Business History:
The business’s industry and sector
7-Eleven is in the convenience store industry.
Their main goals
“To be the convenience store of choice for our customers by exceeding their expectations for our customer service and quality products, priced fairly, in a safe and clean environment. We recognize the value of people - our customers, employees, franchisees and business partners - and the importance of supporting our local communities.”
How they started
7-Eleven pioneered the convenience store notion way back in 1927 at the Southland Ice Company in Dallas, Texas. Aside from selling blocks of ice to refrigerate food, an enterprising ice dock employee began offering milk, bread and eggs on Sundays and evenings when grocery stores were closed. This new business idea fashioned satisfied customers and increased sales, and convenience retailing was born.
The company's first convenience outlets were known as Tote'm stores since customers "toted" away their purchases, and some even sported true Alaskan totem poles in front. In 1946, Tote'm became 7-Eleven to reproduce the stores' new, extended hours - 7 a.m. until 11 p.m., seven days a week. The company's corporate name was changed from The Southland Corporation to 7-Eleven, Inc. in 1999.
When they started
The company began to use the 7-Eleven name in 1946.
How they have grown over the years
Today, 7-Eleven is the acknowledged leader in convenience retailing. Based in Dallas, Texas, the company operates, franchises and licenses more than 7,200 stores in the U.S. and Canada. Of the close to 6,200 stores the company operates and franchises in the United States, more than 5,100 are franchised.
Who runs their business
Joseph De Pinto President and Chief Executive Officer
Darren Rebelez Executive Vice President and Chief Operating Officer
Carole Davidson Senior Vice President, Finance and Communications
Their main product(s) or service(s)
7-Eleven is known worldwide for Big Gulp fountain soft drinks, Big Bite hot dogs, Slurpee beverages and fresh brewed coffee. Food service with prepared fresh daily and daily delivered deli sandwiches, wraps, breakfast sandwiches and a wide assortment fruits, salads and baked goods. Alsoautomated money orders, automatic teller machines, long-distance phone cards and lottery tickets, where available.
The main market they target
People on the go and who work late at night are their target market.
The supply and demand of one product
There is a large demand for their products, but the supply sometimes fall short.
An overview of their productivity
7-Eleven convenience stores serve approximately seven million customers each day.
Each store focuses on meeting the needs of busy shoppers by providing a broad selection of fresh, high-quality products and services at everyday fair prices, along with quick transactions and a clean, safe, friendly shopping environment.
The pricing for main products and services
Their prices vary.
Significant fixed and variable costs
Fixed Costs= Wages, rent, insurance, and lease payments
Variable Costs= Materials, utilities, and supplies
Company profits and profit margins
7-Eleven made a profit of $25.5 million in 2010 and a 35% profit margin.
Their strongest competitors
Petro-Canada is their strongest competitor.
Their competitive advantage
They provide hot food such as hot dogs, taquitos, and potato wedges.
Summary:
Comment on reasons the companies have succeeded
At 7-Eleven, they are committed to supporting the needs of our local communities.
Comment on possible weaknesses
Most food that 7-Eleven provides is very unhealthy.
Provide an overall summary of the business
7-Eleven normally limits and directs its support to organizations that the company and its franchisees choose and solicit based on our giving guidelines. They are unable to support unsolicited requests. And, support is allocated annually through their community relations programs.
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