Background and Context
In the modern world’s business environment, there is high competition between organizations because of rapid developments in the global market structure (Steers and Nardon 12). Therefore, there is need to structure the management component of any business organization properly to ensure increased productivity, sustainability, and competitive advantage. It is important to note that regardless of the business type, leadership and management of any business play a central role in achieving its objectives and goals (Kaplan et al. 4). Looking at the McKinsey & Company’s progress since its birth will ensure a comprehensive understanding of the management aspect of the business especially from a global perspective.
McKinsey & Company was founded in the year 1926 by Professor James McKinsey of University of Chicago (“McKinsey & Company” 1). The key aim of the company’s founder was to enhance accounting and engineering fields through development of professional advisors and managers capable of successfully leading any business organization to success. The company bears his name thanks to his efforts for ensuring nurturing and development of leaders and managers who are focused towards the global market.
Company, Industry and Product Information
McKinsey & Company is a training business organization that aims at developing professional managers and leaders in the accounting and engineering fields. The business operates in the service provision industry and assumes the nature of a training institute whereby expert leaders and managers are trained. It trains leaders who have an international business orientation to ensure alignment with the technological innovations and developments witnessed in the modern world. Additionally, the company has produced various expert managers and leaders who have achieved great successes with their companies.
McKinsey & Company’s business situations range from production, management, and sustainability. All the situations have played a key role in enhancing continuous development through learning and adoption of effective strategies and approaches to the overall success. For example, the company has made various management changes since its birth, and the changes have proved effective. The changes were aimed at ensuring diversity and improved delivery of services alongside the consideration of the global business environment (Chaffey 4). Additionally, it is important to note that rapid changes in technology have speculated miscellaneous changes in the company to ensure a competitive advantage. Therefore, business situations of the company have been used as learning opportunities that have ensured sustainability of the company to date.
Issues and challenges
Like any other normal business organization, McKinsey & Company has faced various issues and challenges in the delivery of services since the year of 1926. First, there have been witnessed management issues in the company. The company has changed its executive leaders a couple of times to ensure efficiency and reliability of the management business concept. Secondly, development of other companies that offer similar services has posed challenges for the business as it requires an innovative approach to guarantee competitive advantage. Additionally, changes in the rules and guidelines for all global business organizations have led to restructuring vital organizational functionalities hence an adoption challenge for the business.
Data and Figures
McKinsey & Company has been a leading business organization that has witnessed increased revenue incomes, as well as growth in different capacities. The following table shows the business developments between 1995 and 1975.
Background Information Necessary to Understand and Present the Case
McKinsey & Company is a mature business that has thrived over years from the year 1926. Through innovations, effective management, and client-oriented perspective, the company has sustained its operations into the modern world’s business environment. It is important to note that the company’s operation aims at the global economy hence provides skills and expertise in that direction. Therefore, the company has thrived due to its ideological considerations, and if the trend is continued, sustainability and overall success will be the outcomes both in the current and future business worlds.
Evaluation of Data and Information Given By Facts
According to the evidence-based data and information about McKinsey & Company, it is clear that the company has witnessed continuous development from its birth. As shown in the table above, the growth indicators have continuously demonstrated improvements hence the overall growth of the company. Secondly, the company has elaborated essential guidelines and principles pertaining to different management and organizational aspects. For example, a number of guiding principles for the company were developed with an objective of creating a business culture that enhances productivity and effective business functionality. Additionally, the company has created a network for all the clients, which ensures communication and sharing of ideas within the organization. The move has enhanced innovation and continuous production of expert and professional managers who embrace diversity and apply technological approaches and strategies necessary for success.
Three Solid Recommendations
Three solid recommendations should be considered by the company if it aims for further success. First, embracing technology is an effective way of maintaining competitive advantage alongside obtaining a large market base. Therefore, the company should consider online advertisements as well as adoption of modern technological applications, a move that will enhance growth and development of the business globally (Wheelen and Hunger 5; Steers and Nardon 12, 27). Secondly, the company can witness growth and development by incorporating other services and products. Through an effective market research, the company will know the product gap in the modern market and then take an initiative to incorporate the product or service into the business. The move will guarantee its overall growth and success in the modern and future business environments. Finally, it is important to ensure that the workforce has the knowledge and skills required in the modern world’s business environment. Therefore, continuous training of the workforce is necessary for reliability and efficiency of the company.
Leadership and management are key aspects in any business organization. Through effective management, any particular business organization can thrive and grow especially in the modern business environment. McKinsey & Company is a business that aims at developing professional and skilled leaders and managers in the accounting and engineering aspects. Through effective management with a global perspective, the company has witnessed rapid growth and sustainability since its birth in 1926. Various changes have been made in the business to ensure efficiency and reliability. It is important to note that the modern business environment requires a global economy perspective for overall success. Therefore, McKinsey & Company is an example of a modern company that can be used to learn and understand the importance of effective management alongside the need for a global economy perspective in the modern business management aspect.
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Works Cited Chaffey, Dave. E-business and E-commerce Management: Strategy, Implementation and Practice. Pearson Education, 2007. Kaplan, Robert S., et al. The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment. Harvard Business Press, 2001. “McKinsey & Company. Managing Knowledge and Learning.” Harvard Business School, pp. 1-20. PDF. Steers, Richard, and Luciara Nardon. Managing in Global Economy. Routledge, 2006. Wheelen, Thomas L., and J. David Hunger. Concepts in Strategic Management and Business Policy. Pearson Education India, 2011.