McKinsey's 7-S Framework

1. Effective organizations have a high degree of fit (internal alignment) among the elements of McKinsey's 7-S framework. In the case of Enterprise, in what ways is there a high (or low) degree of fit among those elements?

The degree of Strategy is extremely high according to the reading. It is high because of the way their goals are set. For example, about 90% of all Americans lived within 15 miles of an Enterprise rental office. Also their hiring process is very strategic, not targeting the “best and brightest”, they preferred more socially interactive employees.

The other aspect of high degree in this case study was Skills, each employee is given a task where he or she is more fit to be in. For example, in sales and marketing, the goal oriented, innovative and sales skills employees fit the most where they use their expertise to run their offices. For problem solver and good communication skills, they would be fit in the customer service department to ensure customer satisfaction level.

Shared value is also one of a high degree fit according to the reading. Since everyone working in the company understands the statement of the Enterprise founding values. And also working at Enterprise, each employee is treated as a family. Also giving different incentives to each of the branches, all the employees at the specific branch knows what they are thriving for.

2. Does Enterprise have a competitive advantage in the car rental industry? What evidence from the case supports your view?

According to the reading, there are quite a few competitive advantages that Enterprise has over the others in the same industry. Having more than 6000 rental locations, which enables 90% of the American population to access a rental office within 15 miles. Adding to this, they also have a fleet of 850,000 cars in service. Having a large number of fleet also gives another advantage