Competitive Strategy: Analyzing Woolworths with McKinsey 7-S Model

This presentation analyzes Woolworths' business strategy through the lens of the McKinsey 7-S model. It begins with an introduction to the model, which categorizes organizational factors into hard (strategy, structure, systems) and soft (shared values, style, staff, skills) elements. The presentation then applies the model to Woolworths, examining the company's strategies, organizational structure, business systems, and leadership styles. It delves into factors like staff training, shared values, and how these elements can contribute to improved performance. The analysis suggests how Woolworths can refine its approach to enhance sales and achieve its objectives. The presentation concludes by summarizing the findings and highlighting the model's utility in identifying areas for improvement within Woolworths to increase sales by 10% in the next 12 months. References from academic journals are included to support the analysis.

Competitive strategy

Introduction
McKinsey 7-S model
Conclusion
Table of content

 McKinsey Model is based on seven different factors of organization that are
subdivided in soft and hard areas.
 It is one of the best strategy planning tool that is used by various organization
to make specific strategy to full fill requirement of organization. Factors of
organization that are considered in this model are-
 Hard S- Strategy, Structure and System.
 Soft S- Style, staff, skills and Shared values.
McKinsey 7-S model for Woolworths

Strategy
 It is considered as a brief plan that is developed by Woolworth to improve profit to
certain level with the end of year. It also includes the various process and tactics that
can be used by organization to improve performance in the local business
environment.
 It is only possible with designing of best strategy by considering strategies used by
competitors in market place.
Continued....

Continued...
Structure
 Structure is major factor for organization. Better organizational structure can
allow the organization to deal will various market place risk in effective manner.
 Normally the structure of organization is considered as organizational chart that
represents a outline to check the organizational procedure which will be followed in
operations.
 To improve the efficiency and productivity Woolworth can redesign or modify their
organizational structure to avoid delay in customer services and problem solving.

Continued....
System
 System of organization is considered as the working process of company.
 System of Woolworth is the business process that is used by organization in operation.
 By improving business system organization and its management can improve the
utilization of skills that is possess by employees of company.
 This is how organization can improve its performance by right allocation of resources
and knowledge of people in organization.

Continued...
Shared Values
 This part of strategy development is included in soft “S” because in this relation
between employees is considered by organization to improve performance of
company in market place.
 It is all about incensing personal values on work place by creating better work
place environment by improving relation between employees and management.
 By this Woolworth will be able to deal with customer and employees issues.

Continued....
Style
 It deals with the style of leadership which the manager or leader of Woolworths
used in order to implement the strategy into the working place.
 Therefore, to meet the business strategy, company's leader opt democratic
leadership style that help to involve the employees in the decision making process.
 It is also analysed that through this style, the company start managing different
situation in order lead a business towards success.

Continued....
Staff:
 After implementing the leadership style, it is quite essential for the firm to constantly
improve the team in order to raise their production level and thus, the company have
more than ten thousand staff.
 Therefore, by providing effective training sessions, leaders can raise their
productivity level.

 From the above PPT, it as been concluded that it is quite hard for Woolworths to
determine the scope, but with the help of McKinsey 7- S model, company determine
all the aspects of the organization which are aligned and pointing the right direction.
 Thus, presentation concluded all the 7 S which helps quoted firm to identify which
aspect needs to be improved in order to attain the aim that is to increase the sales up to
10% in next 12 months.
Conclusion

 Cox, A.M., Pinfield, S. and Rutter, S., 2019. Extending McKinsey’s 7S model to understand
strategic alignment in academic libraries. Library Management. 40(5). pp.313-326.
 Channon, D.F. and Caldart, A.A., 2015. McKinsey 7S model. Wiley encyclopedia of
management, pp.1-1.
 Zincir, O. and Tunç, A.Ö., 2017. An Imagination of Organizations in the Future: Rethinking
McKinsey's 7S Model. In Strategic Imperatives and Core Competencies in the Era of
Robotics and Artificial Intelligence (pp. 101-125). IGI Global..
References

Thank you