Running head: 7 S MODEL AND NIKE
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7 S Model and Nike Student Name University Name
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7 S Strategy and Nike Consultants working in McKinsey named Julien Philips, Ro bert Waterman and Tom Peters came up with the 7s model (McKinsey Quarterly, 2008). Since its advent, the model has been used widely as the strategic planning tool in most of the companies. The 7S’s consists of Strategy, Structure, Skills, Staff, Style, Systems, and Shared Values. For business organizations, the underlying concept behind the model is performance. All of the seven essentials of the model must be in phase with each other to complement the organisation goals (Dyer, Godfrey, Jensen, and Bryce, Strategic Management, 2016). Some elements of the 7 S model can be categorized as hard while some as soft. Systems, strategy, and structure are categorized as hard because theu are easy to identify and manage in comparison to the soft ones. Contrary ro this, skills, staff, style and shared values, however, the tough part is to control the fundamentals of the organization to gain and retain competitive advantage in the market (“Analyzing Organizational Structure Based on 7s Model of McKinsey.”, n.d.). The most critical s, strategy, in 7s means both long- and short-term plans to sustain a competitive environment in the firm. The structure is defined as a set of the hierarchy of employees within the company for reporting purposes. The systems are the ways which function central processes of the organization. The deployment, hiring, training, and recruitment of human capital come under the area of staffing, Skills are the combination o f abilities of individuals converging to organization basis. The term Style is defined as appropriate organizational communication. Moreover, finally, the shared values are the set of virtues values and priorities which the members of organisation see as important. Th e model can also be used to help identify what needs to be realigned to improve performance or to during types of change.
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Table retrieved from McKenzie & Co The following model has been selected because of its broad implementation and significant results in the industry. The 7s model helps us in analysing the current situation, propose a future goal and identify gaps and inconsistencies between them. After explaining the business according to this tool, the company adjusts itself to work effectively towards their broader a chievements. We have the example of Nike, Inc (footwear manufacturing company) which implemented the 7s tool in its business. Nike to promote its shoes implemented a marketing strategy by featuring global athletes as its endorsers like Michael Jordan and Tiger Woods. It also focuses on the highend market along with increasing average market share b y allowing low price range. Nike worked on its structure by decentralising decision making for customer satisfaction. Its CEO and director operations coordinate with each other to mitigate the communication gap. Nike worked on its skills of advertisement and marketing. To strengthen its global position, Nike merged with companies
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like Livestrong, Converse and Cole Haan. The staff at Nike enjoys employment perks, such as lunch and sports breaks. Also, it has been successful in the retention of its employees. Nike s ystems have provided help throughout its processes. Nike has maintained its style oriented demeanour and trendy shoemaking. In the end, Nike incorporated shared values by bearing the responsibility of its outsourced manufacturers and providing the little labour benefits. (Nike Strategic Analysis, Case). The overall implementation of the model proved successful for the Nike. The 7s model’s predictions can also be influenced by external reasons such as environmental factors, organisational considerations and internal factors. For instance, Nike had the problem of organisational considerations when in late 90’s it was accused of not providing proper facilities to its outsourced labour. Nike refrained and argued that the manufacturers are responsible for their actions and Nike has no control over it. However, in early 2000 Nike took the responsibility of rehabilitation of these labours under its corporate social responsibility and helped manufacturers to improve labour facilities. In the same way, internal problems such as employee retention, quality control and six sigmas can be affecting the company. To control the internal problems such as employee management Nike developed its vision and mission statement for its employees and provides employees with benefits such as separate employee stores, sports break between work ho urs. (Nike Strategic Analysis, Case) These problems are not associated with the model itself. Instead, it is based on unexpected factors or because of mismanagement in using the model or lack of expertise and risk aversion. If implemented correctly and the strategies and goals of the company are realigned, this will create a competitive edge over other companies as Nike has over its competitors.
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The suggestion for using 7s model comes from its remarkable results after numerous implementations including one of the world’s leading companies, i.e. Nike and AT & T. 7s model is a five-step process. It starts with the identification of the areas that are not aligned with the company’s vision and look for the inconsistencies and gaps. In the second step, organisations run for optimal design which must again be aligned with the company’s goals. Now, the question comes out where and when the changes should be made. The fourth step is applying the necessary change within the organisation. (Jurevicius, Conquering the challenge, 2013). Moreover, continually reviewing the 7s model to ensure the alignment of the compan y’s needs. By continuing this repeatedly, the organisation will be able to work through its internal problems, can defy internal complications and gain an advantage over its competitors. In conclusion, the 7s model has been very competitive over the years for the companies. With its interlinked tools leading to improvement of an organisation’s processes towards reaching a central goal. The accomplishments of companies who adapted 7s model have been quite remarkable as it became evident through the implementation within leading companies of the world. Although the model is not perfect always, as it can be influenced b y internal complications within the organisation, environmental factors and global implications of laws but it allows flexibility and the constant outlook for the new possibilities. Moreover, because of its global implications, as a practitioner, one would undoubtedly suggest this tool to be used in the functioning of the organisation.
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References Dyer, Godfrey, Jensen, and Bryce, “Strategic Management.” 2016.PDF. Jurevicius, Ovidijus. “Conquer the Challenge of Expansion with McKinsey 7s.” Strategic Management Insight , 20 Dec. 2013. “Strategic
Analysis
of
Nike,
Inc.” Comedy
and
Tragedy,
condor.depaul.edu/aalmaney/StrategicAnalysisofNike.htm. “Analyzing
Organizational
Structure
Based
on
7s
Model
of
McKinsey.” PDF ,
docplayer.net/45984918-Analyzing-organizational-structure-based-on-7s-model-ofmckinsey.html. McKinsey
Quarterly,
2008.
Retrieved
from
https://www.mckinsey.com/business-
functions/strategy-and-corporate-finance/our-insights/enduring-ideas-the-7-s-framework
