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*
Introduction
Tom Peters, Robert Waterman, and Julien Philips, together
with Richard Pascale and Anthony G. Athos, created the
McKinsey 7s model in 1980. The model has been used widely
by scientists and practitioners since its introduction and
remains one of the best-known tools in strategic planning.
According to research done by Nejad, et al., (2015)
"McKinsey 7s is a tool to analyze company design by seven
key factors internal elements: Structure, strategy, Systems,
Skills, Style, Staff, and Shared Values.
The model can be used in many cases and is a useful method when it comes to
organizational design.
Ensure change in the organization.
To help implement a new strategy
Decide how each area in the future will change.
Allowing organizational fusion.
In a wide range of cases, it can be used the 7-S model where it's helpful to analyse
how the different parts of the company function together. For instance, it may help
to improve the efficiency of the organization or find the best way to execute a
proposed strategy.
Mckinsey’s 7s framework may be used to analyse the
possible consequences of potential organizational changes or
to coordinate divisions and procedures during a merger and
acquisitions process as well.
STRATEGY - Actions business plans in response to external changes
STRUCTURE - Base of specialization and coordination is primarily influenced
by Organizational Approach, Scale, and Diversity.
SYSTEMS - Formal and informal methods that support the strategy and
Building.
STYLE - Involved in two elements as follows:
 Organizational culture: Dominant ideas, attitudes, and standards changing
over time, and the features of corporate life are fairly enduring.
 Management style: How executives do rather than what they do Say; how
is it that business executives invest their time; focuses on.
STAFF - The people/human resource management- processes used to
develop managers, socialization processes, and ways of introducing young
recruits to the company.
SKILLS - The distinctive competencies- what the company does best.
SHARED VALUES - Guiding principles, the fundamental ideas on which a
company is centered. Must be plain, typically theoretically described, have
great significance inside the organization, even though outsiders are not
permitted to see or Let them understand
Mckinsey’s 7 S framework-
Application to Coca-Cola
1 Strategy
*As per studies of (Jason, 2020), the corporate strategy of
Coca-Cola is listed as follows.
* Portfolio building – acquisitions of the Chinese Fruit / Veg
and Asian Speciality brand to create a foothold in the Asia
Pacific.
* Riding on HW -Switch safety switches to FVJ.
* Packaging amended to raise volume per customer.
* Resource expansion with a concentrated approach "China-
India".
* Taking advantage of cost synergies through its
manufacturing and bottling facilities to ensure quality.
 Marketing strategy – well backed by the overall power of the Coca-
Cola brand, each product range spanning 7 Coca-Cola categories.
 Talent management strategy – Coca-Cola may not have
adequately engaged its workers to reduce the rate of workforce
turnover. It will need to tighten up its policies on retention and
growth.
 Development strategy -capitalizing on cost synergies by
combining bottling facilities vertically. Supply chain operations are
supported on a global scale with the new tools.
 Market strategy – close partnerships with retailers, proximity
strategy for bringing a Coke brand within reach through the use of
vending machines, and maintaining sufficient distribution coverage
by different means.
* 2 Structure
*Coca-Cola – has the Head Office division responsible for
providing overall guidance to Coca-Cola and maintaining the
regional structure. ExCo's President of Coca-Cola, sometimes the
CEO. Other managers are either responsible for the big regions or
have significant specialized companies, e.g. the CFO. Coca-Cola
combines centralized and decentralized elements.
*Divisions and regions act as product line teams and report to
the Chairman of the Division with each Country Manager.
*The various departments are responsible for national (local)
decision-taking, national market analysis, and local advertising
production, for example, using languages from the countries
where Coca-Cola works. Regional decision-making is a matter of
fact. A big region such as the Asia Pacific is grouped according to
a map with its own marketing structure.
3 Systems
Process Systems: each unit is responsible for splitting these into manageable
activities and providing benchmarks for 6P initiatives. (Profit, People, Portfolio,
Partners, Planet, Productivity)
Management day to day systems: administrative steps to be placed at a
managerial level along with daily reviews and reports to provide information
about the outcomes. Day to day management systems, In addition to the
advantages and opportunities for meeting targets alignment.
4 Style
Coke Society – look forward and inspired, reflecting solidarity. “One business- One
team. One team. One love. One love. As one business”, employees are provided with
relevant and expedited learning opportunities for the greater good of Coca-Cola.
One team links to job development partnerships. One Love goes beyond the brand's
portfolio to sustainability, community support, and earth preservation and security.
5 Staff
Benchmarked business strategy of recruitment and retention. Facilitating work
pathways. Systems for performance improvement are best controlled. Given the silo
existence of some employees' roles, activities should be implemented in order to
promote creativity and to include employees. Coca-Cola stock ownership financial
incentives encourage workers to support the company.
6 Skill
Vision 2021 calls for creative approaches to achieve its objective, particularly with
regard to product content (new preferences, healthcare trends), volume and
efficiency innovation. Objectives explain the main activities to be performed by
Coca-Cola and what should be done at each stage.
7 Shared Vision
Coca-Cola systems revenues for 2010 by 2020 through the production of new
beverages, meeting changing consumer tastes by taking the plan into line with
their 6P dream; Profit, People, Portfolio, Partners, Planet, Productivity.
Conclusion
Coca-Cola has always adjusted its strategy according to McKinsey 7S Framework
results. Concepts, values, and skills are created in the corporate culture of Coca-Cola.
Strategic Management of Coca-Cola has followed an effective mechanism such as
Mckinsey’s 7 Framework. That’s why Coca- Cola is still identified as one of the best
brands in the world.

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GROUP-5-mckinsy-7s.pptx

  • 1. *
  • 2. Introduction Tom Peters, Robert Waterman, and Julien Philips, together with Richard Pascale and Anthony G. Athos, created the McKinsey 7s model in 1980. The model has been used widely by scientists and practitioners since its introduction and remains one of the best-known tools in strategic planning. According to research done by Nejad, et al., (2015) "McKinsey 7s is a tool to analyze company design by seven key factors internal elements: Structure, strategy, Systems, Skills, Style, Staff, and Shared Values.
  • 3. The model can be used in many cases and is a useful method when it comes to organizational design. Ensure change in the organization. To help implement a new strategy Decide how each area in the future will change. Allowing organizational fusion. In a wide range of cases, it can be used the 7-S model where it's helpful to analyse how the different parts of the company function together. For instance, it may help to improve the efficiency of the organization or find the best way to execute a proposed strategy.
  • 4. Mckinsey’s 7s framework may be used to analyse the possible consequences of potential organizational changes or to coordinate divisions and procedures during a merger and acquisitions process as well.
  • 5. STRATEGY - Actions business plans in response to external changes STRUCTURE - Base of specialization and coordination is primarily influenced by Organizational Approach, Scale, and Diversity. SYSTEMS - Formal and informal methods that support the strategy and Building. STYLE - Involved in two elements as follows:  Organizational culture: Dominant ideas, attitudes, and standards changing over time, and the features of corporate life are fairly enduring.  Management style: How executives do rather than what they do Say; how is it that business executives invest their time; focuses on. STAFF - The people/human resource management- processes used to develop managers, socialization processes, and ways of introducing young recruits to the company. SKILLS - The distinctive competencies- what the company does best. SHARED VALUES - Guiding principles, the fundamental ideas on which a company is centered. Must be plain, typically theoretically described, have great significance inside the organization, even though outsiders are not permitted to see or Let them understand
  • 6.
  • 7. Mckinsey’s 7 S framework- Application to Coca-Cola
  • 8. 1 Strategy *As per studies of (Jason, 2020), the corporate strategy of Coca-Cola is listed as follows. * Portfolio building – acquisitions of the Chinese Fruit / Veg and Asian Speciality brand to create a foothold in the Asia Pacific. * Riding on HW -Switch safety switches to FVJ. * Packaging amended to raise volume per customer. * Resource expansion with a concentrated approach "China- India".
  • 9. * Taking advantage of cost synergies through its manufacturing and bottling facilities to ensure quality.  Marketing strategy – well backed by the overall power of the Coca- Cola brand, each product range spanning 7 Coca-Cola categories.  Talent management strategy – Coca-Cola may not have adequately engaged its workers to reduce the rate of workforce turnover. It will need to tighten up its policies on retention and growth.  Development strategy -capitalizing on cost synergies by combining bottling facilities vertically. Supply chain operations are supported on a global scale with the new tools.  Market strategy – close partnerships with retailers, proximity strategy for bringing a Coke brand within reach through the use of vending machines, and maintaining sufficient distribution coverage by different means.
  • 10. * 2 Structure *Coca-Cola – has the Head Office division responsible for providing overall guidance to Coca-Cola and maintaining the regional structure. ExCo's President of Coca-Cola, sometimes the CEO. Other managers are either responsible for the big regions or have significant specialized companies, e.g. the CFO. Coca-Cola combines centralized and decentralized elements. *Divisions and regions act as product line teams and report to the Chairman of the Division with each Country Manager. *The various departments are responsible for national (local) decision-taking, national market analysis, and local advertising production, for example, using languages from the countries where Coca-Cola works. Regional decision-making is a matter of fact. A big region such as the Asia Pacific is grouped according to a map with its own marketing structure.
  • 11. 3 Systems Process Systems: each unit is responsible for splitting these into manageable activities and providing benchmarks for 6P initiatives. (Profit, People, Portfolio, Partners, Planet, Productivity) Management day to day systems: administrative steps to be placed at a managerial level along with daily reviews and reports to provide information about the outcomes. Day to day management systems, In addition to the advantages and opportunities for meeting targets alignment. 4 Style Coke Society – look forward and inspired, reflecting solidarity. “One business- One team. One team. One love. One love. As one business”, employees are provided with relevant and expedited learning opportunities for the greater good of Coca-Cola. One team links to job development partnerships. One Love goes beyond the brand's portfolio to sustainability, community support, and earth preservation and security.
  • 12. 5 Staff Benchmarked business strategy of recruitment and retention. Facilitating work pathways. Systems for performance improvement are best controlled. Given the silo existence of some employees' roles, activities should be implemented in order to promote creativity and to include employees. Coca-Cola stock ownership financial incentives encourage workers to support the company. 6 Skill Vision 2021 calls for creative approaches to achieve its objective, particularly with regard to product content (new preferences, healthcare trends), volume and efficiency innovation. Objectives explain the main activities to be performed by Coca-Cola and what should be done at each stage. 7 Shared Vision Coca-Cola systems revenues for 2010 by 2020 through the production of new beverages, meeting changing consumer tastes by taking the plan into line with their 6P dream; Profit, People, Portfolio, Partners, Planet, Productivity.
  • 13. Conclusion Coca-Cola has always adjusted its strategy according to McKinsey 7S Framework results. Concepts, values, and skills are created in the corporate culture of Coca-Cola. Strategic Management of Coca-Cola has followed an effective mechanism such as Mckinsey’s 7 Framework. That’s why Coca- Cola is still identified as one of the best brands in the world.