relatively mature business approach to value- based contracts, treating them as a portofolio of investments managed by a specific team, balancing risks and return across the whole. Business led, IT- enabled approach to engagements Deloitte is clearly business-led in its approach to clients and services. It is alsoÃ¢â¬ IT-enabled, with a strong technology practice, which is not directly the subject of this document. An example of DeloitteÃ¢â¬â¢s approach is Service Thinking, a framework that Deloitte uses for analysis of business functions and processes. It is business- oriented but ties in naturally with the service-oriented architecture approach in IT and may lead downstream to the use of SOA for implementation. The company has the ability to implement its advice, right through to the IT implementation, across a wide range of verticals and business functions and processes Depth in vertical industries and business processes Business consulting service providers aim to differentiate themselves by demonstrating the relevance of their functional and industry best practices, strategic road maps and industry process- oriented knowledge. What varies among these providers is their different levels of business, process and technology expertise and their project and technology related implementation capabilities in different market segments. Deloitte exhibits vertical industry business and process knowledge in depth, resulting from the consulting business itself, the audit practice and Deloitte;s continuing investment in research. The strongest verticals for firm overall are financial services, manufacturing, government, communications and utilities. Throught leadership activities, such as significant and valuable research publications, are among the evidence for this strength, as is client feedback via surveys and direct discussions. Deloitte does have significant revenue from the manufacturing sector worldwide, but we have found sime cases of weakness in execution compared with several competitors in consulting related to key business processes in manufacturing industries. Horizontal business processes in which the firm exhibits strengths include finance and accouting; human capital management, marketing and IT strategy Deloitte has long experience with real end users, with executives and with client staff at all levels, through its multiple services, including audit. This entails first- hand knowledge of processes at the execution level in many organizations. Ability to invest in growth Deloitte has demonstrated that it has the funds to invest in growth. They are being used to continue to build the breadth and depth of consulting capability and gain market share. The firm is thus making proactive moves, such as acquiring a key part of the former Bearing Point at a good time in a down market. Stability and capability from audit business. Deloitte is able to deploy audit staff on some business consulting assignments, especially, especially those involving matters of risk, compliance and controls. The audit experience is a valuable source of insight into the realities and challenges of the targeted vertical industries. The relative stability of the audit business,which is comparatively predictable, counteracts the lack of annuity revenue like that which some other consulting firms gain from an outsourcing business. Deloitte does have some application management business, but gains substantial stability from the audit bese. Trusted brand Deloitte has excellent long term high-level relationships with executives. Deloitte;s brand and position has also allowed it to gain entry to a role as an independent advisor to national and local governments, as well as international agencies. Breadth of service and skills Cross- disciplinary skills allow Deloitte to work on the interdependencies in its clientsÃ¢â¬â¢ businesses and processes. This approach focuses the firm on its clientÃ¢â¬â¢s business and on solutions rather than on traditional functional silos. WEAKNESSES Brand awareness limited to only some executives in the client enterprise Global association structure Relative immaturity of global delivery capability Deloitte has gradually built up global delivery resources in multiple lower-cost locations worldwide. It is a positive step that in some instances Deloitte uses centralized teams for multicountry projects. Limitation of market opportunity dueto audit The professional rules for auditor independence apply to any accounting firm or organization that performance audit, attest or review services. The auditor independence rules vary by jurisdiction, and in some instances constrain DeloitteÃ¢â¬â¢s ability to compete because they would not allow the firm to provide certain limited services to its audit, attest or review clients. OPPORTUNITIES Change in economic and business environment The changing world economic and business environment creates opportunities for major consulting firms to help clients with global competitive and environmental challenges. These include the following: Ã¢â¬ ¢ Tougher competition Ã¢â¬ ¢ Consolidation, mergers, acquisitions and divestitures Growing awareness of business risk Ã¢â¬ ¢ Increasing regulations, but also deregulation in other areas Ã¢â¬ ¢ Growing public sector Ã¢â¬ ¢ Increasing globalization Ã¢â¬ ¢ Requirements for sustainability Ã¢â¬ ¢ Pursuit of agility Ã¢â¬ ¢ Growth of emerging economies Ã¢â¬ ¢ Growth of digital economy Green agenda National infrastructure investment and reaction to the global financial crisis Pattern- bas ed strategy Midmarket penetration Other high- growth sectors Other high Ã¢â¬âgrowth sectors that represent good opportunities for DeloitteÃ¢â¬â¢s business consulting include sovereign wealth funds and the public sector worldwide. Among service lines, enterprise cost reduction present obvious demand now but will remain strong in the long term. Deloitte has good credibility in this area. THREATS More focused competitors from IT heritage Deloitte is to some extent vulnerable to more focused IT services providers because it is not easy, even at the scale of Deloitte, to cover all aspects of IT that are needed to implement its consulting advice. For some enterprises, working with the consulting providers that also provide their own technology is a pragmatic advantage. This puts a limit on DeloitteÃ¢â¬â¢s ability to effectively control the outcome of all its business consulting projects. IT providers with business capabilities Software Brands ANALYSIS OF DELOITTE BASED BY OLI PARADIGM Ownership advantage Deloitte ownership advantage stems from the companyÃ¢â¬â¢s innovative concepts and products. Innovation is the driving force behind this multi-million corporation. Furthermore, DeloitteÃ¢â¬â¢s core competencies refer to the companyÃ¢â¬â¢s state-of-the-art technology, its superior know-how and pioneering ideas and great reputation backed up by excellent brand recognition of its consultancy. DeloitteÃ¢â¬â¢s ownership advantages derive from the companyÃ¢â¬â¢s commitment to put forward its top quality product, performance and value to customers all around the world while also playing a significant role in consultancy and audit. Therefore, innovative ideas and change are central for the companyÃ¢â¬â¢s identity and image. Location advantage In order to exploit its ownership advantages internationally and have the ability to grasp a firm hold of a foreign market Deloitte has not overlooked the romanian market. For the last several decades, Romania has been the centre for most of the economic activities. As being a developing nation, the country has been growing at such a pace that it requires government intervention to control its growth due to the threat of exhausting its natural resources. The two main factors that determine Deloitte location advantage are the large market size and foreseeable growth potential. To sum up the most important location advantage of Deloitte in Romania derives from the countryÃ¢â¬â¢s large market size and high growth potential of its consultancy industry. However, in order to succeed the company has to learn and understand many things about the country and the way business is done there. Deloitte should keep in mind that the best selection of operations in one foreign country is not always the optimal choice of operations in another. Nevertheless, the huge success of Deloitte in Romania today shows that the American company has carefully contemplated on its strategy of how to establish a major presence on the Romanian consultancu market and therefore it deserves todayÃ¢â¬â¢s leadership position there. Internalization advantage From the fact that Deloitte has become the market leader in 2010 we can easily reach to the conclusion that the company has been able successfully to internalize its ownership advantages, mentioned above, with the host countryÃ¢â¬â¢s location advantages and therefore, today Deloitte operates in the foreign environment- Romania very effectively and efficiently. Another reason for the success of Deloitte in Romania is the fact that through its efficient internationalization strategy, the company has chosen to go local in Romania much earlier and with better partners than its competitors. The main reasons to invest in Romania are following: [pic] Of no less importance is the fact that, in terms of efficient and effective combination of DeloitteÃ¢â¬â¢s ownership advantages on the foreign market, the company has successfully managed to implement its innovative ideas in its services. PESTEL ANALYSIS OF ROMANIA These factors affect all firms belonging to the analyzed market, factors which usually are beyond the firms control and sometimes present themselves as threats, but however, changes in the external environment also create new opportunities. Political factors -The situation of the Romanian capital market begins to become more stable through implementation of the European directives. The scope of the European Legislation is to protect investors, safeguard market integrity by establishing harmonised requirements governing the activities of authorized intermediaries and to promote fair, transparent, efficient and integrated financial markets. The Romanian political situation is very tense. -By strengthening its government, raising the anticorruption fight and transparence of political processes, Romania can mitigate the weaknesses it faces in present times and even overturn its brand into a vibrant, democratic, civil society, European Union type of image. Economic factors -The main macroeconomic indicators registered a positive evolution in the last years, which will also have a positive impact on the capital market. Among RomaniaÃ¢â¬â¢s strengths, we underscore cheap labor and production factors, which can significantly contribute to stimulating business ventures. Its major opportunity is the affiliation to the European Economic Area, which allows for the free flow of capital, goods, people and services. Technological factors Due to current improvements in technology, Romania enhanced its external competitiveness.