Organizational Behavior Assessment: McKinsey, SWOT, PESTLE Analysis

This report provides a comprehensive assessment of organizational behavior, employing a range of analytical tools to evaluate a company's internal and external environments. The analysis begins with an introduction to business analysis and then delves into the application of the McKinsey 7-S framework, examining strategy, structure, systems, shared values, skills, style, and staff. It proceeds to evaluate the organization using a balanced scorecard, assessing learning and growth, business processes, customer perspectives, and financial data. The report then applies a SWOT analysis to identify strengths, weaknesses, opportunities, and threats, followed by a PESTLE analysis to explore political, economic, social, technological, legal, and environmental factors. Each tool's merits and demerits are discussed, offering a holistic understanding of the organization's position and potential for improvement. The report concludes by synthesizing the findings and offering insights into strategic planning and decision-making for organizational success, based on the CRKC7001 Organizational Behavior Assessment guidelines.

Organizational Behaviour
Assessment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
7s framework...............................................................................................................................3
Balanced scorecard......................................................................................................................4
SWOT..........................................................................................................................................5
Pestle............................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Business analysis refers to the process of evaluating the position of the organization and its
strategy in the market. This is achieved by determining the factors the effects the business
operations. The following report will be highlighting the concept of McKinsey 7's model,
balanced scorecard, swot analysis and pestle analysis which will be followed by mentioning the
merits and demerits of these tools.
MAIN BODY
7s framework
This framework is used to determine and regulate the seven factors in the organization in a
way that it can give effective outcomes that will help in formulation of strategies. The seven “S”
in this model is discussed below:
Strategy
Plans that are implemented for achieving higher levels of profits and sustainability which
can help in eliminating competition as well. This step can help the firm to determine its future
position if the strategies are planned for long period of time. This strategy aligns with other
elements of the framework to gain higher feasibility.
Structure
This refers to the organizational shape in terms of flow of commands, divisions in the
organization and their interdependency. The basic focus of this element is on the management
structure and process that effects the organizational functioning.
System
This element refers to the daily activities that is done while commencing business and its
methods.
Shared values
Relationship between employees and management is determined in this element which
depicts the psychological aspects of the organization (Elmansy, 2019). The behaviour of staff
towards the organization and management plays a vital role while implementing new techniques
or change in the firm. Behaviour of organization towards the employees may be mentioned in the
code of conduct that is presented to the staff.
Skills

This element depicts the skills and talent of the workforce that eventually increases the
productivity of the organization. Varied skillset of employees can help the firm in various
aspects while implementing strategies and in day to day activities as well.
Style
Style refers to the approach of management while implementing strategies in the
organization. It mainly aims towards the leadership style possessed by the manager in order to
make the employees more cooperative.
Staff
The workforce of the organization and their behaviour towards the organization is
determined in this aspect. The behaviour of employees can be determined in various terms such
as motivation to do work, how much they are willing to stick up to the firm etc. this helps the
management to get an idea of the consequences and the reaction of employees towards any
change.
Balanced scorecard
BSC is a metric that helps the management to identify and evaluate various internal factors
in the organization for its improvement to achieve organizational goals (Pathak, 2020). This
metric is used to analyse the pros and cons of the internal environment of the firm. For doing this
activity the company has to gather relevant data in respect with the metric and interpret it
effectively for gaining accurate outcome from it. Balanced scorecard helps the organization in
determination of quality of staff in accordance with their skillsets. BSC metric imposes good
environment in the organization by analysing four different internal areas that are being
discussed below:
Learning and growth
Focus of this quadrant of metric is on analysing the training and growth of the employees
to improve the overall level of organization. The knowledge of employees in the field is
important for the firm as it depicts the productivity and quality of work provided by the
organization. The abilities of the employees to capture and use the data is being tested in this leg.
Business process
The process of commencing business is being analysed in this aspect for determination of
areas needing improvement. Every aspect products and services that are being catered to the

customer is evaluated in this segment. From manufacturing to selling every aspect is covered
here so that the overall betterment in business commencement can be achieved.
Customer perspective
this aspect focuses on the customer point of view towards the organization and its
products. The company can gather feedbacks from the customers through various methods and
interpret the data to acknowledge the gaps or faults that are affecting the customer experience. In
this feedback the company can gather data in term of pricing, quality, customer needs etc.
Financial data
In this segment various quantitative data is being gathered and interpreted to make a useful
outcome of it so that the management can focus on future growth by formulating plans
accordingly. This may include the sales graph, financial ratios, budget etc. which can help the
management to know what was expected and what has been actually achieved.
SWOT
It is a tool used by business organisations to analyse internal and external factors that
impacts the working of the firm. This tool helps the organization to analyse its four aspects that
is strength, weakness, opportunities, threats. Analysing these four factors the company can
determine future strategies that can help in grabbing the available opportunities in the market.
The strength of the firm can be upgraded to uplift the level of organization to its best which can
eventually help to eliminate the threats posed by the firm. These four elements are thoroughly
discussed below:
Strengths
The internal strength of the organization can be evaluated by acknowledging the factors
that helps the firm to stand out from its competitors (Benzaghta and et.al., 2021). Characteristics
or features of the organization that helps the firm to commence business effectively is being
determined as strengths. Strengths posed by the organization can include its workforce, goodwill,
management, leadership skills etc. which helps the firm to grow.
Weaknesses
Weakness are the faulty areas of the organisation which restricts the growth of an
organization and stops the firm to achieve the maximum benefits that are available in the sector.
Weakness is an internal factor which can lead to downfall of the organization if not eliminated

soon. Examples of weakness are demotivated employees, inefficient risk management, financial
instability etc.
Opportunities
Available options for the firm to grow in the sector is known as opportunities which leads
to higher profit for the firm (GURL, 2017). Opportunity is an external factor that can increase the
firm in different dynamics which can help in the betterment of the organization. Global
expansion, rural expansion, innovation etc. are some of the examples of opportunities that can
help the firm to flourish.
Threats
Threats are the external factors that can harm or impact the organizational activities and
can result in losses for the firm. Threats are the factors that concerns the management because it
effects the sustainability of the firm. Pandemic is one of the biggest example that has posed a
threat to many organizations.
Pestle
This tool is used for analysing the external factors that impacts the organizational
activities and profitability both directly and indirectly (Chavan, 2009). Six dimensions are being
considered in this tool whose factors effects the business activities. These dimensions are
political, economic, social, technological, legal and environmental which surrounds and
influences the business environment.
Political factors
These are the factors that are connected with government and policies of the region in
which the firm is located in. business organizations gets highly influenced by the governmental
decision, issues etc. Brexit uncertainty is one of the examples of political factors that impacts the
business organizations operating in the region.
Economic factors
The economic conditions of the country are being depicted in this factor which effects the
profitability of the organization as it influences the price and demand of commodities (Kaplan,
2009). Cash flow in the economy is very essential for organizational benefit as the operations are
going to take place in the region which will indirectly influence the working of the firm.
Economic factors have long term impact on the organization.

Social factors
In this segment social environment of the surrounding is being considered and its effects
on organizational activities are covered. Some of the example of social factors are change in
trend, change in culture etc. which has to be followed by the firm to cope up with this factor.
Technological factors
In this segment the analysis focus on determining the effects of various technological
usage or enhancement on an organization (Baishya, 2015). AI in the vehicles is one of the
example of technological factors which forces the business organization to innovate accordingly.
Legal factors
Legalities imposed in the sector by the authoritarian body is determine in this aspect
which shows the effects of certain amendments in government policies. Increase in tax rates,
restrictions imposed on the firm etc. are the example of legal factors that impact the firm.
Environmental factors
The concern for sustainable development has increased the operating costs for many organization
whose activities harm the environment(Singh, A., 2013). Reducing carbon emission is one of the
biggest concern these days which has forced the organizations to operate in such a way that
carbon emission can be reduced.
CONCLUSION
The above report has highlighted the concepts of different tools that can help to deeply
analyse an organizational functioning and position. Determination of different factors thorough
these tools can help the management to formulate effective plans for achieving higher levels of
profits.

REFERENCES
Books and journals
Baishya, B., 2015. McKinsey 7S framework in corporate planning and policy. International
Journal of Interdisciplinary Research in Science Society and Culture (IJIRSSC). 1(1).
pp.165-168.
Benzaghta, M.A and et.al., 2021. SWOT analysis applications: An integrative literature
review. Journal of Global Business Insights. 6(1). pp.55-73.OT analysis: A theoretical
review.
Chavan, M., 2009. The balanced scorecard: a new challenge. Journal of management
development.
Elmansy, R., 2019. PESTLE Analysis and When to Use it.
Kaplan, R.S., 2009. Conceptual foundations of the balanced scorecard. Handbooks of
management accounting research. 3. pp.1253-1269.
Pathak, R., 2020. What is PESTLE Analysis. Factors, Advantages and Importance. Retrieved
from Analytic Steps: https://www. analyticssteps. com/blogs/what-pestle-analysis.
Singh, A., 2013. A study of role of McKinsey's 7S framework in achieving organizational
excellence. Organization Development Journal. 31(3). p.39.
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