Study On Organizational Change Of Jinxing Group Based On Mckinsey' 7S Model

Jinxing group is a state-owned enterprise in Gansu province, which produced production mainly for military use when it was firstly established. After entering 1970s, 1980s it began to produce house-hold electrical appliances such as washing machines and refrigerators, moreover, it got favorable performance of sale soon. However, during the past five years, some serious misplay appeared in the enterprise strategy, and the sale volume of house-hold electrical appliances declined year by year, which resulted in very hard operation condition faced by the firm now.First, the paper summarized theories of organization innovation, especially explained 7S model suggested by McKinsey & Company. Secondly, the paper detailed analyzed the external environment faced by Jinxing group, and thoroughly investigated the work value and salary actuality in the firm. Thirdly, according to the study frame of 7S model, this paper analyzed difficulties about the strategy, market, technology and personnel existed in Jinxing group. Finally, the paper put forward new strategy orientation for the company, amply analyzed and constituted a new blue print of organization innovation. Currently, many state-owned enterprises in China are facing such problems as firm's strypped-down or strategy recombination, and the fact also suggests that they are always extraordinary hard. Combining with the development course of Jinxing group, this paper analyzed the application method of 7S model in China, while the conclusions of study about the organization innovation are quite valuable for these firms.