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Overview of 7-Eleven Company


Discuss about the Internal Factor Impacting 7 Eleven.

The report will discuss in detail about the various factors internally impacting the 7-Eleven company. It is important to understand here that business starts the operations, he or she is positive about the overall success of the company. It is important to be aware of the drawbacks and must pay close attention to some critical issues like the formulation of a right business plan after analyzing the entire critical issues or management of the employees in right manner. The analysis of the overall trend, recognition as well as achieving sustainable competitive advantage, avoiding the extra extension of different resources as well as finances, helps in the utilization of right technology with major consideration based on multiple economic situations. There can be many factors for failure of business and it is important to pay attention carefully to different factors discussed in the report that further will permit a company to accomplish success.

The company discussed in the report is 7-Eleven, and it is a global chain of convenience stores. Headquarter of the company is located in Texas, and it operates in franchise model or license basis with almost fifty-six thousand stores located in eighteen countries all over the world. This chain of stores also called as Tote'm Store and later it was renamed and called as 7-eleven. The parent company of the organization is known as 7-Eleven Japan Co., Ltd, and it is situated in Tokyo. In other parts of the world, the company sells products that cover categories like beverages, 7-Select private brands related products, sandwiches, coffee, salads, bakery items, dairy products and much more.

In last few years, 7-Eleven faced a lot of criticism associated with the wage-related scandal. This even led to one franchise leaving the store and going back to the home country since franchisees were struggling to provide wages to the staff (Hay et al., 2013).

This is why, in later years as corrective measures the management of the company prepared to introduce some big changes in its model which also happen to include the rise in the share of profits with the franchisees (Fraser, 2016).

The company is in damage control mode for quite some time because of the major issue being rise related to exploitation of employees and with an investigation set up, across the network. The primary focus of the company is creating high-performance work systems which are also called HSWS. In some organization, the concept is also called as high commitment or involvement where companies use different approaches that make sure some high-class performance with the help of people (Fraser, 2016). However, some researchers focus on various characteristics and number of different management based practices while describing the concept and essential features are seven main dimensions. These dimensions are mentioned below: -  

  1. Employment based security (Xiaohui & Yun, 2016).
  2. Selection of new people carefully (Xiaohui & Yun, 2016).
  3. Empower teams to self-manage and also decentralize all kind of decision making as ground principles of organization based structure. (Regan, 2016).
  4. Providing high amount of compensation on company’s performance (Xiaohui & Yun, 2016).
  5. Training in an extensive manner (Regan, 2016).
  6. Decreased status as well as distinction and limitations which also includes language, dress, differences of wages and arrangement based on office. (Xiaohui & Yun, 2016).
  7. Detailed sharing of financial and performance based data throughout the company. (Regan, 2016).

The concept can work as a system that provides employees with various elements of information, power, rewards and knowledge. The concept of power is based on the concept where workforce has the authority to take necessary decisions that are crucial to the overall performance and also based on the quality of the job as well as working conditions. It can also mean that low level of impact is based on providing some crucial inputs into a number of different decisions made of the number of different people or it further means having a final work and responsibilities for a number of results by making right decisions (Mitchell et al., 2015). Overall participation also increases when the highest level of power is developed for the workforce that has based work on the final decision.

Issues Faced by 7-Eleven Company

Information is also very crucial where data includes facts about the quality as well as a quantity of staff and their performance, revenues, profit and customer based reactions. The main issue for managers is to develop a system that provides the workforce with information which is timely and crucial to the process, and that can also impact the organization while expanding or any other way (Mitchell et al., 2015). 

Knowledge is all about the skills of employees and capacities which refer to understand the existence of a job or role in the sector. Improvement in the employee knowledge means that it is based on the commitment towards training as well as development. Investment in training is necessary for any high-committed organization since when the workforce is making crucial decisions; it becomes critical that there are right skills and capabilities to take appropriate decisions (Alshaher, 2013).

The reward is based on elements of high commitment work culture, and it means that rewarding the workforce for increasing the overall efforts to impact the organization based performance. Rewarding the performance also make sure that the staff uses the power in right manner along with right information and knowledge to perform in the best manner of the company.

Following is the detailed discussion of a 7-S model which can be utilized to understand the wide variety of cases which is based on alignment based model. It is crucial to assist a company in improving the overall performance, evaluate the impact of future transformation within the company, alignment of different departments and procedure during the time of merger and acquisition and also deciding the best practice to execute the well-proposed strategy (Alshaher, 2013).

Following are the seven elements of 7-S model based on 7-Eleven company: -

This is a McKinsey model consist of seven important factors which can be categorized as hard as well as soft elements: - 

Hard Elements

Soft Elements




Shared Values




In above figure, there are hard elements as well as there are soft elements. Hard elements are way easier to explain, and the organization has the power to impact these elements. These are some of the strategies which consist of organization based charts and lines for reporting, and there is some formally based processes and different kind of IT techniques. Like in 7-Eleven, elements like to decide the marketing strategy or expansion strategy, or transformation of the structure as per market demand or adoption of various kinds of tools and techniques are part of the hard elements of the 7S model (Shiri et al., 2014). 


The foreign import policies

The international pressure and the advocacy of the groups. (Lisi?ski & Šaruckij, 2006).


Technology solutions (Lisi?ski & Šaruckij, 2006).

Online sales and customer buying


Control levels

Shortage of the infrastructure capacity (Lisi?ski & Šaruckij, 2006).


Legislative Compliance Requirements (Lisi?ski & Šaruckij, 2006).

Allegations for the misleading advertisements

Anti-competitive behavior. (Lisi?ski & Šaruckij, 2006).


Market Share

Consumer changing taste (Lisi?ski & Šaruckij, 2006).

Demography of the product



Taxation issues

Market seasonability (Lisi?ski & Šaruckij, 2006).

Product development


a.       The convenient location setup

b.      The overall equity of the brand

c.       The branded product (Regan, 2016).

d.      The franchise of the mode

e.       There is a diversified income setup.


a.       Higher cost of the rent

b.      The higher staff cost (Regan, 2016).

c.       The franchise


a.       The continued growth of the market (Regan, 2016).

b.      The increased offering for the product

c.       The product offering and co-brand location. (Regan, 2016).


a.       The super marketing moving 24*7 hours (Regan, 2016).

b.      The online deliver (Regan, 2016).

c.       Security and shop lifting.


The company 7-Eleven has consistently been working to make the franchisees happy as the scandal went out of hand and the number of stores started reducing dramatically. The brand otherwise is loved and is known all across the world, and so many iconic products have been the face of the company as well as the culture various countries where the company is working. The company has expanded a lot over a period, and the main focus is fixed on making the life of the people easier for the consumers.


Alshaher, A. A. F. (2013). The McKinsey 7S model framework for e-learning system readiness assessment. International Journal of Advances in Engineering & Technology, 6(5), 1948.

Dezdar, M., & Haghighi, M. (2014). Feasibility of implementing enterprise resource planning (ERP) in the exploitation of oil and gas company of Gachsaran based on McKinsey 7s model. Advances in Environmental Biology, 223-231.

Fraser, M. (2016). Investigating 7-Eleven: Who are the real bad guys?. Griffith Journal of Law & Human Dignity, 4(2).

Hay, M., Patricios, J., Collins, R., Branfield, A., Cook, J., Handley, C. J., ... & Collins, M. (2013). Association of type XI collagen genes with chronic Achilles tendinopathy in independent populations from South Africa and Australia. British journal of sports medicine, bjsports-2013.

Jurevicius, O. (2013). McKinsey 7s Model. Retrieved July, 8, 2015.

Lisi?ski, M., & Šaruckij, M. (2006). Principles of the application of strategic planning methods. Journal of Business Economics and Management, 7(2), 37-43.

Mitchell, B. C., Fredendall, L. D., & Cantrell, R. S. (2015). Using McKinsey’s 7 S Model to Empirically Examine Organizational Effectiveness among the NBA Teams. International Journal of Management & Human Resources, 3(1).

Regan, L. (2016). Time for change at 7-Eleven. Proctor, The, 36(5), 36.

Shiri, S., Anvari, A., & Soltani, H. (2014). An Assessment of Readiness Factors for Implementing ERP Based on Agility (Extension of Mckinsey 7s Model). International Journal of Management, Accounting and Economics, 1(3), 229-246.

Singh, A. (2013). A study of role of McKinsey's 7S framework in achieving organizational excellence. Organization Development Journal, 31(3), 39.

Xiaohui, S. H. A. N., & Yun, G. A. O. (2016). Cross-Cultural Comparison Between 7-Eleven and KEDI. Cross-Cultural Communication, 12(4), 6-10.

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