Mid Term Exam

Industrial Marketing

Umar Farooq

17U00609

G2

Q1. Case Study (7-Eleven Australia)

Ans. 7-Eleven Australia is one of the leading convenience retail store in Australia which has more than
650 outlets in Eastern Australia. In 2010, 7-Eleven went through a complex change in strategic process in
order to remain the market leader. They were facing a competition from two other retail store chains,
which were Woolworths, and Coles, as these companies moved into retailing of petrol market segment.

To overcome this issues, and remain market leader in Eastern side of Australia, 7-Eleven decided to
acquire a subsidiary retail, Stars-burger Enterprises, of Mobil Oil Australia, which had 295 outlets with
the brand name of Mobil, and Quix. However, there were many challenges and problems occurred while
this acquisition, and to overcome that, 7-Eleven had to go through a well-structured change
management process.

This was the first stage of buying decision process of process flow model that is problem identification,
finding its solution, and then product specification. So it shows that 7-Eleven knew the problem of being
challenged by other companies, the solution was acquisition of a Mobil Oil company.

Now the 2nd stage was to select the supplier which was chosen starts-burger enterprises. Now the
company had to go from a current state to a desired state. 7-Eleven did a SWOT analysis in the start, to
realize all the strengths and issues.

7-Eleven identified its 16 workstreams which were being represented by its main divisions, and
departments like, HR, IT, finance, and others. The company assigned these main streams to integrate
the equivalent function in both businesses operations. They handled all the communication, with senior
and middle management to make a stream process. The company wanted to create a synergy between
both businesses to avoid issues. Most of the existing stores were given to same franchisee to avoid
training costs and handle employees effectively. Many stores also needed to be upgraded according to
the brand image of 7-Eleven company instead of seen as service stores, as a sophisticated convenient
store. 7-Eleven has developed an updated system for internal operations, which was also provided to all
stores, and had also the facility to change it according to local market conditions.

This shows that 7-Eleven had went through a great expansion process. They were successful in their
doing their plan work of the acquisition. They increased their sales, stayed market leaders, and
franchisee are also happy. 2nd stage was fulfilled as customization option given in the system, the people
were trained. 3rd stage is endgame which was also fulfilled by the company as they evaluate their results
through customers’ feedbacks.