Paper Example on SWOT Analysis: McKinsey & Co. Assesses Strengths, Weaknesses, Opportunities & Threats

SWOT analysis of McKinsey and Company examines the company/ brand with its weaknesses, strengths, opportunities, and threats (SammutBonnici & Galea 2015). Strengths and weaknesses are the internal factors in McKinsey and Company, whereas threats and opportunities are the external factors. SWOT Analysis framework is a certified management approach that allows a brand such as McKinsey and Company to benchmark its business operations and performance as compared to industry and competitors. McKinsey and Company are among the prominent brands in the consulting and management sector. McKinsey and Company utilize SWOT analysis to analyze a company's competitive position in its business environment and take appropriate strategies to retain its position(SammutBonnici & Galea 2015). McKinsey is keenly reviewing its SWOT analysis framework and utilizing it to make a strategic decision.

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McKinsey and Company have several strengths that assist them in thriving in the market. These strengths help McKinsey to guard the market share in existing markets and also assist in penetrating new markets. One of the strengths of McKinsey and Company is a high level of customer satisfaction. McKinsey, with its dedicated customer relationship management, has enabled the Company to achieve a high level of customer satisfaction between the existing customers and good brand quality with potential customers (Ramesh 2013). Also, highly skilled human resources through successful learning and training programs and successful track record incorporating complementary firms by acquisition and mergers are the key strengths of McKinsey.

Weakness is the areas where McKinsey and Company can improve upon. This strategy analysis pertains to making choices and weaknesses are parts where a company can make the correction for improvement by utilizing SWOT analysis and create on its strategic a positioning and competitive advantage (SammutBonnici & Galea 2015). The weakness of Mckinsey and Company is stiff competition from the advanced industry consultants and knowledge consulting agencies. Also, McKinsey's business is a global player hence governed by external factors such as government policies, which is a weakness to its growth. Another weakness is that McKinsey needs to invest more in technology; thus, they have to put more funds in technology to integrate its processes across the board.

Opportunities for McKinsey and Company are the external strategic factors; hence new trends in customer behavior can create a new market for McKinsey. This is an excellent opportunity for the organization to set up new revenue streams and expand into new product categories. McKinsey could diversify from general strategy and venture into other businesses is an opportunity (Ramesh 2013). There is an opportunity for McKinsey to increase its existence online since there are a large number of internet users around the globe and utilize the internet to interact with its clients.

McKinsey and Company face threats such as changing customers' buying habits from online networks might be a threat to the contemporary physical structure are driven supply chain approach (Ramesh 2013). Also, intense competition from advance companies is a threat to McKinsey. Stable profitability has increased the player in the market hence cause a threat to McKinsey and Company. Also, the expansion of present industry experts can mitigate McKinsey's business, therefore, becoming a threat. Economic recession is a threat to McKinsey and Company since it reduces business; also, strict government policies are threats to McKinsey.

References

Ramesh, B. R. (2013). Principles of management. New Delhi: Mc Graw Hill.

SammutBonnici, T., & Galea, D. (2015). SWOT analysis. Wiley Encyclopedia of Management, 1-8.