By John Dudovskiy
June 23, 2022
McDonald’s McKinsey 7S framework illustrates the ways in which seven elements of businesses can be aligned to increase effectiveness. According to the framework strategy, structure and systems represent hard elements, whereas shared values, skills, style and staff are soft elements. McKinsey 7S framework stresses the presence of strong links between elements in a way that a change in one element causes changes in others. As illustrated in figure below, shared values are positioned at the core of McDonald’s McKinsey 7S framework, because shared values guide employee behaviour with implications in their performance.
Hard Elements in McDonald’s McKinsey 7S Model
Strategy
McDonald’s pursues business strategy of cost leadership and an aggressive international market expansion. The company is able to operate with low operational costs due to economies of scale enjoyed to an enormous extent. Moreover, along with operating company-managed restaurants, McDonald’s capitalizes on the high level of brand awareness via franchising. High speed of customer services, universality of the taste and cleanliness of restaurants worldwide also belong to the list of competitive advantages for the fast food giant.
Structure
McDonald’s has divisional organizational structure and fast food chain’s business operations are divided into four divisions according to geographical locations. These divisions consist of United States, Europe, Asia/Pacific, Middle East and Africa (APMEA) and other countries. The company benefits from divisional organizational structure in a way that managers are free to make decisions taking into account unique aspects of respective markets.
Systems
There is a wide range of systems that enable McDonald’s operations at a global scale. These systems include but not limited to employee recruitment and selection, team development and orientation, transaction processing and customer relationship management system. Moreover, the fast food chain also relies on advanced business intelligence system and knowledge management system.
McDonald’s Corporation Report contains a full analysis of McDonald’s McKinsey 7S Model. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Ansoff Matrix and Value Chain analysis on McDonald’s. Moreover, the report contains analyses of McDonald’s leadership, business strategy organizational structure and organizational culture. The report also comprises discussions of McDonald’s marketing strategy, ecosystem and addresses issues of corporate social responsibility.
