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Aligning Excellence: Applying McKinsey 7S Framework in 1

Hospitality and Tourism Management

MCKINSEY 7S CASE STUDY

Note:
Assessment: Students
will be evaluated based
on the following criteria:
1. Understanding and
application of the
McKinsey 7S
Framework.
2. Analysis of the
organization's
current state and
alignment.
3. Creativity and
feasibility of
Objective: proposed
recommendations.
The objective of this case study is to familiarize 4. Quality of
students in Hospitality and Tourism Management presentation,
including clarity,
with the McKinsey 7S Framework and its practical
organization, and
application. Through this activity, students will engagement.
gain a deeper understanding of how to analyze
and improve the strategic and operational
aspects of organizations in the hospitality and
tourism sector.

Activity Overview:
In this case study, students will be presented
with a fictional but realistic scenario involving a
hotel or tourism organization facing various
challenges. They will work in teams to apply the
McKinsey 7S Framework to diagnose the
organization's current situation, identify areas of
misalignment, and propose strategies for
improvement. The case study will culminate in
group presentations where each team will
present their findings and recommendations.
 The objective of this case study is to familiarize students in
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Hospitality and Tourism Management with the McKinsey 2
7"Palm Haven Beach Resort - A Tropical Oasis in the
Philippines"

Background:
"Palm Haven Beach Resort" is a mid-sized resort located on the beautiful shores of
Boracay Island in the Philippines. For years, it has been a favored destination for both
local and international tourists seeking sun, sand, and serenity. However, in recent
times, the resort has been facing several challenges that are threatening its
sustainability and reputation.

Challenges Faced by Palm Haven Beach Resort:

1. Declining Guest Satisfaction: Guest reviews have taken a hit on various travel
websites, with common complaints about service quality, cleanliness, and value
for money.
2. Increased Competition: New resorts have entered the scene, offering innovative
features and competitive pricing, making it harder for Palm Haven to stand out.
3. High Staff Turnover: Employee morale is low, and there's a high turnover rate
among the staff, leading to inconsistencies in service quality.
4. Rising Operational Costs: Utility and maintenance costs have been increasing,
impacting the resort's profitability.

Task 1: Group Formation Students will be divided into groups of 4-6 members, and
each group will assume the role of consultants hired by Palm Haven Beach Resort to
address these challenges. (Follow our previous groupings)

Task 2: McKinsey 7S Framework Analysis Each group will be provided with detailed
information about the resort's current state in the context of the McKinsey 7S
Framework:
1. Strategy: The resort's current strategy and approach to attracting and retaining
guests, as well as its competitive positioning in the market.
2. Structure: The organizational structure, including departments and hierarchy, and
decision-making processes.
3. Systems: Operational processes, technology used, management information
systems, and booking platforms.
4. Shared Values: The core values, culture, and beliefs of the resort.
5. Style: Leadership styles, management practices, and employee engagement
strategies.
6. Staff: Details about the resort's workforce, including employee skills, training, and
development programs.
7. Skills: The competencies and expertise of the workforce, as well as any training
programs in place.

Task 3: Analysis and Recommendations In their groups, students will analyze the
provided information using the McKinsey 7S Framework, with a focus on identifying
misalignments and gaps contributing to the resort's challenges. They should also
formulate actionable recommendations specific to the Philippines' hospitality and
tourism industry.
The objective of this case study is to familiarize students in
Page
Hospitality and Tourism Management with the McKinsey 3
7"Palm Haven Beach Resort - A Tropical Oasis in the
Philippines"

Task 4: Group Presentations Each group will prepare a 5 to 15 minute presentation

summarizing their findings and recommendations. They should consider how the
Philippine cultural context, customer expectations, and local competition influence
their recommendations.

Task 5: Discussion and Feedback After each presentation, there will be a Q&A session,
encouraging students to consider how the Philippine setting uniquely impacts the
resort's operations and strategies. This discussion will also allow for peer feedback,
fostering a culture of constructive critique and collective learning.

By situating the case study in the Philippines, students will not only learn about the
McKinsey 7S Framework but also develop a nuanced understanding of how its
application can be tailored to the specific challenges and opportunities within the
Filipino hospitality and tourism sector.

S Framework and its practical application. Through this activity, students will gain a
deeper understanding of how to analyze and improve the strategic and operational
aspects of organizations in the hospitality and tourism sector.

In this case study, you will be presented with a fictional but realistic scenario
involving a hotel or tourism organization facing various challenges. You will work in
teams to apply the McKinsey 7S Framework to diagnose the organization's current
situation, identify areas of misalignment, and propose strategies for improvement.
The case study will culminate in group presentations where each team will present
their findings and recommendations.
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Here is a model response for your review and consideration. Please 4
upload your presentation to our MS Teams platform, and make sure
to refer to the provided rubric as a guide for your submission.

Strategy:
- Analysis: The resort's strategy is currently focused on providing traditional vacation experiences.
However, it lacks differentiation from competitors and fails to capitalize on the unique natural beauty of
Boracay.
- Recommendation: Develop a sustainable and nature-centric strategy that leverages Boracay's
environmental beauty. Offer eco-tourism packages, collaborate with local environmental groups, and
market the resort as an eco-friendly destination.

Structure:
- Analysis: The organizational structure appears rigid, which may hinder swift response to customer
needs and market changes.
- Recommendation: Implement a more flexible and customer-centric structure that empowers
employees at all levels to make decisions to enhance guest experiences. Promote cross-functional
teams for project-based innovations.

Systems:
- Analysis: The resort's technology and operational systems seem outdated, leading to inefficiencies in
managing bookings and services.
- Recommendation: Invest in an integrated property management system to streamline operations.
Implement a customer relationship management (CRM) system to personalize guest experiences and
collect valuable data for marketing.

Shared Values:
- Analysis: While customer satisfaction is emphasized, there is a lack of strong environmental
commitment.
- Recommendation: Embed sustainability into the resort's values, fostering a culture of environmental
responsibility. Engage employees in sustainability initiatives and encourage them to embody these
values in their interactions with guests.

Style:
- Analysis: Leadership styles are predominantly hierarchical, limiting the engagement and innovation of
employees.
- Recommendation: Shift towards a transformational leadership approach, empowering employees to
participate in decision-making, fostering creativity, and taking ownership of guests' well-being.

Staff:
- Analysis: High staff turnover and morale issues reflect dissatisfaction and the need for skill
development.
- Recommendation: Develop a comprehensive training program focusing on customer service, cultural
sensitivity, and sustainability practices. Implement performance recognition schemes to boost
employee morale and retention.

Skills:
- Analysis: Inconsistent service quality suggests varying skill levels among employees.
- Recommendation: Conduct regular skills assessments and provide targeted training to address skill
gaps. Encourage cross-training to ensure uniform service quality, especially during peak seasons.

Shared Values:
- Analysis: The resort's core values revolve around customer satisfaction but need to incorporate a
stronger commitment to environmental sustainability.
- Recommendation: Develop a sustainability charter that defines the resort's commitment to eco-
friendly practices and guest education on environmental issues.
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Criteria: Excellent (4) Proficient (3) Basic (2) Limited (1)

Demonstrates
Shows Understands Shows
a deep and thorough
a clear understanding the basic concepts of minimal
understanding of the
Understanding of the McKinsey 7S the McKinsey 7S understanding of the
McKinsey 7S
of McKinsey 7S Framework and Framework but lacks McKinsey 7S
Framework and applies
Framework effectively applies it depth in the Framework, with little
it
to analyze the resort's application to the relevance to
effectively to analyze
situation. resort's situation. the resort's situation.
the resort's situation.

Provides
Provides Provides Provides
a comprehensive and
a clear and detailed a surface-level analysis a superficial analysis
insightful analysis of
analysis of the resort's of the resort's current of the resort's current
Analysis the resort's current
current state within the state within the state within the
of Palm Haven Beach state within
McKinsey 7S McKinsey 7S McKinsey 7S
Resort the McKinsey 7S
Framework, identifying Framework, Framework, with
Framework, identifying
key areas of identifying some areas limited identification of
multiple areas of
misalignment. of misalignment. areas of misalignment.
misalignment.

Proposes Proposes
Proposes
well-thought-out and recommendations that Proposes
recommendations that
innovative are actionable and recommendations that
are somewhat relevant
Recommendations recommendations that aligned with the are vague, generic, or
to the identified issues
for Improvement are actionable, identified issues, fail to address the
but lack
feasible, and directly but may lack some identified
depth and may not be
address the identified innovation or issues effectively.
entirely feasible.
issues. feasibility.

Demonstrates Demonstrates
a clear and deep a good understanding
Recognizes Shows
understanding of how of how the Philippine
the influence of the little to no
the Philippine context context affects the
Philippine context to consideration of how
Consideration affects the resort's
some extent, but the Philippine context
of Philippine Context resort's operations and operations and
recommendations affects the resort's
strategies, with strategies, with
may lack specific operations and
recommendations recommendations
tailoring. strategies.
tailored showing some
accordingly. adaptation.

The
The The
The presentation lacks
presentation is presentation is well-
presentation is structure, engagement,
exceptionally well- structured, engaging,
adequately structured and organization, with
Presentation structured, engaging, and organized, with
and organized, with unclear
Quality and organized, with clear
generally clear communication and
clear communication communication and
communication and minimal or
and effective use of appropriate use of
basic use of visuals. inappropriate use of
visuals. visuals.
RUBRIC
visuals.

Actively Actively Shows

Engages
engages with peers engages with peers minimal engagement
with peers during the
Peer during the Q&A during the Q&A session, with peers during the
Q&A session but may
Engagement and session, offering offering relevant Q&A session and offers
lack depth in responses
Discussion insightful responses responses limited
and
and constructive and constructive or irrelevant responses
feedback.
feedback. feedback. and feedback.

Overall
performance is Overall
Overall Overall performance is
exceptional, performance is
performance is strong, weak, reflecting
demonstrating a satisfactory, reflecting
indicating a good a limited
profound a basic understanding
understanding of the understanding of the
understanding of the of the
framework, a framework, superficial
Overall Assessment framework, a framework, a surface-
clear analysis, analysis, vague
thorough analysis, level analysis,
actionable recommendations, and
innovative recommendations with
recommendations, and minimal consideration
recommendations, and potential, and
some adaptation to the of the Philippine
clear limited adaptation to
Philippine context. context.
adaptation to the the Philippine context.
Philippine context.

Bonus points (2)