Since the introduction, the model has been widely used by academics and practitioners and remains one of the most popular strategic planning tools. McKinsey 7s model was developed in 1980s by McKinsey consultants Tom Peters, Robert Waterman and Julien Philips with a help from Richard Pascale and Anthony G. Unilever is officially the world’s third largest consumer goods company, behind Procter & Gamble and Nestle, having generated a turnover of €49.8 billion in 2013, across its staggering 400+ brands. You can also apply the BCG model to areas other than. The decision to centralize Microsoft’s decision-making was initially introduced by Bill Gates in a bid to keep output standardized, remove the potential for personal biases, and create a unified company with diversified standards – Nadella’s decision to keep this set up is a clear sign that it works well for Microsoft.How to use the BCG Matrix? Makes a financial contribution to the company. This means that the company is more centralized, and more subordinates fall under the supervision of individual managers – i.e., those with the most authority – as a result. The way Microsoft’s organizational structure has been designed also means that there’s a wider span of control than what is typically seen at comparable tech giants such as Apple or Facebook (Meta). A clear distinction between engineering and business groups also illustrates Microsoft’s focus on its engineering groups which are responsible for building core products and services. This helps new product development and innovation because it helps new products and services to get to market faster. Under the company’s 2015 structure, heads of engineering groups report directly to CEO Satya Nadella. Microsoft also has two geographical divisions: Whereas its engineering groups are divided into three areas: Global Sales, Marketing, and Operations.Microsoft’s current business groups are divided into nine areas: While Microsoft has become more hierarchical as the company has grown, it has managed to maintain its hybrid approach between senior management, functional business groups, and engineering groups. Microsoft’s organizational structure has been described as a divisional, product-type organizational structure based on functional business groups and engineering groups.Īs of the company’s latest restructuring in June 2015, several changes were announced that would help to align the company to its strategic direction as a productivity and platform company.
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