7-Eleven Convenient Store

OVERVIEW Philippine Seven Corporation (PSC) was registered with the Securities and Exchange Commission on November 1982. It acquired from Southland Corporation (Now 7-Eleven Inc.) of Dallas, Texas the license to operate 7Eleven stores in the Philippines in December 13, 1982. Operations commenced with the opening of its first store in February 29, 1984 at the corner of Kamias Road and EDSA Quezon City, Metro Manila. Considering the country's economic condition at that time, the company grew slowly in its first year of existence. Currently, the company had a manpower complement of 2,017 personnel, 856 of whom are regular employees, 1,159

contractual/probationary and part-timers to augment temporary needs during peak hours or season in the stores and the support services units. There is no existing labor union in the company and collective bargaining agreement. There is an Employee Council which communicates to

management the employee concerns.

7-Eleven today is focused on redefining and enhancing convenience through strategic initiatives designed to take advance of new technologies and merchandising processes, but which remain based on the fundamental principle of the simple business concept it pioneered over 70 years ago - to provide customers an ever changing selection of quality products and services at fair everyday prices, through speedy transactions in a clean, safe and friendly environment. ISSUES 7-Eleven convenient stores have the following issues that need to be solved:

How can 7-Eleven edge their rivals considering the growing number of convenient stores nationwide?

What improvement can the company do with regards to their security services considering that there are a lot of robbery cases reported involving convenient stores nationwide?

INTERNAL ANALYSIS

Marketing

In

STRENGTHS terms

WEAKNESSES of

marketing, 7-Eleven is at the forefront of all the convenient

stores country.

in It is

the the

leading convenience store for the last 25 years Selling in is the not
The prices of the

Philippines. 7-Eleven

lacking on gimmicks to attract more (e.g.

products are a little bit high compared to the same products that you can buy to an ordinary sari-sari store.

customers.

Election cups during the Management 2010 national hires

elections) 7-Eleven

flexible, trained, and fast employees that could Legal serve their

customers well. 7-Eleven have complied in all the legal requirements

Production/Operation

asked by law. 7-Eleven produces high personnel qualified that

perform business

all

the

activities

and transaction with Finance its customer. The accounting department provides financial and A. Management 7-Eleven hires flexible, trained, and fast employees that could serve their customers well. With its new management, it implemented more operations designed to make the 7-Eleven the major (if not yet) player in the store industry. The Human resource department of the company is in charge of matters involving personnel recruitment. The selection, record maintenance and compensation of employees are its responsibility. reporting at

analysis

every level.

B. Marketing 7-Eleven is the leading convenience store chain in the Philippines for over 25 years, and became the countrys first franchisor in convenience retailing when we awarded our first franchisee in 1998. Today, over 300 stores are operated by our Franchisees;

entrepreneurs and business partners who are dedicated to giving 7Eleven customers what they want when they want it.

1. Customer Analysis o Products and services offered by 7-Eleven are household necessities. With that, it attracts customers wants and desire offered by the company. With the services generated on this part helps a lot to develop an effective mission statement based on how the customer would like to be satisfied with the kind of service done. Being fast, open to the public 24/7, and giving quality service is a concept that helps 7-Eleven to incorporate this function to the mission and vision statement.

2. Selling o 7-Eleven is not lacking of marketing gimmicks. They have sales promotion that has draws and prizes, promotion of public image with their Election Campaign last May 2010. These are the companys way to promote its image to the public just to gain an advantage on penetrating a wider range of market.

3. Products and Services o Among 7-Eleven's offerings are private label products,

including Slurpee, a partially frozen soft drink introduced in 1967, and the Big Gulp introduced in 1980 that packaged soft drinks in large cups ranging in size from 20 to 64 US fluid ounces.

4. Pricing o Competitors and consumers and also support of the

government policies are major factors that affect the pricing decision of 7-Eleven products and services.

5. Marketing Research o Marketing research and other feasibility studies by 7-Eleven is handled by the Market planning, training and market services department in which it administer support services of the store operation and formulation of marketing strategy and other forms of promotion. It reveals the strength and weaknesses as well as the external factors of its industry.

C. Finance/Accounting Apart from the personnel of 7-Eleven, the thing most necessary to keep the company running smoothly is a sound financial and technical operation. The accounting department provides financial reporting and analysis at every level, local store to the Store Support Center and manages payables and receivables, store revenue and rent, employee payroll and inventory. The information systems experts deliver innovative technology solutions throughout the company, encompassing retail information, supply-chain

management, and decision support and back-office operations.

D. Production/Operation
-

7-Eleven produces high qualified personnel that perform all the business activities and transaction with its customer. 7-Eleven also develop more efficient personnel recruitment. And with its man power development programs, their marketing and operations department improves its employees skills to be more productive during operations. EXTERNAL ANALYSIS

OPPORTUNITIES Political

THREATS The Value Added Tax (VAT) increase slightly affected the sales of 7-Eleven.

Economic

Due

to the fact

that the main items purchased eleven at 7are

stores

household necessities, sales of these not items be would directly by the

influenced

state of the nations economy or recent unemployment Social or

consumption figures. Each stores selection up to 2,500 different and products is

services

tailored to meet the needs customers. local

Technological

The

information through

available their

management

information systems also allows 7

Elevens vendors to anticipate their

needs and prepare and deliver items in a faster than

expected time frame providing advantage to 7 Eleven, their customers and their Environmental vendors. There are proper disposal every stores. place in
Some

products not

are environmental friendly cigarettes likes. such and

7-Eleven

as the

1. Political The increase in Value Added Tax (VAT) was introduced into the Philippines and acted as a turning point which slightly decreases

the sales of 7-Eleven stores. The VAT was essentially about paying for the Philippines indebtedness.

2. Economics Although it is evident that the state of the nations economy directly impacts on spending patterns and consumer confidence levels, it can be argued that this has a lesser effect on 7eleven stores than other grocery and retail sectors. This is mainly due to the fact that the main items purchased at 7-eleven stores are household necessities and sales of these items would not be directly influenced by the state of the nations economy or recent

unemployment

or consumption figures. Currently

the Philippine

economy is experiencing a period of negative growth however, this is likely to have a larger impact on supermarkets who stock items other than necessities compared to 7 Eleven.

3. Society 7-Eleven focused on meeting the needs of convenience-

oriented customers by providing a broad selection of fresh, highquality products and services at everyday fair prices, speedy

transactions and a clean, safe and friendly shopping environment. Each stores selection up to 2,500 different products and services is tailored to meet the needs local customers. 7-Eleven is expanding its food offerings to bring consumers a proprietary line of daily-prepared

and daily delivered item and baked goods. However, it also offers consumer a number of convenience services designed to meet the unique needs of individual neighborhoods including fax machines and automatic teller machine.

4. Technological The time distribution system provides competitive

advantage on two fronts, the ability to utilize the small spaces in the Philippines retail outlets and to be able to provide customers with a greater range of products more accurately catering for their needs. The information available through their management information systems not only assists in building relationships with their customers, it also allows 7 Elevens vendors to anticipate their needs and prepare and deliver items in a faster than expected timeframe providing advantage to 7 Eleven, their customers and their vendors.