An Analysis of The McKinsey 7-S Framework Model

The change objective for the Dollar Tree, Inc. is to ensure that all retail stores receive product and promotional materials in a timely manner. Product distribution is a main emphasis in the Dollar Tree’s operational processes. Management has decided to implement a change model system that creates interlinking communication and collaboration between departments.

The McKinsey 7S Framework Model (2014) provides seven internal essentials the Dollar Tree can use to align communication and collaborative practices. The first ‘S’ is for strategy. Strategy is how an organization defines their ability to assert and maintain a competitive advantage. For the Dollar Tree, the strategy is simple. By providing each and every product for only 1$, they ensure their competitive advantage by drawing in consumers who are overly concerned with spending less money instead of looking for the highest quality. However, if the consumer is unable to find hot ticket items that should be displayed on the end caps, then Dollar Tree runs the risk of losing profits or sales because individuals are unable to locate their desired product and would rather pay the extra bit if money then spend more time looking on the shelves.

The second, ‘S’ is structure. Structure is the “organization chart and accompanying baggage that shows who reports to whom and how both tasks are both divided and integrated” (Waterman, 1982). An accountability system is lacking within the organization’s structure. Somebody, somewhere, is not being held responsible for ensuring that the proper merchandise is on the right truck, heading to the right store. This could be a result of a few different scenarios. There could be a lack of reciprocity between the organizational pl...

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...e accountability throughout the entire organization.

Works Cited

Akin, G., Dunford, R., & Palmer, I. (2006). Managing Organizational Change: A Multiple Perspectives Approach, 1e. New York, NY: The McGraw-Hill Companies, Inc.

Singh, A. (2013, Fall). A Study of Role of McKinsey's 7S Framework in Achieving Organizational Excellence. Organization Development Journal, 31(3), 39-50.

Strategic Management Insight (2012). The McKinsey 7-S Framework Model. Retrieved from

http://www.strategicmanagementinsight.com/tools/mckinsey-7s-model-framework.html

The McKinsey 7S Framework. (2014). Retrieved from

http://www.mindtools.com/pages/article/newSTR_91.htm

Waterman, Robert H., Jr. (1982). The seven elements of strategic fit. Journal of Business

Strategy (Pre-1986), 2(000003), 69. Retrieved from http://search.proquest.com/docview/209887909?accountid=458