McKinsey & Company is a global management consulting firm founded in 1926. It helps clients address their most important problems and has helped create innovations like the barcode. McKinsey uses various frameworks to analyze companies and industries, develop strategies, and advise on digital transformation. Some key clients include Coca-Cola, Microsoft, and the Bill & Melinda Gates Foundation. McKinsey's main competitors are Boston Consulting Group, Deloitte, and Bain & Company.

1. McKinsey & Company

2. INTRODUCTION
 The McKinsey Way is a book authored by Ethan M. Raisel which was published in
the year 1999 (Rasiel).
 The book has offered timeless insights about the consulting firm that is relevant
even after 24 years.
 In this presentation, we will look into the McKinsey Way and how they have
managed to be the best in the field of management.

3. WHO IS MCKISNEY
 McKinsey & Co. is a global management consulting firm that offers services to
organizations and government.
 It was founded in 1926 by James O. McKinsey who was a professor of the
university of Chicago.
 It is the largest of the Big Three management consultancies
 Its core work includes finance and operations

4. HOW HAS THE COMPANY EVOLVED?
 The firm started as a partnership but they restructured as a private entity.
 A unique strategy is that they follow the structure of the partnership and the
employees are considered as partners.
 The various scandals in McKinsey has been an eye opener for the orgnaisation
and they aim to adopt sustainable approaches keeping in mind the employee
welfare

5. DOMAIN OF MCKINSEY
 The firm focuses on marketing through magazines, books and scholarly articles.
 They try to create informal contacts with organizations who could be potential
clients.
 They handle projects who has a full team of consultants appointed
 They spend a major portion of their time in preparing presentations, charts and
exhibits

6. SWOT ANALYSIS
 Strengths: Mckinsey has a strong reputation to boast. They offer high quality
services and ensures maximum client satisfaction
 Weakness: They are highly dependent on consultation. They also have a high
employee turnover
 Opportunities: They can opt for acquisitions and mergers to increase their base all
over the world.
 Threats: They face cutthroat competition from BCG and other consulting
companies. Their ongoing controversies put a dent in their global image.

7. SWOT ANALYSIS

8. WHY IS MCKINSEY ONE OF THE MOST
POWERFUL?
 In 1970, McKinsey helped create the barcode (Rasiel).
 They are always at the forefront when it comes to solve the most pressing global
issues.
 They have a unparalleled alumni network
 The McKinsey clients are all conglomerates that are satisfied with the services
offered.
 The various scandals like Enron Collapse and linkage of McKinsey with an alleged
insider trader Rajat Gupta has not been able to create a dent in its image

9. PORTERS FIVE FORCES
 Threat of New Entrants: Its not easy to achieve economies of scale in consulting
industry. Hence the threat of new entrants is less.
 Bargaining Power of suppliers: There are a huge number of suppliers in this
industry. This makes the bargaining power of suppliers less.

10.  Bargaining Power of Buyers: Similarly to the previous force, due to a huge number
of buyers, the buyers are less price sensitive and hence the bargaining power is
less (Compete to Win)
 Threat of Substitute: The substitute of consulting is less. To achieve a high level of
deliverables, the consumers opt for the best and hence the threat of substitute is
less
 Competition: The competitors are comparatively high these days as high
performers in this industry has increased. This makes the rivalry high

11. PESTLE ANALYSIS
 Political factors: Political factors like high level of taxation, intellectual property
rights infringements may be integral.
 Economic Factors: The efficiency of the financial markets should be analysed
before the company expands. The revenue growth of McKinsey can be directly
affected if the country has a low economic growth rate
 Social factors: McKinsey should analyse the consumption pattern of their
consumers along with degree of ethnocentrism.

12.  Technological Factors: McKinsey should consider the technological environment.
Countries with a knack for technological innovation will be a fruitful opportunity for
the company to expand.
 Environmental factors: Adopting responsible strategies to ensure full compliance
with the national and international standards would be required.
 Legal factors: Big firms like McKinsey are always on the radar of social and
political activism. They should ensure that their workplace is non-discriminatory
and that all the data protection compliance are being done.

13. DIGITAL TRANSFORMATION
 McKinsey has developed a digital transformation framework known as 4Ds
 The first stage involves the companies to discover optimum strategy
 The second stage is all about designing the customer experience (Compete to
Win)
 The third stage involves the network partners and delivering the experience
 The fourth stage calculates risk and eliminates them.

14. COMPETITORS
 The top Competitors of McKinsey are as follows:
 Deloitte
 Accenture
 PwC
 Ernst and young
 Boston Consulting Group
 KPMG
 Bain & Company
 Oliver Wyman
 Goldman Sachs

15. COMPARISON
 When it comes to product quality, consumers tend to gravitate towards Bain & Co
more than McKinsey.
 The pricing point of McKinsey is quite high and competitors like Oliver Wyman,
BCG offers similar services at lesser price.
 The consumer service of other competitors like BCG, Oliver Wyman, Bain & Co is
better than McKinsey.

16. COMPETITIVE ANALYSIS
 The management consultancies experience intense rivalry.
 McKinsey faced stiff competition from Boston Consulting Group and to counter the
same, they followed the 2X2 matrix developed by BCG
 They developed a 3X3 matrix to analyse the strategy of the business.
 They combine the attractiveness of the industry with the competitiveness .

17. MCKINSEY 7S MODEL
 The McKinsey 7S model combines Soft Ss and Hard Ss revolving around shared
values.
 This framework suggests that there are 7 internal factors that should be aligned
 The seven factors are :
 Strategy
 Structure
 Systems
 Shared Values
 Skills
 Style
 Staff

18. HOW IS THE 7S MODEL IMPLEMENTED
 To implement the 7s model, it is essential to brainstorm the present scenario by
analysing the 7 elements
 The organisations need to set goals and action plan
 Any misalignments should be identified and hence the action plan should
incorporate the realignment strategy
 The action plan is then executed with constant review

19. CLIENTS
 The clients of McKinsey are often Fortune 1000 Companies.
 At present, the clients of McKinsey include Coca Cola, Microsoft, US Department
of Energy, Bill and Melinda Gates Foundation to name a few.
 Coca Cola underwent a massive change by adopting McKinsey strategy under
their guidance (Belluz and Buissonniere).
 They established a digital academy so as to provide an upgradation of skills to
their managers.

20.  Since 2020, Microsoft has collaborated with McKinsey to de-risk the clients
 Microsoft has utilised the digital transformation of McKinsey to redesign their entire
business process (Belluz and Buissonniere).
 The technology transformation has been at the forefront especially during Covid-19
pandemic

21.  The Bill & Melinda Gates foundation aimed to eradicate poverty worldwide.
 McKinsey has conducted investigations for the foundation to analyse the situation
worldwide (Channon et al).
 The firm has been at the forefront in devising a response to outbreaks like Zika,
Ebola, Mers.

22.  McKinsey has worked with public sectors like WHO, Vaccine Alliance to expand
the access of healthcare worldwide.
 The other clients of McKinsey includes:
 Blue Cross Shield of Michigan
 Loblaws
 Best Buy
 National Resources Defense

23. USE CASE-1
 Beautify is a global company that sells its products only in high end shops like
Harrods and through online retailer Sephora.
 The company hire beauty consultants who connect with consumers in order to
provide world class services.
 They were faced with a problem of managing the consultants as they had not paid
much attention on the training.

24.  Beautify engaged McKinsey to help evaluate whether any training would be helpful
or not
 Their real problem lied in the amalgamation of those consultants for their in-store
experience and also virtually
 McKinsey helped Beautify to strategize some factors that would help them
overcome this problem

25.  As per McKinsey, the retailer response should be recorded to assess the majority
of the consumers who would prefer buying from the website and not from the
store.
 An analysis of competitors in terms of adoption of virtual assisstants were also
done.
 The current skill set of their beauty consultants were assessed. Consultants who
already had a social media presence were asked to retain

26.  The action was effective as Beautify retained most of the consultants having
experience in social media thereby reducing training costs.
 McKinsey suggested the best possible strategy so that the costs are managed as
well the outcomes are maximised.
 Beautify learnt that its essential to analyse the present situation before option for a
strategy that can cause considerable costs

27. USE CASE-2
 The Bill & Melinda Gates foundation works for rural regions to counter the poverty
 They had approached McKinsey to design them a financial service plan for the
residents at Mexico
 The problem here was that they didn’t know how to get it done.

28.  McKinsey researched and discovered that Diconsa is a government operated
chain that distributes neccesities to its people.
 These stores have a central and regional supply chain management that has a
seamless distribution system
 McKinsey conducted research on the viability of the Diconsa chain for providing
financial services by analysing the risks and other factors

29.  McKinsey suggested the Foundation to go ahead with Diconsa and they launched
their program across 22,500 stores (Bill & Melinda Gates Foundation).
 The action plan was proven effective as it was able to improve the quality of life in
Mexico
 The strategy was useful and they learnt that management consultancy goes a long
way in formulating suggestions

30. CONCLUSION
 McKinsey has a global footprint and is continuously expanding
 The most powerful of the initiatives by the companies are the brainchild of
McKinsey (Bill & Melinda Gates Foundation).
 By analysing the strengths of McKinsey and its various use cases we have been
able to conduct an in-depth research.

31. REFERENCES
 Belluz, Julia, and Marine Buissonniere. “How Mckinsey Infiltrated the World of Global
Public Health.” Vox, Vox, 13 Dec. 2019, https://www.vox.com/science-and-
health/2019/12/13/21004456/bill-gates-mckinsey-global-public-health-bcg.
 Channon, Derek F., and Adrián A. Caldart. "McKinsey 7S model." Wiley encyclopedia of
management (2015): 1-1.
 “Diconsa to Offer Financial Services in Rural Mexico.” Bill & Melinda Gates Foundation,
https://www.gatesfoundation.org/ideas/media-center/press-releases/2009/09/diconsa-
to-offer-financial-services-in-rural-mexico.
 “McKinsey Matrix: Compete to Win.” Compete to Win | World Class Know How, 11 June
2020, http://www.competetowin.co.uk/know-how/strategic-planning/mckinsey-matrix/.
 Rasiel, Ethan M. The McKinsey Way. New York: McGraw-Hill, 1999.