Assessing Strategy of McKinsey and Company

BSc (Hons) Business Management Top up
BMP6002
Strategic Management
Strategy Evaluation
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Executive Summary
This report helps to assess the strategy which are made by a retailer organization
McKinsey and company, by applying several strategic analyze tools which are suitable for
the strategic management of a company. Strategic management is very essential for each and
every company in order to manage the operations of the organization in a planned manner. It
helps to analyze the internal as well as external environment of the business which affects the
decision making in McKinsey and company.
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Table of Contents
Introduction................................................................................................................................3
Main Body..................................................................................................................................3
A critical evaluation of the value of clear purpose, vision, mission and objectives in setting
the strategic direction of organizations..................................................................................3
Assess the competitive advantage of McKinsey and Company, using the VRIO framework
................................................................................................................................................4
Using PESTLE framework analyzing the external environment of McKinsey and Company
................................................................................................................................................6
Application of the Porter’s Five Forces Model for McKinsey and Company.......................8
A review of the organization’s strategy of McKinsey and Company....................................9
Conclusion..................................................................................................................................9
References................................................................................................................................10
Books and Journals..............................................................................................................10
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Introduction
Strategic management refers to the continuous planning of operations, monitoring them and
analyzing them to assess all the requirements of an organization in order to meet the goals
and objectives (Dodgson, 2020). To become successful in the market, it is very essential for
an organization to assess the changes in the business environment and accept it in their
strategies. Mckinsey & company is a multinational organization which deals in Management
consulting. The company was founded in 1926 by the professor of University of Chicago
James O. McKinsey. This report contains the value of clear purpose, vision, mission and
objectives of an organization to set the strategic direction. It also contains the external
environment and competitive advantage which has gained by McKinsey and company in the
market. For the above Porter’s five Force model has been used to assess the external
environment of McKinsey and company. This report also reviews the business strategy of
McKinsey and company which helps the company to achieve great success.
Main Body
A critical evaluation of the value of clear purpose, vision, mission and objectives in
setting the strategic direction of organizations
Strategic management is a continuous process which helps in organization to meet its goals
and objectives. The strategy used by any business is the sole reason for the success of a
business in simple way it is the action which has been taken by an organization to achieve its
goals and influence each and every decision which has been made in a business in various
circumstances. In order to formulate a good business plan or a strategy it is essential that an
organization have a clear purpose or goal of setting up a business. This will help the
organization to formulate strategy in the direction. Organizational goals are those business
strategic objectives which defines the purpose of an organization. In case of McKinsey and
company, the organizational goals the strategic targets which the company wants to attain in
a period of time which is generally long term (Maijanen, 2020). These goals help the
McKinsey and company to direct the behavior of their employees as well as operations of the
business in short run of business. These goals are later divided in objective of organization.
These organizational objectives can be short to medium term target which are set by an
organization to attain largest letter g goals which are set earlier. The objective which are set
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