Starbucks McKinsey 7S’ Framework

Starbucks4 Starbucks McKinsey 7S’ Framework The rationalised plan for effective leadership and management for Starbucks Corporation is best presented through McKinsey 7S’ Framework. It has to be noted that “the essence of McKinsey’s 7S model is that a firm is the comprehensive sum of its parts, and that the internal dynamics of an organisation clearly determine that organisation’s ability to compete, the premise being that both the strategy and the structure of the organisation determine management’s effectiveness” (Joseph and Mohapatra, 2009, p.59).

The 7S’es of the framework are divided into hard and soft elements. Strategy, structure and systems are considered to be hard elements of the framework, whereas, soft elements consist of shared values, skills, style and staff. Starbucks management have direct influence and control over the hard elements of the framework, whereas the soft elements are usually influenced by corporate culture, and therefore they are more difficult to control.

 

Hard Elements

Strategy. Starbucks has to be concentrating on the quality of its products at the same time offering excellent level of customer services. The main strategy for the company is to increase revenues through effectively positioning Starbucks stores as ‘third place’ environment.

Structure. Flat management structure needs to be achieved through de-layering. Specifically, the positions of assistant managers need to be eliminated within the stores, after which there will be only three levels of management – store manager, shift manager and customer assistants, thus considerable amount of costs can be saved and organisational efficiency can be increased.

Systems. Rather than daily roles among customer assistant being appointed by shift supervisors, the rotation system of duties needs to be introduced that will reduce the potential of conflicts among the workforce, and the work process would be more interesting.

 

Soft Elements

Shared values. Currently effective set of values are being promoted by management at Starbucks, however, more effective initiatives and programs need to be devised that would ensure these values being shared and appreciated by all members of the workforce.

Skills. Necessary training and development programs need to be organised in a systematic manner and thus it has to be ensured that all members of the workforce are equipped with skills necessary to achieve a high level of customer satisfaction.

Style. Management style within stores should be changed from Laissez Faire to inspirational management.  In this way a greater number of the workforce can be effectively motivated for higher performances with less financial resources.

Staff. Only capable and promising candidates need to be employed by Starbucks and employees have to be provided growth potential.

 References

  • Joseph, SJ & Mohapatra, S, 2009, Management Information Systems In Knowledge Economy, PHI

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