Korean Air 7-S Analysys

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Organizational Behavior
Team Report

7-S Analysis, Key Problems and Recommendations for ‘Korean Air Line’

Group 7

1. Executive Summary

Korean Air Lines was established with private capital in 1948. Since the company’s deficit had been increased, it changed into a public corporation. Han Jin Corporation, however, took over the control of the company to reduce operational problems such as growth of debts in 1969. At that time, the assets they had were only 514 employees, 1 jet, 7 propeller planes, regular domestic flight route and regular foreign flight route between Korea and Japan.

Korea Air Line have grown constantly and become a global airline company. Starting with a route for Bangkok, they have expanded their international routes. They got lowest rank on the quantity of shipment among Asia companies but they became among top 4 air line company in the area of carrying freight. In 2006, They were on the top around worlds in the area of carrying passengers for two consecutive years. In addition, the company has expanded their business area to production of flight, airline food, hotel, service academy and so on.

Their assets in 2009 were 126 flights, 13 cities in domestic line, 38 nations and 104 cities in foreign line.

2. Table of Contents
1. Executive Summary
2. Table of Contents
3. Overview of project
3.1 Purpose of Project
3.2 Method for Conducting Case Analysis
4. Discussion of McKinsey 7-S
4.1 Strategy
4.2 Structure
4.3 Systems
4.4 Style
4.5 Shared Values
4.6 Skills
4.7 Staffing
5. Verified Key-Problem-Statements
5.1 Problem : “Structure and system of communication not aligned with share value”
5.2 Problem: “Structure and system of maintenance not aligned with strategy and
share value”
5.3 Problem:
6. Recommendations
6.1 Recommendation for
6.2 Recommendation for
6.3 Recommendation for
7. Appendices
7.1 Brainstorming about Korean Air Line
7.2 Analysis Summary - Table
7.3 Key Finding: Problems among 7-S
7.4 Recommendations – Table for the Problem statements
8. Sources
3. Overview of project
3-1. Purpose of project
The purpose of this project was to analyze Korean Air line Corporation’s organizational behavior through McKinsey 7-S Model. By using 7-S Model we examine the company with seven aspects to do an in-depth analysis and identified problems based on this Model. We figured out there were three problems by analyzing this company. Finally, we suggested recommendations for each problem for the company to be improved in the future. We performed our project as follows; selecting company, analyzing the company through 7-S Model, identifying problems and suggesting recommendations.

3-2. Method for conducting case analysis.

We carried out our study targeting Korean Air line corporation. The model starts on premise that an organization is not just structure, but consist of seven elements. Those seven elements are distinguished in hard S’s and soft S’s. They hard elements such as structure, strategy, systems are feasible easy to identify. The four soft S’s such as shared values, skills, staff, style, however, are hardly feasible.

4. Discussion of McKinsey 7-S
4.1 Strategy
The direction of Korean air business strategy is to boost the image of company by devoting themselves to safety and reengineering for status reinforcement as a Global Carrier and they focus on globalization, intellectualization, and e-business simultaneously.

For those of things, Korean air establishes ‘Management renovation propulsion team’ which develop their work ability to carry out their strategies. Furthermore, Korean air made an announcement that achievement of 25 trillion won in terms of total sales by 2019 and entry to the list of international flight passenger transportation within 10 ranks with detail strategies. First of all, upgrade of in-flight service. To...
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