Advantages Of Mckinsey 7s Model

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• Established organizations have an advantage over the new entrants due to the presence of learning curve. Established firm would have standardized process and procedures which will help it operate in a low cost environment. • Learning curve helps organizations to build location based competitive advantage. If a firm have a strong learning curve in manufacturing in one location at low cost, it can leverage the learning curve and serve the global market. • Learning curve plays a major role in product standardization. Standardization of a product at low cost can be achieved through both economies of scale and learning curve effects • Similar to economies of scale, learning curve also gives huge scope for low cost advantage in multinational…show more content…
This model is widely used by academician and practitioner and proved to be a very practical strategic management tool. It focuses on the soft skills of an organization along with the traditional hard skills, to enhance organizational performance. This model aims at that seven elements need to be aligned together to achieve organization’s success. These seven elements are known as 7s of an organization and are as: Structure, strategy, system, skill, staff, style and shared values. All these seven areas are interconnected and if an organization is changing any one area that will require a change in rest of areas too. “McKinsey 7s Framework is a tool that ensures that all seven internal elements, : Structure, strategy, system, skill, staff, style and shared values are efficiently aligned through which organization work in harmony. The model can be applied in a varied form of situations and acts as a valuable tool for firms going for organization designing. It helps us : • Determine and facilitate change. • Analyze the likely effects of changes in the…show more content…
It consists of the opinions related to organizational strategy seeking success and how the organization plans to utilize its resources to deliver the best by marking its distinctiveness. Structure: It is the organizational chart of the firm which represents the way the organization is designed and includes the information “who reports to whom”. It also includes the working relationship employees share and how they align themselves with the strategy. System: It is a process which expresses the daily activities people are performing to get the job done. System identifies the internal rules and process people utilize to do their work. It also helps in tracking the progress and evolution of different task. Staff: is the human capital an organization has. It deals with how organization will recruit, train, develop and motivate their capabilities. Style: It shows the leadership style of company’s top management people. How they interact, react and act puts a lot impression on employees and their working.

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