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THE MCKINSEYS 7S FRAMEWORK

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Seveninternal aspects of an organization that

need to be aligned if it is to be successful.

Improve the performance of a company.

Introduction

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The Model

Hard Elements

Strategy

Structure

Systems

Soft Elements

Shared Values

Style

Staff

Skills

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Hard Elements

Strategy:the plan devised to maintain and

build competitive advantage over the

competition.

Structure:the way the organization is

structured and who reports to whom.

Systems:the daily activities and procedures

that staff membersengage in to get the job

done.

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Soft Elements

Shared Values:core values of the company

that are evidenced in the corporate culture

and the general work ethic.

Style:the style of leadership adopted.

Staff:the employees and their general

capabilities.

Skills:the actual skills and competencies of

the employeesworking for the company.

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1. STRATEGY

How do we intend to achieve our

objectives?

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DABUR INDIA LTD -BUSINESS DIVISIONS

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CCDHAIR OILS CATEGORY

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CCDSHAMPOO CATEGORY

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CCDORAL CARE CATEGORY

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FOODS BUSINESS DIVISION

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Growth Strategy

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2. STRUCTURE

What is the hierarchy?

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President

Marketing Manager

International

G.M

Other products

Marketing Manager

India

Vice President

(Marketing)

G.M

Consumer care

Vice President

(HRD)

Vice President

(Production)

Divisional Manager

Soaps

Divisional Manager

Deoderants

Divisional Manager

Detergents

Eastern Sales Division Western SalesDivision

Northern SalesDivision

Organization Structure

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3. SYSTEMS

Internal rules and processes

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Misconducts on the job (to be dealt

with seriously) Sleeping on the job

Using another person's identity card or permitting anotherperson to use your identity card to enter company premises

Bribery

Theft of company property and/or a fellow employee'sproperty

Willful damage to property in the employer's charge

Consumption of liquor or alcoholic beverage or habitforming drugs on company premises

Absence from work without permission or withoutreasonable cause

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4. SHARED VALUES

What are the core & fundamental values ?

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Shared Values @

OWNERSHIP

This is our company. We accept personal responsibility, and

accountability to meet business needs.

PASSION FOR WINNING

We are determined to be the best at doing what matters most.

INTEGRITY

We are honest with consumers, with business partners and

with each other.

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5. STYLE:

How participative is the management/leadership

style?

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Leadership Styles

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6. STAFF

How are recruitments done?How many people required to perform a function?

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7. SKILLS

Current skill sets in the teamAre there any skills gaps?

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Young Managers

Development Programme (YMDP)

SALES & MARKETING TRAINEES

Preparation of sales plan

Leadership skills Communication

Implementing brand plan

Understand working of Ad agency

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ENGINEER TRAINEES

Knowledge of production process

Understanding logistics Inter-departmental coordination

Negotiation skills

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TACTICS FOR BUSINESS STRATEGY

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TACTICS FOR BUSINESS STRATEGY

Tactic is a sub strategy

Tactics are narrower in scope and shorter in

their time horizonthan strategies.

Two types of tactics are used one is Timeand

other is Location.

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TACTICS FOR BUSINESS STRATEGY

Timing Tactic-

They are of twotypes-

First MoversThe first company to manufacture or

sell a new product or service

Late Movers- The organizations which enter the

market or industry subsequently

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TACTICS FOR BUSINESS STRATEGY

Market ocation Tactics:

can be of foll types-

A. Leader- Largest market share in relevant product

market.

B. Challenger- Organizations with 2nd, 3rdor lower

rankings in the industry.

C. Follower

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TACTICS FOR BUSINESS STRATEGY

Challenger tactics are of 3 types-

I. Frontal(on the face) attack- Matching the

opponent in terms of the product, price ,

promotion and distribution.

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TACTICS FOR BUSINESS STRATEGY

II. Encirclement attack- Firm launches a huge

variety of productsto minimize the impact

of a single extremely strong competitor

product

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III. Flank(sideways) attack- Challengingthe

opponents weak and uncovered geographical

or segmental areas.

AC ICS O USI SS S A GY

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TACTICS FOR BUSINESS STRATEGY

Market Location Tactic:

C. Follower-Organizations imitate the market leaders

but do not upset the balance of competitive

power in the industry.

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a. Counterfeiter strategy- Involving duplicating

the market leaders product and packaging

and selling it in black market.

b. Cloner strategy- Imitate the market leaders

product , name and packaging.

TACTICS FOR BUSINESS STRATEGY

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Fakes: Some Examples

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Contd

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Prof. Gagan Bhatia; Strategic Management

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THANK YOU