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McKinsey & Co. (A)--1956 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of McKinsey & Co. (A)--1956


Professional service firms, in law, accounting, advertising, consulting, and so on are ubiquitous and relatively easy to start. Few firms, however, gain scale or permanence. This case explores the reasons behind McKinsey & Co.'s exceptional success in building a prestigious, global institution and the role played by its leader in making it so. May be used with McKinsey & Co. (B)--1966. Describes many interrelated strategic, organizational, and governance issues facing the partners of McKinsey & Co. in 1956.

Authors :: Amar V. Bhide

Topics :: Innovation & Entrepreneurship

Tags :: Entrepreneurial management, Leadership, Motivating people, Organizational culture, Organizational structure, Strategy, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "McKinsey & Co. (A)--1956" written by Amar V. Bhide includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mckinsey 1956 facing as an external strategic factors. Some of the topics covered in McKinsey & Co. (A)--1956 case study are - Strategic Management Strategies, Entrepreneurial management, Leadership, Motivating people, Organizational culture, Organizational structure, Strategy and Innovation & Entrepreneurship.


Some of the macro environment factors that can be used to understand the McKinsey & Co. (A)--1956 casestudy better are - – cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , wage bills are increasing, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, etc



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Introduction to SWOT Analysis of McKinsey & Co. (A)--1956


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in McKinsey & Co. (A)--1956 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mckinsey 1956, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mckinsey 1956 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. (A)--1956 can be done for the following purposes –
1. Strategic planning using facts provided in McKinsey & Co. (A)--1956 case study
2. Improving business portfolio management of Mckinsey 1956
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Mckinsey 1956




Strengths McKinsey & Co. (A)--1956 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Mckinsey 1956 in McKinsey & Co. (A)--1956 Harvard Business Review case study are -

Training and development

– Mckinsey 1956 has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in McKinsey & Co. (A)--1956 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.

Successful track record of launching new products

– Mckinsey 1956 has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mckinsey 1956 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.

Diverse revenue streams

– Mckinsey 1956 is present in almost all the verticals within the industry. This has provided firm in McKinsey & Co. (A)--1956 case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.

Learning organization

- Mckinsey 1956 is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Mckinsey 1956 is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in McKinsey & Co. (A)--1956 Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Ability to lead change in Innovation & Entrepreneurship field

– Mckinsey 1956 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 1956 in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Strong track record of project management

– Mckinsey 1956 is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Ability to recruit top talent

– Mckinsey 1956 is one of the leading recruiters in the industry. Managers in the McKinsey & Co. (A)--1956 are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Innovation driven organization

– Mckinsey 1956 is one of the most innovative firm in sector. Manager in McKinsey & Co. (A)--1956 Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Highly skilled collaborators

– Mckinsey 1956 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. (A)--1956 HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Sustainable margins compare to other players in Innovation & Entrepreneurship industry

– McKinsey & Co. (A)--1956 firm has clearly differentiated products in the market place. This has enabled Mckinsey 1956 to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Mckinsey 1956 to invest into research and development (R&D) and innovation.

High brand equity

– Mckinsey 1956 has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mckinsey 1956 to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Cross disciplinary teams

– Horizontal connected teams at the Mckinsey 1956 are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.






Weaknesses McKinsey & Co. (A)--1956 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of McKinsey & Co. (A)--1956 are -

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study McKinsey & Co. (A)--1956, is just above the industry average. Mckinsey 1956 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.

Capital Spending Reduction

– Even during the low interest decade, Mckinsey 1956 has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mckinsey 1956 is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study McKinsey & Co. (A)--1956 can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Workers concerns about automation

– As automation is fast increasing in the segment, Mckinsey 1956 needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.

Low market penetration in new markets

– Outside its home market of Mckinsey 1956, firm in the HBR case study McKinsey & Co. (A)--1956 needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Need for greater diversity

– Mckinsey 1956 has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.

Interest costs

– Compare to the competition, Mckinsey 1956 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.

Aligning sales with marketing

– It come across in the case study McKinsey & Co. (A)--1956 that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case McKinsey & Co. (A)--1956 can leverage the sales team experience to cultivate customer relationships as Mckinsey 1956 is planning to shift buying processes online.

Skills based hiring

– The stress on hiring functional specialists at Mckinsey 1956 has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.

Products dominated business model

– Even though Mckinsey 1956 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. (A)--1956 should strive to include more intangible value offerings along with its core products and services.

High operating costs

– Compare to the competitors, firm in the HBR case study McKinsey & Co. (A)--1956 has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Mckinsey 1956 's lucrative customers.




Opportunities McKinsey & Co. (A)--1956 | 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. (A)--1956 are -

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 1956 can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Low interest rates

– Even though inflation is raising its head in most developed economies, Mckinsey 1956 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.

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 1956 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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Mckinsey 1956 in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.

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 1956 in the consumer business. Now Mckinsey 1956 can target international markets with far fewer capital restrictions requirements than the existing system.

Manufacturing automation

– Mckinsey 1956 can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.

Buying journey improvements

– Mckinsey 1956 can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. McKinsey & Co. (A)--1956 suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mckinsey 1956 to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Mckinsey 1956 to hire the very best people irrespective of their geographical location.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Mckinsey 1956 is facing challenges because of the dominance of functional experts in the organization. McKinsey & Co. (A)--1956 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.

Developing new processes and practices

– Mckinsey 1956 can develop new processes and procedures in Innovation & Entrepreneurship 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.

Building a culture of innovation

– managers at Mckinsey 1956 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 Innovation & Entrepreneurship segment.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mckinsey 1956 can use these opportunities to build new business models that can help the communities that Mckinsey 1956 operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.

Loyalty marketing

– Mckinsey 1956 has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.




Threats McKinsey & Co. (A)--1956 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. (A)--1956 are -

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study McKinsey & Co. (A)--1956, Mckinsey 1956 may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .

Aging population

– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.

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 1956.

Increasing wage structure of Mckinsey 1956

– 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 1956.

Environmental challenges

– Mckinsey 1956 needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Mckinsey 1956 can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.

High dependence on third party suppliers

– Mckinsey 1956 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.

Shortening product life cycle

– it is one of the major threat that Mckinsey 1956 is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Regulatory challenges

– Mckinsey 1956 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 Innovation & Entrepreneurship industry regulations.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Mckinsey 1956 in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship 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.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Mckinsey 1956 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. (A)--1956 .

Technology acceleration in Forth Industrial Revolution

– Mckinsey 1956 has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Mckinsey 1956 needs to keep up with the evolution of technology in the Innovation & Entrepreneurship 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.

Stagnating economy with rate increase

– Mckinsey 1956 can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.




Weighted SWOT Analysis of McKinsey & Co. (A)--1956 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. (A)--1956 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. (A)--1956 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. (A)--1956 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. (A)--1956 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 1956 needs to make to build a sustainable competitive advantage.



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