Uber McKinsey 7S Model
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
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.
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 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 growth prospects. These include 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.
Particularly, Uber’s app is a critically important system for the business. The global taxi technology company employs thousands of software engineers and other IT specialists that keep the app up and running. Moreover, the platform is continuously improved to further increase the level of its sophistication.
Uber Technologies Inc. Report contains a full analysis of Uber 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 Uber. Moreover, the report contains analyses of Uber leadership, business strategy organizational structure and organizational culture. The report also comprises discussions of Uber marketing strategy, ecosystem and addresses issues of corporate social responsibility.
Source: Uber Annual Report 2020