Strategic Analysis and Evaluation of 7-Eleven: Module Report

This report provides a comprehensive strategic analysis of 7-Eleven, a global convenience store chain. It begins with an executive summary and an introduction to the company and the convenience store industry. The report then delves into 7-Eleven's vision, mission, core values, and corporate objectives. It analyzes the basis of competition using Porter's generic strategies and Five Forces, followed by PESTLE and SWOT analyses to assess external and internal factors. The report examines the company's activities and resources using the Value Chain and Resource-Based View, and evaluates organizational performance with the Balance Scorecard. Strategic analysis includes the Ansoff Matrix. The report concludes with recommendations, a conclusion, references, and appendices that support the analysis with detailed evidence. This report provides a thorough assessment of 7-Eleven's strategic position and performance in the global market.

Running head: 7-ELEVEN ANALYSIS
7-ELEVEN ANALYSIS
Name of the Student
Name of the University
Author Note

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1. Executive Summary
Strategic management is an important fragment of the professional domain. In connotation with
this, it can be considered very crucial for the enterprise to see to it that it is being able to perform
well and is able to compete with the dissimilar initiatives as present in the business industry and
related environment. In contemplation of this, it converts operative for an organization to see to
it that they are being able to ensure that an assessment of all external organizational factors is
undertaken which will thereby assist the company in ensuring that it is being able to formulate
adequate strategies with the assistance of which the company will be able to gain adequate
placing in the market. The report has outlined the external factors in association with this, it will
assist in ensuring the right kind of initiatives and the recommendations have to be made
accordingly.

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Table of Contents
1. Executive Summary.................................................................................................................1
2. Introduction..............................................................................................................................3
3. About the company and Industry performance........................................................................3
The vision, mission, core values and corporate objectives of 7 eleven.......................................3
Objectives of the firm:.................................................................................................................4
The basis of competition..............................................................................................................5
Five forces analysis......................................................................................................................5
PESTLE and SWOT Analysis.........................................................................................................7
SWOT..........................................................................................................................................9
Refer to Appendix 2.....................................................................................................................9
The activities and resources of the company (Value Chain and the Resource Based View)....11
The Balance Scorecard to measure organizational performance...............................................15
Strategy analysis........................................................................................................................17
Ansoff Matrix............................................................................................................................17
4. Recommendations..................................................................................................................17
5. Conclusion..............................................................................................................................17
6. References..............................................................................................................................19
7. Appendices.............................................................................................................................22

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2. Introduction
The company which has been chosen for the resolution of the analysis is the Seven
Eleven departmental store based in various parts of the world. In consideration of this, the report
will follow a organized format whereby the brief background of the company will be essentially
followed by the vision, mission, core values and the different corporate objectives of seven
elements (7-eleven.com 2020). Various competitive tools such as the Porters generic and the five
forces as a tool will also be made use of in order to comprehend the overall competitive
environment of the firm and the overall competitive advantage. This will then be followed by the
environmental analysis which will then outline the SWOT and PESTLE factors affecting the
business. The strategic analysis shall also be undertaken.
3. About the company and Industry performance
The 7 eleven Inc. can be understood to be a Japanese’s American worldwide chain of
convenience stores which are headquartered in Dallas in Texas. In consideration with this, the
chain was found in 1927 as an ice-cream storefront in the Dallas. The enterprise was later on
acquired by a Japanese business and is now held by the Tokyo based Seven and I Holdings
Company Ltd. At present, the 7 –Eleven operates franchises and licenses 68236 stores in 17
countries as of June 2019 (7-eleven.com 2020). The 7 eleven as a brand is known and loved
around the globe for their iconic products and related culture. In association with this, although
the company has grown significant over the last few years, the focus has remained on making the
life of the customers easier. In association with this, the customers, employees and related
community leaders are product to be a part of the 7 Eleven story (Aguinis, Edwards and Bradley
2017). As the business world becomes increasingly connected with the internet, the digital team
strives to be the best and at the forefront of innovation thereby providing effortless and
convenient solutions to the customer. In association with this, the firm is aimed at providing
innovative solutions to the customers as they are largely committed to developing the
experiences of the future and bringing the stores to the customers as present. The enterprise
continues to stand strong and continue the long standing legacy of the innovation with the help of
which the customers gain redefined convenience.

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The vision, mission, core values and corporate objectives of 7 eleven
The 7 eleven is a family owned corporate which operates over a franchise model in
various branded organizations. They have corporate values in various internal dealings with the
franchisees and they are keen to guarantee that these values can be extended to the suppliers
adequately (Ansoff et al. 2018). In consideration of this, it becomes critical to reference that, the
suppliers need to be trusted with new benefits and considerate opportunities.
Objectives of the firm:
 To be the best in Hong Kong and meet the changing needs of the different customers as
present.
 To ensure customer convenience at all times
 To engage in successful relationships with the different parties adequately.
Vision
The vision of the enterprise is to preserve the position as the 1st choice of the clienteles
and attain a considerate market share with the help of sustainable growth, operating the business
at a high level and ensuring maintenance of the ethical standards of the business. (Appendix 8)
The basis of competition
All enterprises involved in the global business are fundamentally required to see to it that
they are being able to compete in a means such that the enterprise is being able to engage in
adequate profit generating activities which will help in guaranteeing that the corporate is being
able to ensure successful outcomes. The 7 eleven is a multinational firm with a very high
gratitude in the target market segment (Baumgartner and Rauter 2017). The competition has
intensified to a great extent and it is important for the firm to apply strategies which will help in
engaging in a competitive advantage. Hence, in order to understand the Porters Generic strategy
in the right manner, it is essential that, the firm is being able to ensure that apply the right
strategy for its overall success. Hence, 7 eleven is unique enterprise which tends to apply a
combination of the differentiation, focus and the cost leadership approaches to handle the

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competitive pressure. The customer base extension and the deals growth objectives which the
company obtains and adopts are largely growth intensive and apply all aspects such as the cost,
focus and the differentiation strategy. This helps them to perform well. (Refer to Appendix 1)
Five forces analysis
(Refer to Appendix 3)
To understand how the enterprise is being able to perform is essential. Hence, the Porters
Five forces can be mentioned to be a tool which is required to be made use of in order to ensure
that the different players as involved in the firm`s internal and industrial environment can be
assessed and inferences can be derived out of it. With respect to this, it is critical to state that, the
Michael Porters five forces have been applied to the 7 eleven to understand how the firm stands
within the different enterprises as present.
Bargaining Power of Supplier:
The suppliers tend to hold sufficient power very the different enterprises. The enterprise
offers unique products to the customers which have to be effectively sourced from these
suppliers itself. In reflection of this, it is indispensable to mention that, the suppliers need to get
into a strategic alliance to support the firm. In support of this, it can be stated that, the bargaining
power of buyers is quite moderate in the industry (Borland et al. 2016). The brand sources its
goods often directly from the base and therefore, they are quick in their decisions. Good quality
is an aspect where the 7 eleven does not intend to compromise.
Threat of Substitutes & Degree of Rivalry:
The degree of Rivalry is always high in the industry of the convenience stores. This can
be mentioned because; the customers are regularly subject to the different stores and their
substitute offerings. Enterprises like Walmart, Waitrose and the Tesco are some examples of the
same. In contemplation of this, it is effective to mention that, in order ensure that the threat of
substitutes is not considered, the firm needs to keep revising its offerings (Bryce 2017).
The degree of rivalry can be mentioned to be very high. In association with this, it can be
effectively mentioned that, in order to engage in effective operations, adequate initiatives have to

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be taken by 7 eleven in order to confirm that they are being able to combat against the
competition. The various enterprises offer similar products and in association with this, in order
to reflect better positioning, 7 eleven would be requisite to accept considerate initiatives.
Bargaining Power of Buyer:
The bargaining power of the Buyers can be referred to as the options which can be
undertaken by the customers in order to make various purchase decisions. In connotation with
this, it becomes critical to state that, the customers need to be provided with such offerings so as
to ensure successful outcomes and related operations.
Threat of Entry:
For 7 eleven, the threat of new entrants can be considered to be quite high as the
convenience store industry can be understood to be a lucrative in nature and this is the main
reason why, the new entrants are willing to enter. In consideration with this, the online medium
of marketing has also become very popular which further ensures considerate operations. (Refer
to Appendix)
PESTLE and SWOT Analysis
After assessing the competitive and the industrial factors as present in the environment of
7 Eleven, it can be agreed to it that, the analysis of the environmental analysis along with the
SWOT analysis will be undertaken. This shall thereby assist in ensuring that, the factors
influencing the operations of the enterprise can be measured and recommendations can be given
based on the same.
PESTLE
The Pestle analysis can be rightfully defined as the analysis of the factors which assist in
ensuring that, the Political, economic, social and technological factors can be taken into
consideration effectively. In line with this, it is operative to state that, the PESTLE analysis shall
highlight the various extrinsic scenarios which influence the business of the brand and related

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operations (David and David 2016). The PESTLE serves as an analytical framework which is
quite imperative for the various enterprises to improve the business enterprises adequately.
Political Factors:
The degree of corruption as well as the violence which takes place in the host countries
affects the enterprise. The market for 7 eleven is already subject to the foreign import policies
and are determined by the global competitive pressures, the regulatory bodies and the different
governmental policies. Other aspects affecting the business can be described as the legislation
and regulations regarding the 24 hours operations of the enterprise. In association with this, the
firm faces several regulations subjecting to the fact that, it is required to engage in initiatives
with the help of which, it generally tends to face issues in its operations and ensuring overall
long term success (Ethiraj, Gambardella and Helfat 2016).
Economic Factors:
The economic standing of the country along with the spending capabilities can be
described as the factors which have a major influence on the overall performance of the business.
The workforce productivity and pay systems have been improvising to a greater extent and his
has had a he influence on the overall performance of the enterprise as the purchases are bound to
increase accordingly. Therefore, in association with this, a higher GDP rate in an enterprise is
bound to have high implication as it will affect the operations accordingly.
Social Factors:
The changes in the tastes as well as the preferences of the various customers can be stated
to be the main social factor affecting the operations of the firm. In deliberation of this, it is
serious to state that the aspects such as the changes in the preferences of the consumers, the
brand image of the firm, the religious beliefs of the consumers and the demographics of the
customers affect the purchasing patterns at 7 eleven (Frynas and Mellahi 2015). In association
and consideration with this, it can be rightfully stated that the attitude of the millennials and the
baby boomers towards the purchase and choice of the customers can be stated to be a strong
factor influencing the procedures of the firm. The income of level of the different respondents

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can also be understood to be a factor which can have an influence on the operations of 7 eleven
(Gallus and Frey 2016).
Technological Factors:
The 7 eleven in order to attract adequate target audience tends to use various technologies
so as to be able to overcome the problem of manual operations and enhance the different
consumer operations. The factors influencing the business operations currently can be referred to
as the use of the mobile phones and applications for the firm. In consideration with this, to
combat with this aspect, 7 eleven comes up with adequate options such as `The Cellar` which has
craft beers and wines. Along with this, a new scan and pay technology for the customers also
have to be hired (Hanson et al. 2016)
Legal Factors:
7 eleven in order to ensure long term success has to abide by the different data protection
laws and related steps. In addition to this, the enterprise also has to abide by the laws of the
region where the firm operates in. In association with this, it becomes relevant to state that there
are several law suits which the company has been currently facing. In line with this, the
franchisee which the 7 eleven tends to offer may be required to consider so as to see to it that,
they are being able to engage in cash back agreement with the employees and engage in various
legal laws and legislatives which will ensure better operations.
Environmental Factors:
7 eleven is a responsible organization and in consideration with this, it has set up an aim
to ensure that it is efficaciously being able to engross in effective conservation international and
retail industry leaders connotation with the help of which the different leaders have been doing
their part and engaging in effective operations in an adequate manner (Hill 2017). The aim of
the firm is to undertake initiatives with the help of which the enterprise would be able to engross
in effective operations and ensure reduction in light pollution and associated operations.
SWOT

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Refer to Appendix 2
The SWOT analysis can be described as the analysis of the Strengths, Weaknesses,
Opportunity and related threats which is generally faced by the enterprise. In consideration with
this, it can be effectively mentioned that, the different strengths of the enterprise can be declared
to be as follows:
 It has a considerably good track record with respect to the new products and product
innovations.
 In association with this, it is expert at entering new markets. In suggestion with this, it
can be stated that the firm aims to guarantee that it is being able to maintain a consistent
economic cycle.
 The enterprise has a strong cash flow which will assist it in ensuring considerable and
successful operations (Hitt and Duane Ireland 2017)
 The distribution network can be considered to be very strong and to engage in effective
success it has been able to build a strong base.
 The band portfolio of the enterprise can be mentioned to be quite effective.
 The workforce of the enterprise ca is mentioned to be quite skilled as it will ensure that
the employees are motivated to perform well (Hitt, Ireland and Hoskisson 2016).
The weaknesses of the enterprise can be mentioned to be those areas where the firm would be
required to improve its current operations. In line with this, the different weaknesses of the
enterprise can be mentioned to be as follows:
 The marketing initiatives which are generally undertaken by the enterprise leave a lot to
be desired. In association of this, it can be mentioned to be critical that, the selling
proposition needs to be defined clearly (Honggowati et al. 2017).
 The work culture of the enterprise is not very effective. In consideration of this, it
becomes effective to state that, in order to engage in successful operations; the workplace
culture has to be such that, it does not affect the operations of the firm.
 The firm is a fast growing enterprise, but the investment in the Research and
development is very low. The firm has not been able to provide considerate initiatives to
come up with a better solution and hence, associations have to be undertaking adequately.

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 There exists a gap which exists in the product range whereby there exists new
opportunities for new companies to expand the operations (Johnsen 2015).
Opportunities
The opportunities can be rightfully defined as the different initiatives which can be
adopted by the enterprise. In suggestion with this, it is serious to mention that, in order to engage
in considerate operations, the given opportunities have to be undertaken:
 The new technology provides the firm with an opportunity to 7 eleven to practice
adequate differentiated pricing so as to perform well. In consideration to this, this shall
help the enterprise in attracting loyal customers (Karadag 2015).
 The core competencies of the enterprise offer adequate scope for expansion and in
association with this; it needs to come up with better product options.
 7 eleven would be required to apply new environmental policies with the help of which it
will be able to engage in successful operations and will be able to enter emerging markets
(Lasserre 2017).
 In addition to this, the new taxation policy has to be met with accordingly. This will help
the 7 eleven to increase the profitability (Morden 2016).
 The lower inflation rate offers more stability in the market.
The threats as faced by the enterprise can be mentioned to be as follows:
 There does not exist a regular supply of various innovative products in the industry. In
line with this, new technologies have to be developed to ensure successful operations.
 There exists considerate shortage of skilled workforce in the global market which
represents a threat to the operational success.
 The 7 eleven as an enterprise has engaged in lawsuits in various countries which have to
be abided by (Meyer, Neck and Meeks 2017).
 The demand for the highly profitability products have been increasing, but the firm does
not offer adequate opportunities for the same.

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The activities and resources of the company (Value Chain and the Resource
Based View).
The activities and resources of 7 eleven refer to the different store the enterprise has an in
consideration to this, also refers to the assets it possesses. Hence, to gain an understanding of the
same, the Vale chain and the resource based view model shall be applied so as to ensure that, the
examination of its resources can be undertaken adequately.
The Value chain analysis can be rightfully mentioned to be described as the tool using
which the Primary as well as the Secondary activities of the firm may be examined in order to
understand and analyze that, not all activities require equal scrutiny (Morschett, Schramm-Klein
and Zentes 2015).
The primary activities can be considered to be as follows:
Inbound logistics
The inbound logistics refers to the procurement activities which the firm is required to
engage in so as to ensure that the activities can be carried out adequately. In association with
this, 7 eleven maintains a strong relationship with the suppliers in order to ensure that it is being
able to engage in effective operations (Okumus et al. 2019). This means that al initiatives in this
phase relate to the transformation from the raw materials to the finished products.
Operations
The operations can be referred to as the overall activities which involve ensuring high
productivity, effective operations and related activities so as to engage in adequate services. To
engage in competitive advantage, the firm would be required to ensure smooth operations.
Outbound Logistics
The outbound logistics can be rightfully referred to as the delivery of the products and
services to the different intermediaries to ensure successful operations. In consideration with this,