Mc Kinsey 7S Framework Analysis

Shared values Structure Strategy Systems Staff Style Skill

7S framework
Shared Values: Customer centricity, ethics , transparency, and teamwork are its core values . Structure: The structure of the organization is divided into 26 circles. Each circle is further divided into clusters. Bhopal circle has 4 clusters( Bhopal,Indore,Gwalior, Ujjain). Every branch has a Branch Head who leads 3 channels Operations: the Operation head lead a team of teller and Front desk officers Sales: The Branch Sales manager leads a team of Business Development Executives. Relationship Channel: It consists of Wealth, Priority and Business banking.

7S framework
Strategy: Axis Bank grows its business ethically. Systems: Several softwares are present like Finacle, Branch Analytics, Telesmart, ETS etc There are training modules for new recruits, advanced learning modules for employees nominated by HR. KRAs are set for every employee and incentives are provided for above par performance.(egs

7S framework
Staff: The branch has a staff of and Style: The layout of the branch is modern and welcoming. The ambience reinforces the Axis banks colors and customer focus. The open door policy of the Branch Head creates room for improved communication. Employees can freely voice their concern and meetings for monitoring sales targets are regularly held.

7S framework
Skills: Pre Requisite skills: Till a certain grade freshers are recruited then experience in the banking industry is mandatory for applying. Product expertise: Product knowledge refreshment sessions, new product launch seminars are held. Organization framework: Induction training of about 4-5 days for new recruits takes place.

Context of Industry Problem

Economic slowdown KYC norms getting stricter Cost leadership, product innovation and service quality cannot be achieved simulataneously. Low employee retention

Porters Five Forces

Bargaining Power of Suppliers

Threat of New Entrants

With 4 new banks entering the banking industry, the pressure to maintain a competitive advantage would increase.

Bargaining Power of Customers

About (%) customers have an account of apart from this branch. They closely monitor the service quality and can switch easily. Customers are lured by better interest rates offered to them. Cross selling insurance products is difficult because

Threat of Substitute Products

It is very high because of the diminishing differentiation between the products and services provided by the private sector.

Eg: Customers prefer cheaper loans of SBI

Threat of Existing Players

The established public sector banks offer tough competition with their government business and large customer base. The private sector banks brought in customer centric products and services.

The intensity of competition between private sector banks is very high