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Boston Communications Consulting

7S Framework

Crystal Diane Byrd

Spring 2003

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Agenda

Case for Market Entry

Factual Overview and reasons for selecting

the 7S frameworkEssence of the Framework

Application of 7S Framework to thecompanys problem

Recommendations

Lessons Learned

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Case for Market Entry

Case 4.2 Boston Communications Consulting Co. hasgrown from 3 consultants to 100 in 2 years. It is nowpreparing to expand overseas and work with globalclients. How would you help the firm develop a strategyand what would you recommend?

Mckinsey 7-S Framework strategy, structure,

systems, style, staff, skills and shared values

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Factual OverviewFunctions/Uses of 7-S-Model

Used for internal analysis of a company

Analyze strategic characteristics of a company

Tool for determining the doability of strategies

Used to create alignment among various departments ofan organization

Examines effect of change on a company

Analyze the successful and dysfunctional aspects of an

organization

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Factual Overview cont

WeaknessFocuses on internal fit of an organization

Ignores effect of factors external to theorganization

Why 7-S Model

Profitable, purposeful, efficient organizational actioncannot be successfully executed if internal elements arenot aligned

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Essence of the Framework

Hard S - rational and factual aspects: focuses onStrategy, Systems, and Structure

Strategy a plan of action to maintain competitiveadvantage over the competition

Systems measures and actions which accommodate

the execution of daily activities

Structure the way the organization is structured, whoreports to whom

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Essence of the FrameworkSoft S - social and interpersonal behavior: focuses on

Style, Shared Values, Staff, and Skills

Style leadership style

Shared Values company culture, work ethics etc

Staff company employees and their capabilities

Skills core competencies of the company as well asthat of its staff

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Application of the Framework - Strategy

Global strategyStandardization of products, processes

and operation around the world

Multidomestic strategyAdjust products and operations according

to each country or market served

Source: Strategic Management. Pitt and Lei, 2003

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Application of the Framework - Systems

W e b S e rve r

Da tabase Serve r

Appl icat ion Server

Cou ntry 1

Cou ntry 2

Cou ntry 3

These 3 servers represent the US

webs i te , ERP , and da tabase se rve r

In each country , a copy of the ERP

is instal led with m odifications to

accomm oda te language

A vers ion of the web s i te in eachCoun try is c reated and hos ted

The loca l ERP and w ebs i te use

the loca l database server

The loca l database is

synchron ized wi th the centra l

database server in Boston severa l

t ime s d a i ly .

*Because a l l locat ions use the sam eDatabase design and have the same basic

operat ions th is model becom es highly

modular and e asy to imp lement mult ip le

t imes.

Internat ional

Data Warehouse

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Application of the Framework Structure

Geogr p ic ivi ion Str ct r e

Hier rc ic l -Two w y open communic tion

Self cont ined product/function tomeet loc l

needs

Promotes igh level ofdecentr liz tion

Corporate - US

Region 1-London Region 2- Germany

Product/Function Product/Function

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Application of the Framework Style

The competitiveexecutiveFlexible nd daptive to Stakeholdersneeds

Seizesandexploitsopportunities

Focuseson increasing the companysshareof

market at a profit

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Application of the Framework Shared

Values

Maintenance of the firms corporate cultureglobally

Strong work ethics among new employees

Healthy balance of competitiveness andcooperation amongst applicants

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Application of the Framework - Staff

Recruitment of new consultants in theirrespective countries

Attract experienced employees at other firms

Offer incentives which should be determined

by the culture of the country

Provide additional training

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Application of the Framework - Skills

Skills for an International Market

Communication, Administrative, Finance andAccounting, Customer Service, Marketing, Product

Development, IT

High Level of linguistic capabilities

Examine foreign recruitment opportunities

Seek the best job techniques for individual countries

Exposure of US based consultants to the globalmarketplace

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RecommendationsConsider application of a framework which includesexternal considerations SWOT

Open offices in UK and Germany since competition is notvery strong here

Avoid France since Cap Gemini is already an establishedpresence and would be a formidable competitor

Form an alliance or partnership with an already

established smaller firm in the consulting industry

Do extensive market analysis to determine marketprofitability, the competition, the governmental or legalrestrictions, and requirements in these countries

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Lesson LearnedIt is best to apply two frameworks to a case beforemaking a decision

7s framework pertains to the internal alignment of a

firm helping them to work towards shared goals andvalues

There are considerable challenges to global expansion capital, labor, government regulations, tax

Companies need a strong, competitive global strategicplan

You must take into consideration cultural, language andcustomer differences