Business Strategy for McKinsey & Company: Analysing Competitive Advantage and Strategic Directions

BUSINESS STRATEGY

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
1. Analysation of the company's pestle and swot analysis and evaluating the organization's
resources and capabilities in the context of the “McKinsey & company”:.................................3
2. Critically evaluating the competitive advantage of the firm using Porter's five forces model:
......................................................................................................................................................6
3. Identification and justification of organization's existing or potential competitive advantage:
......................................................................................................................................................7
4. Devising valid strategies and tactical objectives to achieve overall strategic objectives:.......8
PART B............................................................................................................................................8
1. Critically evaluating the different types of strategic directions available to the organization:
......................................................................................................................................................8
2. Justifying and recommending most appropriate growth strategies or platforms:..................10
3. Evaluating ways and means by which the chosen strategy can be monitored in order to
ensure success:..........................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
The term business strategy is used by the firm to evaluate and determine a course of
action and plans that will guide the business and its operational activities to compete in a market
with the help of its offerings in the form of products and services. In this report, an evaluation
and analysation of the internal and external environment of UK based management consultancy
firm McKinsey and Company will be done to determine the capabilities of the firm's resources.
With the help of various models and theories, the competitive advantage and position of
the firm will be analysed and justified to devise various strategies and objectives that could help
the firm in achieving the overall business goals. On the basis of above analysation, it will also be
included that what type of growth and strategic options are available to the firm that can ensure
them success in the long. McKinsey and Company being the largest consultancy firm, it is
essential to properly understand all the available resources and means to wisely choose an
effective business strategy.
PART A
1. Analysation of the company's pestle and swot analysis and evaluating the organization's
resources and capabilities in the context of the “McKinsey & company”:
Pestle analysis:
Political factors: political factors put a strong impact on the firm. The different political factors
influencing the company are political stability that provides the firm with stable business
environment (Alanzi, 2018). The other factor influencing the business is changing policies that
makes the business suffer by increasing the environmental uncertainty.
Economic factors: the understanding of the economic environment will help the firm in
estimating the growth trajectory. The factor influencing the organization is inflation rates as the
GDP growth rate will help the firm in determining the ability of the organization to pursue the
long term growth.
Social factors: the organization will derive a strong influence from societal norms. The social
factors that influences the business of the firm is demographic trends like age, migration trends
and socio-economic variables. Understanding this trends will help the business by letting it
choose the market segment with high growth rate potential.
Technological factors: the technological advancements helps in the businesses during the
strategic decision-making process. The factors that helps the business is social media marketing

it influences the business by adopting the innovative techniques to enhance the collaboration
with the customers in different ways. The shortened product life cycle is also get impacted in the
adoption of the new technologies.
Environmental factors: the growing environmental consciousness have become the important
part of the company's pestle analysis. The factors influencing the organization is recycling and
waste management and using of the renewable technologies the firm by investing in the
renewable technologies can help the firm in ensuring the long term sustainability (AKMAN,
2020).
Legal factors: in avoiding the serious troubles for the business company must study the legal
factors. The legal aspects that influence the organization is employees protection laws and
consumer protection laws. The other factor that will help the business is intellectual property
right.
Swot analysis:
Strengths of the firm:the strengths of the firm gives the competitive advantage to the firm and
works as the key aspect for the firm (Teoli, and et.al., 2019). The strengths for the company are:
 Strong legacy of the firm since 1926.
 Good brand awareness.
 Highly qualified employees from different streams.
 Wide geographic reach and presence across the globe.
 The best knowledge management system that helps in the gathering of the information.
 Company offers management consulting, research papers publication and environmental
consulting.
 Good relationship with the high levels of executives of different companies giving strong
brand loyalty.
Weaknesses of the firm: the weakness of the organization is that aspect for the firm that can be
improved to increase the position of the firm for the further enhancements. The weakness of the
company are:
 Having tough competition from the big industry consultants and from other consulting
agencies.
 As the global market holder, the business of the organization is impacted by the external
factors like governmental policies, currency fluctuation, and many more.