Explain in details with specific examples the 5-step process that McMillan Sugar Limited must follow when using the McKinsey 7S framework. PRovide case approproiate examples
Q: Explain in details with specific examples the 5-step process that McMillan Sugar Limited must
follow when using the McKinsey 7S framework. PRovide case approproiate examples
McMillan Sugar Limited is a supplier of sugar and other derivatives. The company was
established in 1931 in Eastern Europe and has since expanded to other parts of Europe, Asia
and America. The company has been growing steadily. From 1940 to 1985, the company
registered 1.5 Trillion US dollars in revenues. These revenues were mainly generated through
the genius design of its supply chain. The company managed to secure a constant supply of
sugar cane by co-opting major sugar cane producers (farmers) to become shareholders in the
company. This enabled the company to control the inflation of sugar cane price. Indeed, the
major farmers were not willing to increase the price of sugar cane, which would have an
adverse effect on the company in which they were shareholders. McMillan Sugar Limited
became a leading brand in the sugar industry and in 2003 it was listed as the best performing
company in the Eastern Europe. This success came as result of various strategic decisions.
Firstly, the company instituted aggressive advertising strategies. By the end of 2010, the
company had spent 850 Trillion in advertisement mainly through TV and Billboard adverts. In
addition, the company instituted innovative distribution channels. In this case, the company
introduced the JIT (Just in Time) production process. This process entailed linking the
production system to the major distributors systems. Hence, the company was only producing
what their clients needed at a specific time. This reduced the inventory and distribution costs.
In addition, the company embarked on social media advertising which posed to generate an
extra 1 billion income by the end of 2019. The company also relies on its managerial
competencies and management style. Over the years, the company managed to attract best
engineers to look after the manufacturing plants. In addition, it has adopted an agile
management style to enable the company to respond to the market needs. However, the current
global call to increase the tax on products that contain sugar content is seen as a major
hindrance to the company’s growth. There has been may calls from interest groups lobbying
governments to ban the activities of companies involved in sugar production. Currently, the
company does not have an established corporate relations department neither has it been
engaged in any activities related to Corporate Social Responsibility. Moreover, the company
has been focusing on major retailers in the sugar industry and ignoring small farmers who have
a significant influence in the communities and in the government through various lobbying
groups. There is also an increase in groups and associations of small farmers who are eager to
have market share and hence threaten the sustainability of the company. McMillan SugarLimited however remains positive that all these challenges will pass. The company is founded
on 3 principles; of Authority and Responsibility, Continuity as well as efficiency.
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