AICISM

STORIES OF CONSULTING
FIRM
A Presentation By
Nivedh
MBA – CISM
2017 – 19
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FAILURE STORY
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How McKinsey Killed Swiss Air

Company Name : Swiss Air
Consultant Name : McKinsey & Company
Year of Happening : 2001 – 02
Objective : To Grow the Swiss Air as one of the Biggest
Airlines in the world.
Main Recommendation : Hunter Strategy
Losses : $15 Billion
Result : Failure
Reason : Bankruptcy
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Learning From The Case

• Swiss Air went into an acquisition spree from what is called a Hunter Strategy which was devised by
McKinsey & Co.

• This was done to increase its operational capabilities across the globe.

• The resultant was Bankruptcy as there was a collapse in the market in year 2000 (Dot Com Bust) & 2001
(9/11 Attack & recession) and the projected demand was never met.

• What we can learn is that its always better for the company to diversify investment rather than putting all
the investment in one field.

• So that when one of their company fails they will atleast have support from other companies.

• When investments are only made in particular field the uneven supply and demand can cause such a huge
loss for the company.
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SUCCESS STORY
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How TCS Transformed Passport Seva

Company Name : Government of India (Passport Seva)
Consultant Name : Tata Consultancy Services
Year of Happening : 2008
Objective : To support and provide passport for Indian
Citizens in short time (Less than 15 Days).
Main Recommendation : End to End Digital Transformation
Project Cost : Rs. 10,000 Million
Result : Success
Reason : Complete End to End Digital Transformation
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Learning From The Case

• Government was struggling to provide Passport Seva to more than 50 million potential passport
holders in the country.

• The project was awarded to TCS in 2008 and a research conducted in 2014 by Ovum concluded
that TCS had provided passport to 52 Million Indians by setting up 77 Passport Centres across the
country with 90 million records migrated, 40,000 applications handled every day.

• It is clear from this that the duty of Government is to handle the governance rather than handling
every single job.

• This case study is a classic example for why Country’s Government should outsource their work by
giving it into consulting firm.
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