Concept Application 2

EXTERNAL AND
INTERNAL
ASSESSMENT
(MBA 516)

Submitted by:
Maas, Rowellyn I.
Gatdula, Mariel C.
Briones, Alyssa Ashley
 “Give the customers what they want, when and
where they want it.”
The 7-Eleven brand is known and loved around the world, and these iconic
products are a big part of the American culture. And although it has grown
significantly over the years, its focus stays fixed on making life easier for customers.
This simple idea is the reason they’re the marketplace leader. It’s also why their
customers, employees, Franchisees and community leaders are proud to be part of
the 7-Eleven story.

7-Eleven has a legacy of innovation. They were the first to provide to-go
coffee cups, offer a self-serve soda fountain, operate for 24 hours a day, and yes,
they even coined the phrase “Brain Freeze®” in honor of the world’s favorite frozen
drink. Then came the innovation of some of our most popular menu items: the
SLURPEE® drink, the BIG GULP® and then the BIG BITE®. Now, they continue
their history of innovation and power it through digital initiatives.

From their humble beginning as the world’s first convenience store, 7-Eleven
continues its pursuit of innovative ways to cater to a new, digital-savvy generation of
shoppers. As technology redefines how customers shop, they make sure to remain
two steps ahead. At 7-Eleven, they are customer-obsessed. We always poll
customers to ensure we are bringing them solutions that they can’t even imagine.
From offering convenient and user-friendly

It’s no secret: customers are starved for time as our world becomes increasingly
connected and on the go. Their digital team strives to be at the forefront of
innovation, providing effortless and convenient solutions for their customers’ needs
before they even know to ask for them. They are committed to developing
experiences of the future by bringing their stores to their customers wherever they
are and whenever they need them. They are continuing their long-standing legacy of
innovation through software and technology enhancements. 7eleven stores are
transforming their business, one digital initiative at a time. They are redefining
convenience.
 The External Factor Evaluation (EFE)
Matrix
of 7-Eleven Capitol Branch Lucena
City
Weighted
Key External Factors Weight Rating
Scale
Opportunities:
Mass gatherings increased by 50% in nearby stadium due to
1 0.08 4 0.32
vaccination and caucause.
2 Increase in cashless bills payment transactions by 30% 0.08 4 0.32
Average customer purchase increased from Php64.00 to
3 0.10 4 0.40
Php87.02
More local competitors ceased operation due to Covid-19
4 0.08 3 0.24
pandemic.
5 People's lasting habit of eating convenience foods. 0.05 3 0.15
6 National election voting trend 0.03 4 0.12
7 Tax amnesty and deductions due to pandemic. 0.02 2 0.04
8 100% increase in demand for convenience store services. 0.08 4 0.32
Threats:
1 Limited face-to-face classes of nearby schools. 0.08 2 0.16
New technologies developed by the competitor or market
2 0.02 2 0.04
disruptor.
3 Most of the guests are teenagers with limited resources. 0.05 2 0.10
4 Increasing number of unemployment and poverty. 0.03 2 0.06
5 Growing strengths of local distributors through online selling. 0.05 3 0.15
6 Increasing incidents of theft & holdup to 24/7 stablishments. 0.02 3 0.06
7 Opening of 2 new Ministop within 1 kilometer radius. 0.10 3 0.30
8 Competitor's lower product pricing strategy. 0.08 2 0.16
Limited time of operation due to lockdown and government
9 0.05 3 0.15
restrictions connected with the global pandemic.

TOTAL 1.00 3.09

This EFE Matrix will help 7-Eleven Capitol Branch to determine whether the firm is
able to effectively take advantage of existing opportunities along with minimizing the
external threats from the view of an outsider. Similarly, it will help the strategists of
the company especially the managers or owner / franchisee to formulate new
strategies and policies on the basis of existing position of the company. By looking at
the factors above they can see the influences that their company manages to have
taken into low and high response or considerations and the improvements needed
on those areas that requires extra attention as of the moment.
 The Internal Factor Evaluation (IFE) Matrix
of 7-Eleven Capitol Branch Lucena City
Weighted
Key Internal Factors Weight Rating
Scale
Strengths:
1 Offerring an average of 5 new products per quarter. 0.10 4 0.40
2 7Eleven holds a market share of around 40%. 0.11 4 0.44
3 100% convenient and strategic location. 0.10 4 0.40
4 Fully automated POS for faster transaction turnover. 0.06 3 0.18
5 Offering individually branded products. 0.05 3 0.15
Average customer purchase increased from Php64.00 to
6 0.08 3 0.24
Php87.02
7 Well-known franchise brand with excellent marketing support. 0.08 4 0.32
8 Merchandise sales revenues improved by 9.8% 0.10 4 0.40
Weaknesses:
1 Store has no public wifi service. 0.03 1 0.03
Shortage of skilled workforce specially during nightshifts and
2 0.03 1 0.03
graveyard shifts.
Low performance at product demand forecasting leading to higher
3 0.07 2 0.14
rate of missed opportunities compare to its competitors.
4 No parking area for customers. 0.06 2 0.12
5 There are gaps in the product range sold by the company.  0.04 1 0.04
Market share in the local convenience store industry shrinks to
6 0.05 2 0.10
around 2.7% versus other retail channels .
7 Higher rental cost with 10% increase annually. 0.04 2 0.08

TOTAL 1.00 3.07

The IFE shows that 7-Eleven Capitol branch is doing best on innovation in
product offerings, leading in respective industry, and sales generation while having
major problems in handling inventories, customer support services and lowering
fixed expenses. Overall, this store receives a 3.07 total weighted scores which
indicate their high attention of the management to recognize the external threats and
advantages that the business can utilize. This matrix will help certainly better to
recognize the internal factors that allow the company to exploit opportunities and
manage threats. This enables the company to build an effective, long-term strategic
plan.
 Conclusion:

Although 7-Eleven is regarded as the number 1 convenience store in the Philippines

nowadays, we cannot deny the fact that each branch has their corresponding unique
strength, weaknesses, opportunities and threat depending on the external and
internal key forces and trends.

After careful determination and weighing of the internal and external audit, the
average result of 3.08 was recorded. It means a strong and high response of
7eleven when it comes to the effectiveness of the firm current strategies as well as
the firm’s capacity to respond in an outstanding way to existing opportunities and
threats in its industry. In other words, the firm’s strategies effectively take advantage
of existing opportunities and minimize the potential adverse effect of external threats.

EFE (3.09)

IFE (3.07)
References:
https://corp.7-eleven.com/corp/about

http://fernfortuniversity.com/term-papers/swot/1433/1252-7-eleven.php

https://www.bworldonline.com/corporate/2021/11/15/410494/7-eleven-operator-
trims-losses-as-sales-improve/

https://www.esquiremag.ph/money/industry/7-eleven-in-the-philippines-facts-
a00289-20210419

https://www.csnews.com/7-eleven-franchisees-report-staffing-challenges

https://welpmagazine.com/complete-guide-to-the-ife-and-efe-matrix/