Application of RBV Theory and McKinsey 7’S Model on Start-up Company

Faturrohman Faturrohman, Tantri Yanuar Rahmat Syah, Darmansyah HS, Semerdanta Pusaka


Human resources at a start-up company should have a long experience in tire manufacturing industry which is one of the competitive advantages possessed by the company that can be used in competing in accordance with the theory of resources based view (RBV). Resources based views is a concept of theory that affect the competitive advantage of a company. According to RBV model, the resources should have qualified criteria to achieve competitive advantage. That criteria are valuable, rare, imitability, and organizational to capture value. Management will be committed in managing human resources by building capacity with the right recruitment and training to achieve the vision and mission set by the company. The Mckinsey 7’S framework is used to analyze internal aspects of the organization of the company in which elements of Mckinsey 7’S if working properly and aligned then will be a factor of success of the company. The seven elements of Mckinsey7’S are strategy, skill, shared value, structure, staffing, system and style. Strategy is a formulation of a company used to build competitive advantage and keep it in order for a company to compete, skill is the ability of employees needed to achieve company goals and objectives, which is meant the capability and competence of employees. Shared value is the core value of a company that will become a corporate culture, basically the standard or norm that is applied and a guide for employees and management. Staffing, this is how employees are recruited, trained, motivated and rewarded so that employees can provide the best for the company. Structure, the intended structure is the organizational structure of the company that regulates the work system, communication, authority and responsibility as well as delegation of duties to employees to achieve the goals and objectives of the company. System in Mckinsey 7’S is a day-to-day operational process and procedure and decision making within the company including planning, implementation and evaluation. Style, leadership style applied by management to achieve company goals and objectives.


RBV Theory; Building Capacity; Mckinsey 7’S Model

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