Search results for: Mckinsey 7s
WeWork McKinsey 7S model highlights the ways in which seven elements of businesses can be aligned to increase effectiveness. According to this model strategy, structure and systems represent hard elements, whereas shared values, skills, style and staff are soft elements. McKinsey 7S model stresses there are strong links between elements in a way that a change in one element causes changes in others. As it is illustrated in figure below, shared values are placed at the core of WeWork McKinsey 7S model, because shared values guide employee behaviour with implications on their performance. Hard Elements in WeWork McKinsey 7S Model Strategy. WeWork pursues simplification business strategy. Specifically, co-working giant simplifies the notion of flexible workspace and makes it practical for businesses of all sizes through offering space as service. Furthermore, the company is on the path of digitalizing real estate business on the global scale. Structure. Under the leadership of co-founder and former CEO Adam Neumann WeWork organizational structure was chaotic and ineffective. The current CEO Sandeep Mathrani restructured the company to a great extend to make it more simple and transparent. Currently, global flexible workspace provider has an hierarchical organizational structure. Systems. The workspace provider relies on a wide range of systems for its daily operations. These include employee recruitment and selection, team development and orientation, transaction processing systems. Furthermore, customer relationship management, business intelligence, knowledge management systems are also important for WeWork. WeWork Inc. Report contains a full analysis of WeWork McKinsey 7S Model. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Ansoff Matrix and Value Chain analysis on WeWork. Moreover, the report contains analyses of WeWork leadership, business strategy organizational structure and organizational culture. The report also comprises discussions of WeWork marketing strategy, ecosystem…
McKinsey 7S model is a tool for analyzing organizational design. The model aims to illustrate how organizational effectiveness can be achieved through alignment of seven key elements. The model divides elements into two categories – hard elements and soft elements. Strategy, structure and systems represent hard elements, whereas shared values, skills, style and staff are soft elements. Shared values are placed at the core of McKinsey 7S model because they are cornerstone to the development of all other elements Hard Elements Strategy. Strategy is a plan to generate profit sustainably on the basis of competitive advantage(s). Answers to the following questions uncover company’s strategy: How company plans to maximize its profits? How company deals with competitive pressures? How the business deals with changes in customer demands, tastes and preferences? Structure. Structure refers to the organization of the business, organizational chart depicting the chain of command. Companies can look for answers to the following questions to identify the pattern of their structure: How divisions/teams are divided? What is the hierarchy of the company? How activities of various divisions are organized? What is the level of autonomy in decision making in various departments? Are the lines of communication explicit or implicit? Systems. Activities and procedures employees use daily to complete their job. The following questions can be used in regard to systems within companies: What are the main systems that maintain performance? How systems are controlled and evaluated? What are benchmarks are used to keep systems on track? Soft Elements Skills. Skills relate to company’s core competencies and capabilities that enable employees to perform efficiently. The following are the main questions related to skills: What are the main important required skills for the company to succeed? Are there any gaps in required skills? What are the skills monitoring and control practices? Staff.…
Starbucks McKinsey 7S model is used to highlight the ways in which seven elements of businesses can be aligned to increase effectiveness. According to this model, strategy, structure and systems represent hard elements. At the same time, shared values, skills, style and staff are soft elements. McKinsey 7S model stresses the presence of strong links between elements. Specifically, a change in one element causes changes in other elements. As it is illustrated in figure below, shared values are positioned at the core of Starbucks McKinsey 7S model, since shared values guide employee behaviour with implications in their performance. McKinsey 7S model Hard Elements in McKinsey 7S Model Strategy Starbucks business strategy is based on product differentiation with the focus on the quality of products and services. Moreover, the coffee chain giant effectively positions Starbucks stores as a ‘third place’ away from home and work, where customers can meet friends, relatives or spent time alone. Currently Seattle-based international coffee chain is positioning itself as a digital third place as well. Technological innovations and intensive integration of technology into various business processes in general and ordering process in particular represent another important aspect of Starbucks business strategy. The launch of Mobile Order & Pay feature, which allows customers to buy without getting in line, the launch of voice ordering app and “sending text message notifications to customers in the Seattle area when their mobile orders are ready”[1] can be mentioned to illustrate this point. Structure Starbucks Corporation has a hybrid organizational structure which combines geographic, brand-based and functional hierarchy structures. Operations are divided into North America (USA and Canada) and International (China, Japan, Asia Pacific, Europe, Middle East, Africa, Latin America and Caribbean) divisions. Brand-based divisions, on the other hand, consist of Starbucks, Teavana®, La Boulange®,, Evolution Fresh™, Seattle’s…
IKEA McKinsey 7S model explains how individual elements of businesses can be aligned to increase the overall effectiveness. McKinsey 7S framework considers strategy, structure and systems as hard elements, whereas shared values, skills, style and staff are accepted as soft elements. The framework stresses the presence of strong links between elements in a way that a change in one element causes changes in others. As it is illustrated in figure below, shared values represent the core of IKEA McKinsey 7S framework. This is because shared values guide employee behaviour with effects on their performance and ultimately on the bottom line for the business. McKinsey 7S model Hard Elements in IKEA 7S Model Strategy IKEA business strategy is based on the IKEA Concept, which is built upon the combination of function, quality, design and value – always with sustainability in mind. Moreover, the Swedish furniture chain offers cost advantage value for customers. Accordingly, IKEA business strategy involves offering increasing variety of products for the lowest prices. Regular engagement in new market development and benefiting from strategic alliances constitute additional pillars of IKEA business strategy. Structure IKEA organizational structure is unique and highly complex. The home improvement and furnishing chain maintains uniqueness and complexity its corporate structure in order to pay less taxes. The company can be divided into three large groups: franchise, range and supply and industry. Large scale of the business that integrates 11 franchisees operating in more than 500 locations in 63 countries[1] necessitates hierarchical organizational structure. Nevertheless, the Swedish furniture chain has proved to be successful in overcoming common weaknesses of hierarchical organizational structure such as high level of bureaucracy and lack of flexibility of the business. Systems IKEA business relies on a set of systems. These include employee recruitment and selection system, team development and orientation…
McDonald’s McKinsey 7S framework illustrates the ways in which seven elements of businesses can be aligned to increase effectiveness. According to the framework strategy, structure and systems represent hard elements, whereas shared values, skills, style and staff are soft elements. McKinsey 7S framework stresses the presence of strong links between elements in a way that a change in one element causes changes in others. As illustrated in figure below, shared values are positioned at the core of McDonald’s McKinsey 7S framework, because shared values guide employee behaviour with implications in their performance. McKinsey 7S model Hard Elements in McDonald’s McKinsey 7S Model Strategy McDonald’s pursues business strategy of cost leadership and an aggressive international market expansion. The company is able to operate with low operational costs due to economies of scale enjoyed to an enormous extent. Moreover, along with operating company-managed restaurants, McDonald’s capitalizes on the high level of brand awareness via franchising. High speed of customer services, universality of the taste and cleanliness of restaurants worldwide also belong to the list of competitive advantages for the fast food giant. Structure McDonald’s has divisional organizational structure and fast food chain’s business operations are divided into four divisions according to geographical locations. These divisions consist of United States, Europe, Asia/Pacific, Middle East and Africa (APMEA) and other countries. The company benefits from divisional organizational structure in a way that managers are free to make decisions taking into account unique aspects of respective markets. Systems There is a wide range of systems that enable McDonald’s operations at a global scale. These systems include but not limited to employee recruitment and selection, team development and orientation, transaction processing and customer relationship management system. Moreover, the fast food chain also relies on advanced business intelligence system and knowledge management system.…
Amazon McKinsey 7S model illustrates the ways in which seven key elements of businesses can be united to increase effectiveness. According to this model strategy, structure and systems represent hard elements, whereas shared values, skills, style and staff are soft elements. McKinsey 7S model stresses the presence of strong links between elements. Specifically, it argues that a change in one element causes changes in others. As it is illustrated in figure below, shared values are positioned at the core of Amazon McKinsey 7S model, since shared values guide employee behaviour with implications in their performance. McKinsey 7S model Hard Elements in Amazon McKinsey 7S Model Strategy Amazon adheres to cost leadership business strategy. Three main pillars of Amazon business strategy are competitive prices, great range and speed of delivery. The largest internet retailer in the world has been able to sustain this strategy thanks to economies of scale, innovation of various business processes and regular business diversification. Moreover, Amazon business strategy places a great emphasis on encouraging communication among various components of its ecosystem. These components of Amazon ecosystem include merchants, writers, reviewers, publishers, apps developers, and the information market of commentators, analysts, journalists and feature writers. Additionally, customer obsession and focus on Amazon leadership values represent important cornerstones of Amazon business strategy. Structure Amazon organizational structure is hierarchical. It is difficult for the company to adapt an alternative structure such as divisional or matrix due to its gigantic size. Specifically, the e-commerce giant employs approximately 1,3 million people who serve hundreds of millions of customers worldwide.[1] The key features of Amazon corporate structure include flexibility of the business; which is unusual for a company of such a big size and stability in the top management, i.e. little turnover in the senior management team. Reliance on hybrid project…
Square McKinsey 7S model is intended to illustrate how seven elements of business can be aligned to increase effectiveness. The framework divides business elements into two groups – hard and soft. Strategy, structure and systems are considered hard elements, whereas shared values, skills, style and staff are soft elements. According to Square McKinsey 7S model, there is a strong link between elements and a change in one element causes changes in others. Moreover, shared values are the most important of elements because they cause influence other elements to a great extent. McKinsey 7S model Hard Elements in Square McKinsey 7S Model Strategy Square business strategy is based on principles of simplifying financial transactions and developing an ecosystem of financial products and services. The financial services platform has two types of ecosystem – seller ecosystem and cash ecosystem. Square systematically expands both ecosystems with addition of new financial products and services that simplify processes and challenge the status quo. Structure Square organizational structure is highly dynamic, reflecting the rapid expansion of the range of financial products and services offered by the finance sector disruptor. Although it is difficult to frame Square organizational culture into any category due to the complexity of the business, it is closer to flat organizational structure compared to known alternatives. Specifically, co-founder and CEO Jack Dorsey has very little tolerance for bureaucracy and formality in business processes. Moreover, Dorsey believes in providing independence to teams and maintain the team sizes small. All of these are reflected in Square organizational structure. Systems Square Inc. business operations depend on a wide range of systems. These include employee recruitment and selection system, team development and orientation system, transaction processing systems and others. Moreover, customer relationship management system, business intelligence system and knowledge management system is also important…
Uber McKinsey 7S model illustrates the ways in which seven elements of businesses can be aligned to increase effectiveness. According to the framework strategy, structure and systems represent hard elements, whereas shared values, skills, style and staff are soft elements. McKinsey 7S model stresses the presence of strong links between elements in a way that a change in one element causes changes in others. As illustrated in figure below, shared values are positioned at the core of Uber McKinsey 7S model, since shared values guide employee behaviour with implications on their performance. McKinsey 7S model Hard Elements Strategy Uber pursues cost leadership business strategy. The ride-hailing giant gains cost advantage thanks to internet-based nature of its business model that disrupted traditional taxi industry in the global scale. The international transportation technology company increases range of its services regularly to cater for the needs of greater numbers of customers. Moreover, Uber business strategy places a great emphasis on a high level of user convenience. Growing the business through acquiring adjacent businesses is another important aspect of Uber business strategy. Structure Uber organizational structure can be classified as hierarchical. Accordingly, the company is disadvantaged by the shortcomings of hierarchical structure such as ineffective communication across various departments, rivalry between departments that may compromise long-term growth prospects and high level of bureaucracy. Following the failed IPO in 2019, the CEO Mr. Khosrowshahi changed Uber organizational structure to increase his role in operational day-to-day management. As part of these changes, the positions of chief operating officer (COO) and chief marketing officer (CMO) were also eliminated. Systems Systems within McKinsey 7S model refer to daily activities and procedures that Uber staff use to provide ride-haling services to millions of customers worldwide. There is a wide range of various systems that are important for Uber’s long-term…
Tesla McKinsey 7S model illustrates the ways in which seven elements of businesses can be aligned to increase effectiveness. According to the framework strategy, structure and systems are considered as hard elements, whereas shared values, skills, style and staff represent soft elements. McKinsey 7S model stresses the presence of strong links between elements. Specifically, according to this framework, a change in one element causes changes in others. As it is illustrated in figure below, shared values are positioned at the core of Tesla McKinsey 7S model, since shared values guide employee behaviour with implications on their performance. Figure 11 McKinsey 7S model Hard Elements Strategy Tesla business strategy is based on the focus on electric cars driven by company’s mission to accelerate the world’s transition to sustainable energy. The alternative fuel vehicles manufacturer pursues product differentiation business strategy. Tesla cars and energy products are differentiated on the basis of performance, design and environmental sustainability. Moreover, ownership of distribution via company-operated stores and galleries in shopping centres and other places is placed at the core of Tesla business strategy. Moreover, the alternative fuel vehicles manufacturer positions low costs of Tesla electric vehicles ownership as one of the solid bases of competitive advantage. Structure It is difficult to classify Tesla organizational structure into a single category due to its unique nature. Inability or unwillingness of CEO Elon Musk to delegate key tasks has certain implications on organizational structure of the company. Specifically, Musk has more people directly reporting to him than any other auto company and turnover amongst Tesla senior executive team is high. Moreover, there is no organizational chart or public list of senior leaders at Tesla. Nevertheless, Tesla organizational structure is closer to divisional structure compared to other known structures. The operations of the electric automaker are divided…
Apple McKinsey 7S model illustrates the ways in which seven elements of businesses can be aligned to increase effectiveness. According to this model, strategy, structure and systems represent hard elements, whereas shared values, skills, style and staff are soft elements. McKinsey 7S framework stresses the presence of strong links between elements in a way that a change in one element causes changes in others. As it is illustrated in figure below, shared values are positioned at the core of Apple McKinsey 7S framework, since shared values guide employee behaviour with implications in their performance. Apple McKinsey 7S model Hard Elements in Apple McKinsey 7S Model Strategy Apple pursues differentiation business strategy with a particular focus on the design and advanced features and capabilities of products. The company aims to benefit from the first mover advantage to a maximum extent as it was the case with introduction of iPod, the first device of its kind that stored thousands of songs with simple shuffle capabilities through songs and the development of Macintosh, the first computer to use a graphical user interface. Accordingly, Apple products and services are generally more expensive compared to the competition. Moreover, Apple business strategy involves the creation of a sort of closed ecosystem, where it’s various devices and software sync easily and work well with each other. Advantages the company gains from this strategy include high switching costs for customers and this provides the opportunities to leverage relationships with existing customers to offer other products and services. Furthermore, the multinational technology company has developed a strategy to reduce dependence of the business on the sale of iPhones. This strategy involves putting greater emphasis on services divisions of the business and more investments on research and development of new products and services. The iPhone maker has also specified…