?Franchising: 7 Eleven Essay Sample
7-Eleven is the world’s largest operator, franchisor, and licensor of convenience shops, with more than 54,200 shops in 16 states, of which more than 10,400 are in North America. The company started by John Jefferson Green 1927, an enterprising Southland Ice Company employee in Dallas. In add-on to selling blocks of ice to refrigerate nutrient, he began offering milk, staff of life and eggs on Sundays and eventides when food market shops were closed. This new concern thought produced satisfied clients and increased gross revenues, and convenience retailing was born. In 1946, the ‘7-Eleven’ name was created to stress the firm’s committedness to hanker operating hours to function clients better, runing from 7 in the forenoon to 11 at dark, seven yearss a hebdomad. It started to open 24 hours in 1963.
By the terminal of the 1950s, the company started to spread out in other parts and exterior of Texas and opened more suburban shops and even international mercantile establishments subsequently on. The licence to run 7-Eleven shops in the Philippines was acquired by Philippine Seven Corporation ( PSC ) in December 13, 1982. It transferred the licence to its affiliate, Phil-Seven Properties Corporation ( PSPC ) for a 47 % of PSPC stock as payment. However, in May 1996, both companies merged, being PSC as the lasting entity, which enhanced operational efficiency and strengthened ability to raise capital for growing. It began its operations is February 29, 1984 at the corner of Kamias Road and EDSA Quezon City. It started franchising since 1998. Presently, the company continues to prolong its leading by seting shops in strategic locations, transporting merchandise mixture tantrum for the market.
7-Eleven is runing around the universe, they concentrate their shops in geographic countries that allow us to back up our shops with a much more effectual day-to-day distribution system – a countrywide web of commissaries, bakeshops, fresh nutrient, installations in each market. In general, shops don’t like to put up shops at an intersection, near the traffic signals and a corner, nevertheless, intersections are 7-Eleven’s favourite locations and are normally located in at that place. For the ground that they think that such location can easy catch consumer’s eyes. 7-Eleven besides sets up in metro Stationss, shopping promenades, schools, and infirmaries. 7-Eleven shops requires an country floor of at least 120 square metres, but if the franchisee has a belongings or bing concern, it is possible to change over it to a 7-Eleven shop through the company’s Property Conversion Program.
The minimal demands of this plan include located in a premier location such as concern and name centre districs, theodolite Stationss, mill, residential and school countries and sooner a corner location with dual frontage, or a non-corner location with a 7-meter frontage. The company have more than 54, 200 shops in 16 states, of which more than 10,400 are in North America. There are 8,700 shops in U.S. and Canada. Of the more than 7,700 shops in US, about 6,300 are franchised. There are 45,600 7-Eleven and other convenience shops in Asia-Pacific states. In the Philippines, 7-Eleven is the country’s biggest convenience shop concatenation with 707 shops, of which 459 are franchised. Most of their shops are concentrated in Luzon.
7-Eleven offers a wide and diversified merchandises and ware such as food market points, fast nutrient, telecom, measures payment and banking booth services. Specifically, their merchandises include a fountain drink called draft, a sodium carbonate fountain slushy drink called slurpee, siomai, a broad assortment of hot dogs, stuffed pandesal guanranteed to be served fresh, siopao in premium and budget sizes, pastarrific like lasagne, baked macaroni, spaghetti and chicken strips, sandwich, pizza called bigslice, hotcup ( java ) , pinoy rice repast, rice repast express that are served with scrambled egg, and siksik repasts that is a bite or rice repast express with a 12 oz. drink.
7-Eleven besides offers services like a huge line of cellcards, SIMpacks, Internet & A ; bet oning cards, land line prepaid cards & A ; electronic burden, crossing all trade names of Smart, Globe, Sun, PLDT & A ; BayanTel. Aside from Smart E-Load & A ; Globe Autoload, they besides offer excess burden services such as Smart Padala Loading, Smart Money & A ; G-Cash. Another service they offer is the 24-Hour Payment Express being in partnership with EC Pay and Citibank which makes 7-Eleven able to accept measure payment anytime. They besides offer 7-Connect, which enables clients to pay for their online purchases at any 7-Eleven shop. In add-on, they besides have run offing equipment and machine-controlled Teller machines.
7-Eleven’s mark market are those ages between 13 to 24 because this age group is among the store’s most frequent purchasers, timing 20 visits per month to their local 7-Eleven. 7-Eleven direction believes that the features of its clients are representative of convenience shop clients as a whole. A bulk of clients are single that autumn into the 25 to 44 age group and bulk of them have attended or completed college.
Factors that Affect Growth
Philippine Seven Corporation ( “PSC” ) was registered with the Securities and Exchange Commission ( “SEC” ) on November 1982. It acquired from Southland Corporation of Dallas, Texas the licence to run 7-Eleven shops in the Philippines in December 13, 1982. Operationss commenced with the gap of its first shop in February 29, 1984 at the corner of Kamias Road and EDSA Quezon City, Metro Manila.
In July 1988, PSC entered into a sublicensing understanding to its affiliate, Phil-Seven Properties Corporation ( “PSPC” ) , for a 47 % of PSPC stock as payment to run 7-Eleven shops in Metro Manila and suburbs. As portion of PSPC’s chief concern, it acquired or leased commercial belongingss and constructed retail shop edifices, renting the edifices to PSC on long term footing together with most of the capital equipment used for shop operations. In consequence, PSC concentrated on pull offing its shops and efficaciously took the function of a pure retail merchant.
In May 1996, PSC and PSPC merged, PSC as the lasting entity. PSC listed it portions ( SEVN ) in the Philippine Stock Exchange and had its initial public offering in February 04, 1998. The portions were offered at the monetary value of P4.40 per portion from its par value of P1.00 per portion. In September 17, 1998, PSC established Convenience Distribution Inc. ( “CDI’ ) , a entirely owned subordinate, to supply a centralised warehouse and distribution system to serve its 7-Eleven shops.
