Environmental Scan of 7-Eleven: Risks, Opportunities, & Strategies

This report provides an environmental scan of 7-Eleven's operations in Australia, examining the political, economic, social, technological, environmental, and legal factors that influence the company. It identifies key challenges such as high operating costs, increased competition, and regulatory environment, while also highlighting opportunities for market development, increased product offerings, and exclusive product partnerships. The report further proposes strategies to overcome these challenges, including establishing key performance indicators, identifying risks, and providing integrated reporting and monitoring. The analysis incorporates relevant academic sources and aims to provide a comprehensive overview of the external factors affecting 7-Eleven's business in the Australian market.

Running head: ENVIRONMENTAL SCAN
ENVIRONMENTAL SCAN
Name of the Student:
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Table of Contents
External factors influencing 7-eleven:.............................................................................................2
Challenges faced by the organization in Australia:.........................................................................3
Opportunities by offsetting the risks:..............................................................................................4
Strategies to overcome the challenges:............................................................................................5
References:......................................................................................................................................7

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External factors influencing 7-eleven:
Political factors: the company is influenced by the existing political climate present in
the region just like present business entities in the other sectors. The political disturbance present
in the environment discourages the investors and business from entering into the market due to
risk of business failures and lower returns (Hueske, Endrikat & Guenther, 2015). The political
condition in Australia is fairly stable ass it shapes the business environment and provides the
firm to achieve success in the long-run.
Economic factors: the retail industry in the region has maintained major stability than any
other parts of the world. The company 7-eleven has faced major loss during the time of financial
crisis that led to cause unemployment of various people in the organization. The company has
also able to perform effectively during the period of financial disruptions.
Social factors: the customers are the major source of revenue that focuses on fulfillment
of all the needs that is highly essential for increased profitability. 7-eleven has recognized the
importance of customers experience as a major part of their profitability and sales (Hill, Jones &
Schilling, 2014). The organization has identified the changes according to the social context and
concluded that the customers in today’s times is highly seeking retail shopping experience which
includes availability of high range of products.
Technological factors: the technological factors have helped in enhancing the shopping
experience of the customers that constitute as a main area of focus for the retail organization.
Innovation has currently become the part of the retail segment. Self-services are being adopted

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by 7-eleven. This technology innovation has also created a negative impact on large number of
customers.
Environmental factors: 7-eleven has invested its resources in reducing the carbon
footprint of the organization. In addition to this the sustainability practices of the organization
also includes sourcing of items by applying ethical sound approaches.
Legal factors: The taxation policy and employee management regulations are the major
part of the basic legal framework existing within the retail industry. The opening of innovative
retail outlets needs permission from the governmental authority and therefore 7-eelevn needs to
follow all the basic requirements.
Challenges faced by the organization in Australia:
High economical costs: Australia is a highly developed economy, therefore high income
and interest rates leads to high growth. High operating costs structure in the country means
adopting a price premium approach for the organization. Though there are consumers willing to
pay more for convenience and speed of purchase but the other budget conscious customers are
more prices sensitive. The company 7- eleven outlets needs to be in a very convenient location
and they are likely to incur very high rental costs as a result. Higher operating cost structure
would mean that the company needs to have a price premium approach.
Increase in competition: the vital challenge that is mostly faced by the conventional store
like 7-eleven is fierce competition in the market place. The consumer taste also varies according
to the trends and fashion within the organization. Demographics highly influence the nature of
products that the customers are likely to purchase. The customer taste can be ascertained by

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proactively studying their external environment. It is often seen that the consumers are major
influencer that encourages their peers for the new and innovate products.
Regulatory Environment: In Australia, the business organization usually operates in a
landscape of regulations and laws that determines what the firm can or cannot do. Licenses and
permits can be very expensive that add to the organization cost of doing business.
Change in Technology: with the rapid advent of technology the conventional stores are
also impacted to a great extent. Social media and various apps promote the organization and
digital marketing is also possible in the recent times.
Opportunities by offsetting the risks:
Continued market development: the company 7-eleven can grow its business through
market development. By increasing its numbers of stores in the market and improving its
operational activities (Heding, Knudtzen & Bjerre, 2015).
Increased product offerings: the 7-eleven stores should increase its physical capacities to
increase the product offerings and range. This further provides opportunity for the organization
to offer higher selection of physical products and services such as cell phone cards, ATMs and
even car insurance. Moreover, in various countries 7-eleven should also expand its range of
products through proper offerings of fuel, wine, beer, coffee, pizza, ATMs and donuts.
Exclusive product offerings: 7-eleven has managed to create strong relationship with the
key manufacturers, who have strong brands. This could lead to the advantages for both the

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strategic partners and broaden the range of benefits that the company 7-Eleven would deliver to
its customer.
Strategies to overcome the challenges:
The determination of the objectives of the organization helps the same in streamlining the
activity and the workforce based on the determination of the needs of the same in the market.
The key elements of the change that is planned by the organization in maintaining the sustenance
of the same in the market. The major objective of the organization is based on the determination
of the sustainability factors of the business. The determination of the objective of business helps
in the decision making of the same as per the competition in the market. On the other hand, the
determination of the change and the applicability of the same in the organizational structure is
based on the assessment of the applicability of the same as per the objectives.
Establish key performance indicators (KPIs) to measure results
The key performance indicator (KPI’s) of the organization helps in determining
the different aspects of the change and their results that the change will bring in to the company.
The KPI of the company helps in assessing the various elements that affects the functioning of
the organization through the determination of the uncertainties in the business. The
determination of the change and the effects of the same on the organizational structure and the
culture helps in minimizing the risks of the organization in the market.
Identify risks that can drive variability in performance

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The identification of the risks of the organization helps in determining the
uncertainties that might be faced by the same while undertaking the change. The determination
of the transition and the manner in which it affects the functioning of the business in the market
helps the organization in avoiding the risks and uncertainties. The identification of the risks that
are faced by the organization depends on the analysis that the organization undertakes to bring in
progression in the systems.
Provide integrated reporting and monitoring
Monitoring over the processes that are undertaken by the organization helps in
determining the different aspects of the change in the structure and the performance of the
business. On the other hand, monitoring over the processes helps the organization in minimizing
the different aspects of the uncertainties that might be faced by the business firms to bring in
changes in the systems. Reporting of the issues and the monitoring over the processes of the
organization helps in minimizing the uncertainties that are faced by the same in the market.

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