Running head: 7 S MODEL AND NIKE 1

7 S Model and Nike

Student Name

University Name
7 S STRATEGY AND NIKE 2

7 S Strategy and Nike

Consultants working in McKinsey named Julien Philips, Robert 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 of 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. The 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 achievements.

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 high-

end market along with increasing average market share by 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 systems

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 hours. (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 company’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 by 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-of-

mckinsey.html.

McKinsey Quarterly, 2008. Retrieved from https://www.mckinsey.com/business-

functions/strategy-and-corporate-finance/our-insights/enduring-ideas-the-7-s-framework