A COMPARATIVE STUDY OF JAPANESE CONSTRUCTION COMPANIES VIA MCKINSEY'S 7S FRAMEWORK AND MILL'S METHODS OF AGREEMENT AND DISAGREEMENT

Abstract

Japanese construction companies, particularly those listed in the TOPIX index, are renowned for their technological prowess and economic impact. This dissertation employs the McKinsey 7S framework to assess the operational effectiveness of these companies, giving special consideration to the elements of structure, strategy, systems, skills, style, personnel, and shared values. The study looks at the idea that share prices, which represent market performance, and alignment with these characteristics have a strong correlation. In order to identify key factors influencing stock price fluctuations, this study contrasts the underperforming and high-performing companies in the TOPIX index. The procedure determines the precise 7S elements that affect whether stock performance is successful or unsuccessful using Mill's Methods of Agreement and Difference. Studies show that companies with a strong commitment to the seven principles?particularly in areas like social responsibility, worldwide profit expansion, and comprehensive staff training?perform better than their rivals in the market. Conversely, poor stock performance is linked to factors such as high rates of voluntary resignation, uneven development in foreign profits, and instances of poor quality work. This study fills a gap in the literature by focusing only on Japanese construction companies and provides useful guidance on improving organisational strategy and operations, which will increase market valuation.