Business Strategy and Change Management

Introduction

7-Eleven is a growing company that is making a profit and opening more branches in various countries worldwide. The 7-Eleven organization is a branch of the company 7-Eleven Inc., which is based in the U.S. Over the years, the Singaporean branch has expanded significantly. It has the potential to expand the business. The company’s growth is due to its business strategy based on what Singaporean customers want. Seven-Eleven is a well-known and widely recognized brand. It is one of the world’s largest convenience store chains, and its most popular characteristic is 24-hour accessibility. It was originally open seven days a week from 7 a.m. to 11 p.m., thus called 7-Eleven (Thao, 2020). The store’s initial name was Totem Stores, but it later became 7-Eleven to reflect its seven-day-a-week operation hours of 7:00 a.m. to 11:00 p.m. In 1991, a Japanese entity purchased 70% of the company. The corporation was owned by the Japanese firm Ito-Yokado. 7-Eleven stores in various parts of the world now sell a wide range of goods. Nowadays, 7-Eleven sells milk, bread, tea, soft drinks, chips, chocolates, ready-to-eat meals, coffee, newspapers, magazines, and other items. Furthermore, the coffee machines they put in their enterprises give barista-style coffee at substantially lower pricing. In this strategic analysis, it will be important to use the PESTLE framework to examine the external factors affecting 7-Eleven Singapore, it is business strategy, and how it deals with management change. The PESTLE framework will entail (political, economic, sociological, technological, legal, and environmental) all influences the 7-Eleven organization.

Political factors Analysis

Businesses are affected by these policies, as the corporation must adhere to them to preserve its operating license in the country (Tan et al., 2021). The Singaporean government has implemented policies that affect the business plan of 7-Eleven. Government legislation affects 7-Eleven’s capacity to sell alcoholic beverages, a substantial revenue stream for the firm. The government of Singapore has also enacted restrictions governing the operating hours of convenience stores. For instance, stores cannot be open 24 hours a day, seven days a week; they must close for a specific number of hours each day.

The government’s focus on getting people to live healthier lives is another policy that affects how business is done. In Singapore, a campaign has been to reduce the number of sugary drinks and snacks, affecting what 7-Eleven sells. The company has added healthier food and drink alternatives, such as fruit juices and salads, to its stores. This move-in strategy is not only in line with the government’s health goals but also considers the changing tastes and preferences of Singaporean customers. 7-Eleven has shifted its product mix toward non-alcoholic beverages and snacks to compensate for lost sales.

Economic factors Analysis

The economy of Singapore is characterized by high labour and real estate costs, which have a considerable impact on 7-Eleven’s business strategy. On the macro external environment, factors that impact the overall business environment are core and need to be analyzed (WANG, 2018). 7-Eleven has established a franchising model that allows it to utilize the capabilities of independent franchisees to combat the high real estate expenses. Also, the corporation invests in technology to streamline its processes and save labour expenses. The high prices of labour and real estate are significant obstacles for enterprises. The high price of real estate hinders 7-Eleven’s potential to expand in the United States. To solve this issue, 7-Eleven has created a franchise model that enables it to cut real estate costs and capitalize on the resources of independent franchisees. The franchise model has allowed the corporation to grow its operations and enter new regions without incurring significant expenses.

Additionally, 7-Eleven must contend with hefty labour expenses. Singapore has one of the world’s highest labour expenses, which can impact corporate profitability. 7-Eleven has invested in technology to streamline its operations and cut personnel expenses in response to this problem. For example, the company has installed self-checkout systems, which allow customers to pay for their items without the assistance of a cashier. This technology has decreased the company’s requirement for labour, resulting in cost savings. Business operators use tactics to meet various economic obstacles (Chalapati et al., 2020). To distinguish itself from the competition, the company has concentrated on providing value-added services to customers, for instance. This strategy assist the organization in acquiring and retaining consumers and expanding its market share.

Sociocultural factors Analysis

Singapore’s multicultural community and its inhabitants also influence 7-Eleven’s marketing strategy. The organisation must be sensitive to the populace’s many cultural and religious practices. During Ramadan, for instance, 7-Eleven Singapore offers a variety of Halal-certified food goods to meet the demands of the Muslim population. Additionally, the corporation ensures that its products are adequately and clearly labelled to accommodate the dietary needs of various populations. 7-Eleven Singapore must adhere to the country’s stringent laws and regulations concerning selling specific products. For instance, the government has banned gum, and 7-Eleven is prevented from selling it. To comply with local laws and regulations while still serving the needs and preferences of customers, the company has had to change its product mix.

Businesses invest in building a friendly and inclusive shop environment by hiring employees from various ethnic backgrounds so that consumers feel safe and represented (What Is the History of the 7-Eleven Convenience Store Franchise? 2018). 7-Eleven participates in community activities and initiatives to create relationships and promote its brand as a socially responsible enterprise. Some issues, including government legislation, high labour and real estate prices, demographic diversity, and local laws, influence the business strategy of 7-Eleven in Singapore. The company has adapted to these issues by establishing a franchise model, investing in technology, tailoring its products through research, and creating an inclusive store environment. These initiatives have allowed 7-Eleven Singapore to maintain its competitive advantage in the convenience store business while catering to the different needs of its customer base.

Technological factors Analysis

The importance of technology to 7-Eleven’s business strategy is unquestionable. The organization has utilized various technologies to better its operations and client experience. The importance of technology in 7-Eleven’s business strategy cannot be overstated. The company remains competitive and relevant in the marketplace by utilizing technology to enhance its operations and customer experience (WANG, 2018). 7-Eleven will likely continue to innovate and adapt to stay ahead of the curve as technology evolves.

7-Eleven has taken full use of the fact that technology has become an integral component of the modern corporate landscape to remain competitive and relevant in the marketplace. The convenience store operator has made substantial technological investments to improve its operations and customer experience. The 7-Eleven’s introduction of a mobile app is one of the company’s most significant technology advances. The purpose of this application is to make it easier for customers to place orders and make payments using their smartphones. The software allows customers to purchase food, beverages, and other things for delivery to their homes or offices. The app allows customers to earn awards and access unique discounts and promotions.

Moreover, 7-Eleven has introduced various analytics tools to assist with customer data analysis. This information determines trends and consumer preferences, allowing the organization to make informed product offerings and pricing decisions. By studying the needs and desires of its clients, 7-Eleven can adjust its product offerings and promotions to match its particular requirements. Using computerized inventory management technologies has also helped 7-Eleven improve its business operations. With data analytics and machine learning algorithms, systems monitor inventory levels and predict the demand for business products. This guarantees that retailers always have sufficient inventory to fulfil customer demand while avoiding waste and lowering expenses (Chalapati et al., 2020). 7-Eleven has adopted innovative payment technology, including contactless payments and mobile wallets. The organization has made it quicker and easier for clients to pay for their products by embracing these new payment options, thus decreasing checkout times and enhancing the client experiences.

Legal factors Analysis

Firms have to comply with some government restrictions that impact the organisation’s business strategy, particularly in tobacco and e-cigarette sales, food safety, and hygiene (What Is the History of the 7-Eleven Convenience Store Franchise? 2018). The rules of the Singaporean government have had a considerable impact on 7-Eleven’s business strategy. The company has managed difficult regulatory obligations while sustaining profitability and delivering excellent customer service. 7-Eleven has established a solid image in the Singaporean market as a trustworthy and dependable provider of convenience products and services by adhering to these laws.

The Singaporean government has imposed stringent rules on the sale of tobacco products, including greater prices and the inclusion of graphic health warnings on packaging. Although tobacco goods are an important source of cash for 7-Eleven, these rules have harmed the company’s revenue. To comply with these requirements while preserving profitability, the corporation has had to modify its business approach. The government of Singapore has also adopts restrictions regarding the sale of electronic cigarettes and vaping items. These regulations stipulate that tobacco products require registration with the Health Sciences Authority and that only permitted stores may sell them. To continue selling e-cigarette goods in its locations, 7-Eleven had to comply with these regulations.

The government has enacted food safety and hygiene rules to ensure that food products supplied in the country fulfill the appropriate criteria. These regulations mandate that all food facilities, including convenience stores like 7-Eleven, adhere to stringent hygiene requirements and are subject to routine inspections. 7-Eleven adopted in-store food safety protocols and hygiene procedures to comply with these regulations.

Environmental factors Analysis

Business strategies tends to rely heavily on environmental sustainability. The organization has implemented a variety of measures to lessen its environmental impact. The importance of environmental sustainability to 7-Eleven’s business model is unquestionable. The organization understands the significance of decreasing its environmental effect and has developed some efforts to attain this objective. Their measures range from integrating energy-efficient systems in its stores to decreasing the use of plastic bags. 7-Eleven is committed to lowering its environmental footprint and has developed some measures. The company is contributing to a more sustainable future by decreasing the usage of plastic bags, introducing recycling initiatives, and deploying energy-efficient technologies. These measures improve the environment and contribute to brand building and client loyalty.

The decrease in plastic bag consumption is one of the major environmental measures made by 7-Eleven Singapore. The company has instituted a fee for single-use plastic bags and a program to encourage customers to use reusable bags. This campaign’s success in lowering plastic bag usage contributes to trash reduction and resource conservation. In addition to lowering the use of plastic bags, 7-Eleven locations have developed recycling initiatives to reduce waste. The company has installed recycling bins in its stores, making it convenient for customers to recycle bottles, paper, and cans. By recycling these things, 7-Eleven reduces garbage sent to landfills and conserves natural resources.

Also, 7-Eleven is decreasing its environmental effect by deploying energy-efficient equipment. The business has LED lighting, which consumes less energy and lasts longer than conventional lighting. In addition, 7-Eleven has installed energy-efficient refrigeration and HVAC (heating, ventilation, and air conditioning) systems in its stores, reducing energy consumption and greenhouse gas emissions.

key challenges and opportunities

The key challenges facing 7-Eleven Singapore include:

The high real estate and labor expenses.

The need to adapt its items to local tastes and preferences continuously.

The influence of government laws on its revenue sources.

On the other hand, the 7-Eleven has opportunities to enhance technology to improve business functions and customer experience, expand its product offerings to acquire new market segments, and strengthen its sustainability efforts to meet the rising demand for environmentally responsible practices among consumers. For instance, self-checkout systems have reduced labour requirements, resulting in cost savings for the business.

Here are recommendations to handle the major issues

1. 7-Eleven can use a dynamic pricing strategy to offset the high rent and employee salaries costs. According to this method, prices are set according to market forces to maximize profits while keeping overhead to a minimum. According to (Gerts, 2021), the corporation can maximize profits by charging higher prices during busier times and for more popular items after analyzing data gathered from the mobile app and other sources to meet the PESTLE model for strategic decision-making.
2. Work with the Beverages Manufacturers will Develop low Alcohol Alternatives. 7-Eleven can work with beverage companies to create low-alcohol choices to help offset the effects of government limitations on alcohol sales. The company can keep its revenue streams open while meeting all regulatory requirements. In addition, by providing low-alcohol alternatives, the business can appeal to clients who wish to cut back on their alcohol intake without compromising the product’s flavour or ability to enjoy it.

Conclusion

7-Eleven Singapore’s organization strategy and change management are influenced by various external factors, including political, economic, social, technological, legal, and environmental considerations. To offset the high real estate and labour costs, the company has adopted a franchise model and expanded its investment in technology. 7-Eleven invests in research to establish regional tendencies and preferences to adjust its products to match the needs of its unique clientele. Because it concentrated on technology, the company has improved its operations and delivered a better experience for its clients. The 7-Eleven organization has implemented change management practices to ensure a smooth transition whenever new initiatives are launched. 7-Eleven Singapore has maintained its competitive edge in the Singaporean market by addressing these external concerns and using effective change management practices.

 

Appendix

PESTLE Framework Analysis for 7-Eleven Singapore

Political Factors

• Limits on where alcohol sales are near institutions like schools and hospitals.

Economic Factors

• Expensive real estate and labour costs.
• Adoption of the franchise model to leverage the capabilities of independent franchisees.
• Technology investments to streamline operations and minimize labour costs.

Sociocultural Factors

• A diverse society with a variety of ethnic backgrounds and customs.
• Customizing items to local tastes and preferences.
• Researching to determine local trends and preferences.

Technological Factors

• The introduction of a mobile app for ordering and payment.
• The investment in tools for the analysis of customer data.
• The implementation of self-checkout systems to lower the cost of labour.

Legal Factors

Compliance with legislation regarding the sale of electronic cigarettes and vaping products,

Compliance with regulations regarding the safety and hygiene of food

Environmental Factors

• Reducing the number of plastic bags used and instituting recycling initiatives to cut down on waste and save materials are two goals of the initiatives now being implemented.
• Reducing energy use and carbon dioxide emissions by introducing energy-efficient