...Comparing the BCG Matrix with the McKinsey 7S model 1 Structure STRUCTURE ........................................................................................................................................ 2 INTRODUCTION ................................................................................................................................. 3 BOSTON CONSULTING GROUP (BCG) GROWTH MATRIX ................................................... 3 COMPOSITION AND FRAMEWORK ....................................................................................................... 3 APPLICATION ....................................................................................................................................... 3 EXAMPLE APPLICATION: JUWI ............................................................................................................ 3 WEAKNESSES AND STRENGTHS OF THE BCG MATRIX ....................................................................... 4 THE MCKINSEY 7S MODEL ............................................................................................................ 5 COMPOSITION AND FRAMEWORK ....................................................................................................... 5 APPLICATION ....................................................................................................................................... 7 EXAMPLE APPLICATION: JUWI ..............................................................
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...Cross in World War I, he came back determined to be an artist. After moving to Hollywood in 1923 with his older brother Roy, they founded Disney Brothers Studio. After diversifying as much as possible, Disney had a firm grasp on the global market share until the 1980’s where the company’s revenues began to slump in the film industry. Luckily Sid Bass invested $365 million in order to rescue the company and bring an end to all hostile takeover attempts. Disney’s billion dollar powerhouse status in the entertainment industry can be broken down and analyzed using the McKinsey’s 7S model. This model can be applied to Disney to analyze the company’s management and strategic policies. The McKinsey 7S model covers important strategic areas of operation including, strategy, structure, systems, style, skills, staff, and shared values. These seven elements need to be aligned and mutually reinforcing so that the model can be used to help identify what needs to be realigned in order to improve performance or to maintain alignment and performance. Disney Corporation has a hugely diversified strategy, that is to say, the plan devised to maintain and build competitive advantage over the competition. In 1928, after creating and losing the Oswald franchise to his distributor, Walt used a technique new to the animated television industry, synchronized sound with a cartoon. With his new character modeled after Oswald, Mickey Mouse was the star in Steamboat Willie which brought a wave of success...
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...Introduction- The 7S model is a strategic model that can be used for any of the following purposes: * Organizational alignment or performance improvement * Understanding the core and most influential factors in an organization’s strategy * Determining how best to realign an organization to a new strategy or other organization design * Examining the current workings and relations an organization exhibits The model, made famous by the McKinsey consulting company, is good for a thorough discussion around an organizations activities, infrastructure, and interactions. -The model and its usage- Here is the 7S model that portrays seven elements of an organization. I define the elements as follows: Strategy – This is the organization’s alignment of resources and capabilities to “win” in its market. Structure – This describes how the organization is organized. This includes roles, responsibilities and accountability relationships. Systems – This is the business and technical infrastructure that employees use on a day to day basis to accomplish their aims and goals. Shared Values – This is a set of traits, behaviors, and characteristics that the organization believes in. This would include the organization’s mission and vision. Style – This is the behavioral elements the organizational leadership uses and culture of interaction. Staff – This is the employee base, staffing plans and talent management. Skills – This is the ability to do the organization’s...
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...The following paper looks to inform the reader of the six OD models widely used by organizations. Each of the six models is unique; bringing with them their own pros and cons. Along with the OD models, we will be covering three issues plaguing the Whole Foods Market today. 7s Model McKinsey 7s model is a model developed by McKinsey Consultants with help from Richard Pascale and Anthony G. Anthos in the 1980s. McKinsey 7s model follows the 7 key internal parts of: approach, structure, arrangements, shared values, style, workforce and skills to permit organizations to realize its goals. Approach is a plan established by a firm to bring an economical advantage alongside with success competitor within the market. Structure is the organizational chart of the firm legendary for being one in every of the foremost visible and simple to vary parts of the framework. Arrangements are legendary for being the main focus for how managers accomplish business; particularly throughout structure modification. Skills are the talents of the staff of the firm. Staff is the amount of staff at intervals a corporation required to hold out the mission. Style is the management and leadership of top-ranking managers. Shared values are the basis of each organization and also the core of McKinsey 7s model; the standards that guide employee’s behaviour. The model remains one of the foremost popular strategic designing tools. McKinsey 7s model focus on the soft S’s: style, staff, skills, and shared values...
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...the contracting stage as they decided to complete an organizational diagnosis. Poor morale, safety concerns and poorly managed human resources issues were the focus of research data that were organized with the aid of McKinsey’s 7S Model. Once Lawler and his graduate students were able to frame the copious amount of information into a useable model, they would present the information and make suggestions for improved work processes to company President, Ben Richardson and Richard Bowman, the Industrial Relations Manager. Lawler was able to create an effective learning experience for his students and present a cost efficient solution to B.R. Richardson. B.R. Richardson Case Study Harold S. Geneen once said, “Leadership is practiced not so much in words as in attitude and in actions.” (Dickerson, 2012). B.R. Richardson Timber Products Corporation was a small lumber company located in Papoose, Oregon with low morale, serious safety issues, and an authoritative manager. Recognizing the need for an intervention, the company reached out to a consultant for training. After entering into an agreement a diagnosis of B.R. Richardson’s lamination plant was completed. (Cummings & Worley, 2008) In the case of B.R. Richardson, the McKinsey 7S Model provided the best mechanism to evaluate, diagnose and understand the collected data about various elements of the work environment. Entering and Contracting...
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...Restructuring Initiative. The initiative has reduced and realigned its forces to meet current and future national security requirements. As a result the 325 Military Intelligence Battalion has experience a reduction in 16 position and a duty description change for 10 of its current employees. The following is overview of the action plan and my findings and recommendations. The two major areas that I analyze are Human Resource and Training and Operations. It was also necessary to ensure that all employees understand how the new structure will align with the organizations current core operations. Success depends on how well everyone in the organization understand the change process The Lewin’s Change Model and McKinsey 7s Model was used to facilitate the change process. The Lewin’s Change Model consist of three stages, Unfreeze, Change and Refreeze, which we used to manage the change and implement a schedule to reach our goal of 100% hire rate by May and 75% of employees trained by June 2016. Motivation for Change The motivation for change is based on the Army initiative to reorganize its force structure. The new structure will foster and environment of cohesion amongst the departments. Employees will have opportunities to learn new skills and abilities and which will in turn put them in a position for advancement and promotion. Situation Analysis After conducting my initial interview, lack of communication seem to be the biggest obstacle. The focus...
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...An Alternative Choice of 8S’S STRATEGY IMPLEMENTATION: AN ALTERNATIVE CHOICE OF 8S’S Omar Khalid Bhatti Research Scholar International Islamic University, Malaysia “Execution, not strategy, offers an exclusive competitive advantage.” (Lippitt, 2007) INTRODUCTION Strategic implementation is an elemental step in revolving a company's vision and objectives into reality. To implement strategies successfully is critical for not only public but also for private organizations. Without proper implementation, even the most superior and fine strategy would not make the grade as established. In last few decades, a number of articles have been published to understand the significance of strategy implementation. Presenting not only models for better execution of strategies, as well highlighting factors that affect effective strategy implementation. As Aaltonen and Ikävalko (2002) and Zagotta and Robinson (2002) advocate that real value of strategy can only be recognized and accepted through execution. Hrebiniak (2006) also supports the opinion that without effective implementation of strategies no business strategy can succeed. According to Kaplan and Norton (2008) managers have always found it difficult to balance their near-term operational concerns with long-term strategic precedence. They further maintain that such pressure comes with the job and is an intrinsic tension that managers cannot avoid, yet must be addressed on a continuous basis. The view mentioned...
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...Apple 7S Model try to explore the McKinsey 7S Framework as a part of case study, in which I have to analyze Telenor, the Norwegian telecommunication company. McKinsey and Company created this 7S framework in the early 1980s. It is well-known for analyzing organizations, for the factthat McKinsey and Company used it to analyze over 70 large organizations in 1980s. As described in the title, the framework has 7 variables: structure, strategy, systems, staff, skills, styleand shared value. These variables are categorized as soft and hard components. The hard componentsare strategy, structure and systems which are normally feasible and easy to identify in an organisationas they are normally well documented in reports such as strategy statements, corporate plans,organisational charts, etc . The remaining four ones are more difficult to comprehend. It is only possible to understand these aspects by studying the organisation very closely, normally throughobservations and/or through conducting interview (~Oh no …). Structure Structure is the skeleton, the form of shape, of organisations. It dictates the way it operates andperforms (Waterman et al., 1980). Traditionally, businesses are structured with divisions,departments and layers, in which the lower layers answer to upper layers. Today, the flat structure, where the work is done in teams of specialists, are more common. The idea is to make theorganisation more flexible and devolve the power by empowering the employees...
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...vision/expectations, employing concrete tools to improve communication and proactively seeking ways to reduce misinformation, stakeholders are more likely to buy into a change initially and remain committed to the change throughout any discomfort associated with it. Yet, it is to bear in mind that a specific framework might be needed for each kind of system to compute or predict its behavior. The more complex the system the more we depend on empiric findings to establish a specific framework/model. Any prediction can only be an approximation. No framework for organizational change can be universally applicable to more than a limited set of change processes. Besides, the majority of the models are presented as a linear model (step by step), which assumes predictability and manageability of change processes. This does not relate to the complexity theory (organization/structure is complex & adaptive and can be self-organizing) used for strategic management & organizational studies. Furthermore, the models are often proposed for a top-down change (i.e. decisions made at top management level of the company), therefore often need some tweaks for bottom-up change proposals. Last but not least, the individual needs and behaviors face to change and its interaction (as shown below) with the team or organization-level change shall be taken into account while using any framework....
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...2 2 The McKinsey-7S-Model 2 2.1 Strategy 3 2.2 Structure 3 2.3 System 3 2.4 Skills 4 2.5 Shared Values 4 2.6 Staff 5 2.7 Style 5 3 The Five Forces Model 5 3.1 Bargaining power of buyers 6 3.2 Bargaining power of suppliers 6 3.3 Threat of new entrants 7 3.4 Threat of Substitute products 7 3.5 Rivalry among competing firms 7 4 PEST Analysis 8 4.1 Political Influences 8 4.2 Economic Influences 8 4.3 Social Influences 8 4.4 Technological Influences 9 5 SWOT Analysis 9 5.1 Strengths 9 5.2 Weaknesses 10 5.3 Opportunities 10 5.4 Threats 10 6 Entry Strategies for new markets 11 6.1 Establishing a subsidiary 11 6.2 Arrange joint ventures 11 6.3 Licensing 11 7 Conclusion 12 8 Reference List 13 Preface The following analysis of Starbucks will focus on how internal as well as external factors influence this company. Internal factors will be highlighted by the McKinsey-7S-Model. External analysis will conclude Porter’s Five Forces model to outline the threats Starbucks faces in its industry. The SWOT Analysis will show Strengths, Weaknesses, Opportunities, and Threats to Starbucks business model. Furthermore the PEST Analysis will give explanation how external factors influence the company. Finally this paper will outline what strategies Starbucks uses to penetrate markets in new countries. The McKinsey-7S-Model Because Starbucks is a highly service orientated company the McKinsey-7S-Modell seems...
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...pragnesh265798@gmail.com 630 827 2281 (Cell) Contents Diagnostic Model Selection 3 The McKinsey 7S Framework 3 Data Analysis 5 SWOT Analysis 7 Coca Cola 7 Strengths 7 Weaknesses 7 Opportunities 7 Threats 7 PepsiCo 8 Strengths 8 Weaknesses 8 Opportunities 8 Threats 8 Added Threats and Resistance to Change 9 Recommendations 10 References 11 Diagnostic Model Selection The McKinsey 7s Framework The McKinsey 7s model has been selected for this analysis as the most applicable to the changes that have occurred and continue to occur at Coco cola and PepsiCo. This model best suitable for competitive environment and achieve forecasting goals. The 7-s model can be implements many aspect of organization for example it improve effectiveness of company by using best strategy and creating good communication between all employees and determine factors by using current situation for future planning. This model is very useful for those companies which work on different projects by making team with particular time period. It include following seven elements: * Strategy: It make plan which is helpful to organization to take advantages over competition. * Structure: It establish proper structure who report to whom. * Systems: it prepare daily task for every employees which engage employees to their job duties. * Shared Values: It is also called “superordinate goals”. It is heart of this model because it has connected elements to each other and top...
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...BENCHMARKING Benchmarking is a valuable method by which an organization can use to measure their performance and internal processes. By comparing themselves with organizations that in excel in best business practices, top management can use benchmarking as a tool for driving continuous improvement throughout the organization and to gain advantage over competitors such as reducing costs, increasing productivity and better aligning product (Fleisher amd Bensoussan, 2007). Benchmarking began in the late 1950s as a natural development of early Japanese practices focusing on a clear desire to improve. Then, Xeros Corportation in America adopted a similar vigorous approach in 1979 which start the term “Benchmarking” by investigating the practices of Fuji Xerox in Japan. The improvement opportunities that were identified and put into place resulted in Xerox’s benefits and let to Best Practice Benchmarking (Bendell et al., 1993). Table: Advantages and disadvantages of benchmarking ADVANTAGES | DISADVANTAGES | Powerful Competitive Analysis Tool | Copycat syndrome | Objective stretch goal setting & performance measurement | High rate of failure | Flexibility | What works well in one organization might not work in another | Removal of blind spots | Benchmarking is resource intensive | Improves cost efficiencies & quality | No firm does everything the best | Not reinventing the wheel but redesigning it | Low-performing firms have a disadvantage | Media recognition...
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...helpful in assessing an organization's current well-being and capacity, and deciding on a course of action to improve the organization's long-term sustainability. A restructuring of an Organization may become necessary when either external or internal forces have created a problem or opportunity for improvement in efficiency and effectiveness. When performing an organizational analysis, many details emerge about the functions and capacity of the organization. All of these details can make pinpointing what is efficient and inefficient difficult. Using theoretical organizational models can help sort out the information, and make it easier to draw connections. After working through these theoretical models, the organizations present situation is more adequately addressed, and the trajectory of the organization can be more fully determined. Organizational Analysis Models Strategic Triangle Model This model relies on three key calculations to determine the efficiency and...
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...THE MCKINSEY 7S MODEL FRAMEWORK FOR E-LEARNING SYSTEM READINESS ASSESSMENT Ali Abdul-Fattah Alshaher Lecture, Department of Management Information System, College of Administration and Economics, University of Mosul, Iraq. ABSTRACT These study it is necessary to can be used as a theoretical foundation upon which to base decision-making and strategic thinking about e-learning system. This paper proposes a new framework for assessing readiness of an organization to implement the e-learning system project on the basis of McKinsey 7S model using fuzzy logic analysis. The study considers 7 dimensions as approach to assessing the current situation of the organization prior to system implementation to identify weakness areas which may encounter the project with failure. Adopted was focus on Questionnaires and group interviews to specific data collection from three colleges in Mosul University in Iraq. This can be achieved success in building an e-learning system at the University of Mosul by readiness assessment according to the model of multidimensional based on the framework of 7S is selected by 23 factors, and thus can avoid failures or weaknesses facing the implementation process before the start of the project and a step towards enabling the administration to make decisions that achieve success in this area, as well as to avoid the high cost associated with the implementation process. KEYWORDS: E-Learning System, Readiness Assessment, McKinsey 7S Model. I...
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...Proposed Solution In order to improve the company’s operation and survive from the weak market caused by Global Financial Crisis, lots of changes are needed to be implemented internally on the company’s structure and procedures and externally on the enforcement of the updated market strategy. Business Process architecture (BPA) defined as ‘body of knowledge about the business processes that comprise a value chain’ (Harmon, 2007) attempts to improve processes to ensure business effectiveness and efficiency. The key element of BPA is to define and segment value based processes and link the processes to the strategy. It can be divided into many levels and activity is the smallest process. As shown in the “To-be” diagram, the quick customer responsiveness and effectively resource utilization can be achieved using business process management. When customer places an order, the value is created. Then the order is received by the sales department via customer database and decided to approve or not. If approved, the order becomes an effective order sent to the next process by internal system. If not, it becomes a dead one and is terminated at the same time. Through inventory level, the production department can check the availability of the raw materials at once. If it is insufficient, the production department can purchase from the external supplier by online trade and shorten the preparation time of materials. If there is enough on hand, they can assemble and send the finished goods...
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