Strategic Management Analysis of 7-Eleven: A Comprehensive Report

This report provides a comprehensive strategic management analysis of 7-Eleven, a leading global convenience store chain. The analysis begins with an introduction to strategic management principles and then delves into 7-Eleven's vision and mission statements. The report examines both internal and external factors influencing 7-Eleven's operations, utilizing frameworks such as PESLE and the Internal Organizational Factor Matrix. A key component of the report is a detailed SWOT analysis, evaluating the company's strengths, weaknesses, opportunities, and threats. The report then explores strategic implementation, including corporate and business strategies. Finally, it discusses methods for evaluating and controlling these strategies. The report aims to enhance the reader's understanding of strategic management concepts and their application in a real-world business context.

STRATEGIC
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
PART I.............................................................................................................................................3
1.1 Vision.....................................................................................................................................3
1.2 Mission..................................................................................................................................4
1.3 Effectiveness of vision and mission......................................................................................4
PART II...........................................................................................................................................4
External analysis..........................................................................................................................4
PART III..........................................................................................................................................6
Internal Organizational factor Matrix..........................................................................................6
TASK 2............................................................................................................................................8
PART IV..........................................................................................................................................8
4.1 SWOT Analysis.....................................................................................................................8
4.2 General Electric Matrix Analysis of 7-eleven:....................................................................11
Part V: Implementation..................................................................................................................13
5.1 Corporate Strategy...............................................................................................................13
5.2 Business Strategy.................................................................................................................15
Part VI:...........................................................................................................................................16
Evaluating and Controlling Strategies.......................................................................................16
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Strategic management refer to the strategic uses in the business resources so that they can
reach the company goals and the objectives of the company. Strategic management require the
reflection to the process & the procedure within the company and external factors which can
directly impact on the how company and organization functions. Strategic management process
is to guide top level decisions and actions. All the types of the company and sizes can benefit
with the help of practise to strategic management. It also includes the setting up of the objectives
of the company and analyse the competitor of the company & review the structure of company.
It is sum of planning strategy and thinking as planning to achieve goals and think to find the
ability to identify need for the goals. 7-eleven is one of the biggest franchised company from
America and loved all over the world with the products and services of the best quality to its
customer. 7-Eleven work on the innovation and have a legacy of doing innovative in their
products, they are first to provide the to-go coffee cups to world. Company main focus is to
provide the best to the customer and the company is doing so from so long and making the
customer rely on the company by its products and services. In the report will discuss the strategic
management of the 7-eleven and their mission, vision, External and internal analysis of the
company. Further will discuss the assignments to enhance learner to generate effective and
efficient strategies.
TASK 1
PART I
1.1 Vision
7-Eleven wants to be the best retailer in the market which is convenient for the
customers. The company want to reach out to a large audience so that there would be better
functioning. To become the leading retailer in the world and in Malaysia is the first vision which
7-Eleven is holding for them in the market. The company wants to stand in the market as the
leading organization for that there are measures taken and loyal customers are being established
in the organization.
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1.2 Mission
The company is aiming to be able to make a valuable place for themselves in this
competitive market. The needs of the customers are shifting and it is very essential for the
organization to be able to make a place for them in the market. The company wanted to get in
those changes in the market effectively so that they will be able to operate effectively and satisfy
the customers which are coming.
1.3 Effectiveness of vision and mission
There is a growth which is visible in the market of competition and the retailers which are
present worldwide are many and have made a place for themselves over years. The vision and
mission which 7-Eleven is having for them in the market is strong which can help the company
be able to make a place for themselves in the market effectively. The workforce who is working
in the company is very efficient which is a great advantage for the business to get in the right
changes which are taking place in the market (Barbosa, Castañeda-Ayarza and Ferreira, 2020).
The company will have to work harder and according to the plan if they want to get a
competitive advantage and get more customers in the organization. There are a lot of changes
which are going to come in the organization which will have to be good enough for the company
to be able to maintain the standards and reputation which they have got up in Malaysia.
PART II
External analysis
There are a lot of factors which can affect an organization from functioning smoothly and
effectively in the market. External factors are not in control on businesses but they have to make
their decisions according to them if they need to operate in the market for a longer run. This is
going to help the organization to get a competitive advantage for a long run and the business will
be able to get higher profitability. The framework which is used by 7-Eleven is PESLE which is
including 6 factors which are political, economic, social, technological, legal and environmental
factors. These factors have to be considered by businesses in order to be able to make a place for
themselves in the market (Akhtar and et.al., 2016). The political factors in Malaysia are very
favourable for the company to be able to expand themselves and also be able to transport the
goods to other countries. The needs and demands of the customers are increasing which will
have to be considered by organizations to adapt to so that there is a good performance of the
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business in market. There are a lot of technological changes which are coming in the
organization which are very essential for the businesses to adapt to otherwise they will not be
able to satisfy the customers effectively. The customer’s culture and value have to be respected
in the organization so that they can trust and have a good and healthy relationship with the
organization for a better functioning (Jabbar and Hussein, 2017).
There are zero footprint measures and resources are being used effectively in the
organization so that the company can maintain their products and services in the market. The
company is making a strong base in Malaysia so that they can have better productivity and
operations in the market. There are legal freedoms which are provided by the government for
businesses to be able to operate effectively in the market. There are labour and employment
rights which are being provided for the people to be able to operate effectively (Bindra,
Parameswar and Dhir, 2019). The employees have the right to speak in the decision making for
their rights which is going to make the working environment healthy and the products and
services would not get affected easily. The waste of the company is also being disposed off well
and the employees are making this decision be implemented effectively so that the company can
have a better reputation in the market. There is a standard and brand image which 7-Eleven have
set for them in the market and that has to be well balanced so that there would be a good
functioning. These factors are going to affect the company directly or indirectly therefore the
organization will have to analyse the market effectively before making any decisions which can
impact the organization’s plan. EEFM stands for East of England Forecasting model which is
having an amazing concept which is shifting the organization to brighter things in the market
through experience which the businesses hold in the market. These changes are going to make
the company have a better place in the competition which is rising in the market and the
organization will be able to control their economic factors. The trends in the market are changing
which will have to be analysed and decisions have to be made accordingly so that the company
will be able to get a better reputation in the countries where other retailers already exist (Gaya
and Smith, 2016). This concept makes the companies understand the future market and decisions
are made accordingly so that the organization will be able to expand themselves in the near
future which is going to be very helpful. EEFM is having a lot of industrial analysis and
competitor analysis which is a very essential factor for the companies to be able to grow in the
market for a better functioning which is going to be very beneficial for 7-Eleven.
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PART III
Internal Organizational factor Matrix
Weights assigned from 0.0 to 1.0 as low performance to high performance, the strength
range from 4 to 1 as major strength to weakness and last the score are calculated as weight
multiply by rating (Ansoff and et.al., 2018).
Critical success
factor
Weight Rating score
Strength
 Brand value
 24x7
service
 Quality
focuses
 IT experts
on Issues
0.1
0.08
0.07
0.08
4 0.4
3 0.24
4 0.28
4 0.32
1.24
Weakness
 Merging
 Creating
foothold
 Unable to
position
0.1
0.04
0.07
1 0.1
1 0.04
2 0.14
0.28
Total 1.00 - 1.52
Strengths of the 7-eleven: -
24x7: -
7-eleven stores remain open 24hours and 7 days which help in gaining large number of
customers in days as well in night. This gives the strength to the company and helps in getting a
good amount of revenue generating for the company itself (Zulkarnain, 2017). The matrix shows
the of 3 to the 24x7 factor of the company because it is good for the company but on other hand
company need to do more to the security and safeties in the offices.
Brand: -
Brand value is the best for the 7-eleven as the company goodwill in market is so good
that it helps in getting more customer easily and it also help them in finding the customer to new
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place easily. Good brand value shows the rating with 4 and it show that the company is working
best in the quality market and well known in market to customer (Singh, J., 2019).
Quality: -
The things which helps the company in getting the success are the quality of services given by
the company to its customer and which help the company in getting the objective and goals
completed.
IT experts: - the company give the best in after services by the IT teams as they suggest the
feedback in the best ways and tackle them as soon as possible which make the customer feel
important and give them the priorities. It also helps in making the best of company services as
company quickly gives the solutions to the things effect the company.
The choices of the strength for 7-eleven are these because these things give the strength to the
company in working the best and keeping a different strategy from others and competitor.
weakness of the 7-eleven: -
Merging: -
Working so good in the market still unable to merge small companies with different work
culture which affect the company in its growth and decrease the company growth rapidly. For
growth the company need to be versatile and adjustable in understanding the importance of the
work culture.
Creating foothold: -
Giving a long gap in product range create opportunities for new competitor which affect
the company and 7-eleven lack in this which give benefits to its competitor to come in the
market.
Unable to position: -
Company is still lacking in the unique selling in the proposition of products even after
getting success in term of selling which create opportunities for their competitor to attack in the
segment (Schilling, 2019). Weakness are those where the company is lacking as the company is
suffering from merging and unable to position the company in market.
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TASK 2
PART IV
4.1 SWOT Analysis
7-eleven provide food and beverages to large number of customer around the world.
However, Organisation’s growth is effected from both internal as well as external analysis.
Below describe strength, weakness, opportunities and threats for 7-eleven growth and how they
are inter related
TOWS MATRIX Strength
 7-eleven stores remain open
24hours and 7 days which
help in gaining large number
of customer in days as well
in night.
 Company focus on
individual product branding
and hence increase quality
efficiency of productivity as
per taste of customer.
 UK customer believes in one
stop shop and 7_11 large
number of product provide at
one place.
 Company has a good IT
support which helps in quick
solution in the machine and
online platform of stores.
Weakness
 7-eleven is not successful
in merging small
companies because of
different work culture
hence decrease the
growth of organisation.
 Gaps in product range of
the organisation again
create foothold for new
competitors because
customer is attracted
toward variety of same
product.
 Organisation not able to
define position and
unique selling
proposition of products
even after getting success
in terms of sale which
create opportunities for
competitors to attack in
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this segment.
 Company is completely
dependent on other
transportation companies
for logistic.
 Company is limited in
few areas of UK.
Opportunities
 7_11 is world’s largest
franchise company and
has a good fame so
opening stores in
different part of world
be easy for the
organisation
 Company can supply
exclusive products to
customer and hence
expand by adding this as
advantage
 7_11 can start provides
fresh food in the store so
as to increase market
value of the organisation
as well as attracting
large number of
customer because of
health consciousness.
 SO strategy
 Company can provide
exclusive as well as other
items at one stop shop to
increase the customers.
 By providing fresh food,
organisation able to gain
loyalty of the customers
 Defect or fail of one product
doesn’t affect other by
providing range in the
products and hence doesn’t
affect the image of
organisation(Kulshrestha and
Puri, 2017)
 WO strategy
 Less range in the product
doesn’t affect customer,
if continuously providing
exclusive products.
 Increase health
awareness among
customer, fresh food
demands increases
without much noticing
price.
 Company can purchase
vehicles to increase
efficiency in supply
chain management.
 It can diversify market in
different area by making
partners or attracting
investor for project.
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Threats
 After Brexit,
Government has framed
different policies in
favour new companies
which create opportunity
to attract large number
7-eleven customer and
hence decrease its
market share.
 Company has not
focused on security of
stores and hence in the
night customer afraid to
come and on the other
side robbers easily
attack the stores as no
physical staff is
available.
 Company fails to tackle
challenges created by
new entrants and hence
lost market share
.
ST strategy
 Because of strong brand
value of product company
gain competitive advantage
over new organisation.
 UK Police security system is
advance in terms of
protecting stores and citizen
24hours*7days*year and
again webcams and security
alarms in the store help to
secure the store (Kunc and
O'brien, 2017).
WT Strategy
 Increase in the range of
product to reduce
competitiveness.
4.2 General Electric Matrix Analysis of 7-eleven:
General electric matrix use Industry attractive score and business strength score and use
for screening business unit. In the below show GE matrix of 7 eleven for analyse of different
factors of its growth and possible problems.
4.2.1 Industry attractiveness Score
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Industry Attractiveness Score Weights Rating Weighted Score
Market Size 0.20 5 1.0
Market Growth Rate 0.15 4 0.6
Industry profitability 0.15 3 0.45
Competitive structure 0.10 2 0.2
Business cycles 0.05 2 0.10
R & D development 0.10 3 0.30
Social issues 0.10 2 0.20
Market diversity 0.05 2 0.10
Government policy 0.10 1 0.10
Total 1.00 3.05
4.2.2 Business Strengths Score
Business Strength Factors Weights Rating Weighted Score
Market Size 0.20 5 1.0
SBU growth rate 0.15 4 0.6
Breadth of product line 0.15 3 0.45
Price competitiveness 0.10 2 0.2
Advertising effectiveness 0.05 2 0.10
Capacity and productivity 0.05 3 0.30
R & D strengths 0.05 2 0.20
Cash flow 0.15 2 0.10
Top managerial talents 0.10 1 0.10
Total 1.00 3.05
4.2.3 GE matrix:
Grow
Maximize Investment
 Invest in exclusive
Identify growth Segments
Invest strongly
 Leadership and
Maintain position
Seek cash flow
 Investment in Research
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product to increase
market share.
 Focus on
organization’s
profitable market.
management
improvisation.
 Training and
development programs
for growth of
employees’ and
organization.
and development
program.
 Increase use of digital
marketing and media.
 Replacement of frozen
food service.
Identify weakness
Build strength
 Investment in fresh
food products.
 Increasing quality,
efficiency and
productivity of
workforce as well as
workplace
 Variety of same
product.
Identify growth
Invest selectively
 Protect 24*7 services
on stores.
 Introduction of new
beverages (Zulkarnain,
Wahyuningtias and
Putranto, 2017).
Minimize investment
Ready to divest
 Increase long distance
delivery of products
and also minimize it by
managing investments
and operation.
Seek niches
Consider acquisitions
 Focus on current
revenue and attract
loyal customers.
 Focus on exclusive
product as it maintains
uniqueness of the
organization.
 Time to time changes
in product quality and
development and
hence protect from
Seek niches
Ready to exit
 Proper management in
supply and chain of
products and online
deliveries.
 Development and
innovation in old
products.
 Minimizing investment
by cutting unprofitable
expenditure (Schilling
Prepare to exit
And divest
 Selling old machinery
at right time.
 Decrease the fixed cost
and try to avoid less
profitable investment.
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