Strategy Implementation of Mckinsey’s 7s Framework and Performance of Large Supermarkets in Nairobi- Kenya

Abstract

The study’s objective is to determine the relationship between strategy implementation of McKinsey’s 7S Framework and performance of large supermarkets in Nairobi. Out of twenty one questionnaires sent out and or administered to the respondents, eighteen were correctly filled and received back representing a response rate of 85.7%. The researcher considered this response rate adequate for analysis. The finding of the research was a determination coefficient of 0.753 when the relationship between McKinsey’s 7S and firm performance was tested. This depicts a strong relationship between performance by the firm and the independent variables. Thus, McKinsey’s 7S account for 75.3% of the variations in firm performance. Another correlation coefficient of 0.921 and determination coefficients of 0.848 was established when McKinsey’s 7S framework, strategy adoption, drivers to implementation of strategy, and firm performance was tested. This depicted a strong relationship between performance by the firm and independent variables. Thus, Strategy adoption, McKinsey 7S framework, Drivers to strategy Implementation and barriers to strategy implementation account for 84.8% of the variations in firm performance. Factor analysis found that cross-functionality of the strategy adoption, McKinsey 7S framework, drivers to strategy implementation and barriers to strategy implementation as the success factors for firm performance. It was also concluded that open system allows free flow of information between the departments/ branches within the organization to a large extent, while supermarkets with measurement and control mechanisms allowed them to gauge their level of progress and find ways of improving operations as compared to their competitors.