Business Strategy of McKinsey & Company: Analysis and Recommendations

Unit 32 Business Strategy

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Pestle analysis for determining external environment:................................................................3
Swot analysis for determining internal environment:..................................................................5
Porter's five forces model analysis:.............................................................................................6
VRIO analysis for identifying the firm's competitive advantage:...............................................8
Valid strategies and tactical objectives to achieve overall strategic objectives:........................10
PART B..........................................................................................................................................10
Evaluating the strategic directions available to company:.........................................................10
Recommendations to organization.............................................................................................12
Ways and means by which the chosen strategies can be monitored in order to ensure success12
CONCLUSION..............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Business strategy as understood is a set of rules and regulations a company follows to
attain the different strategic plans for the achievement of organizational goals. The management
of a company utilizes the plan in order to carry out its operational activities smoothly in the
range of its competitors' course of actions and to satisfy the end consumers by establishing
themselves in the market industry.
In this particular brief, the business strategy and the strategic management plan of a
London based company named McKinsey & Company will be studied. The referred company
has always been the most trusted option in the field of management planning and consultancy for
its potential customers and it invests in developing their skills and strives to be the growth
indicator of the clients. The report will also include how the external environment affects a firm's
business operations and strategic management decisions. Further, there will be a critique
analyses of environmental and competitive nature in the context of objectives and tactical actions
of the firm by applying relevant theories and business models.
PART A
Pestle analysis for determining external environment:
1. Political Factors:
The influence of the recognized statuaries and their support resulted in the growth and
expansion of the firm in the global market and they also enjoy the government stabilization in
their overall operations (Kumar. and et.al. 2021.).
Considering the trade relations of the firm, it relishes the fact that the government and the
legal factors are always in its favour and amidst these, the firm can negotiate freely in the global
market.
2. Economic factors:
The firm has the benefit of a moderate inflation rates which help them to grow their
business operations and attracts more consumers by pleasing them in their most productive way.

As a result it benefits the firm in financial aspect such as in borrowing from any financial
institution and with the growing profitability and the recognition, this can increase the economy
of the nation (PESTLE ANALYSIS. 2022).
3. Social Factors:
The social factors affect the firm in many ways such as education, demographics, etc.
The firm has to take extra acre of these factors as it depend on the consumers and can determine
their profitability and survival in the long run.
It is already a known fact that for a large target population to be influenced, the firm has
to operate its activities in accordance with their standard of living.
4. Technological Factors:
The technology and innovation (Herman. Hady. and Arafah 2018.) in London is
magnificent due to their continental advantage. In such a case, it becomes essential for a firm to
adopt various measures that can help them differentiate from its competitors and can highlight
their competitive advantage.
High network connectivity with the global market is a perk for the firm in order to market
and promote the business activities undertaken.
5. Environmental Factors:
Nowadays, there is an increased and growing concern on the environmental factors and
for the firm to mark its hard own reputation in the market it has to operate according to the
norms of the environment.
Since the consumers are getting more aware of the recycling process and other factors
included, it becomes essential to opt for several measures which can assure an environment
friendly operations.
6. Legal Factors:
For any human life, the safety and security is the foremost in any context. So is for the
consumers of McKinsey & Company. The firm therefore understands the importance of business
regulations and legal factors of the employment. The human resource department makes relevant
policies for the workforce which further helps in gaining end consumers.