Topic(s) ? Operations Management
? Business Environment
? Management and ICT
? Change management
Case Study(ies) 7-Eleven ‘Managing a franchise-based business’ 2009
1. Explain the meaning of franchising as a type of Suggested
business ownership. Give 5 different examples of
franchises. (They must not be all retail businesses!)
2. Identify five issues that should normally be covered
under a franchise agreement. Use examples from the
7-Eleven Australia franchise agreement to illustrate
3. Discuss three significant benefits that occur for 7-
Eleven Australia’s franchisees as a result of buying a
4. Discuss three significant benefits that occur for the
franchisor, 7-Eleven Australia, as a result of operating
as a franchised business.
5. Use examples to explain how 7-Eleven Australia’s new
franchisees participate in; induction, on-the-job training,
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off-the-job-training, mentoring and professional
6. Explain the meaning of operations management.
Outline two examples from large-scale organisations
you are familiar with to illustrate operations
management in action.
7. What is a strategic plan? Use examples from 7-Eleven
Australia’s Project Energise to illustrate the key stages
involved in a strategic plan.
8. Discuss three ways that 7-Eleven Australia uses
market research to improve operations. Use evidence
to evaluate how well they have done in this regard.
9. Discuss two ways that 7-Eleven Australia uses
advanced ICT systems to improve operations. Use
evidence to evaluate how well they have done in this
10. Evaluate one other strategy that 7-Eleven Australia has
implemented to improve operations.
11. Discuss why 7-Eleven has had to constantly implement
change in order to remain competitive in the retail
convenience market sector. Explain whether 7-Eleven
Australia has treated this challenge as a pressure or as
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Extension 1. Tough Competition – SWOT Analysis
A SWOT Analysis is one of the most commonly used
business tools allowing a user to take a snapshot of a
businesses’ situation. Sometimes a SWOT Analysis is called
a situational analysis.
A SWOT Analysis investigates strengths and weaknesses that
exist as part of the internal environment of the business, such
as well-trained staff or outdated equipment. A SWOT analysis
is also used to identify possible opportunities or threats that
exist in the external or macro environment, such as new
market segments or increased competition.
Strengths Weaknesses Internal
Opportunities Threats External
a Using the material in this case study conduct a SWOT
analysis on the operations of 7-Eleven Australia. List
3-5 clearly explained points for each category. You
can even rank each point in order of importance.
b In pairs conduct a SWOT analysis on a 7-Eleven store
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with which you are familiar. If you don’t have 7-Eleven
in your local area perform the SWOT analysis on some
other convenience store.
c Share and discuss the results as a class. As a class
you should compare and contrast the findings in
relation to different types of convenience outlets
? Dedicated convenience stores such as 7-Eleven and
? Petrol stations
? Supermarket and petrol co-branded ventures such as
Woolworths/Caltex and Coles/ Shell
? Local milk bars
? Any other type of convenience outlet.
2. Keep the crystal ball rolling
“7-Eleven Australia will continue to face ongoing pressures
and opportunities in the retail convenience sector.” Prepare a report to the class using PowerPoint or some other
multimedia application. In your report you need to:
a. Explain how businesses can turn pressures for change
into opportunities for success. Use examples from 7-
Eleven Australia to illustrate your answer.
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b. Discuss how three key market and business trends are
likely to impact on 7-Eleven Australia’s operations over
the next 5-10 years.
c. Suggest possible businesses strategies, products
mixes and operational systems that 7-Eleven could
develop and implement over the next 5-10 years to
keep ahead of its competition.
d. Suggest one strategy that the convenience retail stores
could implement to become more socially responsible
resulting in a win:win situation for key stakeholders.
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