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CA Intermediate · Financial Management and Strategic Management · Strategy Implementation and Evaluation

Meridian Pharma uses the McKinsey 7-S framework to check readiness for a new strategy. It has changed its strategy and structure and installed a new ERP, but employees still behave in old ways, the leadership style is autocratic, and the firm lacks people with new digital skills. Which set of elements is the firm MOST neglecting, treating the 'hard' elements as already addressed?

The firm is neglecting the soft elements: Shared values, Style, Staff and Skills. It has already addressed the hard elements of strategy, structure and systems, but old behaviours, autocratic leadership and missing digital skills show the soft side of the 7-S framework has not been aligned.

  1. AStrategy, Structure and Systems
  2. BShared values, Style, Staff and SkillsCorrect
  3. CStrategy and Skills only
  4. DStructure and Staff only

Explanation

In 7-S, the hard elements are Strategy, Structure and Systems, which the firm has changed (strategy, structure, ERP). The soft elements are Shared values, Style, Staff and Skills. Autocratic style, old behaviour tied to values and missing digital skills and staff show the soft elements are neglected.

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