Presented to the Department of Sciences and Innovation

De La Salle University - Manila

Term 1, A.Y. 2021-2022

In partial fulfillment
of the course
In COBQUAL K39

A Quality Improvement Plan for 7-Eleven Philippines (PROPOSAL)

Submitted by:
Calixto, Gian Carlo U.
Hong, Ka Mang
Nova, Nevan Keev V.
Sotelo, Caroline Yvette B.
Tan Mo, Kent Paul C.

Submitted to:
Ms. Monina Rivera Mercaldo, MBA

December 17, 2021

 I. History and Background of the Business
Founded in 1926 at Southland Ice Company in Dallas, Texas, 7-Eleven is the first convenience
store. It began as an icehouse company selling blocks of ice to refrigerate meals and preserve food. An
innovative ice dock employee, Joe C. Thompson, supplied customers milk, bread, and eggs during
Sundays and evenings when grocery shops were closed which began the concept of convenience stores
(7-Eleven, n.d.). The Philippine Seven Corp. (PSC) obtained the license to operate the 7-Eleven
Convenience Store system on October 26, 1982. On November 29, 1982, PSC was registered with the
Securities and Exchange Commission (SEC) and on February 29, 1984, PSC opened its first 7-Eleven
convenience store, located in Kamuning, Quezon City (7-Eleven, n.d.). However, PSC transferred its
Philippine area license to operate 7-Eleven convenience stores to Phil-Seven Properties Corporation
(PSPC), together with some of its store properties, in exchange for shares of stock of PSPC to be able to
generate and raise money through acceptance of foreign and corporate investments (PSE Edge, 2020). In
May 1996, stockholders of both PSC and PSPC approved the merger of the two companies, with the SEC
subsequently approving the merger in October that same year then, PSPC was absorbed by PSC as the
surviving entity (PSE Edge, 2020). 7-Eleven is the world’s largest chain of convenience stores and the
leading retailer in the world with over 71,000 stores in 17 countries (Chang, 2020). 2,978 are stores
operating in the Philippines as of December 31, 2020, and 1,499 of are franchise stores while 1,479 are
company-owned (PSE Edge, 2020). 7-Eleven stores now offer 24 hours of service and convenience to
people around the world and remain open even during holidays to better serve their customers.
II. Pre-identified Problems
The current public health crisis resulted in a significant shift in customer behavior such as
customers’ overall preference in online shopping, and 7-Eleven is yet to establish its online presence. The
absence of their own e-store may be disadvantageous for the company. It may also be a challenge to catch
up with e-commerce giants in the country that offer a wider array of products at a relatively cheap price.
In addition, this causes problems for the customers like high delivery costs and long waiting time since
the customers have to use 3rd party delivery services due to 7-Eleven not having their own delivery and
online services. Moreover, the ongoing pandemic may negatively impact customers' purchasing power or
willingness to spend especially amidst prolonged lockdowns. This may then lead to a decline in sales and
revenue, affecting the company’s financial position and overall performance. Most goods at any 7-Eleven
store are also found to be relatively expensive and this is because 7-Eleven has many branches all over the
country and thus, has a higher marginal cost compared to its direct and indirect competitors. To be
profitable and to be able to sustain its current network of stores in the Philippines, 7-eleven had to charge
a higher price for its goods in order to increase its revenue per sale (Yu, 2016). The challenge is how
7-Eleven can cater to the needs and preferences of a price-sensitive market like the Philippines. Moreover,
with the ongoing pandemic, purchasing products from any branch of 7-eleven may be at the lower tier of
customers’ priorities.
III. Areas of Improvement
As it stands, one critical factor that the company has to address is its lacking online presence, it
may already have partnered up with third party apps like FoodPanda and GrabFood, it is still not enough
to have an online presence. As such it could invest more on its online presence by establishing and
promoting its online purchasing channels and creating an e-store of its own. It is also apparent that the
establishment wasn’t prepared for the sudden pandemic, due to this the financial performance of the
company is less than ideal, so the company can opt to create huge promos/deals to sell-off products to try
to make up for its losses, and to also sell off its inventory that were save in the duration of the lock downs.
 References

About Us. 7-Eleven Philippines. (n.d.). Retrieved November 28, 2021, from
https://www.7-eleven.com.ph/about/.

Chang, R. (2020, July 9). 7-eleven opens 71,100th store in S. Korea. TBS. Retrieved November 30, 2021,
from http://tbs.seoul.kr/eFm/newsView.do?typ_800=J&idx_800=3395420&seq_800=.

Company information. PSE Edge. (2020). Retrieved November 28, 2021, from
https://edge.pse.com.ph/companyInformation/form.do?cmpy_id=143.

Risk factors: Seven & I holdings co. Seven & i HLDGS. Co., Ltd. (2021, October 18).
Retrieved December 15, 2021, from https://www.7andi.com/en/ir/management/risks.html

Rosales, E. F. (2021, April 20). Pandemic impacting purchasing power of people. Philstar.com. Retrieved
December 16, 2021, from
https://www.philstar.com/business/2021/04/21/2092537/pandemic-impacting-purchasing-power-p
eople

Yu, C. (2016, June 9). Why are things in 7-Eleven so expensive? Yahoo! Finance. Retrieved December 16,
2021, from https://sg.finance.yahoo.com/news/why-things-7-eleven-expensive-033041454.html