Business Strategy for 7-Eleven: PESTLE, SWOT, VRIO and Porter's Five Forces Analysis

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1- Applying and conducting a PESTLE analysis to analyse the impact of macro environment
of 7-Eleven...................................................................................................................................3
2- Analysing the internal environment with the help of SWOT and VRIO analysis..................4
3- Evaluating the competitive environment of 7 Eleven utilizing a porter's five forces analysis6
4-Strategic plan for 7-Eleven.......................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategy is referred as suitable plans and actions which are undertaken by
business organizations in order to carry out their daily business practices and increase their
overall productivity. The current report will be based on 7-Eleven is a popular retail convenience
store chain which has a significant market share in the industry.
This report will explain the macro environment of the business with the help of PESTLE
analysis, SWOT and VRIO frameworks will be used in order to evaluate the internal
environment of the business, Competitive analysis will take place by using Porter's five forces
analysis and a range of models and frameworks will be used in order to produce a strategic
management plan for 7-Eleven.
MAIN BODY
1- Applying and conducting a PESTLE analysis to analyse the impact of macro environment of
7-Eleven
The external environment of a business comprises various factors which have a
significant influence over the business. These factors are shown with the help of PESTLE
analysis which is an effective framework that explains the key elements of the external
environment of a business (Lin and et.al., 2021). These factors are as follows:
Political factor
Instability in the political environment of the host country has a negative impact on the
overall productivity of the business (Kitsios and Kamariotou, 2021). Different government
policies and global pressures on the business may restrict them to achieve better results which
has a negative impact on the effectiveness of the business to produce better quality of output in
the industry.
Economic factor
The higher growth and development of the US economic conditions has a positive impact
on the success of the 7-Eleven in the industry. The spending of consumers have increased
overtime which may be a crucial factor for improving the profitability of the company. With the
help of these factors the business may be able to expand in different nations and increase its
market share in the global retain industry.
Social factor

The frequent changes in trends, consumer preferences, religious belief etc. may have a
negative impact on the stability of 7-Eleven in the competitive business environment. The
changing attitudes of the customers due to these factors may lead towards their shifting to other
alternatives which are available to them. This aspect has a negative impact on the effectiveness
of the business in the industry.
Technological factor
The technological advancements in the retail industry have been beneficial for 7-Eleven
as it has adopted digitalization in order to make effective changes in the business environment.
User-friendly digital systems and online applications have a positive impact on the business in
order to provide better services to their customers and increase their trust towards the
organization (Ciampi and et.al., 2020).
Legal factor
The data protection laws and procedures which are imposed by the governments of
different countries may increase restrictions for the business to successfully operate in the
industry. These aspects may have a negative impact on the overall image of the business which is
not beneficial for maintaining its sustainability in the business environment.
Environmental factor
The carbon and energy footprint which is released by the organization in the environment
has a negative impact on its quality. Governments may not support such activities of the business
towards the environment which can have a negative influence on its effectiveness in the industry.
The company may adopt various sustainable practices in order to reduce the negative impact of
these aspects on their productivity in the environment.
2- Analysing the internal environment with the help of SWOT and VRIO analysis
SWOT analysis is an effective framework which is used by the business in order to
evaluate the internal factors which are crucial for achieving better productivity. These factors
are:
Strengths
7-Eleven offers 24/7 services to the customers which is helpful in motivating them
towards buying products and services from the company. The individual product branding
strategy of the business is its major strength which increases its brand equity in the industry.
Weaknesses