Strategic Management: Mckinsey & Company

Strategic Management

TAB LE OF CONTENTS
Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Purpose, Vision, Mission and the Objectives of the Mckinsey & company...............................1
Assessing the Competitive advantage by evaluating the four attributes with the help of VRIO
framework....................................................................................................................................2
PESTLE framework to analysis the external environment of the Mckinsey & company..........5
Porters five force model for assessing the competitiveness of an organisation..........................6
Review the organisation strategy.................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic management is an ongoing management process of the organisation resources for
planning, monitoring, analysis and assessment to needs to achieve organisation goals and
objectives. It involves setting the objectives, analyse internal organisation, its competitive
advantage, evaluating the strategies and assure that the strategies will roll out in the management
of the organisation (Strategic Management, 2021). Mckinsey & company is a management
consulting firm founded in 1926 by James O. Mckinsey. Mckinsey is the placed as a third largest
company for the strategy consulting firm by revenue and also the oldest and the largest in the
“Big Three” management consultancy. In this report discussed about the vision, mission, purpose
and the objectives of the Mckinsey, assessing the competitive advantage of the firm with the help
of VRIO framework, analyse the external environment of the business with the help of PESTLE
Analysis, Porters five force model of the organisation is analysed and the organisation strategy is
reviewed.
MAIN BODY
Purpose, Vision, Mission and the Objectives of the Mckinsey & company.
Value
Mckinsey is a value driven organisation. Its values are updated in short ways to adapt the
changing times. Its value reflect the both their long term strategy and the way to serve the clients
on the daily basis.
Purpose
Purpose of the organisation is a reason of the organisation exists. It is easy to understand
and manage and helps the employees to understand the direction of the organisation. Purpose of
the Mckinsey is to create the positive impact and be long lasting in the ever changing world
(Haski-Leventhal, 2020). Company purpose is embed to deliver the values with the help of its 5
Ps set the organisation that is-
 Portfolio strategy and products
In this the products are redefined with by introducing or withdrawing the
products. Revising the pricing of the product to line the purpose and review the portfolio
and test all the assets that have purpose against common criteria.
 People and culture
1

To enable the purpose the development process of the people, career pathways
and the recruitment is align. Define the key performance indicator for the employee’s
accountability and give incentives to meet the target (Jayne, 2018). Articulated the
desires in the mindsets and behaviours of the individual to link with the purpose.
 Process and system
To meet the purpose related target company adopts the operational processes. The
behaviours of the suppliers are align with the purpose.
 Performance metrics
According to the purpose the performance targets and metrics are align. For the
decisions that are in line with the purpose capital allocation metrics is introduced.
 Positions and engagement
To align the purpose the Mckinsey & company tailor the external engagement and
the communication and revise the external position of the company and align
affiliation like trade association membership.
Mission
Mission statement of the organization defines the reasons and exists of the organization.
It’s a precise statement of the company that gives the purpose to the people to excite about the
company and motivate them to become the part of the organization. The mission of the Mckinsey
is to help their clients and make different, everlasting and substantial improvement in the client’s
performance and helps to build the attractive, developing and the exciting firm that retains the
exceptional people.
Objective
Organizational objectives are set by the organization reach the strategic goals short or
medium goals are set. It helps to set the organizational policies and the allocation of the
resources. Mckinsey objectives are to create the best strategies that fit the organizational goals
and the clients feel positive towards the organization and help to achieve the short goals.
Assessing the Competitive advantage by evaluating the four attributes with the help of VRIO
framework.
VRIO framework is a strategic tool designed to helps the organisation to protect its
resources and capabilities that impacts on its long term competitive advantage (Murcia, 2020).
2