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   Basic Facts
   History
   Around the World
   Mission & Vision
   Fun Facts
   Products & Services
   Position in the Market
   Strategies & Tactics
   SWOT Analysis
   7-Eleven, Inc., is the world's largest operator, franchisor
    and licensor of convenience stores.

   Founder : Joe C. Thompson

   Current CEO: Joseph DePinto

     more   than 43,500 stores

     more   than 45,000 employees

     Revenue:    17,000 billion US dollar

     Net   income: 2,000 billion US dollar
   1927: Founded in Dallas, Texas, when an employee of
    Southland Ice Company, Joe C. Thompson, started
    selling milk, eggs and bread from an ice house.
   1946: All stores were open from 7 am to 11 pm, hence
    the company began to use the 7-Eleven name.
   1952: 100th store opening
   1960: 500th store opening
   1963:1,000th store opening
   1974: First 7-11 convenience store opened in Tokyo.
   In 1980: The company ran into financial difficulties,
    selling off its ice division, and was rescued from
    bankruptcy by Ito-Yokado Southland Corporation entered
    into bankruptcy protection.
   In 1991, IYG, The Japanese company gained a
    controlling share of 7-Eleven,acquired 70% of
    Southland’s common stock.
   2005: Ito-Yokado formed Seven & I Holdings Co. and 7-
    Eleven became its subsidiary.
   2011: Celebrated the opening of 40.000th store at its
    hometown, Dallas.
Mission

At 7-Eleven, we are on a mission to make
life a little easier for our guests.
Vision

Our Vision Is to Be the Best Retailer of
Convenience.
* http://corp.7-eleven.com/AboutUs/InternationalLicensing/tabid/115/Default.aspx
   Enough fountain drinks are sold at 7-Eleven stores in a
    year to fill Walt Disney World’s Typhoon Lagoon twice.

   Approximately 25 percent of the U.S. population lives
    within one mile of a 7-Eleven store.

   7-Eleven stores sell almost 38 million gallons of fountain
    drinks a year – enough to fill approximately 51 Olympic-
    size swimming pools.
7-Eleven has the largest ATM network of
                   any retailer in United States.
                   Ho Ho Ho! The day most retailers are
    closed, 7-Eleven is hopping.     Christmas is one of the
    biggest sales days of the year for the convenience chain.

   7-Eleven adds another store to its worldwide operations
    every 3-½ hours.
Products                     Services
   Food Items                  Payment of Bills
     Fresh                     Payment for internet shopping
     Hot                       Oil and gas services
     Off the Shell             Automobile parts and services
   Beverages                   ATMs at almost all the stores
     Cold                      Meal Delivery service for aging
     From the fridge            population of Japan
     Hot                       Ticket Sales, Photocopying
   Magazines                   Pick up location for parcel delivery.
   Soaps, Detergents etc.      Video rental service
   Game, Software
   Chilled temp items
     Sandwiches,    sweets, milk
   Warm temp items
     Box   lunch, rice balls, fresh bread
   Frozen items
     Ice   cream, Ice cube etc.
   Room temp items
     Canned    food, Instant noodles etc
• Fresh food




 Sandwich                Salad            Fruits

 Of the Shelf




    Candy        Chips           Snacks            Frozen
 Beverages

                   • Big gulp is a soft drink that is produced by
                     Coca-Cola
                   • Slurpee is known to be contemporary, cool
                     and fun. The colorful chilled beverage is
                     strongly associated with lightly carbonated
                     fruit flavors.
 Play




    Electronics   Gaming               Movie Rent
 Services




        Prepaid DebitCards                 Play,Gift,Music Cards

• ATM; AmBank ATMs are at selected 7-Eleven stores nationwide.
  Equipped with MEPS more banking facilities to come.

• Photocopy                          • Mobile reloads
• Fax                                • Internet Games reloads
   7-Eleven, primarily operating as a franchise, is the
    world's largest operator, franchisor and licensor of
    convenience stores, with more than 40,000 outlets,
    surpassing the previous record-holder McDonald's
    Corporation in 2007 by approximately 1,000 retail
    stores

   In 2008, 7-Eleven was named as the No.1 overall
    franchise by Entrepreneur, beating out Subway, which
    had held the number one spot for 15 years. In addition,
    they were also ranked No.2 in Low Cost Franchises
   In a four-week period, customers visit a 7-Eleven store
    an average of 17 times, 80 percent of their total trips to
    any convenience store.
The IP Analysis
                   7‐Eleven factors are
                    considered as
                    contributing factors for
                    customer satisfaction


                   The performance of
                    7‐eleven can continue to
                    sustain the
                    achievements
•   7-Eleven learn from     the highly successful Japanese unit, whose
    keiretsu model of tight partnerships with suppliers was unique
    within.


•   By relying on an extensive and carefully managed web of suppliers to
    carry out many day-to-day functions, the Japanese stores were able to
           Reduce their costs and

           Enhance the quality of their operations

           Refuse rapid growth

           Strong profits.


•   Evaluated   strategic     functions   such   as   product   distribution,
    advertising, & procurement, identify outside partners with greater
    expertise & scale
 Market is getting very competitive, pressure on both revenue & margin
 7-Eleven needed to cut its operating costs substantially, expand the range of its
products and services, increase the freshness of food items.
 7-Eleven had always been vertically integrated, controlling most of the activities in its
value chain
               launched a business review aimed at tightening operations,
               rebuilding competitive advantage, and perhaps divesting a
               few noncore businesses.

                    The core of the business, was merchandising skill—the
                    pricing, positioning, and promotion of gasoline, ready-to-
                    eat food, and sundries for consumers driving cars.

                         Company operated its own distribution network, delivered
                         its own gasoline, made its own candy and ice. It even
                         owned the cows that produced the milk it sold.

                               Managers were required to do lots of things other than
                               merchandising—store maintenance, credit card processing,
                               payroll, and IT systems management.


                                    They realize that the company could be best-in-class in
                                    every one of those functions.
   Strategically vital set of capabilities—in-store merchandising, pricing, ordering, and
    Customer data analysis

   Reduced its capital assets & overhead while streamlining its organization.

   Reduced head count 28% from 43,000 in 1991 to 31,000 in 2003 and flattened its
    organizational structure, cutting managerial levels in half from 12 to six.
SWOT Analysis
STRENGHTS                                  WEAKNESSES:
• Geographic presence                      • High margins
• Strong brands                            • Limited assortment offering
• Franchise system                         • Not perceived as a place to buy a complete
• Convenience                                meal
                                           • Not a first choice destination for shoppers

OPPORTUNITIES:                             THREATS:
• Fresh food offering                      • İntense competition
• İncrease    share     of    meals   (i.e.; • Low consumer confidence
 breakfast,lunch,dinner)                   • Regulatory issues
• Private label development                • C-store     competition   and   other   small-box
• Growing demand for organic products        retailers
                                           • Higher shrinkage on fresh food could potentially
                                             impact margins
7-Eleven Presentation

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The Coffee Bean & Tea Leaf(CBTL), Business strategy case study
 

7-Eleven Presentation

  • 2. Basic Facts  History  Around the World  Mission & Vision  Fun Facts  Products & Services  Position in the Market  Strategies & Tactics  SWOT Analysis
  • 3. 7-Eleven, Inc., is the world's largest operator, franchisor and licensor of convenience stores.  Founder : Joe C. Thompson  Current CEO: Joseph DePinto  more than 43,500 stores  more than 45,000 employees  Revenue: 17,000 billion US dollar  Net income: 2,000 billion US dollar
  • 4. 1927: Founded in Dallas, Texas, when an employee of Southland Ice Company, Joe C. Thompson, started selling milk, eggs and bread from an ice house.  1946: All stores were open from 7 am to 11 pm, hence the company began to use the 7-Eleven name.  1952: 100th store opening  1960: 500th store opening  1963:1,000th store opening  1974: First 7-11 convenience store opened in Tokyo.
  • 5. In 1980: The company ran into financial difficulties, selling off its ice division, and was rescued from bankruptcy by Ito-Yokado Southland Corporation entered into bankruptcy protection.  In 1991, IYG, The Japanese company gained a controlling share of 7-Eleven,acquired 70% of Southland’s common stock.  2005: Ito-Yokado formed Seven & I Holdings Co. and 7- Eleven became its subsidiary.  2011: Celebrated the opening of 40.000th store at its hometown, Dallas.
  • 6. Mission At 7-Eleven, we are on a mission to make life a little easier for our guests. Vision Our Vision Is to Be the Best Retailer of Convenience.
  • 8. Enough fountain drinks are sold at 7-Eleven stores in a year to fill Walt Disney World’s Typhoon Lagoon twice.  Approximately 25 percent of the U.S. population lives within one mile of a 7-Eleven store.  7-Eleven stores sell almost 38 million gallons of fountain drinks a year – enough to fill approximately 51 Olympic- size swimming pools.
  • 9. 7-Eleven has the largest ATM network of any retailer in United States. Ho Ho Ho! The day most retailers are closed, 7-Eleven is hopping. Christmas is one of the biggest sales days of the year for the convenience chain.  7-Eleven adds another store to its worldwide operations every 3-½ hours.
  • 10. Products Services  Food Items  Payment of Bills  Fresh  Payment for internet shopping  Hot  Oil and gas services  Off the Shell  Automobile parts and services  Beverages  ATMs at almost all the stores  Cold  Meal Delivery service for aging  From the fridge population of Japan  Hot  Ticket Sales, Photocopying  Magazines  Pick up location for parcel delivery.  Soaps, Detergents etc.  Video rental service  Game, Software
  • 11. Chilled temp items  Sandwiches, sweets, milk  Warm temp items  Box lunch, rice balls, fresh bread  Frozen items  Ice cream, Ice cube etc.  Room temp items  Canned food, Instant noodles etc
  • 12.
  • 13. • Fresh food Sandwich Salad Fruits  Of the Shelf Candy Chips Snacks Frozen
  • 14.  Beverages • Big gulp is a soft drink that is produced by Coca-Cola • Slurpee is known to be contemporary, cool and fun. The colorful chilled beverage is strongly associated with lightly carbonated fruit flavors.  Play Electronics Gaming Movie Rent
  • 15.  Services Prepaid DebitCards Play,Gift,Music Cards • ATM; AmBank ATMs are at selected 7-Eleven stores nationwide. Equipped with MEPS more banking facilities to come. • Photocopy • Mobile reloads • Fax • Internet Games reloads
  • 16. 7-Eleven, primarily operating as a franchise, is the world's largest operator, franchisor and licensor of convenience stores, with more than 40,000 outlets, surpassing the previous record-holder McDonald's Corporation in 2007 by approximately 1,000 retail stores  In 2008, 7-Eleven was named as the No.1 overall franchise by Entrepreneur, beating out Subway, which had held the number one spot for 15 years. In addition, they were also ranked No.2 in Low Cost Franchises
  • 17. In a four-week period, customers visit a 7-Eleven store an average of 17 times, 80 percent of their total trips to any convenience store.
  • 18. The IP Analysis  7‐Eleven factors are considered as contributing factors for customer satisfaction  The performance of 7‐eleven can continue to sustain the achievements
  • 19. 7-Eleven learn from the highly successful Japanese unit, whose keiretsu model of tight partnerships with suppliers was unique within. • By relying on an extensive and carefully managed web of suppliers to carry out many day-to-day functions, the Japanese stores were able to  Reduce their costs and  Enhance the quality of their operations  Refuse rapid growth  Strong profits. • Evaluated strategic functions such as product distribution, advertising, & procurement, identify outside partners with greater expertise & scale
  • 20.  Market is getting very competitive, pressure on both revenue & margin  7-Eleven needed to cut its operating costs substantially, expand the range of its products and services, increase the freshness of food items.  7-Eleven had always been vertically integrated, controlling most of the activities in its value chain launched a business review aimed at tightening operations, rebuilding competitive advantage, and perhaps divesting a few noncore businesses. The core of the business, was merchandising skill—the pricing, positioning, and promotion of gasoline, ready-to- eat food, and sundries for consumers driving cars. Company operated its own distribution network, delivered its own gasoline, made its own candy and ice. It even owned the cows that produced the milk it sold. Managers were required to do lots of things other than merchandising—store maintenance, credit card processing, payroll, and IT systems management. They realize that the company could be best-in-class in every one of those functions.
  • 21. Strategically vital set of capabilities—in-store merchandising, pricing, ordering, and Customer data analysis  Reduced its capital assets & overhead while streamlining its organization.  Reduced head count 28% from 43,000 in 1991 to 31,000 in 2003 and flattened its organizational structure, cutting managerial levels in half from 12 to six.
  • 22. SWOT Analysis STRENGHTS WEAKNESSES: • Geographic presence • High margins • Strong brands • Limited assortment offering • Franchise system • Not perceived as a place to buy a complete • Convenience meal • Not a first choice destination for shoppers OPPORTUNITIES: THREATS: • Fresh food offering • İntense competition • İncrease share of meals (i.e.; • Low consumer confidence breakfast,lunch,dinner) • Regulatory issues • Private label development • C-store competition and other small-box • Growing demand for organic products retailers • Higher shrinkage on fresh food could potentially impact margins