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Analysis of 7-Eleven Company

Nyamweya is a Kenyan scholar who has done many years of research on a diversity of topics

7-Eleven Company Logo

7-Eleven Company Logo

1.0 Introduction

Seven-Eleven is a convenient store first established in 1970 in Glenhuntly, Australia. Since its inception, the company has been growing and setting up its business presence in different parts of the world. Currently, this business operates as a franchise business with branches located in different countries. The store mainly deals with take a way food, phone cards, toiletry, stationery, and coffee products. The purpose of this report is to evaluate 7-Eleven’s Corporate Social Responsibility through a metric and determine its performance on this aspect. In addition, this report also seeks to find out how this business has been able to leverage on the use of information technology to comply with environmental regulations and in improving its approach to environmental impact. These aspects will be approached in the context of business priority, structural integrity, business resources and core values.

2.0 Organizational Background

Seven-Eleven Glenhunty Company was pioneered by Mr. Ming who is also the business owner. As earlier stated, the company’s headquarter is located in 113 Grange Road, Victoria 3163 Victoria, Australia. There are seven employees at the company’s headquarter. Four of these are on a permanent basis while the other three are working on a casual level. 7-Elevens primary way of operation is through a franchise. This company is currently considered to be the world’s largest franchisor, convenience operator and licensor of convenience stores which can be found in over 50, 000 outlets around the world. The branded 7-Eleven are managed by its current company, Seven & I Holdings Co. Although this brand was initially set up in Australia, it has extended and created a presence in such countries as the United States, Singapore, Hong Kong, Phillipnes, Malaysia, Canada, Indonesia, Thailand among other countries.

2.1 Goals and Strategies

As a family business, 7-Eleven Business has put in place core principles and goals to guide its operations and dealings with their franchisees. They are also focused at ensuring that these core values are also extended to their suppliers. In this regard, this firm has strived to establish strong programs and systems to support service delivery and customer experience. The company’s core mission is to be the leader in solving the dynamic needs of convenient customers. Regarding its vision and goals, the company focuses at being the 1st choice regarding customer preference and being on top of the market share through sustainable operation. In addition to this, the company upholds the highest standard in ethical conduct in all their business operations.

7-Elevens core values and goals are meant to guide their business conduct, performance, dealing with their key stakeholders and most important, define who they are as a corporation. To achieve these goals, 7-Eleven strives to be part of the community and as such, endeavors to act with integrity and fairness. The company is also sensible and respectful to humanity and the environment while embracing the highest possible standards. Furthermore, this corporation seeks to maintain excellence in its operation and in meeting customer needs. This implies a yearning to continue learning and become better on what they do. They are always striving to improve on their standards and conduct. 7-Eleven also strives to stand out and challenge itself in moving higher. Another crucial core value for this brand is placement of customers and their needs at the center of their business. This means that they are not only focused at earning profits but first of all addressing customer needs. Lastly, 7-Elevens existence is based on care; care for its people, employees, suppliers, partners, stakeholders, the environment, and all relationships defining their business. In other words, the company considers the welfare and safety of all those attached to the business either directly or indirectly on a serious level.

2.2 Products and Services

7-Elevens range of products includes freshly ground coffee, Slurpee, doughnuts, fuel, cards, services among others. The ground coffee product which costs $1 for a regular size is available in all its convenient stores. There is also Slurpee, a frozen beverage with Raspberry and Cola brands. The 7-Eleven Fuel is a cost-friendly vehicle fuel available at 7-Eleven fuel stations. In addition to these are a range of car care products which are aimed at keeping the ride good and going. These include car cleaning products, Mobil oils, and car accessories. Other 7-Eleven products include Krispy Kreme doughnuts, 7-Eleven rCup which are reusable coffee cups, hot chockee, Top up Shops, Refreshments (soft drinks, flavoured milk, water, juice, sports drinks and even energy drinks. The company also offers public transport tickets and travel visa, personal care and cleaning, specialty range of items, stationery and gift items, phones, mobile recharge systems and SIMs as well as Post Parcel Lockers in Australia. What is more, the company is also the owner of the popular money transfer system, MoneyGram, and game cards such as Mafia wars, Zynga cards for Farmville. These range of products can be found in their website.

Section 3- Decision Factors.

According to Mr. Ming who is the owner of the 7-Eleven Glenhuntly Store, the company has the following aspects in its priority list. These priorities are either categorized as high or medium

High Priority Areas

  1. The first priority is to undertake staff training. This training will be on an online basis for employees on senior management level and in store practical training for junior employees working directly inside the stores. The purpose of this training is to ensure they understand their roles, the ethical standards, goals, and mission, time management, and customer service.
  2. The company aspires to improve the quality of its services/products as well as improve its service delivery and more importantly improve customer satisfaction at 7-Eleven convenient stores.
  3. The company is also focused at being sustainable in the long run by generating profits while solving customer needs.
  4. 7-Eleven strives to protect its people from the risks of Covid-19 by putting in place relevant health and hygiene procedures that have to be strictly adhered by staff, customers and other stakeholders.
  5. Ensuring that government and authority regulations in curbing the spread of Covid-19 including social distancing are put in place in the stores.

Medium Priority Areas

  1. This company also seeks to create efficiency in the use of energy in the convenient stores
  2. There is also a program to start recycling of Slurpee Cups and other coffee cups as part of environmental protection measures and reducing unnecessary wastage.

According to Stowe (2020), there are also plans in place for Australian and Melbourne Convenient stores to introduce online order and delivery systems. This will even make it more convenient for customers who are unable to get out of their houses for different reasons to order and receive the goods within a short time. In addition, the company is poised to benefit from this system as it will be able to improve customer satisfaction, create loyalty, access and attract even more customers. However, although the program is being rolled out in Australia and Melbourne, there are plans of extending in more states in the near future. Customers who are within proximity can order the items and get them within hour while those who are a bit further can order for next day delivery option.

As a measure of curbing Covid-19, 7-Eleven adheres to health and safety procedures. Among these is to create awareness on employees and customers and safety measures, social distancing, washing hands, and stay at home among others. The company has released most of its workers who are able to work from home and only maintained a sizable number of employees at the stores at a given time. In addition, all the stores are disinfected, with both employees and customers being required to wash their hands regularly, sanitize and put on masks at all time. Food preparation and handling as well as high touch surfaces in stores are thoroughly cleaned using sanitizers. A part from customers being required to stand six feet away, the use of personal cups for cold and hot dispensed beverages are prohibited.

Section 4 – Seven Eleven Convenient Stores -Sourcing Process

According to Mr. Ming who is the owner of 7-Eleven, the company has its own suppliers. Some of these suppliers who have to enter into contract with the company include but not limted to Coca-Cola, Mr. Donut, and C-Store which is a freight company and IGA Supermarket Food Chain.

Concerning its global supply, the company is known for “capability sourcing” whereby; it focuses on things it can do best and outside all other functions to trusted suppliers or partners. This is after the realization that a carefully and extensively managed web of suppliers who are mandated to execute the regular functions of a company can help in reducing operation costs while also reinforcing the quality of its operation, spurring earnings and long term growth. Main areas that are outsourced include packaging, IT management, HR, product development, logistics, finance and distribution.

Section 5 – Supply Chain Strategies of Seven Eleven

Currently, 7-Eleven works with over 1,500 suppliers who are selected and sourced through e-procurement. The company also uses the internet platform to look for information about the intended supplier and its capability. Eligible suppliers are then reached out by the responsible personnel and asked about the possibility of working together. After this agreement, a contract and terms of agreement are then signed by both parties. Interested suppliers are also required to make applications through the company’s online portal, make registration as a new supplier, submit a proposal on the service or product to be supplied, wait for review, then finally the results of the review process.

To manage its supply chain process and franchisees, 7-Eleven has incorporated SAP Business Intelligence (BI). This is aimed at increasing the earnings and efficiency of not only the company but also the franchisees through automation of business processes, delivery of analytic capability and provision of visibility. Specifically, SAP will facilitate delivery of improved analytical and reporting capability to over 140 operational, merchandising, marketing and supply chain managers. The system has also enhanced transparency and training programs to all franchisees at store levels.

Seven-Elevens Detailed Supplier Chain Process is Indicated in figure 1.1 below

Figure 1.1 7-Eleven’s Detailed Supplier Chain Process Section 6. 7-Eleven’s Corporate Social Responsibility

The recycling of Slurpee and Coffee Cups by 7-Eleven is part of its Corporate Social Responsibility initiative. This is because this endeavor helps in conserving the environment as well as in reducing unnecessary wastage. Since 2015, 7-Eleven has endeavored to reduce its carbon footprint by focusing on renewable energy, philanthropy and packaging. Some of these environmental conservation measures include energy management systems, LED lighting, use of wind energy in selected stores, energy management systems and use of high-efficiency HVAC units to reduce emissions of CO2. Alongside these measures is the use of Solstice N40 which has subsequently lowered carbon footprint, meet regulatory conditions and reduce energy consumptions.

7-Eleven also engages in charity work and philanthropy as part of its corporate social responsibility program. For instance, the company has been able to raise more than $500k for breast cancer support programs, provision of water during emergencies, raising funds for disaster relief and children’s hospitals, and even supporting local community organizations, events and sporting clubs.

SECTION 7- Peer Comparison

Compared with Coles express businesswise, most of the product categories that Coles Express which is also a convenience store handles are also harbored by 7-Eleven. For instance, the company’s product ranges include milk and bread, health and beauty, car products, drinks, shell fuels, food items, services (such as car wash, cards, flybuys, shell cards etc). However, the major difference is that all products handled and sold by Coles Express are from other manufacturers. This is unlike 7-Eleven which as a number of products and services produced by the company itself. A good example is MoneyGram, which is an initiative of 7-Eleven, 7-Eleven car fuel, a product of the company, rCups and Coffee cups among other items and services. Further, 7-Eleven deals in more product ranges compared to Coles. It is also apparent that Coles Express sources and dealing with products from established and already popular brands such as Shell, Coca Cola, Lipton among others. This could be working to its own advantage since most customers prefer buying items from known brands. However, it can be said that 7-Eleven is more innovative compared to its Coles Express counterpart especially in regard to product categories.

Comments

Silas Nyamweya (author) from Nairobi, Kenya on January 12, 2021:

If you need such analyses customized for you, dont hesitate to connect with me via silasnyamweya@gmail.com

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