I.

Case Summary

McKinsey & Company is an American management consulting firm and a trusted

adviser to the world’s leading businesses, governments, and institutions. It was

founded in 1926 by James O. “Mac” McKinsey, an accounting professor at the

University of Chicago. The firm has grown to global prominence by providing expert

consulting services and garnering results for companies and governments. It is the

largest hirers of newly minted MBAs in the United States and has revenue of $6

billion and employs almost 17,000 people worldwide. Over the decades, McKinsey

has helped global businesses understand how to enter new markets around the world,

how to compete more effectively against their global competitors, and how to harness

efficiencies and make improvements in all levels of business. Businesses and

governments are attracted to McKinsey not only for its sound analysis and advice but

also for its discretion and long-term perspective. The firm does keep its client list

confidential, and consultants themselves are not allowed to discuss their work with

other teams. McKinsey, despite its size, does not discuss specific client situations and

maintains a low-profile external image, which also protects them from public

scrutiny. They address strategic, organizational, operational, and technological issues,

always with a focus on doing what is right for the client’s business, not on what is

best for McKinsey’s bottom line. Their dedication and commitment to discretion have

earned it global private and public-sector clients and respect. While it’s hard to know

the exact details of its pricing, client base, and profitability, it is clear that McKinsey

continues to earn the trust and loyalty of many of the world’s companies,

governments, and global institutions.

II. Case Problem

How can a global consulting firm exemplify the relation between businesses,

governments, and global institutions?

III. Case Facts

 McKinsey has helped global businesses understand how to enter new markets

around the world.

 Functional expertise includes all aspects of running a business, including,

finance, technology, sales, marketing, risk, and operations.

 McKinsey has discreetly been an advisor to governments around the world on

diverse issues.

 McKinsey has helped the IMF and the World Bank craft policy to meet their

evolving roles in the world economy.

 It addresses strategic, organizational, operational and technological issues,

always with a focus—according to the firm—of doing what is right for the

client’s business, not what is best for McKinsey’s bottom line.

IV. Alternative Courses of Actions

 A global consulting firm may extensively help businesses to compete

effectively against global competitors.

 A global consulting firm may advise a government client on issues like

improvement of trade and investment policies, and assist a government in

privatizing its country’s firms and industries.

 The company may help leaders in the commercial, public, and social sectors

develop a deeper understanding of the evolution of the global economy and to

 provide a fact-based decision making on critical management and policy

issues.

V. Solution and Recommendation

Solution

A global consulting firm can exemplify the relation between businesses,

governments, and global institutions by a lot of methods. A proof is that one of its

major clients – the government dictates how businesses and the economy as a whole

will run throughout an economic cycle. This is because a consulting firm can

influence a government’s decision regarding policies and regulations that are either

directly or indirectly related to how trade, businesses, investments and such are done

in a specific country.

One of the major functions of a global consulting firm, on the other hand, is to

advise and help local or international corporations and businesses to enter the global

market and contest with global competitors. With the consulting firm’s knowledge of

the economic standing of a specific area, it is less risky for corporations to enter a

particular target market.

This shows how businesses, governments and global institutions are intertwined

with each other through a distinct management consulting firm.

Recommendation

McKinsey has sought to make a positive difference to the businesses and

communities in which their people live and work. Their commitment and dedication

continue to earn the trust and loyalty of many of the world’s companies,
 governments, and global institutions. As a trusted advisor, McKinsey should take this

as an opportunity to further help businesses compete effectively against global

competitors. This way, group of entities who are globally competitive will serve as an

arena for wider economic development. To maintain the trust of their clients, they

should exert more effort on accelerating their existing programs and add new

engagements as they expand delivering change in assisting governments and global

institutions with complex economic and business issues.

VI. Conclusion

Management consultancy is a crucial part of economic sustainability not only of a

single entity but of a whole country. In this case, a clear relation between businesses,

governments, and global institutions was shown with assistance of a single global

consulting firm. This means that a network of diverse entities, even without explicit

statements, is proved to be working together to sustain the economy. A consulting

firm serves as a bridge to initiate economic development through planning policies

and its underlying projects, or even to entirely implement what is planned ahead of

time.