7s

McKinsey 7s model is a tool that analyzes firm’s organizational design by looking at 7

key internal elements: strategy, structure, systems, shared values, style, staff and skills, in order
to identify if they are effectively aligned and allow organization to achieve its objectives. The
seven areas of organization are divided into the ‘soft’ and ‘hard’ areas. Strategy, structure and
systems are hard elements that are much easier to identify and manage when compared to soft
elements. On the other hand, soft areas, although harder to manage, are the foundation of the
organization and are more likely to create the sustained competitive advantage.
EXAMPLES OF COMPANIES IN THE PHILLIPINES THAT IMPLEMENT 7s:
1. Magnolia - Magnolia Inc. was
incorporated in the Philippines
primarily to engage in and carry out
the business of processing,
manufacturing, and marketing of
cheese, butter, margarine and other
related products under the “Magnolia”
trademark. With its well-established
leading brands, the company
comprises over 90% of the non-
refrigerated margarine market and
over 80% of refrigerated margarine.

2. San Miguel - San Miguel is South

East Asia’s largest food and
beverage company. Traditionally
diversified among three main
products, which are food, beverage
and packaging. Its flagship product
San Miguel beer Pale Pilsen
maintained the lead in its industry
and owns seven of the top selling
beer brands in the Philippines.
Meaning with its large market share
the volume of its sales has started
to pose a slow growth and started to
depend on the Philippines
population growth for more volume.
Facing these and other new
economic realities San Miguel
Corporation started to rethink and
change its business model as the
first decade of the millennium drew
to a close. San Miguel decided to
pursue and shift into non-allied businesses in the Philippines following important trends
 for its and the Philippines future growth such as energy, mining, infrastructure and other
utilities, forgoing its international expansion plans.

3. Pepsi-Cola - Pepsi-Cola Products Philippines Inc. is the exclusive bottler of PepsiCo

beverages in the Philippines, with a relationship spanning 66 years. Lotte Chilsung, one
of the biggest beverage companies in South Korea, is the lead shareholder of PCPPI as
an independently-listed company and co-manages it with PepsiCo. PCPPI manufactures
and sells well-known brands such as Pepsi-Cola, Mountain Dew, 7-Up, Mirinda, Mug,
Gatorade, Tropicana, Lipton, Sting, and Premier. It has established manufacturing
facilities across the country, serving at least 500,000 outlets and providing employment
through its extensive distribution network.

4. Gardenia - Gardenia Philippines offers a wide array of superior bakery products

including white, wheat and health breads, flavored loaves, pandesal and snack items like
snack cakes, muffins and toasts. Gardenia breads are known for their good taste,
freshness, softness, oven-baked aroma and nutritive value. The popular Classic White
Bread is cholesterol free and bromate free, has zero transfat, and is vitamin and mineral
fortified, exceeding DOH recommendations. Its product slogan “So good…you can even
eat it on its own” best describes the product benefits.

Gardenia, being a consumer-focused and branded food company, is singularly

driven in delivering superior consumer value through providing consumers with superior
products. The Gardenia trademark means value and is respected all over Asia.
5. Nestle - A hundred years after it first started operations in the country, Nestlé
Philippines, Inc. today is proud of its role in bringing good food and beverage throughout
the stages of the Filipino consumers’ lives. Although Nestlé products were already
available in the Philippines as far back as 1895, it was not until 1911 when The Nestlé
and Anglo Swiss Condensed Milk Company was established in the country, with its first
sales office in Calle Renta, Binondo.

Driven by its mission to nurture generations of Filipino families, Nestlé produces

and markets products under some of the country’s well-known brands such as
NESCAFÉ, NIDO, MILO, NESTEA, MAGGI, BEAR BRAND, NESTLÉ, and PURINA
among others. Its product range has expanded to include coffee, milk, beverages, non-
dairy creamer, food, infant nutrition, ice cream and chilled dairy, confectionery, and pet-
care. Over time, a number of Nestlé’s quality and affordable products have become part
of the Filipino way of life.

References:
Jurevicius, O. (2013, December 20). Conquer the Challenge of Expansion with
McKinsey 7s. Retrieved from https://strategicmanagementinsight.com/tools/mckinsey-
7s-model-framework.html.

Pepsi-Cola Products Philippines Inc.(PCPPI). (n.d.). Retrieved from

https://www.linkedin.com/organization-guest/company/pepsi-cola-products-phils--inc?
challengeId=AQHaxiRgdUfIqgAAAW6mqzTRnbvzea1L2cVNULRfLzz80tVBKU54K72KY
1krErhCW7gVzWV5t2Tumpkar0RIKXqvokKR_O9UMQ&submissionId=3fd62cdb-a9a6-
da15-5289-d511bcc3f215.

Javier Magnolia. (n.d.). Retrieved from

https://www.scribd.com/document/419737202/Javier-Magnolia.

San Miguel Corporation. (n.d.). Retrieved from https://www.linkedin.com/organization-

guest/company/san-miguel-corporation?
challengeId=AQEu22BdB70AgAAAAW6mr6mwITdnmjXJNlAojl83kc_RFSBhmn469qQE
N8b3FdBQlzfhuqMs5nfOArxZEa_A8WDqtCO5cy64uA&submissionId=3b4b98d8-eda6-
da15-9258-7a27dbc1a07d.

Members Directory: (n.d.). Retrieved from http://pana.com.ph/directories/gardenia-

bakeries-phils-inc/.

Members Directory: (n.d.). Retrieved from http://pana.com.ph/directories/nestle-

philippines-inc/.