mckinsey 7s model

MCKINSEY 7s P R E S E N T E R SSHRADDHA (14020541051)SHREYA ADHIKARI (14020541053)SHREYA SHARMA (14020541052)SIDDHANT PARASHAR (14020541054)SOURAV KARMAKAR (14020541055)SMITASHREE DAS (14020541063)NEETHI NAIR (14020541031)

GENERATION & IMPLICATION!

• To m P e t e r s & R o b e r t W a t e r m a n i n 1 9 8 0 ’ s

• O r g a ni z a t i o na l A na l y s i s T o o l

• M o ni t o r C ha ng e s i n t h e I nt e r na l S i t u a t i o n o f t h e O r g a ni z a t i o n

REASON

THE 7S ELEMENTS

HA R D E L E M EN T S SO F T E L E M EN T S

STRATEGY SHARED VALUES

STRUCTURE SKILLS

SYSTEMS STYLE

STAFF

L E T S G O D E E P !L E T S G O D E E P !How is the company divided? What is the hierarchy?

What are the main systems that run the organisations?

How participative is the management?What is the leadership style?What positions need to be filled?Are there any gaps?

What is our strategy?How do we intend to achieve our objectives?

What are the strongest skills?Are there any skill gaps?

What are the core values?How strong are the values?

STARBUCKS: McKinsey 7-S Framework Model

About STARBUCKS Starbucks Corporation , generally known as Starbucks Coffee, is

an American global coffee company and coffeehouse chain

based in Seattle, Washington.

Founded in 1971 by three partners Jerry Baldwin, Zev Siegl,

Gordon Bowker.

A Seattle coffee bean roaster and retailer.

Starbucks locations serve hot and cold beverages, whole-bean

coffee, micro ground instant coffee, full-leaf teas, pastries, and

snacks.

Customers are able to socialize, read, study or enjoy music while

drinking coffee.

In 1987, the original owners sold the Starbucks chain to former

employee Howard Schultz, who rebranded his Giornale coffee

outlets as Starbucks and quickly began to expand.

STARBUCKS in INDIATata Starbucks Ltd is a 50:50 joint

venture company, owned by Starbucks Corporation and Tata Global Beverages, that owns and operates Starbucks outlets in India.

Starbucks, through an agreement with Tata Coffee, serves coffee that is 100% locally sourced and roasted.

The rationalised plan for effective leadership and management for Starbucks Corporation is best presented through McKinsey 7S’ Framework.

Company objective is to “Establish Starbucks as a most recognised and respected brand in the world”.

From the beginning, Starbucks set out to be a different kind of company. One that not only celebrated coffee and the rich tradition, but that also brought a feeling of connection.

Today, with more than 15,000 stores in 50 countries, Starbucks is the premier roaster and retailer of speciality coffee in the world.

The company, Tata Starbucks, a joint venture between US Chain Starbucks with Tata Global Beverages, closed its year end with total six stores in Mumbai and five stores in Delhi, which generated the total revenue of Rs 14.61 crore during the financial year ended March, according to its latest annual filings.

As of Jan 2015, Starbucks operates 63 outlets in 7 cities of India comprising 1000+ of working staff.

Sh a r e d v a l u e s :The core values of the company that are evidenced in the corporate

culture and the general work ethic.

• The organization constantly refers to the “Starbucks experience”, and rallies employees behind delivering and satisfying this notion.

• Any retailer can sell coffee; Starbucks sells an experience. • This experience includes coffee, friendly staff, interesting

music, and a comfortable meeting place.

T h e S t a r b u c k s M i s s i o n S t a t e m e n t(@Starbucks.com)

S t r a t e g y :The plan devised to maintain and build competitive advantage

over the competition.

S t r u c t u r e :The way the organization is structured and who reports to whom.

• Starbucks refers to its employees as partners, and extends to all of them (even part time help working at least twenty hours a week), benefits such as health coverage and stock options.

• It was rated 91st in the 100 best places to work for by Fortune Magazine.

• Starbucks believes that effective human capital management translates into great customer services.

• Starbucks College Achievement Plan• Starbucks introduced a beta version of a

delivery system called Mobile Pour.

S y s t e m s :The daily activities and procedures that staff members engage in to get the job

done• The firm has several important systems in place within the

organization. These deal primarily with product knowledge, and product development.

• T r a i n i n g : Starbucks trains its staff extensively on the intricacies of coffee beans including where they are grown, how they are roasted, how they should be ground, and how they should be filtered to optimize taste.

• R o a s t i ng c o f f e e : Starbucks roasts all of its own coffee. This allows the company to deliver a product which consistently matches customer expectations.

• P u r c h a s i n g c o f f e e : As a large coffee retailer, Starbucks has the economies of scale needed to purchase coffee directly from growers and regional associations, rather than rely on import brokers.

• A team of expert Starbucks tasters evaluates more than 250,000 cups every year in tasting room, selecting just a few of the most unique coffees to become Starbucks Reserve coffees.

• “We don’t tell the bean how to taste – we listen to know what the bean has to offer so we can bring out the best flavor.”

Sk i l l s : “Skills” refers to the distinct capabilities or dominating attributes that distinguish a firm from its competitors.

•Friendly knowledgeable staff

•Starbucks Experience through non-retail operations

• Positioning of Starbuck’s products in the lines of alliance partners

S t a f f & S t y l e :“Staff” refers to the quality of people.

•Customer service •Flexible work environment•Lower employee turnover

“Style” for the organization can be defined as innovative, flexible, collegial and team-orientated

– Increase motivation through reviews and raises.– Employees are allowed to make decisions and participate in

C h a n g e s d u e t o 7 s m o d e l

The firm has a clearly defined strategy which is well communicated with both employees and customers which helped organisation’s effective growth.

Due to this 7s model , Starbucks was able to leverage and replicate experience in each of its stores.

Provided reinforcement by supplying frontline employees with the training and skills.

It plans to open around 100 Starbucks cafes in the country by next year to match up to established rivals and is building a war chest for expansion by more than trebling its authorised capital to Rs 220 crore.

Strategy of Partnership management which resulted in partnership with Apple to collaborate on selling music as part of the "coffeehouse experience".

Starbucks and Kraft Foods entered into a partnership in 1998 to sell Starbucks products in the Mondelez grocery stores owned by the latter.

For staff : In June 2014, Starbucks announced a new partnership with Arizona State University(ASU) that would allow Starbucks employees to complete four years of college at Arizona State University's online program for only around 23K.

Some of the methods Starbucks has used to expand and maintain their dominant market position, including buying out competitors' leases, and clustering several locations in a small geographical area (i.e., saturating the market), have been labelled anti-competitive by critics.

Led to reduced operational expenses,75% gain in Market shares within 4 years , increase in market revenue by 5% each year, increased brand awareness.

ANALYSIS OF STRATEGIC FIT IN INFOSYS THROUGH MC KINSEY 7S MODEL :

INFOSYS:

• It Was Co-founded In 1981.• It Is An Indian Multinational Corporation That

Provides Business Consulting , information Technology , software Engineering And Outsourcing Services.

• It Is The Third Largest India Based It Services Company By 2014 Revenues And The Fifth Largest Employer

• The Market Capitalisation Is $31.11 Billion Making It India’s Fifth Largest Publicly Traded Company.

STRATEGY:

• What is the strategy?• How to intend to achieve the objectives?• How to deal with competitive pressure?• How are changes in customer demands dealt with?• How is strategy adjusted for environmental issues?

STRATEGY FOLLOWED BY INFY:

• Client focused strategy to achieve growth• Increase business from existing and new clients• Expand geographically• Enhance solution set• Develop deep industry knowledge• Enhance brand visibility• Pursue alliances and strategic acquisitions

ORGANISATION STRUCTURE:

• How is the company/team divided?• What is the hierarchy?• How do various departments coordinate activities?• How do the team members organise and align themselves?• Is decision making and controlling centralised or

decentralised?

ORGANISATION STRUCTURE AT INFY:

• Adopted a free organisation devoid of hierarchies.• Everyone is known as associates of his position in the company.• Software development is undertaken through teams and the

constitution of teams is based on the principle of flexibility.

STAFF

“Staff” refers to the number and type of personnel within the organisation and how companies develop employees and shape basic values

AT INFOSYS

SYSTEMS

Defines the flow of activities involved in the daily operation of business, including its core processes and its support systems

SHARED VALUE

Shared Values are the commonly held beliefs, mind-sets and assumptions that shape how an organisation behaves, also known as the “Corporate Culture”

DRIVEN BY VALUES

STYLE:- Cultural style and behavior of organization.

• How participative is the management style?

• How effective is the leadership?

• Do employees tend to be cooperative or competitive?

• Are there real teams functioning within the organization or are they just nominal groups?

SKILLS:-Dominant attributes that exist in the organization.

• What are the strongest skills represented within the company?

• Are there any skills gaps?

• What is the company known for doing well?

• Do the current employees have the ability to do the job?

• How are the skills monitored and assessed?

T h a n k Y o u ! !