Strategic Management: Evaluation of Purpose, Mission, Vision and Objectives in Organizations

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION.................................................................................................................................3
TASK1..................................................................................................................................................3
Draw a critical evaluation about the value of purpose, Mission, Vision and Objectives in setting the
strategic direction of organizations. Use examples from selected organization to explain the views
you put forward.................................................................................................................................3
TASK 2.................................................................................................................................................5
Assess the competitive advantage of the organization chosen using the four attributes under the
VRIO framework...............................................................................................................................5
TASK 3.................................................................................................................................................6
Analyse the external environment of McKinsey and Company using the PESTLE Analysis............6
TASK 4.................................................................................................................................................7
Analyse the competitiveness of the organization McKinsey and Company with the help of Porter’s
Five forces Model..............................................................................................................................7
TASK 5.................................................................................................................................................9
Review the organizational strategy of McKinsey and Company on the basis of the analysis............9
CONCLUSION...................................................................................................................................10
REFERENCES....................................................................................................................................11

INTRODUCTION
Strategic management is referred to a continuous process which involves planning,
monitoring, analyzing and assessing the needs of an organization which are required to
achieve the aims and objectives of the organization. Changes in the business environment
emphasizes on the organization to assess and formulate their strategies as per the latest
requirements in order to achieve success. The process of Strategic management helps the
organization to analyze the present scenario in the organization, formulate strategies and
further implement them. After the implementation of strategies the effectiveness of the
management strategies is calculated. There are basically five phases of strategic management
which are- Assessment of the organization’s present strategies, Identification and analysis of
the internal strengths and weaknesses along with external strength and weakness,
Formulation of strategies, Execution of strategies and Evaluation of the effectiveness of the
strategies and planning changes in case the deviations occur.
McKinsey London is a London based consultancy firm which helps leading
companies, various social sector organizations and public sector bodies in the UK. The
organization supports various initiatives and Not-for- Profit organizations. The organization
takes interest in the youth entrepreneurship, education, unemployment and women’s
leadership opportunities. McKinsey is among the top consulting firms with more the 50 years
of experience in London. The study revolves around the strategic management of McKinsey
and Company.
TASK1
Draw a critical evaluation about the value of purpose, Mission, Vision and Objectives in
setting the strategic direction of organizations. Use examples from selected organization to
explain the views you put forward.
The strategic planning refers to implementing changes in the organization to meet up
with the current scenario. Few plans are formed according to the requirement of the
organization that facilitates it to move in a specific direction whereas some plans take place
naturally. Purpose, Mission and Vision statements are crucial in order to communicate the
aims and objectives (Bettis and et.al, 2015).
Role of Purpose- Purpose helps in defining the reason behind the existence of an
organization. The businesses which have a pre-determined purpose tend to be committed
towards achieving huge profits and shareholder value. These organizations deliver impact to
a broader community rather than just customers, employers or shareholders. These type of
organizations have a positive impact on the society as they provide a more ethical and
sustainable environment (Bindra, Parameswar,. and Dhir, 2019).
Role of the Mission statement- The Leaders must focus on the current mission statement to
the employees as per the scenario. This clarifies the purpose of the organization along with
the primary objectives of the organization. A mission statement is drawn for employees and

the leaders of the organization. Strategic plans may involve changing the mission statement in
order to reflect a new direction to the organization. The mission statement highlights the
benefits of the changes and minimizes the deficits this helps the employees and the public to
cope up with the changes. A mission statement describes the company’s mission for the
current situation and for the coming future. So in case the organization undergoes major
changes then the first priority of the organization must be to revise its statement of mission.
Role of Vision Statement- Vision statement helps to describe the purpose of the
organization. This helps in providing direction for employee behaviour and helps in
providing inspiration. A strategic plan might require a marketing strategy which includes a
vision statement that helps in inspiring consumers to work with the organization. A vision
statement provides a view into the future through a hope and positive outlook. This describes
the organization’s inspirational and long tern plan which they would accomplish. The vision
statement of an organization provides a description to everyone about the goal they are
working towards (Dyer and et.al., 2017).
Purpose, Mission and Value statement of McKinsey and Company
Purpose
The purpose of McKinsey and Company is enumerated below
“To help create positive, enduring change in the world.”
Mission
The Mission Statement of McKinsey and Company is explained below-
“To help the clients make distinctive, lasting and substantial improvements in their
performance and to build a great firm that attracts, develops, excites and retains exceptional
people.”
Values
The values of McKinsey and Company are discussed below-
 Sticking to the highest professional standards
McKinsey treats customer interests as priority in terms of the organization’s interests
(Frynas and Mellahi, 2015). The organization aims to set high standards and provide
better conditions for customer service. They monitor high ethical standards and aim to
preserve customer confidences while maintaining an independent position. It helps to
manage client and firm resources in a cost effective manner.
 Up grading Client performance in a significant manner.
McKinsey follows the top management techniques and pursue a comprehensive
impact. The organization uses global network to deliver the best of the firm to all the
clients and introduces innovations in management practices to clients along with
building an enduring relationship through trust.
 Creating an unrivalled environment for exceptional people.