BYD McKinsey 7S Model

By John Dudovskiy
February 18, 2024

BYD 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 it is illustrated in Figure 7 below, shared values are positioned at the core of BYD McKinsey 7S model, since shared values guide employee behaviour with implications on their performance.

BYD McKinsey 7S Model

McKinsey 7S model


Hard Elements in BYD McKinsey 7S Model

Strategy. BYD business strategy integrates cost leadership and extensive vertical integration. This strategy allows lowering dependence on external vendors and optimizing resources within the company and having tighter control over the entire production process ensures consistent quality standards. Moreover, one of the leading rechargeable battery manufacturers in the global arena maintains an accelerated pace of new model development as one of its core competitive advantages.

Structure.  Organizational structure of BYD is complex and it is difficult to classify it according to conventional categorizations. Nevertheless, it is closer to matrix structure combining functional departments (e.g., R&D, Sales) with product-based divisions (e.g., Dynasty, Ocean, Commercial Vehicles) than alternative structures.

Systems.  The electric automaker depends on a wide range of systems for its business operations. These include manufacturing systems such as vertical integration, lean manufacturing, robotics and automation, as well as, R&D systems. Moreover, supply-chain management, information, quality management, financial and HR systems are also critrically important for the EV giant.

BYD Company Limited Report contains a full analysis of BYD 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 BYD. Moreover, the report contains analyses of BYD leadership, business strategy organizational structure and organizational culture. The report also comprises discussions of BYD marketing strategy, ecosystem and addresses issues of corporate social responsibility.

Category: McKinsey 7S Model