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McKinsey & Co.-Protecting its Reputation (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of McKinsey & Co.-Protecting its Reputation (B)


On Tuesday March 15, 2011, all 1,200 global Partners of McKinsey & Co. gathered at the Gaylord National Hotel & Convention Center near Washington, DC for their annual Partners' conference. The atmosphere was tense as Partners, in addition to their normal agenda, discussed the Galleon Group insider-trading trial and the recent allegations against the Firm's former Managing Director, Rajat Gupta. Three months earlier Senior Partner, Anil Kumar, pled guilty to providing confidential information about McKinsey clients he served to Galleon Group founder Raj Rajaratnam. The McKinsey Partners were shocked and dismayed by the actions of Kumar, as well as the recent allegations against Gupta and were closely monitoring the situation. Could a former Managing Director of their Firm have conspired to enable insider trading? And if so, what did that mean for the future of the Firm?

Authors :: Jay W. Lorsch, Emily McTague

Topics :: Organizational Development

Tags :: Corporate governance, Ethics, Joint ventures, Public relations, Risk management, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "McKinsey & Co.-Protecting its Reputation (B)" written by Jay W. Lorsch, Emily McTague includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mckinsey Galleon facing as an external strategic factors. Some of the topics covered in McKinsey & Co.-Protecting its Reputation (B) case study are - Strategic Management Strategies, Corporate governance, Ethics, Joint ventures, Public relations, Risk management and Organizational Development.


Some of the macro environment factors that can be used to understand the McKinsey & Co.-Protecting its Reputation (B) casestudy better are - – increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, technology disruption, there is increasing trade war between United States & China, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, challanges to central banks by blockchain based private currencies, increasing commodity prices, etc



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Introduction to SWOT Analysis of McKinsey & Co.-Protecting its Reputation (B)


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in McKinsey & Co.-Protecting its Reputation (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mckinsey Galleon, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mckinsey Galleon operates in.

According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.




SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix


SWOT analysis of McKinsey & Co.-Protecting its Reputation (B) can be done for the following purposes –
1. Strategic planning using facts provided in McKinsey & Co.-Protecting its Reputation (B) case study
2. Improving business portfolio management of Mckinsey Galleon
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Mckinsey Galleon




Strengths McKinsey & Co.-Protecting its Reputation (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Mckinsey Galleon in McKinsey & Co.-Protecting its Reputation (B) Harvard Business Review case study are -

Organizational Resilience of Mckinsey Galleon

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mckinsey Galleon does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Ability to lead change in Organizational Development field

– Mckinsey Galleon is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Mckinsey Galleon in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

High brand equity

– Mckinsey Galleon has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mckinsey Galleon to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Successful track record of launching new products

– Mckinsey Galleon has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mckinsey Galleon has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.

Analytics focus

– Mckinsey Galleon is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Jay W. Lorsch, Emily McTague can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

Superior customer experience

– The customer experience strategy of Mckinsey Galleon in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Operational resilience

– The operational resilience strategy in the McKinsey & Co.-Protecting its Reputation (B) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.

Digital Transformation in Organizational Development segment

- digital transformation varies from industry to industry. For Mckinsey Galleon digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mckinsey Galleon has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.

Training and development

– Mckinsey Galleon has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in McKinsey & Co.-Protecting its Reputation (B) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.

Highly skilled collaborators

– Mckinsey Galleon has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in McKinsey & Co.-Protecting its Reputation (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Ability to recruit top talent

– Mckinsey Galleon is one of the leading recruiters in the industry. Managers in the McKinsey & Co.-Protecting its Reputation (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Low bargaining power of suppliers

– Suppliers of Mckinsey Galleon in the sector have low bargaining power. McKinsey & Co.-Protecting its Reputation (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mckinsey Galleon to manage not only supply disruptions but also source products at highly competitive prices.






Weaknesses McKinsey & Co.-Protecting its Reputation (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of McKinsey & Co.-Protecting its Reputation (B) are -

High cash cycle compare to competitors

Mckinsey Galleon has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

Increasing silos among functional specialists

– The organizational structure of Mckinsey Galleon is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Mckinsey Galleon needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mckinsey Galleon to focus more on services rather than just following the product oriented approach.

High dependence on existing supply chain

– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Mckinsey Galleon supply chain. Even after few cautionary changes mentioned in the HBR case study - McKinsey & Co.-Protecting its Reputation (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mckinsey Galleon vulnerable to further global disruptions in South East Asia.

Interest costs

– Compare to the competition, Mckinsey Galleon has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.

Slow to strategic competitive environment developments

– As McKinsey & Co.-Protecting its Reputation (B) HBR case study mentions - Mckinsey Galleon takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study McKinsey & Co.-Protecting its Reputation (B), is just above the industry average. Mckinsey Galleon needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mckinsey Galleon is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study McKinsey & Co.-Protecting its Reputation (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Low market penetration in new markets

– Outside its home market of Mckinsey Galleon, firm in the HBR case study McKinsey & Co.-Protecting its Reputation (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study McKinsey & Co.-Protecting its Reputation (B), in the dynamic environment Mckinsey Galleon has struggled to respond to the nimble upstart competition. Mckinsey Galleon has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

High bargaining power of channel partners

– Because of the regulatory requirements, Jay W. Lorsch, Emily McTague suggests that, Mckinsey Galleon is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.

Products dominated business model

– Even though Mckinsey Galleon has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - McKinsey & Co.-Protecting its Reputation (B) should strive to include more intangible value offerings along with its core products and services.




Opportunities McKinsey & Co.-Protecting its Reputation (B) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The opportunities highlighted in the Harvard Business Review case study McKinsey & Co.-Protecting its Reputation (B) are -

Creating value in data economy

– The success of analytics program of Mckinsey Galleon has opened avenues for new revenue streams for the organization in the industry. This can help Mckinsey Galleon to build a more holistic ecosystem as suggested in the McKinsey & Co.-Protecting its Reputation (B) case study. Mckinsey Galleon can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Low interest rates

– Even though inflation is raising its head in most developed economies, Mckinsey Galleon can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.

Building a culture of innovation

– managers at Mckinsey Galleon can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Organizational Development segment.

Use of Bitcoin and other crypto currencies for transactions

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Mckinsey Galleon in the consumer business. Now Mckinsey Galleon can target international markets with far fewer capital restrictions requirements than the existing system.

Developing new processes and practices

– Mckinsey Galleon can develop new processes and procedures in Organizational Development industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.

Better consumer reach

– The expansion of the 5G network will help Mckinsey Galleon to increase its market reach. Mckinsey Galleon will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.

Changes in consumer behavior post Covid-19

– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Mckinsey Galleon can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Mckinsey Galleon can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Mckinsey Galleon can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, McKinsey & Co.-Protecting its Reputation (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Mckinsey Galleon is facing challenges because of the dominance of functional experts in the organization. McKinsey & Co.-Protecting its Reputation (B) case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Reconfiguring business model

– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Mckinsey Galleon to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.

Identify volunteer opportunities

– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Mckinsey Galleon can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Mckinsey Galleon in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.

Learning at scale

– Online learning technologies has now opened space for Mckinsey Galleon to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.




Threats McKinsey & Co.-Protecting its Reputation (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study McKinsey & Co.-Protecting its Reputation (B) are -

Consumer confidence and its impact on Mckinsey Galleon demand

– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.

Regulatory challenges

– Mckinsey Galleon needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Organizational Development industry regulations.

High level of anxiety and lack of motivation

– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Mckinsey Galleon needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mckinsey Galleon with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Mckinsey Galleon in the Organizational Development industry. The Organizational Development industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.

Technology acceleration in Forth Industrial Revolution

– Mckinsey Galleon has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Mckinsey Galleon needs to keep up with the evolution of technology in the Organizational Development sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.

Capital market disruption

– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Mckinsey Galleon.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Mckinsey Galleon can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study McKinsey & Co.-Protecting its Reputation (B) .

Increasing wage structure of Mckinsey Galleon

– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Mckinsey Galleon.

High dependence on third party suppliers

– Mckinsey Galleon high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.

Technology disruption because of hacks, piracy etc

– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.

Easy access to finance

– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Mckinsey Galleon can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

New competition

– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Mckinsey Galleon in the Organizational Development sector and impact the bottomline of the organization.




Weighted SWOT Analysis of McKinsey & Co.-Protecting its Reputation (B) Template, Example


Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study McKinsey & Co.-Protecting its Reputation (B) needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants. We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –

First stage for doing weighted SWOT analysis of the case study McKinsey & Co.-Protecting its Reputation (B) is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.

Second stage for conducting weighted SWOT analysis of the Harvard case study McKinsey & Co.-Protecting its Reputation (B) is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.

Third stage of constructing weighted SWOT analysis of McKinsey & Co.-Protecting its Reputation (B) is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Mckinsey Galleon needs to make to build a sustainable competitive advantage.



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