ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 25: Global Business Environment (5076)

Submission date 25/08/2023 Date received (1st submission)

Re-submission date Date received (2nd submission)

Student name Nguyen Khanh Phong Student ID GBD210043

Class GBD1004 Assessor name Nguyen Huu Nam Phuc

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Table of Contents
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I. Executive Summary
II. Impact of Globalization on the organization
1. McKinsey’s model
1.1. Theory of McKinsey’s 7s model

The McKinsey 7S Model was created in the beginning of the 1980s by Tom Peters and Robert
Waterman, two consultants at McKinsey& Company, and has subsequently been used to evaluate
over 70 big firms. The model was designed to be a recognized and readily remembered business
paradigm. The seven factors, dubbed "levers" by the authors, all begin with the initial "S":
“structure", "strategy", "systems", "skills", "style", "staff", and "shared
values/superordinate goals".

1.2. Examination of Foot Locker based on McKinsey’s 7s model

• Strategy
The strategic direction and the overall business strategy for Foot Locker Inc are clearly
defined and communicated to all the employees and stakeholders. This helps the
organization manage performance, guide actions, and devise different tactics that are aligned
with the business strategy. In accordance with the business plan, SMART Goals are
established with short and long-term deadlines. The company strategy assists employees in
deciding methods and behaviors to help the firm expand by achieving the established goals
and targets. With its flexibility and adaptability, Foot Locker Inc not only benefits from fast
reacting and responding to changing consumer habits throughout the world, but it is also
able to regionally and culturally adjust its products through localization for diverse nations
and areas.
• Structure
Foot Locker Inc has a lower organizational hierarchy that is supported by progressive and
learning organizations. Employees feel more comfortable and confident, and have more
availability of information, with fewer administrative layers in between and more access to
top management and leadership. In an effort to improve its agility, speed and overall
consumer experience, Foot Locker Inc. announced today a new organizational structure that
includes multiple senior management promotions.
As for its new organizational structure, Foot Locker said the changes will include a better
connection of its customer-facing functions wherever it operates to improve focus on
customer experience engagement; the strengthening of its community connectivity that will
help create localized customer experiences, product offerings and community activations;
and the streamlining of its operational and expense structure for productivity and flexibility
internally.
• System
Foot Locker Inc has defined and well-demarcated systems in place to ensure that the
business operations are managed effectively and that there are no conflicts or disputes. The
systems at Foot Locker Inc are largely departmental in nature, and include, for example:
 Human resource management, Finance Marketing, Operations, Sales and Supply chain
management. The developed controls are used to continuously assess its systems. This
performance monitoring is continuous and ongoing. This is mostly accomplished through
observation and casual talks. Employees and department leaders receive informal feedback
on a regular basis, as needed. Formal performance evaluations are also done semi-annually
or quarterly, depending on the necessity and urgency of the projects and given duties. This
is a structured method used by supervisors and management to identify performance gaps
and propose measures for improvement.

• Shared Values
Foot Locker Inc's fundamental values are developed and conveyed in order to build a
creative and supportive organizational structure that will help workers to perform effectively
while also increasing their motivation and organizational commitment. Foot Locker Inc's
core values include: INTEGRITY: act honestly, ethically, and honorably, LEADERSHIP: respect,
inspire, develop, and empower, EXCELLENCE: strive to be the best in everything we do, SERVICE:
satisfy our customers every time, TEAM WORK: collaborate, trust, support, commit, INNOVATION:
be a student of the business to initiate and foster new ideas, and COMMUNITY: embrace diversity;
act responsibly for our customers, associates, investors, and communities
• Styles
In Foot Locker, the leadership’s role is to empower every employee in the organization in
order to reaching goals. Foot Locker Inc utilizes a participatory leadership style to involve
workers in decision-making processes and managerial choices. This approach enables
regular communication with employees and various managerial groups, detecting potential
problems and commenting on strategic strategies. This approach improves employee
engagement and promotes organizational commitment and ownership among workers and
stakeholders.
• Staff
Foot Locker Inc employs a large number of people worldwide, employing employees for
various job types and positions based on urgency and skill levels. The company's human
resource department coordinates divisions to detect potential vacancies or skill gaps. They
provide permanent or contractual recruitments and training sessions for current staff,
depending on the requirement. The company's human resource function ensures proficiency
in their job duties and positions.
• Skills
Foot Locker Inc employs a large number of people worldwide, employing employees for
various job types and positions based on urgency and skill levels. The company's human
resource department coordinates divisions to detect potential vacancies or skill gaps. They
provide permanent or contractual recruitments and training sessions for current staff,
depending on the requirement. The company's human resource function ensures proficiency
in their job duties and positions.
1.3. Evaluation of the impact of globalization elements on the organization
• Vertical organizational structure: