MCKINSEY 7S FRAMEWORK
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MCKINSEY代写 The McKinsey 7S Framework is based on a theory that organizations perform well when the seven key elements are aligned and···
An Analysis of Merger Between Qatar Petroleum and ARM Japanese Technology Company
The McKinsey 7S Framework is based on a theory that organizations perform well when the seven key elements are aligned and mutually reinforcing (McKinsey & Company, 2008). The organizations use this model to identify the needs that need to be realigned for performance improvement or maintenance. The seven key elements are strategy, structure, system, skills, staff, style, and shared the vision and they are interlinked as in the figure below.
The elements are further categorized as hard and soft elements. The “hard” elements are easily identifiable and can be directly influenced by the management actions. They include strategy elements, organization structure, and processes and information technology systems. On the other hand, the “soft” elements are difficult to describe and are virtually not tangible and are influenced by the organization culture. However, for a successful organization, both hard and soft elements are essential for the success of the organization.
| Hard Elements | Soft Elements |
| Strategy
Structure Systems |
Shared Values
Skills Style Staff |
Why Are “Hard” Elements Easier to Changes? MCKINSEY代写
The hard elements are easier to identify and trace in the organization, and therefore the organization can directly influence them. As such, they are easier to change in the Qatar Petroleum and ARM Japanese Technology merger. For instance, the merger requires realignment of both organization’s structure, strategies elements. And processes and information technology systems into the new structure.
Why Are “Soft” Elements Harder to Change? MCKINSEY代写
The “soft” elements, on the other hand, are difficult to identify because they are not easily visible nor tangible in the organization. Their invisibility and intangibility make them difficult to identify neither nor influence because they are mainly as a result of the organization culture. In this regard, both the Qatar Petroleum and ARM Japanese Technology have different cultures regarding labor, labor skills, and styles. Merging the two into a single working organization given their cultural differences become difficult. This is because merging labor skills, style of management, staffs’ attitude.As well as shared culture or values with that of other organization is not easy and it may take time to realign.
Merging Qatar Petroleum and ARM Japanese MCKINSEY代写
The merger between Qatar Petroleum , and ARM Japanese Technology calls for due diligence in the perspectives of the McKinsey 7S Framework. For the merger to be successful, the two organization need to be analyzed to one organization. Where the elements from both organizations are realigned into a new single unit. Both organizations need to be stripped off to their basic elements to be analyzed individually before deciding to merge them into one. The individual analysis of elements is vital in identifying the areas of weakness in one organization to not transfer it to the merger. Qatar Petroleum needs restructuring regarding strategy.
Reason being the crude reserves are slowly diminishing at the same time the world has turned digital with growth in demands for new technologies. After the analysis of both QP and ARM individually and identify the areas of weaknesses and difficulty in merging, a transition merger aligns the elements to form a single unity of elements. However, the process takes time to align “soft” elements which are shaped by the organizations’ culture. As such, much care is taken to merge the two into one and not affect the smooth transition to a new organization.
References MCKINSEY代写
McKinsey & Company. (2008). Enduring Ideas: The 7-S Framework. [online] Available at: https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/enduring-ideas-the-7-s-framework [Accessed 5 Nov. 2018].
