The McKinsey 7-S model can be practically applied in the hospitality industry in several ways. It can be used to assess a company's competitive and strategic advantage. For instance, it was applied at the Ithaca Beer Company (IBC) to identify the key factors contributing to the company's success. These factors were strategy, staff, skills, and shared values. The model can help in identifying areas of strength and weakness, aligning resources and capabilities with business strategy, and fostering shared values among staff. It can also be used to guide change management initiatives, improve performance, and facilitate organizational effectiveness.

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Consulting Frameworks

Use our compilation of commonly used Consulting Frameworks to better structure your analysis and communicate the most suitable recommendations. This d...

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Center for Hospitality at Cornell University conducted an analysis of how the McKinsey-developed 7-S model, applied at the Ithaca Beer Company (IBC), can be used to assess a company's competitive and strategic advantage. Based on interviews and other analysis, Center for Hospitality at Cornell reports, four of the seven factors in the 7-S model were aligned and critical for this particular company's success. These factors were: strategy, staff, skills and shared values.

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The 7-S model is a tool for managerial analysis and action that provides a structure with which to consider a company's organizational design by looking at seven key elements: strategy, structure, systems, shared values, style, staff, and skills. Other business frameworks such as the SWOT analysis, Porter's Five Forces, the BCG Matrix, and the Value Chain also provide different perspectives for analyzing a business. SWOT focuses on internal and external factors affecting the business, Porter's Five Forces analyzes the competitive environment, the BCG Matrix looks at market growth and market share, and the Value Chain analyzes primary and support activities that create value. Each framework has its own strengths and weaknesses, and they can be used in combination for a comprehensive analysis.

Companies can implement the 7-S model in their operations by aligning the seven factors: strategy, structure, systems, shared values, skills, style, and staff. The first step is to understand the current state of each factor within the organization. Then, identify where changes need to be made and develop a plan to align these elements with the company's overall strategy. This could involve changes in organizational structure, adopting new systems, fostering shared values, developing skills, adjusting management style, and hiring or training staff. It's important to note that all seven factors are interdependent, and changes in one area will likely impact the others.

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