Inside Deloitte LLC
Presentation by,
Saori and Dominique
Our Purpose....
- Offer background information on the company
- Look into the cost structure
- Analysis on how costs, competition, and markets affect decision making
Who is Deloitte?
An international professional services firm striving to be the top company offering these FOUR services ...
Divisions
Consulting
2011 USA Revenue Reported as $11,939,000,000
INSIDE DELOITTE ....
The People
Deloitte launched the Women's Initiative in 1993 to recruit and retain more women
The Places
Deloitte operates in 3 regions
In 2011 Deloitte had 100 offices in 89 cities
The Competition
Deloitte consistently leads its competition in revenue and growth. In 2010 Deloitte was at the top of the Big 6 - beating PWC by $9m
But ....
The Clients
Deloitte serves some of the largest companies all over the world ...
Including...
Boeing Corporation
All State Life Insurance
Peet's Coffee
Nordstrom
Best Buy
...and thousands more
DEEPER INSIDE DELOITTE ...
Deloitte's business is helping other businesses do business ...
Deloitte's major costs are associated with maintaining the brand ...
... which is essential to maintaining PRESTIGE and staying COMPETITIVE
can you guess one of Deloitte's costs?
... are these variable or fixed costs?
Staff Costs
Deloitte USA chooses NOT to make financial statements available to the public
So we used numbers provided by Deloitte UK to compare
while considering these numbers...
Sr. Managers
+375
Partners
+124
... lots of expensive additions to the company
can you think of any other costs?
are these fixed or variable costs?
Theresa would be very proud if we could think of one more cost ...
Deloitte spends money to ensure clients receive superior service ...
...you know we had to ask ... are these costs fixed or variable?
2010 depreciation was 41m euros
2011 depreciation was 48m euros
managers are thinking ....
... how can we take back the #1 spot???
... in 2011 PWC announced changes to their compensation structure
... and Deloitte followed suit
... this type of competition makes cost data predictable
Market meltdown caused Deloitte to reduce talent investment from 2008 to 2009
... continued growth through economic hardship is necessary to maintain superior STATUS
Will Deloitte take back the #1 spot?!?!
Slow Down Growth ... But Keep Growing
How much did Deloitte Spend on clients?
DECISIONS!!!!
Client Assignments
Operating Expenses
... and Deloitte USA/Latin America grew 7% MORE than Deloitte UK
keep in mind that Deloitte USA/Latin America brought in $4b more than Deloitte UK
Security Guards
Building maintenance
The Talent - Staff Costs
277m euros
750m euros
2010
Labor
Recruiting/Retention
w
e
g
r
staff costs
2010
2011
Training/Development
Talent Management
859m euros
Rents Payable
Janitorial
USA Staff Growth from 2010 - 2011
Staff
+3362
(cc) photo by twicepix on Flickr
Administrative
+916
reporting
Many
Managers
+755
travel
Some
Few
2011
322m euros
(cc) photo by tudor on Flickr
What's going on with Deloitte Today?
What are the costs??
`
- Asia Pacific
- Europe/Middle East/Africa
- USA/Latin America
14.6% of revenue ... $4.2b
49.7% of revenue ... $14.3b
35.6% of revenue ... $10.3b
copies
4,419
36,768
Deloitte employs 181,586 worldwide
10,075
2011 Headcount in the USA
- Partners/Principals/Directors
- Staff
- Administrative
- TOTAL EMPLOYEES
51,262
Revenues
rental car
Financial Services
4% of revenue
Audit
32% of revenue
Tax
20% of revenue
44% of revenue
presentations
In 2011 PWC beat Deloitte by $420m in revenues
Deloitte UK Operating Expense Numbers
hotel
research
292m euros
2010
... and with all those offices worldwide
2011
326m euros
we can't forget about DEPRECIATION
Upper Level Compensation
Lower Level Compensation
by keeping up with the competition
What about the ECONOMY?
19.9%
7.1 %
Time for your prediction...