Search results for: Mckinsey 7s

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…

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…

Microsoft McKinsey 7S model shows how seven elements of businesses can be aligned to increase effectiveness. According to this 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 below, shared values are positioned at the core of Microsoft McKinsey 7S model, since shared values guide employee behaviour with implications in their performance.   Microsoft McKinsey 7S model   Hard Elements in Microsoft McKinsey 7S Model   Strategy.  Microsoft business strategy can be classified as product differentiation. The company develops advanced technology products and services and sells them for premium costs. Moreover, Microsoft business strategy is currently focused on “cloud-first, mobile-first”, growth through mergers and acquisitions and exploring business opportunities related to augmented and virtual reality. As the latest addition to its business strategy, the multinational technology company is focusing on the concept of ‘tech intensity’, which aims to position Azure as the worlds’ computer with evident positive implications on the long-term growth prospects of the business. Structure. Microsoft organizational structure is divisional and such a structure resulted from a restructuring initiative introduced by CEO Satya Nadella in 2015. Microsoft engineering group is divided into three divisions: Cloud and AI Group, Experiences + Devices and Artificial Intelligence and Research. Business functions, on the other hand, are divided into nine divisions. Microsoft corporate structure is highly dynamic and ever-evolving to meet the demands of changing external market place. Systems. There is a wide range of systems that are critically important to run Microsoft successfully. These include employee recruitment and selection system, team development and orientation system, transaction processing systems, customer relationship management system, business…

Google McKinsey 7S model illustrates how seven business elements can be aligned to increase effectiveness. Strategy, structure and systems are hard elements, whereas shared values, skills, style and staff represent soft elements. McKinsey 7S model attempts to illustrate 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 Google McKinsey 7S model, since shared values guide employee behaviour with implications in their performance. Google McKinsey 7S model Hard Elements Strategy.  Google core business strategy is business diversification and introduction of new products and services in a regular manner. Google business strategy is also based on the development of a closed eco-system to motivate customers to use greater range of products and services. Customers usually enter this ecosystem through using Chrome browser, watching YouTube videos or using Gmail. In no time, they are prompted to use additional services such as Drive, Play, Calendar, Blogger and others. Alphabet Inc., Google’s parent company also uses acquisitions business strategy extensively and more than 200 companies and 30 acquisitions were made in 2015 and 2016 alone. Structure.  Google was restructured in 2015 to become a wholly owned subsidiary of a newly established parent company Alphabet Inc.  Under the new structure, the company is divided into a number of divisions and each division is positioned as a separate brand such as Google, Calico, Nest, Access (Fiber) and others. The new structure helps the company to move beyond search engine business and to engage in diversification strategy to a greater extent. Systems.  Google operations rely on a wide range of systems such as employee recruitment and selection system, team development and orientation system, transaction processing systems, customer relationship management system, business intelligence system, knowledge management system and others.  Additionally, ranking of web-pages…

Samsung McKinsey 7S model attempts to explain how seven individual elements of the business 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 argues that 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 positioned at the core of Samsung McKinsey 7S model, since shared values guide employee behaviour with implications in their performance. Samsung McKinsey 7S model Hard Elements Strategy.  Samsung business strategy is mainly based on market readership, i.e. replicating innovations made by market leaders in terms of introducing new products and/or adding innovative features to new products. Samsung’s major competitor, Apple can be specified as company Samsung mainly replicates from. Moreover, Samsung business strategy is based upon scanning and utilising opportunities in the market and new product development on a regular basis. Structure.  Samsung organizational structure is divisional and the company is divided into three divisions on the basis of products: IT & Mobile Communications (IM), Consumer Electronics (CE), and Device Solutions (DS). Each division is managed separately according to unique aspects and characteristics of its products. As the outcome of review of optimal organizational structure completed on April 2017, the senior management decided not to shift to holding pattern of organizational structure. Nevertheless, Samsung organizational structure may change in medium term perspective. This is due to a series of scandals the company had to deal with recently, including the imprisonment of Jay Y. Lee, a former Samsung executive and founding family member for his role in bribery and embezzlement. Systems. Samsung’s long-term growth prospects depend on smooth running of a wide range of systems. These…