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OPERATIONS MANAGEMENT (OPM 770 ) LOCATION DECISION

LOCATION PROVIDES COMPETITIVE ADVANTAGE FOR 7-ELEVEN

NAME ID NUMBER LECTURER’S NAME

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NOR SHAHILA BT YUNUS 2010508171 DR. HADIJAH BT IBERAHIM

by the Berjaya Group Berhad. the first 7-Eleven store in Malaysia was opened in October 1984. The variety of services available at 7-Eleven include the sale of mobile phone reload cards. is the owner and operator of 7-Eleven stores. Each 7-Eleven store carries over 2. Canada. The company has its origins in 1927 and began simply enough when an employee of Southland Ice Company in Dallas started selling milk. to 11 p. only in Malaysia. fax.000 stores in 16 countries. selling off its ice division. Inc. Soon. In Malaysia. ink cartridge refill.7-Eleven is Always There For You. Mexico. The company entered franchising in 1964. Taiwan. Sweden and Denmark. Their motto . Incorporated on 4 June 1984. Bhd has won the Malaysian Franchise Association’s 2009 ‘Best Sales Growth’ Award. It has made its mark in the retailing scene and has been a well-known icon for over 27 years and now has 1.m. automated teller machine (ATM) and bulletin board for neighbourhood community notices. and the company has more outlets than any other retailer or food service provider. 7-Eleven are the pioneer and the largest 24-hours convenience store operator in Malaysia and serves over half a million customers daily. China. and it is still in operation today. South Korea. signed its first United States area licensing agreement in 1968 and signed the first international licensing agreement with Mexico in 1971. Bhd. 7-Eleven has been the leader in franchising and licensing in the convenience store industry for 48 years. Philippines.m. Singapore. July 11 (7/11) is the official birthday of the 7-Eleven convenience store chain however. is the world’s largest convenience store chain with some 46. the company ran into financial difficulties. Australia.346 store locations nationwide. in Jalan Bukit Bintang. its largest franchisee. There are 46. Malaysia. they celebrated on November 7. eggs and bread from the ice dock. In the 1980s. hours of operation. Thailand. from petrol stations and LRT stations to shopping malls and medical institutions. the convenience store was born and became known as 7-Eleven to reflect the 7 a.LOCATION PROVIDES COMPETITIVE ADVANTAGE FOR 7-ELEVEN 7-Eleven. Norway. photocopying.500 products. and was rescued from bankruptcy by Ito-Yokado. . Indonesia. including our proprietary brands such as Slurpee frozen beverages and Big Gulp fountain soft drinks. 7-Eleven Malaysia Sdn. The stores can be found across bustling commercial districts to peaceful suburban residential compounds throughout Malaysia. The company adds another store to its worldwide operations every 3-½ hours.000 of 7Eleven stores in countries including Japan. 7-Eleven Malaysia Sdn.

combining similarities and differences will drive effective thinking and working together and will finally lead to the ability to create continued strength for the company. 7-Eleven Malaysia Sdn. Corporate desires must be align with the environmental regulations of state and town. values. when they want it. Today. From a strategic perspective. knowledge. one of 7-Eleven key objectives is to micro-match supply and demand by location. Bhd has won the Malaysian Franchise Association’s 2009 ‘Best Sales Growth’ Award. It is to avoid them from incurring lost in their operation. 7-Eleven follows a dominant location strategy and opens new stores in target areas to establish or enhance a strong presence. and culture. As to 7-Eleven. These successes have been reasonable due to the purpose. The company opens its store only to those areas where the potential customers exist rather open its stores everywhere in the country. the factors affect the decisions regarding the opening and closing of stores includes the dominant location strategy which 7-Eleven is following to maintain its positions as the market leader. responsive government. people are one key success factor in franchise business particularly the representative of the franchisor. Labor availability. The potential franchisees who intend to franchise 7-Eleven stores will be given an advised to choose the best location to open their stores. This dominant location strategy allows the company the benefits of consolidation in both warehousing and transportation. inventory. liberal investment . season. and time of day. the company targets new stores in areas that already have a strong 7-Eleven presence. Other than that. 7-Eleven designs and manages location. a location that has strength economic condition and also supportive government policies such as pro-business policies. and attitude towards union should be taking into consideration. 7-Eleven aims to provide customers with what they want. For the company’s sustainable growth.The important factors to consider when a company selects a market are the environment such as the political risk. cots of labor. How this company can successful in Malaysia and attract so many franchisee? This might due to Malaysia. If they do so. The concentrated efforts of all employees working in agreement. proximity to suppliers and proximity to competitors. as well as the location such as proximity to markets. and capabilities of all employees at every level. and information to support this objective. this ultimately increases its cost which is against the design of its supply chain. who as an agent of the company reflects the company’s image. transportation. emphasis will be placed on organizational and human resource development.

licensing.ifranchisemalaysia. The government of Malaysia has crafted policies that are supportive for business development and investment in Malaysia.com/company-histories/7Eleven-Inc-Company-History. Malaysia also has harmonious industrial relation with minimal trade disputes. Malaysia also have well-developed financial and banking sector which will provided business loan to potential franchisee. market penetration.fundinguniverse. educated and productive proving to be one of the best in the region and are able to speak fluently in multi-language including English.com.btimes. factors that made 7-Eleven success in Malaysia are the human resources.aspx?ID=2&PID=12 http://www.wikipedia.policies.html#more-1817 http://www. They are talented. REFERENCES http://www.strategicfactors. location decision is vital and must carefully selected when one intend to do business.aspx?ID=2&PID=12 http://www. In addition.scribd.pdf http://en. attractive tax and other incentives.my/Current_News/BTIMES/articles/venes/Article/ http://www. franchising or etc. young.com.7-eleven.my/html/default.7eleven. Major sources of financing for economic activities in Malaysia are the commercial banks.com/doc/39765165/SCM-Assignment http://www.securities. liberal exchange control regime and intellectual property protection.html http://www.aspx http://www.7eleven. Most of them are university graduates that trained overseas as well as in Malaysia.com/AboutUs/InternationalLicensing/tabid/115/Default.com/Public/company-profile/MY/7-Eleven_Malaysia_Sdn_Bhd_en_2381373.org/wiki/7-Eleven http://corp.html . market development. investment banks and Islamic banks. regardless the business is the new one.com.com/resources/zCompanyDirectorCompetitiveAdv. It eventually wills determines and influence business success. As conclusion. The business community in Malaysia is ready to do business with international corporations.my/html/default.com/7-eleven-franchise-business-opportunity.