Mckinsey Analysis

McKinsey Case Analysis

Questions to answer:

* What are the strengths to build on?

* Should the firm continue its trajectory on its growth trajectory?

* Were the values developed under Bower’s stewardship still valid?

* What need to change and what needed to remain unchanged?

SWOT Analysis:

Strengths:

* Bower Core Values

* Client Service approach not just advice but effective implementation and “trust” (PG 4)

* Professional brightest recruits from top MBA programs, promotion system (Partnership) vested interest, Management structure (PG 5) up or out policy

* Innovation

* De-emphasis of hierarchy groups working together

* Consideration fo team environment

* Mentorship Program

* Alumni in business

* Internal strategy to create more cohesiveness, unwilling to fire workers

* Strong emphasis on continual knowledge growth

* Strong earnings ($3.4 B)

* Private Partnership

* Long tenured clients and solid reputation (History)

* Growth trajectory, especially in emerging markets

Weaknesses:

* Exposure to Dot Com burst of 2001

* Enron ruined credibility

* Many clients went bankrupt Did they give adequate, tough advice? NO

* Took fees, not necessarily focus on capital/financial structure

* Negative growth rate (-3%)

* Asked partners for $200,000 to raise capital Unusually high for the year from 891 partners

* Managing Direct, three term limit coming to an end for Gupta

* Senior partners reacting negatively to growth, no longer a small company where “everyone knows each other”

* Perhaps, lack of layoffs hurt revenue growth

Opportunities:

* First Asian Managing Director may allow for further expansion in emerging markets

* Innovation focus on technology, new modeling techniques, better client services

* Lower cost measures more bang for the clients buck

* Doesn’t provide consulting on financial...