McKinsey 7-S Model

WHAT IS THE 7-S FRAMEWORK? DESCRIPTION

The 7-S Framework of McKinsey is a management model that describes 7 factors to organize a company in an
holistic and effective way. Together these factors determine the way in which a corporation operates. Managers
should take into account all seven of these factors, to be sure of successful implementation of a strategy. Large or
small. They're all interdependent, so if you fail to pay proper attention to one of them, this may effect all others as
well. On top of that, the relative importance of each factor may vary over time.

ORIGIN OF THE 7-S FRAMEWORK. HISTORY

The 7-S Framework was first mentioned in "The Art Of Japanese Management" by Richard Pascale and Anthony
Athos in 1981. They had been investigating how Japanese industry had been so successful. At around the same
time that Tom Peters and Robert Waterman were exploring what made a company excellent. The Seven S model was
born at a meeting of these four authors in 1978. It appeared also in "In Search of Excellence" by Peters and
Waterman, and was taken up as a basic tool by the global management consultancy company McKinsey. Since then
it is known as their 7-S model.

THE MEANING OF THE 7 SS

Shared Values (also called Superordinate Goals).

The interconnecting center of McKinsey's model is:
Shared Values. What does the organization stands
for and what it believes in. Central beliefs and
attitudes. Compare: Strategic Intent

Strategy
Plans for the allocation of a firms scarce resources,
over time, to reach identified goals. Environment,
competition, customers.

Structure
The way in which the organization's units relate to
each other: centralized, functional divisions (top-
down); decentralized; a matrix, a network, a holding, etc.

Systems
The procedures, processes and routines that characterize how the work should be done: financial systems; recruiting,
promotion and performance appraisal systems; information systems.

Staff
Numbers and types of personnel within the organization.

Style
Cultural style of the organization and how key managers behave in achieving the organization's goals. Compare:
Management Styles.

Skills
Distinctive capabilities of personnel or of the organization as a whole. Compare: Core Competences.
STRENGTHS OF THE 7-S MODEL. BENEFITS
 Diagnostic tool for understanding organizations that are ineffective.
 Guides organizational change.
 Combines rational and hard elements with emotional and soft elements.
 Managers must act on all Ss in parallel and all Ss are interrelated.

Core Competency
Inside-out strategy. Explanation of Core Competence of Hamel and Prahalad.

The Core Competence model of Hamel and Prahalad is a corporate strategy model that starts the strategy process
by thinking about the core strengths of an organization.

INSIDE-OUT CORPORATE STRATEGY

The Outside-in approach (such as the Five Forces model from Porter) places the market, the competition, and the
customer at the starting point of the strategy process. The Core Competence model does the opposite by stating that
in the long run, competitiveness derives from an ability to build a Core Competence, at lower cost and more speedily
than competitors. The Core Competence may result in unanticipated products. The real sources of advantage are to
be found in management's ability to consolidate corporate-wide technologies and production skills into competencies,
through which individual businesses can adapt quickly to changing circumstances. A Core Competence can be any
combination of specific, inherent, integrated and applied knowledge, skills and attitudes.

In their article "The Core Competence of the Corporation" (1990), Prahalad and Gary Hamel dismiss the portfolio
perspective as a viable approach to corporate strategy. In their view, the primacy of the Strategic Business Unit is
now clearly an anachronism. Hamel and Prahalad argue that a corporation should be built around a core of shared
competences. Compare: Horizontal Integration.

Business units must use and help to further develop the CC(s). The corporate center should not be just another layer
of accounting, but must add value by articulating the strategic architecture that guides the process of competence
building.

THREE TESTS FOR IDENTIFYING A CORE COMPETENCE

1. Provides potential access to a wide variety of markets.
2. Makes a significant contribution to the benefits of the product as perceived by the customer.
3. A CC should be difficult for competitors to imitate.
BUILDING A CORE COMPETENCE
A Core Competence is built through a process of continuous improvement and enhancement (compare: Kaizen). It
should constitute the focus for corporate strategy. At this level, the goal is to build world leadership in the design and
development of a particular class of product functionality. Top management can not be just another layer of
accounting, but must add value by articulating the strategic architecture that guides the process of competence
building.

Once top management (with the help of Strategic Business Units managers) have identified an all-embracing Core
Competence, it must ask businesses to identify the projects and the people that are closely connected with it.
Corporate auditors should perform an audit of the location, number, and quality of the people related to the CC. CC
carriers should be brought together frequently to share ideas.

CORE RIGIDITIES?
Care must be taken not to let core competencies develop into core rigidities. A Corporate Competence is
difficult to learn, but is difficult to unlearn as well. Companies that have spared no effort to achieve a
competence, sometimes neglect new market circumstances or demands. They risk to be locked in by
choices that were made in the past.

BCG Model
Portfolio Management based on Market Share and Market Growth. Explanation of BCG Matrix. ('70)

The BCG Matrix method is the most well-known portfolio management tool. It is based on product life cycle theory.
It was developed in the early 70s by the Boston Consulting Group. The BCG Matrix can be used to determine what
priorities should be given in the product portfolio of a business unit. To ensure long-term value creation, a company
should have a portfolio of products that contains both high-growth products in need of cash inputs and low-growth
products that generate a lot of cash. The Boston Consulting Group Matrix has 2 dimensions: market share and
market growth. The basic idea behind it is: if a product has a bigger market share, or if the product's market grows
faster, it is better for the company.
THE FOUR SEGMENTS OF THE BCG MATRIX
Placing products in the BCG matrix provides 4 categories in a portfolio of a company:
 Stars (high growth, high market share)
o Stars are using large amounts of cash. Stars are leaders in the business. Therefore they
should also generate large amounts of cash.
o Stars are frequently roughly in balance on net cash flow. However if needed any attempt
should be made to hold your market share in Stars, because the rewards will be Cash Cows if
market share is kept.
 Cash Cows (low growth, high market share)
o Profits and cash generation should be high. Because of the low growth, investments which
are needed should be low.
o Cash Cows are often the stars of yesterday and they are the foundation of a company.
 Dogs (low growth, low market share)
o Avoid and minimize the number of Dogs in a company.
o Watch out for expensive ‘rescue plans’.
o Dogs must deliver cash, otherwise they must be liquidated.
 Question Marks (high growth, low market share)
o Question Marks have the worst cash characteristics of all, because they have high cash
demands and generate low returns, because of their low market share.
 o If the market share remains unchanged, Question Marks will simply absorb great amounts
of cash.
o Either invest heavily, or sell off, or invest nothing and generate any cash that you can.
Increase market share or deliver cash.
THE BCG MATRIX AND ONE SIZE FITS ALL STRATEGIES
The BCG Matrix method can help to understand a frequently made strategy mistake: having a one size fits all
strategy approach, such as a generic growth target (9 percent per year) or a generic return on capital of say 9,5% for
an entire corporation.
In such a scenario:
 Cash Cows Business Units will reach their profit target easily. Their management have an easy job.
The executives are often praised anyhow. Even worse, they are often allowed to reinvest substantial cash
amounts in their mature businesses.
 Dogs Business Units are fighting an impossible battle and, even worse, now and then investments
are made. These are hopeless attempts to "turn the business around".
 As a result all Question Marks and Stars receive only mediocre investment funds. In this way they
can never become Cash Cows. These inadequate invested sums of money are a waste of money. Either
these SBUs should receive enough investment funds to enable them to achieve a real market dominance
and become Cash Cows (or Stars), or otherwise companies are advised to disinvest. They can then try to
get any possible cash from the Question Marks that were not selected.
OTHER USES AND BENEFITS OF THE BCG MATRIX
 If a company is able to use the experience curve to its advantage, it should be able to manufacture
and sell new products at a price that is low enough to get early market share leadership. Once it becomes a
star, it is destined to be profitable.
 BCG model is helpful for managers to evaluate balance in the firm’s current portfolio of Stars, Cash
Cows, Question Marks and Dogs.
 BCG method is applicable to large companies that seek volume and experience effects.
 The model is simple and easy to understand.
 It provides a base for management to decide and prepare for future actions.
LIMITATIONS OF THE BCG MATRIX
Some limitations of the Boston Consulting Group Matrix include:
 It neglects the effects of synergy between business units.
 High market share is not the only success factor.
 Market growth is not the only indicator for attractiveness of a market.
 Sometimes Dogs can earn even more cash as Cash Cows.
 The problems of getting data on the market share and market growth.
 There is no clear definition of what constitutes a "market".
 A high market share does not necessarily lead to profitability all the time.
 The model uses only two dimensions – market share and growth rate. This may tempt
management to emphasize a particular product, or to divest prematurely.
 A business with a low market share can be profitable too.
The model neglects small competitors that have fast growing market shares
Measuring corporate reputation by capturing the
perceptions of stakeholder groups. Explanation
of Corporate Reputation Quotient of Harris-
Fombrun.
The Corporate Reputation Quotient of Harris-Fombrun is a
comprehensive measuring method of corporate reputation that was
created specifically to capture the perceptions of any corporate
stakeholder group such as consumers, investors, employees, or key
influencers. The instrument enables research on the drivers of a
company's reputation, and allows to compare reputations both within
and across industries.

SIX DRIVERS OF THE CORPORATE REPUTATION QUOTIENT

This business reputation model has the following 6 drivers of corporate
reputation with subsequent 20 attributes:

Emotional Appeal
Workplace Environment
- good feeling about the company
- is well managed
- admire and respect the company
- appears to be a good
- trust the company
company to work for
Products and Services
- appears to have good
- company believes in its products
employees
and services
Financial Performance
- company offers high quality products
- history of profitability
and services
- appears a low risk investment
- develops innovative products and
- strong prospects for future
services
growth
- offers products and services that are
- tends to outperform its
good value
competitors
Vision and Leadership
Social Responsibility
- has excellent leadership
- supports good causes
- has a clear vision for the future
- environmentally responsible
- recognizes and takes advantage of
- treats people well
market opportunities

Making random checks, these criteria taken together result in lists of

most reputable and/or visible companies
The basis of
performin
g above-
average
within an
industry.
Explanatio
n of
Competitiv
e
Advantage
of Michael
Porter
(Model).

According to the Competitive Advantage model of Porter, a competitive strategy

takes offensive or defensive action to create a defendable position in an industry, in
order to cope successfully with competitive forces and generate a superior Return on
Investment. According to Michael Porter, the basis of above-average performance
within an industry is sustainable competitive advantage.

2 BASIC TYPES OF COMPETITIVE ADVANTAGE

1. Cost Leadership (low cost)
2. Differentiation
Both can be more broadly approached or narrow, which results in the third viable
competitive strategy:
3. Focus
COMPETITIVE ADVANTAGE TYPE 1: COST LEADERSHIP
 Achieving Cost Leadership means that a firm sets out to become
the low cost producer in its industry.
 A cost leader must achieve parity or at least proximity in the bases
of differentiation, even though it relies on cost leadership for its competitive
advantage.
 If more than one company try to achieve Cost Leadership, this is
usually disastrous.
 Often achieved by economies of scale.
COMPETITIVE ADVANTAGE TYPE 2: DIFFERENTIATION
 Achieving of Differentiation means that a firm seeks to be unique
in its industry along some dimensions that are widely appreciated by
buyers.
 A differentiator can not ignore its cost position. In all areas that do
not affect its differentiation it should try to decrease cost; in the
differentiation area the costs should at least be lower than the price
premium it receives from the buyers.
 Areas of differentiation can be: product, distribution, sales,
marketing, service, image, etc.
COMPETITIVE ADVANTAGE TYPE 3: FOCUS
 Achieving Focus means that a firm sets out to be best in a
segment or group of segments.
 2 variants: Cost Focus and Differentiation Focus.
STUCK IN THE MIDDLE
 This is usually a recipe for below-average profitability compared to
the industry.
 Still, attractive profits are possible if and as long as the industry as
a whole is very attractive.
 Manifestation of lack of choice.
 Especially dangerous for Focusers that have been successful, and
then start neglecting their focus. They must seek other Focus niches.
Rather then compromise their focus strategy.
OVERVIEW OF THE BOOK "COMPETITIVE STRATEGY"
 In Part I, Porter discusses the structural analysis of industries
(with the five forces), the three generic competitive strategies (overall Cost
Leadership, Focus, and Differentiation), offering an excellent framework for
competitor analysis, competitive moves, strategy toward buyers and
suppliers, structural analysis within industries (strategic groups, strategic
 mapping, mobility barriers), and industry evolution (life cycle, evolutionary
processes).
 In Part II, Porter discusses competitive strategy within various
generic industry environments. Such as: fragmented industries (with no
real market leader), emerging industries, mature industries, declining
industries, and global industries.
 In Part III, Porter discusses strategic decisions which
businesses/firms can take. Such as: vertical integration (forward,
backward, partnerships), capacity expansion, and entry into new
industries/businesses.

Outside-in Business Strategy. Explanation of Five

Competitive Forces of Michael Porter.

WHAT IS THE FIVE FORCES MODEL OF PORTER? DESCRIPTION

The Five Forces model of Porter is an Outside-in business unit strategy tool that is
used to make an analysis of the attractiveness (value) of an industry structure. The
Competitive Forces analysis is made by the identification of 5 fundamental
competitive forces:

1. Entry of competitors. How easy or difficult is it for new entrants to start

competing, which barriers do exist.
2. Threat of substitutes. How easy can a product or service be
substituted, especially made cheaper.
3. Bargaining power of buyers. How strong is the position of
buyers. Can they work together in ordering large volumes.
4. Bargaining power of suppliers. How strong is the position of
sellers. Do many potential suppliers exist or only few potential suppliers,
monopoly?
5. Rivalry among the existing players. Does a strong competition
between the existing players exist? Is one player very dominant or are all
equal in strength and size.
Sometimes a sixth competitive force is added:
6. Government.
Porter's Competitive Forces model is probably one of the most often used business
strategy tools. It has proven its usefulness on numerous occasions. Porter's model
is particularly strong in thinking Outside-in.

THREAT OF NEW ENTRANTS DEPENDS ON:

 Economies of scale.
 Capital / investment requirements.
 Customer switching costs.
 Access to industry distribution channels.
 Access to technology.
 Brand loyalty. Are customers loyal?
 The likelihood of retaliation from existing industry players.
 Government regulations. Can new entrants get subsidies?
THREAT OF SUBSTITUTES DEPENDS ON:
 Quality. Is a substitute better?
 Buyers' willingness to substitute.
 The relative price and performance of substitutes.
 The costs of switching to substitutes. Is it easy to change to
another product?
BARGAINING POWER OF SUPPLIERS DEPENDS ON:
 Concentration of suppliers. Are there many buyers and few
dominant suppliers? Compare: Kraljic Model.
 Branding. Is the brand of the supplier strong?
 Profitability of suppliers. Are suppliers forced to raise prices?
 Suppliers threaten to integrate forward into the industry (for
example: brand manufacturers threatening to set up their own retail
outlets).
  Buyers do not threaten to integrate backwards into supply.
 Role of quality and service.
 The industry is not a key customer group to the suppliers.
 Switching costs. Is it easy for suppliers to find new customers?
BARGAINING POWER OF BUYERS DEPENDS ON:
 Concentration of buyers. Are there a few dominant buyers and
many sellers in the industry?
 Differentiation. Are products standardized?
 Profitability of buyers. Are buyers forced to be tough?
 Role of quality and service.
 Threat of backward and forward integration into the industry.
 Switching costs. Is it easy for buyers to switch their supplier?
INTENSITY OF RIVALRY DEPENDS ON:
 The structure of competition. Rivalry will be more intense if there
are lots of small or equally sized competitors; rivalry will be less if an
industry has a clear market leader.
 The structure of industry costs. Industries with high fixed costs
encourage competitors to manufacture at full capacity by cutting prices if
needed.
 Degree of product differentiation. Industries where products are
commodities (e.g. steel, coal) typically have greater rivalry.
 Switching costs. Rivalry is reduced when buyers have high
switching costs.
 Strategic objectives. If competitors pursue aggressive growth
strategies, rivalry will be more intense. If competitors are merely "milking"
profits in a mature industry, the degree of rivalry is typically low.
 Exit barriers. When barriers to leaving an industry are high,
competitors tend to exhibit greater rivalry.
STRENGTHS OF THE FIVE COMPETITIVE FORCES MODEL. BENEFITS
 The model is a strong tool for competitive analysis at industry
level. Compare: PEST Analysis
 It provides useful input for performing a SWOT Analysis.
LIMITATION OF PORTER'S FIVE FORCES MODEL
 Care should be taken when using this model for the following: do
not underestimate or underemphasize the importance of the (existing)
strengths of the organization (Inside-out strategy). See: Core
Competence
 The model was designed for analyzing individual business
strategies. It does not cope with synergies and interdependencies within
the portfolio of large corporations. See: Parenting Advantage
 From a more theoretical perspective, the model does not address
the possibility that an industry could be attractive because certain
companies are in it.
 Some people claim that environments which are characterized by
rapid, systemic and radical change require more flexible, dynamic or
 emergent approaches to strategy formulation. See: Disruptive
Innovation
 Sometimes it may be possible to create completely new markets
instead of selecting from existing ones. See: Blue Ocean Strategy
OVERVIEW OF THE BOOK "COMPETITIVE STRATEGY"
 In Part I, Porter discusses the structural analysis of industries
(with the five forces), the three generic competitive strategies (overall
Cost Leadership, Focus, and Differentiation), offering an excellent
framework for competitor analysis, competitive moves, strategy toward
buyers and suppliers, structural analysis within industries (strategic
groups, strategic mapping, mobility barriers), and industry evolution (life
cycle, evolutionary processes).
 In Part II, Porter discusses competitive strategy within various
generic industry environments. Such as: fragmented industries (with
no real market leader), emerging industries, mature industries, declining
industries, and global industries.
 In Part III, Porter discusses strategic decisions which
businesses/firms can take. Such as: vertical integration (forward,
backward, partnerships), capacity expansion, and entry into new
industries/businesses.
Analyse activities through which firms can create
value. Explanation of Value Chain Framework of
Michael Porter.
The Value Chain framework of Michael Porter is a model that helps to analyze specific
activities through which firms can create value and competitive advantage.

THE ACTIVITIES OF THE VALUE CHAIN

 Primary activities (line functions)

o Inbound Logistics. Includes receiving, storing, inventory
control, transportation planning.
o Operations. Includes machining, packaging, assembly,
equipment maintenance, testing and all other value-creating activities
that transform the inputs into the final product.
o Outbound Logistics. The activities required to get the
finished product at the customers: warehousing, order fulfillment,
transportation, distribution management.
o Marketing and Sales. The activities associated with getting
buyers to purchase the product, including: channel selection,
advertising, promotion, selling, pricing, retail management, etc.
o Service. The activities that maintain and enhance the
product's value, including: customer support, repair services,
installation, training, spare parts management, upgrading, etc.
  Support activities (Staff functions, overhead)
o Procurement. Procurement of raw materials, servicing, spare
parts, buildings, machines, etc.
o Technology Development. Includes technology development
to support the value chain activities. Such as: Research and
Development, Process automation, design, redesign.
o Human Resource Management. The activities associated
with recruiting, development (education), retention and compensation
of employees and managers.
o Firm Infrastructure. Includes general management, planning
management, legal, finance, accounting, public affairs, quality
management, etc.
CREATING A COST ADVANTAGE BASED ON THE VALUE CHAIN
A firm may create a cost advantage:
 by reducing the cost of individual value chain activities, or
 by reconfiguring the value chain.
Note that a cost advantage can be created by reducing the costs of the primary activities,
but also by reducing the costs of the support activities. Recently there have been many
companies that achieved a cost advantage by the clever use of Information Technology.

Once the value chain has been defined, a cost analysis can be performed by assigning
costs to the value chain activities. Porter identified 10 cost drivers related to value chain
activities:
1. Economies of scale.
2. Learning.
3. Capacity utilization.
4. Linkages among activities.
5. Interrelationships among business units.
6. Degree of vertical integration.
7. Timing of market entry.
8. Firm's policy of cost or differentiation.
9. Geographic location.
10. Institutional factors (regulation, union activity, taxes, etc.).
A firm develops a cost advantage by controlling these drivers better than its competitors
do. A cost advantage also can be pursued by "Reconfiguring" the value chain.
"Reconfiguration" means structural changes such as: a new production process, new
distribution channels, or a different sales approach.

Normally, the Value Chain of a company is connected to other Value Chains and is part of
a larger Value Chain. Developing a competitive advantage also depends on how
efficiently you can analyze and manage the entire Value Chain. This idea is called:
Supply Chain Management. Some people argue that network is actually a better word
to describe the physical form of Value Chains: Value Networks.
Alleviate
world
poverty.
Do not
treat the
poor as
victims or
as a
burden.
Explanatio
n of
Bottom of
WHAT IS THE BOTTOM OF THE PYRAMID? DESCRIPTION

the The bottom of the (economic) pyramid consists of the 4 billion people living on less
than $2 per day. For more than 50 years, the World Bank, donor nations, various aid

Pyramid
agencies, national governments, and, lately, civil society organizations have all done
their best, but they were unable to eradicate poverty.

of C.K.
Aware of this frustrating fact, C.K. Prahalad begins his book: "The Fortune at the
Bottom of the Pyramid" with a simple yet revolutionary proposition: If we stop thinking
Prahalad.
of the poor as victims or as a burden and start recognizing them as resilient and
creative entrepreneurs and value-conscious consumers, a whole new world of
opportunity will open up.

Prahalad suggests that four billion poor can be the engine of the next round of global
trade and prosperity, and can be a source of innovations. Serving the Bottom of the
Pyramid customers requires that large firms work collaboratively with civil society
organizations and local governments. Furthermore, market development at the
Bottom of the Pyramid will also create millions of new entrepreneurs at the grass
roots level.

Prahalad presents his new view regarding solving the problem of poverty as a Co-
Creation solution towards economic development and social transformation (figure),
of which the parties involved are:
 Private enterprises
 Development and aid agencies
  Bottom of the Pyramid consumers
 Bottom of the Pyramid entrepreneurs
 Civil society organizations and local government
12 PRINCIPLES OF INNOVATION FOR BOTTOM OF THE PYRAMID MARKETS
Prahalad provides the following building blocks for creating products and services for
Bottom of the Pyramid markets:
1. Focus on (quantum jumps in) price performance.
2. Hybrid solutions, blending old and new technology.
3. Scaleable and transportable operations across countries,
cultures and languages.
4. Reduced resource intensity: eco-friendly products.
5. Radical product redesign from the beginning: marginal changes
to existing Western products will not work.
6. Build logistical and manufacturing infrastructure.
7. Deskill (services) work.
8. Educate (semiliterate) customers in product usage.
9. Products must work in hostile environments: noise, dust,
unsanitary conditions, abuse, electric blackouts, water pollution.
10. Adaptable user interface to heterogeneous consumer bases.
11. Distribution methods should be designed to reach both highly
dispersed rural markets and highly dense urban markets.
12. Focus on broad architecture, enabling quick and easy
incorporation of new features.
ORIGIN OF THE BOTTOM OF THE PYRAMID. HISTORY
Before his 2005 book, Prahalad published two articles regarding this framework
about alleviating poverty:
 Jan 2002: The Fortune at the Bottom of the Pyramid
(Strategy+Business), with Stu Hart
 Sep 2002: Serve the World's Poor, Profitable (Harvard Business
Review), with Allen Hammond
USAGE OF THE BOTTOM OF THE PYRAMID. APPLICATIONS
 This framework provides an impetus for a more active involvement
of the private sector in building the marketing ecosystems for transforming
the Bottom of the Pyramid.
 Helps to reconsider and change long held beliefs, assumptions
and ideologies.
 Provides clues on developing products and services for Bottom of
the Pyramid consumers.
STRENGTHS OF BOTTOM OF THE PYRAMID THINKING. BENEFITS
The biggest strengths of the Bottom of the Pyramid approach by Prahalad is, that it
helps to reconsider and change long held beliefs, assumptions, and ideologies,
which are all based on and are supporting victim- and burden thinking:
 There is money at the Bottom of the Pyramid: it is a viable market.
 Access to Bottom of the Pyramid markets is not necessarily
difficult. Unconventional approaches such as the Avon ladies approach
may work.
 The poor are very brand-conscious.
 The Bottom of the Pyramid market has been connected (mobile
 phones, TV, Internet).
 Bottom of the Pyramid consumers are very much open towards
advanced technology.
ASSUMPTIONS OF THE BOTTOM OF THE PYRAMID. CONDITIONS
1. The poor can not participate in the benefits of globalization without
an active involvement of the private sector and without access to products
and services that represent global quality standards.
2. The Bottom of the Pyramid market provides a new growth
opportunity for the private sector and a forum for innovations. Old and tried
solutions cannot create markets at the Bottom of the Pyramid.
3. Bottom of the Pyramid markets must become an integral part of
the work and of the core business of the private sector. Bottom of the
Pyramid markets can not merely be left to the realm of Corporate Social
Responsibility (CSR) initiatives.