Globalization is a concept that has been in use in the world for many years. It may appear to be farther along as well as developing at a faster rate than earlier times. However, the globalization has been hovering around the world for last thousand years. The introduction of the Silk Route created the one-sixth of the diameter around the planet which bridged the gap between the East and the West which began during the Han Dynasty. Integration of an economy on a global level is nothing other than the new and modern impacts in the global business are stronger and bigger than the earlier ones (Buckley, Burton & Mirza, 2016). It is not an unknown fact that globalization has been shaping the culture and relationships at the economic level across the globe.
There are various ways in which globalization can be perceived. The perceptions include accidental view or the inevitable effect caused by the growth in the economy which includes the communication, industry, technology, etc. with the development of the economy; it is very much natural for the global market in establishments in the local areas which were tapped earlier (Becker & El-Said, 2013). To make this happen, free movement and free trade of the capital are important. Globalization by 7 Eleven was not considered as simply an expansion, it had significant contribution in increasing the integration of the global economy. However, in order to the integration to happen, it is important that the freedom of the economy should prevail.
The second view of the perceiving the globalization can be considered as a deliberate process which is mostly accurate. There exists the involvement of a degree of inevitability, but it is due to the major part of the agreement created in-between 7-Eleven and the other corporations (Beck, 2015). Thus, there was a need for the 7 Eleven to globalize and having single-handedly that made it happen. It can never be denied that the Silk Route was not a humanitarian effort. It was mostly regarding vision of a business. Their visions turned out to be grander which as more easily perceived as a politics and technical progress at a much faster rate that globalization does which seemed inevitable (Beamish & Lupton, 2016).
7-Eleven Inc is the franchisor, licensor and operator of the convenience stores. It is an American company which is expanded the market on the global level very quickly and successfully in all the untapped markets. 7-Eleven had a lot globalization in its business (Wild, Wild & Han, 2014). The company had boasted the expansion in its business which was not even materialized in mostly Eastern United States, Texas, and Taiwan The purpose of globalization by 7-Eleven is not limited to one purpose. There are multiple advantages to the global market expansion initiated by 7-Eleven (7-eleven.com, 2017).
From the perspective of the economy, the globalization had significant implications on the business of business on the global level. The complexities that if globalization and its resolution is a daunting task, it would have been considered as to be the small footprint of 7 Eleven in its business plan (Baylis, Smith & Owens, 2013). Globalization in the industry of convenience store is a highly complex mechanism with various parts of work and factors that can enforce the business in various ways. The non-priced factors that have implications for the business strategies of 7-eleven have to be considered.
The competitive industry also has to be considered while mapping the merits and demerits of globalization of 7- Eleven. 7-Eleven also tried to maximize the returns of shareholders through its long term and short term decisions (7-eleven.com, 2017). However, the company has also faced economic crisis which had to demand response from the convenience brand both from the perspective of the United Kingdom and the world (Benería, Berik & Floro, 2015). The major globalization initiative that was taken by 7-Eleven was to open 4600 stores across the globe. In today's world there every single person's life is busy, convenience has become a much required value. 7 Eleven has taken the initiative to expand into 16 countries while the other retailers are striving in respect of exporting their concept of store away from the domestic location (Cavusgil et al., 2014).
The convenience company started its operations in the year 1927 in Dallas by selling the blocks of ice; however, the company is now based in Japan where the parent company which is Seven & I Holdings Co. is having its headquarters. The aim of 7 Eleven is targeting to grow in Thailand, South Korea, Canada and the United States. Approximately 32000 stores have been reopened in the last year according to the annual report of Seven & I Holdings Co. The convenience store is targeting the markets that are urban like Charlotte, N.C. and New York City in the United States in the hope to replicate the strategies of expansion which has served it well in Tokyo and Taipei. This has been lead to a huge profit as the parent company, Seven & I Holdings made a rough sales of $63 billion I the year 2011 which on being compared with the $58 billion and $34 billion in 2006 (7-eleven.com, 2017). However, it must be considered that convenience does not have the same meaning everywhere (Dunning, 2014).
7-Eleven is positioned in the 4th position in the franchise in the magazine of Entrepreneur, Franchise 500 and happens to have 40,000 stores all around the world.7-Eleven has been engaged in a huge boost regarding the acquisitions with their expectations for being at the mark of setting up 50,000 stores by the end of first quarter of the year 2013 (Verbeke, 2013). The need for making the businesses work actively in respect of globalization is to make the production costs cheaper and increase in the sales and consumers (Guscina, 2006). The globalization of 7 Eleven has led in an incredible production saving that were mostly found overseas and it was accompanied by the fact that there were more number of people to make sells to is the reason behind the active and aggressive approach of the businesses in the promotion of globalization (7-eleven.com, 2017).
The plan to make the approach for globalization at the international level will assist in formulating the action plan for further expansion in the business through the sales that occur internationally along with international partnerships. Through globalization 7-Eleven has been experiencing competition. It has also lead to lowering of costs of production which ah provided it a competitive edge on the global market. Globalization has also lead in gaining more competitive edge by increasing the competitive advantage. Different services, opportunities in business and markets that are untapped, all these factors provide a competitive advantage to 7-Eleven (Hill, Cronk & Wickramasekera, 2013).
It was relevant from the fact that as soon as 7-Eleven went global, every other competitor had to follow the trend of globalization in order to keep their existence in the global market. Globalization is all about the growth and development. However, it is also about the establishment of position for the ultimate competition which includes the diverse interests, diverse resources, diverse acquisitions and diverse markets (Stromquist & Monkman, 2014).
Benefits of Globalization:
For some professionals, globalization relates to the destruction of the world. However, it still not clears in the context of 7-Eleven. However, the company has gained a lot from globalization. Along with the economy, the company has also gained benefits on the social level.
More effective and efficient Markets:
Many companies do not appreciate the efficiencies of the global markets which directly denotes to the inability of operating an efficient supply and demand chain. These markets that are efficient facilitate the economies to develop. In the world which has become globalized, when the growth of economy takes place, it instigates growth in the other economies which are associated with the 7-Eleven (Kingfisher, 2013). These ways, the reverberations regarding the success of the globalization of 7-eleven are felt in all the markets, even in the most profound in any particular area. It is definitely a very good consequence for 7-eleven.
Equality in wealth:
Due to globalization, all the stores of 7-eleven had gained equality in wealth. Thus, there was an increase in the employability, which resulted due to the increase in requirement of the work force in different jobs (López?Duarte, Vidal?Suárez & González, 2015). There was a need to improve the infrastructure which allowed more people to get involved in the establishment of different stores all across the globe wherever the company had decided to open stores. Thus, the rate of employment increased along with equal distribution of wealth occurring to all levels (Spring, 2014).
Association with huge benefits:
Globalization of 7-elevn has led to the association and participation in between the countries and different organization in different countries which has made the relation between many countries stable. In order to have an effective globalized expansion of 7-eleven in the various countries, the agreement has to be made for which an aspect of world cooperation has to be present (Lechner & Boli, 2014). When the countries and the companies like 7-eleven are associated with other countries and organizations, benefits have been reaped which has been providing security and stability for the company (Sassen, 2015).
Strengthening or weakening of the concept of convenience stores:
The localization of the stores of 7-eleven has rather strengthened the convenience concept in most of the locations. This could be possible as it could help the convenience stores to get the form like the retail nomads. This has the helped the countries in minimizing the outflow of capital and spending of managerial time in regulating the operation (Ritzer & Dean, 2015).
Key issues and problems:
Risks of loss:
It is not assured that the globalization of 7 eleven has been or will have no risks regarding loss. There is a strong possibility of that some of the stores 7 eleven will not be surviving the globalization. It cannot be denied that the regarding the borderline monopoly that the company has created for itself (Morschett, Schramm-Klein & Zentes, 2015).
The company was simply based on selling ice cubes and now strategy and politics are of more importance than innovation. This has led to the fact that if the company does not think of better ways of attraction the customers all over, competing at the global level would become incredibly difficult (McGrew & Lewis, 2013).
Globalization, in general, has been creating the increased need of industry and energy which has been ignored and abused to such an extent that the future of the business has been on the verge of questioning. Setting up more number of stores by 7 Eleven has been only possible due to the clearing up many places geographically which also includes the destruction of crop lands and clearance of trees in most of the places (Nayak, 2016). This has been creating a lot of devastation to the environment. When the company is working for globalization in its business, even the negative implications of all the great things that are accomplished in the world are globalized (Pieterse, 2015).
The company has to make more effective strategies regarding the expansion of the business at the international level so that any of its stores are suffering or will be on the verge of getting closed. The policies and strategies of 7Eleven have to be flexible and rigid at the same time in order to gain sustainability in the international market.
The company has to integrate innovative ideas regarding the operation in various locations worldwide so that it gains more competitive edge against its competitors. 7 eleven has to consider the altering economic conditions of different countries for its operations and establishment of various stores. The company also needs to consider the environmental effects that are posing threatening the planet. The company must make efforts to restore the environmental damage such as cutting of trees with alternate means such as taking corporate social responsibilities regarding the plantation of trees.
Fortunately or unfortunately, globalization has been bad, good and inevitable. It is hoped that in future the good will dominate the bad effects, however, the existence has to be continued which is inevitable. Due to this aspect, it is better to move forward along with taking care regarding the environmental implications. The course on the economies, environment, and energy can assist in making better choices whether accepting the process of globalization or not.
7-eleven.com. (2017). Home | 7-Eleven. Retrieved on 27 May 2017 from: https://www.7-eleven.com/home.
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