MBBC 3063 STRATEGIC MANAGEMENT TITLE: 7-ELEVEN MALAYSIA HOLDING BERHAD PREPARED FOR: MADAM SUHAILY MD SHAMSUDIN PREPARED BY: STUDENT’S NAME MATRIC NUMBER RAJA NUR ATHIRAH BINTI RAJA IBRAHIM 18BB02046 WAN ZAHIRAH FARZANA BINTI WAN HAMID 18BB02052 NUR KHAFIZATUL AKMA BINTI ADINAN 18BB02059 SITI NUR SYAZANA BINTI JAMALUDDIN 18BB02065 NUR JANNAH BINTI MD NOR 18BB02066 SUBMISSION DATE 12 MARCH 2021 BACHELOR OF HUMAN RESOURCES MANAGEMENT
SESSION II 2020/2021 TABLE OF CONTENT 1.0 Introduction...................................................................Error! Bookmark not defined. 2.0 Mission and Vision statement......................................Error! Bookmark not defined. 3.0 Input Stage ...................................................................Error! Bookmark not defined. 3.1 Organization external opportunities & threats......Error! Bookmark not defined. 3.1.1 External Factor Evaluation Matrix (EFE) .............Error! Bookmark not defined. 3.1.2 Competitive Profile Matrix (CPM)........................Error! Bookmark not defined. 3.2 Organization Internal Strength and Weaknesses ............... …………………Error! Bookmark not defined. 3.2.1 Internal Factor Evaluation (IFE).........................Error! Bookmark not defined. 4.0 Matching Stage .............................................................Error! Bookmark not defined. 4.1 Strength-Weaknesses-Opportunities-Threats (SWOT) Matrix. Error! Bookmark not defined. 4.2 Strategic Position and Action Evaluation (SPACE) Matrix....... Error! Bookmark not defined. 4.3 Boston Consulting Group (BCG) Matrix ....................Error! Bookmark not defined. 4.4 Internal-External (IE) Matrix ......................................Error! Bookmark not defined. 5.0 Decision Stage ...............................................................Error! Bookmark not defined. 5.1 Quantitative Strategic Planning Matrix (QSPM) .........Error! Bookmark not defined. 6.0 Recommendation Strategic...........................................Error! Bookmark not defined. 7.0 Conclusion .....................................................................Error! Bookmark not defined. 8.0 References......................................................................Error! Bookmark not defined. 9.0 Appendix.........................................................................Error! Bookmark not defined.
1 1.0 INTRODUCTION This assignment report focuses on the 7-Eleven convenience store which is a chain of American-owned stores. The company headquartered in Dallas, Texas. The 7-Eleven company was founded by J. C. Thompson in 1927 as The Southland Ice Company in Dallas, Texas. At first, the store only sold ice and then the company eventually started offering milk, bread, and eggs on Sundays and nights when the store closed. This new business idea has caused customers to be satisfied and increase sales. Initially, the company's first convenience store was known as Tote'm store. In 1946, the Tote became 7-Eleven to reflect the new extended hours in the store - 7 am to 11 pm, seven days a week. The corporate name of the company was changed from The Southland Corporation to 7-Eleven, Inc. in 1999. In 1984 7- Eleven was first opened in Malaysia, namely on the Jalan Bukit Bintang of Kuala Lumpur. In Malaysia, 7- Eleven is a pioneer in operating the largest 24-hour convenience store in Malaysia. After 7-Eleven has 1000 branches in Malaysia they have opened up opportunities for local entrepreneurs to join them through the franchise program in 2009. In fact, 7-Eleven Malaysia is the largest convenience store chain with more than 2,400 stores nationwide, serving more than 900,000 customers daily. In addition, 7-Eleven is a company with good management and marketing strategies. This can be seen in all 7-Eleven Shops available in busy commercial areas to suburban residential areas throughout Malaysia, for example from petrol stations and LRT stations to shopping malls and so on. Next, 7-Eleven companies not only sell food items and necessities but they have often upgraded 7-Eleven as a mini café and provide services such as bill payment, Touch N Go top-up, top-up through MOL Point top-up, refill ink cartridges, photocopies, faxes, automatic teller machines (ATMs) and etc. It can be seen that the 7- Eleven company is a company that is always thinking
2 about progress and looking ahead and following current trends. In this way can maintain the company's performance and further enhance the company's development. 2.0 MISSION AND VISION STATEMENT VISION: TO BE THE BEST RETAILER OF CONVENIENCE Being the best convenience store is a vision that has been expressed by the 7- Eleven company. To be the best convenience store, the company must provide a variety of goods as well as provide the best service. As can be seen now, these convenience stores are growing rapidly everywhere, even in the rural, the suburban, or even the suburbs. This can be seen by the existence of 2411 convenience stores throughout Malaysia. Furthermore, 7-Eleven is not only known as the most trusted brand it is also one of the companies actively engaged in CSR activities. In 2020, 7- Eleven received the "7-Eleven Malaysia Wins CSR Award for 4 Consecutive Years". This proves that the vision adopted by this company has had a huge impact so that this convenience store can be seen everywhere and at the same time able to help the less fortunate community. this is the best example of a company. MISSION: TO CONSISTENTLY SERVE THE CHANGING NEEDS OF CUSTOMERS FOR THEIR CONVENIENCE. The 7-eleven Company is a convenience store that has a variety of goods and services. This is because this store has a variety of imported and local goods for sale. indirectly it becomes an attraction that can meet the needs of customers. Besides, the company also provides various services available at 7-Eleven including bill payment services, mobile phone top-up card sales, IDD / STD, Touch N Go top-up, fax, automatic teller machine (ATM), etc. Initially, the company was popular with water named Slurpee. This original frozen beverage is exclusively available in all 7-Eleven Malaysia stores. The company has upgraded its convenience store by providing a mini cafe with fresh coffee and other hot drinks, as well as fresh food and packaged bread for the convenience of customers looking for ready-to-eat food, and all food items sold in 7 - Eleven, is Halal. The changes and requirements provided by this 7-Eleven company are very much in line with the stated mission.
3 3.0 INPUT STAGE 3.1 Organization External Opportunities and Threats Opportunities Among the opportunities identified that have influenced 7-Eleven is the improvement of E-Wallet payment methods. This is because all business industries are beginning to adapt by using technological frameworks in business to better suit operations and facilitate customer interaction with outlets. The second opportunity is consumer demand for ready-made products. This will create a great opportunity for businesses to start offering ready-made products according to customer demand and preferences. Third, the demand for outlets in rural areas. It will provide an opportunity for companies to deploy more location outlets to other areas having a larger market share in the convenience store industry. Fourth, consumer demand for loyalty and app store. The company is expanding its loyalty card platform and this program will definitely have a positive impact on customer relationships thus increasing revenue and profits. Fifth, demand in foreign imported products can provide an opportunity for enterprises to provide several products and services to customers aimed at obtaining different product alternatives. Sixth, payment services such as bill payment, top up and gift cards. This will have a positive impact on the business. The last opportunity is about the government's support in implementing integration technology. Thus, the operating business will have a positive impact on the business to increase its efficiency in the supply chain and customer relationships (7-Eleven Malaysia Holdings Berhad , 2020). Threats Among the threats identified that also affect 7-Eleven is the increase in the opening of medium stores near 7-Eleven which can cause high competition in their respective areas such as KK Mart, Family Mart and 99 Speedmart. Second, income restrictions for households, stall spending can be reduced due to limited purchasing power which results in a negative impact on businesses resulting in lower store spending. The third threat is about Family Mart, the company's main competitor who offers ready-to-eat food to customers, thus making it a threat to the company because customers can enjoy ready-to-eat food in their store. Fourth, most businesses have developed loyalty cards and programs so that customers can enjoy profit and profit shopping at outlets. This has a negative impact on 7-Eleven because this business has lacking customer relationship programs. Fifth, about competitors who use decent retail space to grow. This will also have a negative impact on 7-Eleven. Sixth, rising
4 product prices are definitely a threat to businesses as most convenience stores offer affordable products for convenience customers. The last threat was the existence of a 24-hour convenience store which led to many robberies. Therefore, customers will choose which store they feel is safe for them (Dublin, 2020). 3.1.1 External Factor Evaluation (EFE) NO KEY EXTERNAL FACTOR WEIGHT RATING WEIGHTED SCORE OPPORTUNITIES 1. Increase of e-Wallet payments method growing 45% 0.11 4 0.44 2. Consumer demand for unique ready to eat food product growing 4.0% annually. 0.05 4 0.2 3. Rural areas demand for convenience stores 0.07 3 0.21 4. Consumer demand for loyalty and store app growing 92 % 0.06 4 0.24 5. Consumer demand for foreign imported products. 0.06 3 0.18 6. Consumers seeking for more payment service, such as paying their bills, gift cards, and mobile reloads. 0.08 4 0.32 7. New Malaysian government supporting technology integration from stores 0.06 3 0.18 THREATS 1. More convenient stores opening nearby 7 Eleven stores (KK Mart, Speedmart, Family Mart) 0.08 2 0.16 2. Households with income levels below RM 2,000 spent 95% of their income on everyday essentials and those earning below RM 5,000 will have to reduce on household food consumption 0.10 3 0.3 3. Family Mart obtaining more daily revenue around RM 2500 due to ready to eat food product offered to consumers 0.08 2 0.16 4. Other convenient store retailers have loyalty programs up 73% 0.05 3 0.15 5. Competitors are taking viable retail space to expand 0.08 2 0.16 6. Price increase from manufactures, suppliers, and importers of product 0.06 2 0.12 7. Numerous robbery cases, because stores are opened for 24 hours 0.06 2 0.12 TOTAL 1.00 2.94
5 7 Eleven Assessment of external factors, EFE consists of opportunities and threats in their industry. This helps assess the economic, social, cultural, demographic, environmental, political, governmental, legal, technological and competitive factors that can affect them. (Budiono, 2017). Opportunities analyzed, the first is the increase in E-Wallet payment methods which grew 45%, as all business industries began to adapt by using technological frameworks in business. Therefore, a weighting score of 0.11 and a rating of 4 were given. Second, consumer demand for ready to eat product growing at 4.0% annually will create huge opportunities for businesses. Therefore, this is a major opportunity with a weight score of 0.05 and a rating of 4. Third, the demand for outlets in rural areas gives companies the opportunity to deploy more location outlets to other areas. Therefore, a weight score of 0.07 and a rating of 3 to indicate the significant impact of this opportunity for the company. Fourth, consumer demand for loyalty and store apps increased 92%. The company is expanding its loyalty card platform and this program will definitely have a positive impact on customer relationships thus boosting revenue and profit. Thus given a weight score of 0.06 and rating 4. Fifth, demand in foreign imported products can provide an opportunity for enterprises to provide some products and services to customers the weight score is 0.06 and the rating is 3. The sixth opportunity with respect to payment services such as bill payment, top up and gift card will definitely have a positive impact on the business, thus a weight score of 0.08 and rating 4 are given. The last is that the government's support in implementing operational business integration technology will have a positive impact on businesses up to having a weight score of 0.06 and rating is 3. As for threats, there are seven threats that may have a negative impact on 7- Eleven. The first threat is an increase in the opening of medium stores near 7-Eleven which can lead to high competition in their respective areas. Therefore, the weight score is 0.08 and the rating is 2. Second, due to income restrictions for households, booth expenses can be reduced due to limited purchasing power which has a negative impact on business, so we decided to give a weight score of 0.10 and rating 3 to show how important the factor this as a threat to the business. The third threat is Family Mart, the company's main competitor, offering ready-to-eat food to customers, making it a threat to companies as customers can enjoy ready-to-eat food in their stores. Therefore, a weight score of 0.08 and a rating of 2 were given. Fourth, these businesses have lacking customer relationship programs, as most businesses have developed loyalty cards and programs. Therefore, this is a big negative impact for businesses to be given a weight score of 0.05 and a rating of 3. Fifth is about
6 competitors using decent trading space to grow. This has a negative impact on 7 Eleven. Therefore, we decided to give a weighted score of 0.08 and rating is 2. Sixth, the increase in product prices is definitely a threat for businesses as most convenience stores offer affordable products for convenience customers. Therefore, it has a weight score of 0.06 and a rating of 2. The last threat about the existence of 24-hour convenience stores is a lot of robbery cases. Therefore, customers will choose which store they feel is safe for them, so we give a weighted score of 0.06 and a rating of 2. After evaluating the total marks given for weights and ratings for each factor, the result is as follows, the calculation EFE matrix has produced a score weighted worth 1.00. 3.1.2 Competitive Profile Matrix (CPM) Family Mart 99 Speedmart NO Critical success Factors Weight Rating Score Rating Score 1. Global expansion 0.05 4 0.20 3 0.15 1. Advertising 0.10 3 0.30 3 0.30 3. Customers service 0.08 3 0.24 3 0.24 4. Store locations 0.20 4 0.80 3 0.60 6. Employee Dedication 0.10 3 0.30 3 0.30 7. Financial Position 0.10 4 0.40 3 0.30 8. Customers Loyalty 0.10 3 0.30 2 0.20 9. Market Share 0.05 3 0.15 2 0.10 10. Product quality 0.10 3 0.30 3 0.30 11. Management 0.02 3 0.06 3 0.06 12. Price competitiveness 0.10 4 0.40 2 0.20 TOTAL 1.00 3.45 2.75 Competitive Profile Matrix (CPM) identifies competitors of 7-Eleven and its particulars. Critical success factors that shape CPM is global expansion, Advertising, Customer service, store location, employee dedication, financial position, customer’s loyalty, market share, product quality, management and price competitiveness. Therefore, among the competitors that have been identified are Family Mart and 99 Speedmart. Both of these competitors were selected because they were also involved in the convenience retail market and the competitors that participated in the 7-Eleven market. Based on the table above, it shows that Family Mart has a higher rating of 3.45
7 compared to 99 Speedmart which is 2.75. In general, it can be said that Family Mart is the main rival for 7 eleven. 3.2 Organization strengths opportunities and weaknesses Strengths In this company have several internal factor strengths. 7-Eleven Malaysia Holdings Berhad have the major business assets in pharmacy industry which is Farmasi Sri Nibong Sdn Bhd and Farmasi Sri Nibong (Pekaka) Sdn Bhd have four pharmacy outlets. The culture and work environment is praised by the employees of the company where the supervisor is aware of the situation of the employees and most of the customers are friendly. Employees in the company benefit from personal insurance such as dental insurance, health insurance, vision insurance and life insurance. Caring Pharmacy Group Berhad plans to expand the market in 7-Eleven Malaysia Holdings Berhad covering Penang, Kedah and Perlis. Group 7-Eleven Malaysia Holdings Berhad provides a licensed and fully operational pharmaceutical business in the Northern Malaysia region with significant consumer needs. Besides, flexible in terms of logistics time and logistics division employees can learning in logistics management, warehousing, how to interact in various levels of positions, participate in management meetings and conduct training. 7-Eleven Malaysia Holding Berhad encourages their employees to encourage personal and professional growth by promote education as they provide tuition reimbursement to their employees. Shares Buy Back by a Company Pursuant to Section 127 (16) of CA 2016 in 7-Eleven Malaysia Holding Berhad. The company's financial statements show that sales increased on 30 September 2020 from 30 September 2019. Lastly, 7-Eleven Malaysia Holdings Berhad dealings in the securities during closed period by MIDF Amanah Investment Nominees (Tempatan) Sdn Bhd. Weaknesses Next, everything that has strengths must have weaknesses that need to be improve. There are some weaknesses in 7-Eleven Malaysia Holdings Berhad. The company operates in the consumer retail sector and the pharmaceutical business under Caring Pharmacy Group Berhad but the Board does not expect any change in the company's risk as a result of the Proposed Acquisition. Thus, there are imperfections in the Proposed Acquisitions and the risk of competition among pharmaceutical industry traders. Conditions that cause a person to stop being a major shareholder. Retirement as a major shareholder following the sale of common stock
8 through the open market. Employees in the company are not given free food every break and have to face every risk when there are not enough staff so they have to work alone at night. In addition, jobs at the company's outlets require a fit body to carry heavy stocks and this is a risk to women workers. The company's outlets also sell alcoholic beverages causing drunken customer come in becoming insane give problems to employees who are physically or mentally disturbed. Lastly, the management department also has problems with late payment of employees' salaries and not meeting the due date. 3.1.2 Internal Factor Evaluation (IFE) NO KEY INTERNAL FACTOR WEIGHT RATING WEIGHTED SCORE STRENGTHS 1. The major business assets in pharmacy industry have four pharmacy outlets. 0.02 3 0.06 2. The culture and work environment is praised by the employees of the company where the supervisor is aware of the situation of the employees and most of the customers are friendly. 0.01 3 0.03 3. Employees in the company benefit from personal insurance. 0.02 3 0.09 4. Caring Pharmacy Group Berhad plans to expand the market in 7-Eleven Malaysia Holdings Berhad covering Penang, Kedah and Perlis. 0.03 4 0.24 5. Provides a licensed and fully operational pharmaceutical business in the Northern Malaysia region with significant consumer needs. 0.08 3 0.24 6. Flexible in terms of logistics time and logistics division employees can learning in logistics management, warehousing, how to interact in various levels of positions, participate in management meetings and conduct training. 0.03 4 0.12 7. Encourage personal and professional growth by promote education as they provides tuition reimbursement. 0.02 3 0.06 8. Shares Buy Back by a Company Pursuant to Section 127 (16) of CA 2016 in 7-Eleven Malaysia Holding Berhad. 0.02 3 0.6
9 9. The company's financial statements show that sales increased on 30 September 2020 from 30 September 2019. 0.12 4 0.48 10. Dealings in the securities during closed period by MIDF Amanah Investment Nominees (Tempatan) Sdn Bhd. 0.03 3 0.09 WEAKNESSES 1. The Board does not expect any change in the company's risk as a result of the Proposed Acquisition. 0.02 1 0.02 2. Imperfections in the Proposed Acquisitions and the risk of competition among pharmaceutical industry traders. 0.12 2 0.24 3. Conditions that cause a person to stop being a major shareholder. 0.03 2 0.06 4. Retirement as a major shareholder following the sale of common stock through the open market. 0.01 2 0.02 5. Employees in the company are not given free food every break and have to face every risk when there are not enough staff so they have to work alone at night. 0.03 2 0.06 6. Jobs at the company's outlets require a fit body to carry heavy stocks and this is a risk to women workers. 0.01 1 0.01 7. Sell alcoholic beverages. 0.02 1 0.02 8. The management department also has problems with late payment of employees' salaries and not meeting the due date. TOTAL 1.00 2.66 7-Eleven Malaysia Holding Berhad’s construct an Internal Factor Evaluation Matrix (IFE) has ten lists of strengths and eight lists of weaknesses in the company. First of all, we look at the list of company strengths. The major business assets in pharmacy industry have four pharmacy outlets which the net book value of the audited fixed assets comprises Farmasi Sri Nibong Sdn Bhd and Farmasi Sri Nibong (Pekaka) Sdn Bhd used in four pharmacy stores is RM133, 062 on 31 October 2019. Therefore, the weight is 0.02, the rating is 3 and the weight score is 0.06. Second, the culture and work environment is praised by the employees of the company where the supervisor is aware of the situation of the employees and most of the customers are friendly. Therefore, the weight is 0.01, the rating is 3 and the weight score is 0.03.
10 Third, an employee in the company benefit from personal insurance. Therefore, the weight is 0.02, the rating is 3 and the weight score is 0.06. Forth, Caring Pharmacy Group Berhad plans to expand the market in 7-Eleven Malaysia Holdings Berhad covering Penang, Kedah and Perlis. Therefore, the weight is 0.03, the rating is 3 and the weight score is 0.09. Fifth, group 7-Eleven Malaysia Holdings Berhad provides a licensed and fully operational pharmaceutical business in the Northern Malaysia region with significant consumer needs. Therefore, the weight is 0.08, the rating is 3 and the weight score is 0.24. Sixth, 7-Eleven Malaysia Holdings Berhad flexible in terms of logistics time and logistics division employees can learning in logistics management, warehousing, how to interact in various levels of positions, participate in management meetings and conduct training. Therefore, the weight is 0.03, the rating is 4 and the weight score is 0.12. Seventh, 7-Eleven Malaysia Holdings Berhad encourage personal and professional growth by promote education as they provide tuition reimbursement. Therefore, the weight is 0.02, the rating is 3 and the weight score is 0.06. Eighth, Shares Buy Back by a Company Pursuant to Section 127 (16) of CA 2016 in 7-Eleven Malaysia Holding Berhad on 1 December 2020 is RM983, 715.00 for 750,000 units. Therefore, the weight is 0.2, the rating is 3 and the weight score is 0.6. Ninth, the company's financial statements show that sales increased on 30 September 2020, RM677, 123,000 then 30 September 2019, RM594, 160, 00 in individual period and sales increased on 30 September 2020, RM 1,946,147,000 then 30 September 2019, RM 1,766,670, 00 in cumulative period. Therefore, the weight is 0.12, the rating is 4 and the weight score is 0.48. Lastly, dealings in the securities during closed period by MIDF Amanah Investment Nominees (Tempatan) Sdn Bhd which consideration for the dealing RM1.3229 in number of Ordinary Shares in the share capital of the company is 140,000. Therefore, the weight is 0.03, the rating is 3 and the weight score is 0.09. Next we look at the list of company weakness. First, the company operates in the consumer retail sector and the pharmaceutical business under Caring Pharmacy Group Berhad but the Board does not expect any change in the company's risk as a result of the Proposed Acquisition. Therefore, the weight is 0.02, the rating is 1 and the weight score is 0.02. Second, imperfections in the Proposed Acquisitions and the risk of competition among pharmaceutical industry traders. Therefore, the weight is 0.12, the rating is 2 and the weight score is 0.24. Third, the conditions of company that cause a person to stop being a major shareholder. Therefore, the weight is 0.03, the rating is 2
11 and the weight score is 0.06. Forth, the retirement as a major shareholder following the sale of common stock through the open market. Therefore, the weight is 0.01, the rating is 2 and the weight score is 0.02. Fifth, an employee in the company are not given free food every break and have to face every risk when there are not enough staff so they have to work alone at night. Therefore, the weight is 0.03, the rating is 2 and the weight score is 0.06. Sixth, jobs at the company's outlets require a fit body to carry heavy stocks and this is a risk to women workers. Therefore, the weight is 0.01, the rating is 1 and the weight is 0.01. Seventh, selling an alcoholic beverage causes drunken customer conditions and becoming insane give problems to employees who are physically or mentally disturbed. Therefore, the weight is 0.02, the rating is 1 and the weight score is 0.02. Lastly, the management department in the company also has problems with late payment of employees' salaries and not meeting the due date. Therefore, the weight is 0.2, the rating is 2 and the weight score is 0.4. After evaluating the total marks for weight is 1 and total weight score is 2.66
12 4.0 MATCHING STAGE 4.1 Strength-Weaknesses-Opportunities-Threats (SWOT) Matrix STENGTHS WEAKNESSES 1. The major business assets in pharmacy industry have four pharmacy outlets. 2. The culture and work environment is praised by the employees of the company where the supervisor is aware of the situation of the employees and most of the customers are friendly 3. Employees in the company benefit from personal insurance. 4. Caring Pharmacy Group Berhad plans to expand the market in 7-Eleven Malaysia Holdings Berhad covering Penang, Kedah and Perlis. 5. Provides a licensed and fully operational pharmaceutical business in the Northern Malaysia region with significant consumer needs. 6. Flexible in terms of logistics time and logistics division employees can learning in logistics management, warehousing, how to interact in various levels of positions, participate in management meetings and conduct training. 7. Encourage personal and professional growth by promote education as they provide tuition reimbursement. 8. Shares Buy Back by a Company Pursuant to Section 127 (16) of CA 2016 in 7- Eleven Malaysia Holding Berhad. 9. The company's financial statements show that sales increased on 30 September 2020 from 30 September 2019. 10. Dealings in the securities during closed period by MIDF Amanah Investment Nominees (Tempatan) Sdn Bhd. 1. The Board does not expect any change in the company's risk as a result of the Proposed Acquisition. 2. Imperfections in the Proposed Acquisitions and the risk of competition among pharmaceutical industry traders. 3. Conditions that cause a person to stop being a major shareholder. 4. Retirement as a major shareholder following the sale of common stock through the open market. 5. Employees in the company are not given free food every break and have to face every risk when there are not enough staff so they have to work alone at night. 6. Jobs at the company's outlets require a fit body to carry heavy stocks and this is a risk to women workers. 7. Sell alcoholic beverages. 8. The management department also has problems with late payment of employees' salaries and not meeting the due date.
13 OPPORTUNITIES SO STRATEGIES WO STRATEGIES 1. Increase of e-Wallet payments method growing 45% 2. Consumer demand for unique ready to eat food product growing 4.0% annually. 3. Rural areas demand for convenience stores 4. Consumer demand for loyalty and store app growing 92 % 5. Consumer demand for foreign imported products. 6. Consumers seeking for more payment service, such as paying their bills, gift cards, and mobile reloads. 7. New Malaysian government supporting technology integration from stores 1. Open more stores in the rural area to maintain market. (S1, S4, S5, O3,) 2. Create a new payment channel, where customers can pay online and collect their food without paying at the counter. (S9, O1, O4, O6, O7). 3. Joint ventures with more online retail channels to give customers access to payment services (S4, S9, O1, O2, O5, O7) 1. Improving employee welfare and upgrading existing technology. (S5, S6, W8, O1, O4, O6, O7). 2. Improve quality products according to customer needs and customer required such as ready to eat product. (W7, O2, O5). THREATS ST STRATEGIES WT STRATEGIES 1. More convenient stores opening nearby 7 Eleven stores (KK Mart, Speedmart, Family Mart) 2. Households with income levels below RM 2,000 spent 95% of their income on everyday essentials and those earning below RM 5,000 will have to reduce on household food consumption. 3. Family Mart obtaining more daily revenue around RM 2500 due to ready to eat food product offered to consumers. 4. Other convenient store retailers have loyalty programs up 73% 5. Competitors are taking viable retail space to expand. 6. Price increase from manufactures, suppliers, and importers of product. 7. Numerous robbery cases, because stores are opened for 24 hours. 1. Introduce new product and service to attract customer. (S3, S4, T1, T3, T4) 2. Offering customer specific products and giving periodical discount. (S1, S4, S5, S9, T1, T2, T3, T4, T5) 1. Add new promotions in store monthly to earn higher daily income and improving the quality of services. (W3, W4, T1, T3, T4) 2. Provide good treatment to employees and hiring more male workers. (W5, W6, W8, T1, T3, T4, T7) 3. open more in rural areas to avoid high overhead and operating costs. (W3, W4, T1, T2, T5, T6)
14 SWOT Matrix is to produce internal based strategies and 7-Eleven external factors. Use and harness the power and 7-Eleven opportunities, they will continue to progress and increase by using technology to integrate technology and improve new cashless payment services to facilitate transactions without the need to use cash. In addition, they can work with payment channels that offer more options for customers. For example, the use of e-Wallet application that makes it easier for users to make transactions using only a smartphone. This can further enhance the capacity and grow according to the current modernization. Applications such as e-Wallets are accessible in rural and urban areas. Weaknesses and focus opportunities to reduce internal weaknesses with take advantage of external opportunities. Improve product quality and according to customer needs such as providing ready to eat products comparable to the nearest competitors. This strategy has an effective impact especially in producing quality products, because customers need quality and convenient products for them. Readyto-eat products are in high demand if 7-Eleven can develop the consumables with better quality and equivalent, then 7-Eleven will get back their market share and increase sales revenue. Strength and threat strategies are used to reduce the impact external environment. The much needed. Offering customer-specific products and providing periodic discounts to maintain customer loyalty through the strategies implemented at 7-Eleven to maintain the benefits of having a variety of competitors in the industry. In addition, they can develop better customer relationships. So, when they want to spend, they will remain loyal to choose 7-Eleven as the main source in buying goods. Weakness and threat strategies are needed to reduce the impact and damage that can occur to the company. Therefore, 7-Eleven must find a way to reduce it their issues especially to their employees. That can be done by providing good treatment to employees, because employees need an employer who understands them in performing their duties well. If employees have good motivation from employers, they will work better and be more motivated in helping to improve the quality of the company, where this gives a good perspective to the customer if 7-Eleleven has competent and motivated employees. Not only can retain customers but employees can also be maintained with a good system by superiors.
15 4.2 Strategic Position and Action Evaluation (SPACE) Matrix Internal Strategic Position External Strategic Position Financial Position (FP) Stability Position (SP) Return On Investment (ROI) 6 Technological Change -4 Liquidity 5 Rate of Inflation -2 Leverage 4 Barriers to entry into market -3 Cash flow 7 Competitive pressure -3 Working capital 7 Price range of competing products -2 Average Financial Position 5.8 Average Stability Position -2.8 Competitive Position (CP) Industry Position (IP) Market share -2 Profit potential 5 Product quality -3 Growth Potential 6 Customers loyalty -3 Financial stability 5 Technological Know How -3 Ease of entry market 3 Control over suppliers and distributions -2 Productivity, capacity utilization 3 Average Competitive Position -2.6 Average Industry Position 4.4 X = CP + IP = -2.6+(4.4) = 1.8 Y = FP + SP = 5.8+(-2.8) = 3
16 Based on the diagram above, 7-Eleven is located in the aggressive matrix quadrant. Companies have the potential to take advantage of external opportunities, overcome internal weaknesses, and avoid external threats. Based on the axis of industry position, which indicates that firms in the industry are growing and stable. It can be assumed that the best strategies are market penetration, market development, product development, backward integration, forward integration, horizontal integration, or diversification are some of the strategies recommended for this company. Therefore, the strategies that 7-Eleven can use are product expansion and market expansion. Product development will introduce ready to eat foods to regain daily income. In addition, market expansion is to target rural geographical areas to maintain a competitive position. -1 -2 -3 -4 -5 -6 -7 +1 +2 +3 +4 +5 +6 +7 SP CP IP Conservative Aggressive Defensive Competitive -7 -6 -5 -4 -3 -2 -1 +7 +6 +5 +4 +3 +2 +1 FP (+1.8,+3)
17 4.3 Boston Consulting Group (BCG) Matrix BCG Matrix of 7-Eleven Malaysia Holding Berhad. Business Product Company Revenue (RM) Revenue (%) Profit (RM) Profit (%) Retail Convenience Store Industry Revenue (RM) Market Share (%) Relative Market Share (%) Industry Sales Growth Rate (%) 7-Eleven Malaysia Holding Berhad 1, 766, 669.00 2.3 42,717,000.00 85.7 107, 500, 000, 000.00 1.6 0.2 6 FamilyMart Malaysia 75, 180, 000.00 97.7 7,110,000.00 14.3 7 Total 76,946,669.00 100 49,827,000.00 100 Table of amounts related in BCG Matrix of 7-Eleven Malaysia Holding Berhad. High RELATIVE MARKET SHARE POSITION Medium Low INDUSTRY SALES GROWTH RATE High Medium Low High Medium Low 1.0 0.5 0.0 +20 0 -20 Stars II Question Marks I Cash Cows III Dogs IV
18 The Boston Consulting Group (BCG) matrix can be assessed through the relative position of the products offered by the company, based on their industry sales growth rate and relative market share. As can be seen in the table, there are two types of companies under the same industry; 7-Eleven Malaysia Holding Berhad Company and its biggest competitor in the industry, FamilyMart Malaysia Company. Sales of 7- Eleven Malaysia Holding Berhad Company are RM1, 766, 669.00 with profit RM42,717,000.00 and the sales of FamilyMart Malaysia Company are RM75, 180, 000.00 with profit RM7, 110, 000 .00. These two companies are under the Retail Convenience Store Industry and sales for the industry are RM107, 500, 000, 000.00. From the total sales revenue, it can be seen that FamilyMart Malaysia Company annual sales are higher than 7-Eleven Malaysia Holding Berhad annual sales. Next, the market shares for 7-Eleven Malaysia Holding Berhad Company is 1.6% and market share for FamilyMart Malaysia Company is 7%. After the market share of 7-Eleven Malaysia Holding Berhad Company divided with FamilyMart Malaysia Company produced Relative Market Share of 0.2%. Growth rate in Retail Convenience Store Industry has only 6%. Therefore, 7-Eleven Malaysia Holding Berhad Company is under Question Marks I where the company organization must make the choices that need to be made within the organization. They need to strengthen strategies within the organization such as making penetration through the market, company development in the market, or product development in the market. If not, they will have to sell it to another company organization. 7-Eleven Malaysia Holding Berhad Company can use a variety of ways to penetrate the market including identifying strategic locations and having the facility to attract customers. In addition, companies also need to identify the best methods in producing or marketing products and provide good services at minimal cost. Next, the company also needs to know the type of product that can attract the attention and interest of customers in terms of size, color, shape and how to use. Companies should take advantage of the increasing use of social media to make promotions such as on WhatsApp, Instagram, and Twitter and Facebook applications.
19 4.4 Internal-External (IE) Matrix IE Matrix of 7-Eleven Malaysia Holding Berhad. Business Product Weighted Score External Factor Evaluation Internal Factor Evaluation 7-Eleven Malaysia Holding Berhad 2.94 2.66 Table of amounts related in IE Matrix of 7-Eleven Malaysia Holding Berhad. THE IFE TOTAL WEIGHTED SCORES Strong 3.0 to 4.0 Average 2.0 to 2.99 Weak 1.0 to 1.99 Strong 3.0 to 4.0 Average 2.0 to 2.99 Weak 1.0 to 1.99 THE EFE TOTAL WEIGHTED SCORES 4.0 3.0 2.0 1.0 1.0 2.0 3.0 Region 2 - V
20 The internal-external matrix (IE) is the involvement in the planning of a company division into a schematic diagram and placing the various parts of the organization in a nine-cell display. Overall Internal Factor Evaluation and External Factor Evaluation scores for 7-Eleven Malaysia Holding Berhad in Region 2 - V to hold and maintain strategy which is a market penetration and product expansion are two commonly used strategies for this type of division with Internal Factor Evaluation score of 2.66 and External Factor Evaluation score of 2.94. There are several ways for 7-Eleven Malaysia Holdings Berhad to penetrate the market and product development. First, company need to lower product prices for the purpose of price competition and get more sales volume by increasing the number of products purchased by customers. Second, company can also raise product prices depending on product demand. Third, companies need to have a distribution channel in the relationship between business and intermediaries before goods or services are purchased by consumers. Fourth, the company needs to expand the market to get new customers in maximize the market potential of the company but the company must consider all the risks associated with the decision including its profits. Lastly, the company needs to take care of the product management part because it is very important for high market penetration in the targeted market and by improving the quality of the product then the business can attract and outperform competitors to suit the needs of customers and can generate more sales.
21 5.0 DECISION STAGE 5.1 Quantitative Strategic Planning Matrix (QSPM) TABLE 1: QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM) NO STRATEGIC TOTAL SCORE 1 introducing more ready to eat food 3.43 2 Opening more branch in rural area 2.94 3 Improve new cashless payment service 2.36 4 Improve employees welfare 2.92 5 Upgrading existing technology 3.16 6 Provides a good service at minimal cost 3.73 7 Increasing promotion and advertisement in social media 2.21 8 Improve the product price depending on product demand 3.02 9 Improve the quality of product can attract and outperform competitors 3.15 TABLE 2: TOP THREE OF QUANTITATIVE STRATEGIC PLANNING NO STRATEGIC TOTAL SCORE 1 Provides a good service at minimal cost 3.73 2 Introducing more ready to eat food 3.43 3 Upgrading existing technology 3.16 STRATEGIC ALTERNATIVE 1: INTRODUCING MORE READY TO EAT FOOD KEY FACTOR WEIGHT AS TAS OPPORTUNITIES 1. Increase of e-Wallet payments method growing 45% 0.11 2 0.22 2. Consumer demand for unique ready to eat food product growing 4.0% annually. 0.05 4 0.2 3. Rural areas demand for convenience stores 0.07 1 0.07 4. Consumer demand for loyalty and store app growing 92 % 0.06 - -
22 5. Consumer demand for foreign imported products. 0.06 3 0.18 6. Consumers seeking for more payment service, such as paying their bills, gift cards, and mobile reloads. 0.08 2 0.16 7. New Malaysian government supporting technology integration from stores 0.06 2 0.12 THREATS 1. More convenient stores opening nearby 7 Eleven stores (KK Mart, Speedmart, Family Mart) 0.08 4 0.32 2. Households with income levels below RM 2,000 spent 95% of their income on everyday essentials and those earning below RM 5,000 will have to reduce on household food consumption 0.10 4 0.4 3. Family Mart obtaining more daily revenue around RM 2500 due to ready to eat food product offered to consumers 0.08 3 0.24 4. Other convenient store retailers have loyalty programs up 73% 0.05 1 0.05 5. Competitors are taking viable retail space to expand 0.08 2 0.16 6. Price increase from manufactures, suppliers, and importers of product 0.06 1 0.06 7. Numerous robbery cases, because stores are opened for 24 hours 0.06 1 0.06 TOTAL 1.00 STRENGHT 1. The major business assets in pharmacy industry have four pharmacy outlets. 0.02 - - 2. The culture and work environment is praised by the employees of the company where the supervisor is aware of the situation of the employees and most of the customers are friendly. 0.01 - - 3. Employees in the company benefit from personal insurance. 0.02 1 0.02 4. Caring Pharmacy Group Berhad plans to expand the market in 7-Eleven Malaysia Holdings Berhad covering Penang, Kedah and Perlis. 0.03 4 0.12 5. Provides a licensed and fully operational pharmaceutical business in the Northern Malaysia region with significant consumer needs. 0.08 4 0.32
23 6. Flexible in terms of logistics time and logistics division employees can learning in logistics management, warehousing, how to interact in various levels of positions, participate in management meetings and conduct training. 0.03 - - 7. Encourage personal and professional growth by promote education as they provides tuition reimbursement. 0.02 - - 8. Shares Buy Back by a Company Pursuant to Section 127 (16) of CA 2016 in 7- Eleven Malaysia Holding Berhad. 0.2 - - 9. The company's financial statements show that sales increased on 30 September 2020 from 30 September 2019. 0.12 4 0.48 10. Dealings in the securities during closed period by MIDF Amanah Investment Nominees (Tempatan) Sdn Bhd. 0.03 1 0.03 WEAKNESS 1. The Board does not expect any change in the company's risk as a result of the Proposed Acquisition. 0.02 - - 2. Imperfections in the Proposed Acquisitions and the risk of competition among pharmaceutical industry traders. 0.12 - - 3. Conditions that cause a person to stop being a major shareholder. 0.03 2 0.06 4. Retirement as a major shareholder following the sale of common stock through the open market. 0.01 3 0.03 5. Employees in the company are not given free food every break and have to face every risk when there are not enough staff so they have to work alone at night. 0.03 4 0.12 6. Jobs at the company's outlets require a fit body to carry heavy stocks and this is a risk to women workers. 0.01 1 0.01 7. Sell alcoholic beverages. 0.02 - - 8. The management department also has problems with late payment of employees' salaries and not meeting the due date. 0.2 - - TOTAL 1.00 3.43
24 STRATEGIC ALTERNATIVE 2: OPENING MORE BRANCH IN RURAL AREA KEY FACTOR WEIGHT AS TAS OPPORTUNITIES 1. Increase of e-Wallet payments method growing 45% 0.11 1 0.11 2. Consumer demand for unique ready to eat food product growing 4.0% annually. 0.05 1 0.05 3. Rural areas demand for convenience stores 0.07 4 0.28 4. Consumer demand for loyalty and store app growing 92 % 0.06 - - 5. Consumer demand for foreign imported products. 0.06 3 0.18 6. Consumers seeking for more payment service, such as paying their bills, gift cards, and mobile reloads. 0.08 1 0.08 7. New Malaysian government supporting technology integration from stores 0.06 1 0.06 THREATS 1. More convenient stores opening nearby 7 Eleven stores (KK Mart, Speedmart, Family Mart) 0.08 4 0.32 2. Households with income levels below RM 2,000 spent 95% of their income on everyday essentials and those earning below RM 5,000 will have to reduce on household food consumption 0.10 1 0.10 3. Family Mart obtaining more daily revenue around RM 2500 due to ready to eat food product offered to consumers 0.08 1 0.08 4. Other convenient store retailers have loyalty programs up 73% 0.05 4 0.2 5. Competitors are taking viable retail space to expand 0.08 4 0.32 6. Price increase from manufactures, suppliers, and importers of product 0.06 1 0.06 7. Numerous robbery cases, because stores are opened for 24 hours 0.06 1 0.06 TOTAL 1.00 STRENGHT 1. The major business assets in pharmacy industry have four pharmacy outlets. 0.02 - - 2. The culture and work environment is praised by the employees of the company where the supervisor is aware of the 0.01 - -
25 situation of the employees and most of the customers are friendly. 3. Employees in the company benefit from personal insurance. 0.02 1 0.02 4. Caring Pharmacy Group Berhad plans to expand the market in 7-Eleven Malaysia Holdings Berhad covering Penang, Kedah and Perlis. 0.03 4 0.12 5. Provides a licensed and fully operational pharmaceutical business in the Northern Malaysia region with significant consumer needs. 0.08 4 0.32 6. Flexible in terms of logistics time and logistics division employees can learning in logistics management, warehousing, how to interact in various levels of positions, participate in management meetings and conduct training. 0.03 - - 7. Encourage personal and professional growth by promote education as they provides tuition reimbursement. 0.02 - - 8. Shares Buy Back by a Company Pursuant to Section 127 (16) of CA 2016 in 7- Eleven Malaysia Holding Berhad. 0.2 - - 9. The company's financial statements show that sales increased on 30 September 2020 from 30 September 2019. 0.12 3 0.36 10. Dealings in the securities during closed period by MIDF Amanah Investment Nominees (Tempatan) Sdn Bhd. 0.03 1 0.03 WEAKNESS 1. The Board does not expect any change in the company's risk as a result of the Proposed Acquisition. 0.02 - - 2. Imperfections in the Proposed Acquisitions and the risk of competition among pharmaceutical industry traders. 0.12 - - 3. Conditions that cause a person to stop being a major shareholder. 0.03 1 0.03 4. Retirement as a major shareholder following the sale of common stock through the open market. 0.01 3 0.03 5. Employees in the company are not given free food every break and have to face every risk when there are not enough staff so they have to work alone at night. 0.03 3 0.09
26 6. Jobs at the company's outlets require a fit body to carry heavy stocks and this is a risk to women workers. 0.01 4 0.04 7. Sell alcoholic beverages. 0.02 - - 8. The management department also has problems with late payment of employees' salaries and not meeting the due date. 0.2 - - TOTAL 1.00 2.94 STRATEGIC ALTERNATIVE 3: IMPROVE NEW CASHLESS PAYMENT SERVICE KEY FACTOR WEIGHT AS TAS OPPORTUNITIES 1. Increase of e-Wallet payments method growing 45% 0.11 4 0.44 2. Consumer demand for unique ready to eat food product growing 4.0% annually. 0.05 1 0.05 3. Rural areas demand for convenience stores 0.07 1 0.07 4. Consumer demand for loyalty and store app growing 92 % 0.06 - - 5. Consumer demand for foreign imported products. 0.06 1 0.06 6. Consumers seeking for more payment service, such as paying their bills, gift cards, and mobile reloads. 0.08 4 0.32 7. New Malaysian government supporting technology integration from stores 0.06 3 0.18 THREATS 1. More convenient stores opening nearby 7 Eleven stores (KK Mart, Speedmart, Family Mart) 0.08 1 0.08 2. Households with income levels below RM 2,000 spent 95% of their income on everyday essentials and those earning below RM 5,000 will have to reduce on household food consumption 0.10 1 0.10 3. Family Mart obtaining more daily revenue around RM 2500 due to ready to eat food product offered to consumers 0.08 1 0.08 4. Other convenient store retailers have loyalty programs up 73% 0.05 2 0.1 5. Competitors are taking viable retail space to expand 0.08 1 0.08
27 6. Price increase from manufactures, suppliers, and importers of product 0.06 1 0.06 7. Numerous robbery cases, because stores are opened for 24 hours 0.06 1 0.06 TOTAL 1.00 STRENGHT 1. The major business assets in pharmacy industry have four pharmacy outlets. 0.02 - - 2. The culture and work environment is praised by the employees of the company where the supervisor is aware of the situation of the employees and most of the customers are friendly. 0.01 - - 3. Employees in the company benefit from personal insurance. 0.02 1 0.02 4. Caring Pharmacy Group Berhad plans to expand the market in 7-Eleven Malaysia Holdings Berhad covering Penang, Kedah and Perlis. 0.03 1 0.03 5. Provides a licensed and fully operational pharmaceutical business in the Northern Malaysia region with significant consumer needs. 0.08 2 0.16 6. Flexible in terms of logistics time and logistics division employees can learning in logistics management, warehousing, how to interact in various levels of positions, participate in management meetings and conduct training. 0.03 - - 7. Encourage personal and professional growth by promote education as they provides tuition reimbursement. 0.02 - - 8. Shares Buy Back by a Company Pursuant to Section 127 (16) of CA 2016 in 7- Eleven Malaysia Holding Berhad. 0.2 - - 9. The company's financial statements show that sales increased on 30 September 2020 from 30 September 2019. 0.12 3 0.36 10. Dealings in the securities during closed period by MIDF Amanah Investment Nominees (Tempatan) Sdn Bhd. 0.03 1 0.03 WEAKNESS 1. The Board does not expect any change in the company's risk as a result of the Proposed Acquisition. 0.02 - -
28 2. Imperfections in the Proposed Acquisitions and the risk of competition among pharmaceutical industry traders. 0.12 - - 3. Conditions that cause a person to stop being a major shareholder. 0.03 1 0.03 4. Retirement as a major shareholder following the sale of common stock through the open market. 0.01 1 0.01 5. Employees in the company are not given free food every break and have to face every risk when there are not enough staff so they have to work alone at night. 0.03 1 0.03 6. Jobs at the company's outlets require a fit body to carry heavy stocks and this is a risk to women workers. 0.01 1 0.01 7. Sell alcoholic beverages. 0.02 - - 8. The management department also has problems with late payment of employees' salaries and not meeting the due date. 0.2 - - TOTAL 1.00 2.36 STRATEGIC ALTERNATIVE 4: IMPROVE EMPLOYEES WELFARE KEY FACTOR WEIGHT AS TAS OPPORTUNITIES 1. Increase of e-Wallet payments method growing 45% 0.11 3 0.33 2. Consumer demand for unique ready to eat food product growing 4.0% annually. 0.05 3 0.15 3. Rural areas demand for convenience stores 0.07 1 0.07 4. Consumer demand for loyalty and store app growing 92 % 0.06 - - 5. Consumer demand for foreign imported products. 0.06 3 0.18 6. Consumers seeking for more payment service, such as paying their bills, gift cards, and mobile reloads. 0.08 3 0.24 7. New Malaysian government supporting technology integration from stores 0.06 1 0.06 THREATS 1. More convenient stores opening nearby 7 Eleven stores (KK Mart, Speedmart, Family Mart) 0.08 1 0.08
29 2. Households with income levels below RM 2,000 spent 95% of their income on everyday essentials and those earning below RM 5,000 will have to reduce on household food consumption 0.10 1 0.10 3. Family Mart obtaining more daily revenue around RM 2500 due to ready to eat food product offered to consumers 0.08 1 0.08 4. Other convenient store retailers have loyalty programs up 73% 0.05 4 0.2 5. Competitors are taking viable retail space to expand 0.08 1 0.08 6. Price increase from manufactures, suppliers, and importers of product 0.06 1 0.06 7. Numerous robbery cases, because stores are opened for 24 hours 0.06 1 0.06 TOTAL 1.00 STRENGHT 1. The major business assets in pharmacy industry have four pharmacy outlets. 0.02 - - 2. The culture and work environment is praised by the employees of the company where the supervisor is aware of the situation of the employees and most of the customers are friendly. 0.01 - - 3. Employees in the company benefit from personal insurance. 0.02 4 0.08 4. Caring Pharmacy Group Berhad plans to expand the market in 7-Eleven Malaysia Holdings Berhad covering Penang, Kedah and Perlis. 0.03 4 0.12 5. Provides a licensed and fully operational pharmaceutical business in the Northern Malaysia region with significant consumer needs. 0.08 4 0.32 6. Flexible in terms of logistics time and logistics division employees can learning in logistics management, warehousing, how to interact in various levels of positions, participate in management meetings and conduct training. 0.03 - - 7. Encourage personal and professional growth by promote education as they provides tuition reimbursement. 0.02 - - 8. Shares Buy Back by a Company Pursuant to Section 127 (16) of CA 2016 in 7- Eleven Malaysia Holding Berhad. 0.2 - -
30 9. The company's financial statements show that sales increased on 30 September 2020 from 30 September 2019. 0.12 4 0.48 10. Dealings in the securities during closed period by MIDF Amanah Investment Nominees (Tempatan) Sdn Bhd. 0.03 1 0.03 WEAKNESS 1. The Board does not expect any change in the company's risk as a result of the Proposed Acquisition. 0.02 - - 2. Imperfections in the Proposed Acquisitions and the risk of competition among pharmaceutical industry traders. 0.12 - - 3. Conditions that cause a person to stop being a major shareholder. 0.03 1 0.03 4. Retirement as a major shareholder following the sale of common stock through the open market. 0.01 1 0.01 5. Employees in the company are not given free food every break and have to face every risk when there are not enough staff so they have to work alone at night. 0.03 4 0.12 6. Jobs at the company's outlets require a fit body to carry heavy stocks and this is a risk to women workers. 0.01 4 0.04 7. Sell alcoholic beverages. 0.02 - - 8. The management department also has problems with late payment of employees' salaries and not meeting the due date. 0.2 - - TOTAL 1.00 2.92 STRATEGIC ALTERNATIVE 5: UPGRADING EXISTING TECHNOLOGY KEY FACTOR WEIGHT AS TAS OPPORTUNITIES 1. Increase of e-Wallet payments method growing 45% 0.11 4 0.44 2. Consumer demand for unique ready to eat food product growing 4.0% annually. 0.05 1 0.05 3. Rural areas demand for convenience stores 0.07 1 0.07 4. Consumer demand for loyalty and store app growing 92 % 0.06 - -
31 5. Consumer demand for foreign imported products. 0.06 3 0.18 6. Consumers seeking for more payment service, such as paying their bills, gift cards, and mobile reloads. 0.08 4 0.32 7. New Malaysian government supporting technology integration from stores 0.06 4 0.24 THREATS 1. More convenient stores opening nearby 7 Eleven stores (KK Mart, Speedmart, Family Mart) 0.08 3 0.24 2. Households with income levels below RM 2,000 spent 95% of their income on everyday essentials and those earning below RM 5,000 will have to reduce on household food consumption 0.10 2 0.2 3. Family Mart obtaining more daily revenue around RM 2500 due to ready to eat food product offered to consumers 0.08 1 0.08 4. Other convenient store retailers have loyalty programs up 73% 0.05 4 0.2 5. Competitors are taking viable retail space to expand 0.08 2 0.16 6. Price increase from manufactures, suppliers, and importers of product 0.06 1 0.06 7. Numerous robbery cases, because stores are opened for 24 hours 0.06 3 0.18 TOTAL 1.00 STRENGHT 1. The major business assets in pharmacy industry have four pharmacy outlets. 0.02 - - 2. The culture and work environment is praised by the employees of the company where the supervisor is aware of the situation of the employees and most of the customers are friendly. 0.01 - - 3. Employees in the company benefit from personal insurance. 0.02 1 0.02 4. Caring Pharmacy Group Berhad plans to expand the market in 7-Eleven Malaysia Holdings Berhad covering Penang, Kedah and Perlis. 0.03 3 0.09 5. Provides a licensed and fully operational pharmaceutical business in the Northern Malaysia region with significant consumer needs. 0.08 4 0.32
32 6. Flexible in terms of logistics time and logistics division employees can learning in logistics management, warehousing, how to interact in various levels of positions, participate in management meetings and conduct training. 0.03 - - 7. Encourage personal and professional growth by promote education as they provides tuition reimbursement. 0.02 - - 8. Shares Buy Back by a Company Pursuant to Section 127 (16) of CA 2016 in 7- Eleven Malaysia Holding Berhad. 0.2 - - 9. The company's financial statements show that sales increased on 30 September 2020 from 30 September 2019. 0.12 1 0.12 10. Dealings in the securities during closed period by MIDF Amanah Investment Nominees (Tempatan) Sdn Bhd. 0.03 3 0.09 WEAKNESS 1. The Board does not expect any change in the company's risk as a result of the Proposed Acquisition. 0.02 - - 2. Imperfections in the Proposed Acquisitions and the risk of competition among pharmaceutical industry traders. 0.12 - - 3. Conditions that cause a person to stop being a major shareholder. 0.03 1 0.03 4. Retirement as a major shareholder following the sale of common stock through the open market. 0.01 1 0.01 5. Employees in the company are not given free food every break and have to face every risk when there are not enough staff so they have to work alone at night. 0.03 1 0.03 6. Jobs at the company's outlets require a fit body to carry heavy stocks and this is a risk to women workers. 0.01 3 0.03 7. Sell alcoholic beverages. 0.02 - - 8. The management department also has problems with late payment of employees' salaries and not meeting the due date. 0.2 - - TOTAL 1.00 3.16
33 STRATEGIC ALTERNATIVE 6: PROVIDES A GOOD SERVICE AT MINIMAL COST KEY FACTOR WEIGHT AS TAS OPPORTUNITIES 1. Increase of e-Wallet payments method growing 45% 0.11 3 0.33 2. Consumer demand for unique ready to eat food product growing 4.0% annually. 0.05 2 0.1 3. Rural areas demand for convenience stores 0.07 3 0.21 4. Consumer demand for loyalty and store app growing 92 % 0.06 - - 5. Consumer demand for foreign imported products. 0.06 1 0.06 6. Consumers seeking for more payment service, such as paying their bills, gift cards, and mobile reloads. 0.08 4 0.32 7. New Malaysian government supporting technology integration from stores 0.06 3 0.18 THREATS 1. More convenient stores opening nearby 7 Eleven stores (KK Mart, Speedmart, Family Mart) 0.08 3 0.24 2. Households with income levels below RM 2,000 spent 95% of their income on everyday essentials and those earning below RM 5,000 will have to reduce on household food consumption 0.10 3 0.3 3. Family Mart obtaining more daily revenue around RM 2500 due to ready to eat food product offered to consumers 0.08 2 0.16 4. Other convenient store retailers have loyalty programs up 73% 0.05 3 0.15 5. Competitors are taking viable retail space to expand 0.08 3 0.24 6. Price increase from manufactures, suppliers, and importers of product 0.06 4 0.24 7. Numerous robbery cases, because stores are opened for 24 hours 0.06 1 0.06 TOTAL 1.00 STRENGHT 1. The major business assets in pharmacy industry have four pharmacy outlets. 0.02 - - 2. The culture and work environment is praised by the employees of the company where the supervisor is aware of the 0.01 - -
34 situation of the employees and most of the customers are friendly. 3. Employees in the company benefit from personal insurance. 0.02 1 0.02 4. Caring Pharmacy Group Berhad plans to expand the market in 7-Eleven Malaysia Holdings Berhad covering Penang, Kedah and Perlis. 0.03 4 0.12 5. Provides a licensed and fully operational pharmaceutical business in the Northern Malaysia region with significant consumer needs. 0.08 3 0.24 6. Flexible in terms of logistics time and logistics division employees can learning in logistics management, warehousing, how to interact in various levels of positions, participate in management meetings and conduct training. 0.03 - - 7. Encourage personal and professional growth by promote education as they provides tuition reimbursement. 0.02 - - 8. Shares Buy Back by a Company Pursuant to Section 127 (16) of CA 2016 in 7- Eleven Malaysia Holding Berhad. 0.2 - - 9. The company's financial statements show that sales increased on 30 September 2020 from 30 September 2019. 0.12 4 0.48 10. Dealings in the securities during closed period by MIDF Amanah Investment Nominees (Tempatan) Sdn Bhd. 0.03 3 0.09 WEAKNESS 1. The Board does not expect any change in the company's risk as a result of the Proposed Acquisition. 0.02 - - 2. Imperfections in the Proposed Acquisitions and the risk of competition among pharmaceutical industry traders. 0.12 - - 3. Conditions that cause a person to stop being a major shareholder. 0.03 3 0.09 4. Retirement as a major shareholder following the sale of common stock through the open market. 0.01 3 0.03 5. Employees in the company are not given free food every break and have to face every risk when there are not enough staff so they have to work alone at night. 0.03 2 0.06
35 6. Jobs at the company's outlets require a fit body to carry heavy stocks and this is a risk to women workers. 0.01 1 0.01 7. Sell alcoholic beverages. 0.02 - - 8. The management department also has problems with late payment of employees' salaries and not meeting the due date. 0.2 - - TOTAL 1.00 3.73 STRATEGIC ALTERNATIVE 7: INCREASING PROMOTION AND ADVERTISEMENT IN SOCIAL MEDIA KEY FACTOR WEIGHT AS TAS OPPORTUNITIES 1. Increase of e-Wallet payments method growing 45% 0.11 2 0.22 2. Consumer demand for unique ready to eat food product growing 4.0% annually. 0.05 2 0.1 3. Rural areas demand for convenience stores 0.07 2 0.14 4. Consumer demand for loyalty and store app growing 92 % 0.06 - - 5. Consumer demand for foreign imported products. 0.06 2 0.12 6. Consumers seeking for more payment service, such as paying their bills, gift cards, and mobile reloads. 0.08 2 0.16 7. New Malaysian government supporting technology integration from stores 0.06 3 0.18 THREATS 1. More convenient stores opening nearby 7 Eleven stores (KK Mart, Speedmart, Family Mart) 0.08 2 0.16 2. Households with income levels below RM 2,000 spent 95% of their income on everyday essentials and those earning below RM 5,000 will have to reduce on household food consumption 0.10 1 0.1 3. Family Mart obtaining more daily revenue around RM 2500 due to ready to eat food product offered to consumers 0.08 1 0.08 4. Other convenient store retailers have loyalty programs up 73% 0.05 2 0.1
36 5. Competitors are taking viable retail space to expand 0.08 1 0.08 6. Price increase from manufactures, suppliers, and importers of product 0.06 1 0.06 7. Numerous robbery cases, because stores are opened for 24 hours 0.06 1 0.06 TOTAL 1.00 STRENGHT 1. The major business assets in pharmacy industry have four pharmacy outlets. 0.02 - - 2. The culture and work environment is praised by the employees of the company where the supervisor is aware of the situation of the employees and most of the customers are friendly. 0.01 - - 3. Employees in the company benefit from personal insurance. 0.02 1 0.02 4. Caring Pharmacy Group Berhad plans to expand the market in 7-Eleven Malaysia Holdings Berhad covering Penang, Kedah and Perlis. 0.03 3 0.09 5. Provides a licensed and fully operational pharmaceutical business in the Northern Malaysia region with significant consumer needs. 0.08 2 0.16 6. Flexible in terms of logistics time and logistics division employees can learning in logistics management, warehousing, how to interact in various levels of positions, participate in management meetings and conduct training. 0.03 - - 7. Encourage personal and professional growth by promote education as they provides tuition reimbursement. 0.02 - - 8. Shares Buy Back by a Company Pursuant to Section 127 (16) of CA 2016 in 7- Eleven Malaysia Holding Berhad. 0.2 - - 9. The company's financial statements show that sales increased on 30 September 2020 from 30 September 2019. 0.12 2 0.24 10. Dealings in the securities during closed period by MIDF Amanah Investment Nominees (Tempatan) Sdn Bhd. 0.03 1 0.03 WEAKNESS 1. The Board does not expect any change in the company's risk as a result of the Proposed Acquisition. 0.02 - -
37 2. Imperfections in the Proposed Acquisitions and the risk of competition among pharmaceutical industry traders. 0.12 - - 3. Conditions that cause a person to stop being a major shareholder. 0.03 2 0.06 4. Retirement as a major shareholder following the sale of common stock through the open market. 0.01 1 0.01 5. Employees in the company are not given free food every break and have to face every risk when there are not enough staff so they have to work alone at night. 0.03 1 0.03 6. Jobs at the company's outlets require a fit body to carry heavy stocks and this is a risk to women workers. 0.01 1 0.01 7. Sell alcoholic beverages. 0.02 - - 8. The management department also has problems with late payment of employees' salaries and not meeting the due date. 0.2 - - TOTAL 1.00 2.21 STRATEGIC ALTERNATIVE 8: IMPROVE THE PRODUCT PRICE DEPENDING ON PRODUCT DEMAND KEY FACTOR WEIGHT AS TAS OPPORTUNITIES 1. Increase of e-Wallet payments method growing 45% 0.11 4 0.44 2. Consumer demand for unique ready to eat food product growing 4.0% annually. 0.05 4 0.2 3. Rural areas demand for convenience stores 0.07 3 0.21 4. Consumer demand for loyalty and store app growing 92 % 0.06 - - 5. Consumer demand for foreign imported products. 0.06 4 0.24 6. Consumers seeking for more payment service, such as paying their bills, gift cards, and mobile reloads. 0.08 3 0.24 7. New Malaysian government supporting technology integration from stores 0.06 2 0.12 THREATS
38 1. More convenient stores opening nearby 7 Eleven stores (KK Mart, Speedmart, Family Mart) 0.08 2 0.16 2. Households with income levels below RM 2,000 spent 95% of their income on everyday essentials and those earning below RM 5,000 will have to reduce on household food consumption 0.10 1 0.1 3. Family Mart obtaining more daily revenue around RM 2500 due to ready to eat food product offered to consumers 0.08 2 0.16 4. Other convenient store retailers have loyalty programs up 73% 0.05 2 0.1 5. Competitors are taking viable retail space to expand 0.08 1 0.08 6. Price increase from manufactures, suppliers, and importers of product 0.06 2 0.12 7. Numerous robbery cases, because stores are opened for 24 hours 0.06 1 0.06 TOTAL 1.00 STRENGHT 1. The major business assets in pharmacy industry have four pharmacy outlets. 0.02 - - 2. The culture and work environment is praised by the employees of the company where the supervisor is aware of the situation of the employees and most of the customers are friendly. 0.01 - - 3. Employees in the company benefit from personal insurance. 0.02 1 0.02 4. Caring Pharmacy Group Berhad plans to expand the market in 7-Eleven Malaysia Holdings Berhad covering Penang, Kedah and Perlis. 0.03 2 0.06 5. Provides a licensed and fully operational pharmaceutical business in the Northern Malaysia region with significant consumer needs. 0.08 3 0.24 6. Flexible in terms of logistics time and logistics division employees can learning in logistics management, warehousing, how to interact in various levels of positions, participate in management meetings and conduct training. 0.03 - - 7. Encourage personal and professional growth by promote education as they provides tuition reimbursement. 0.02 - -
39 8. Shares Buy Back by a Company Pursuant to Section 127 (16) of CA 2016 in 7- Eleven Malaysia Holding Berhad. 0.2 - - 9. The company's financial statements show that sales increased on 30 September 2020 from 30 September 2019. 0.12 3 0.36 10. Dealings in the securities during closed period by MIDF Amanah Investment Nominees (Tempatan) Sdn Bhd. 0.03 1 0.03 WEAKNESS 1. The Board does not expect any change in the company's risk as a result of the Proposed Acquisition. 0.02 - - 2. Imperfections in the Proposed Acquisitions and the risk of competition among pharmaceutical industry traders. 0.12 - - 3. Conditions that cause a person to stop being a major shareholder. 0.03 1 0.03 4. Retirement as a major shareholder following the sale of common stock through the open market. 0.01 1 0.01 5. Employees in the company are not given free food every break and have to face every risk when there are not enough staff so they have to work alone at night. 0.03 1 0.03 6. Jobs at the company's outlets require a fit body to carry heavy stocks and this is a risk to women workers. 0.01 1 0.01 7. Sell alcoholic beverages. 0.02 - - 8. The management department also has problems with late payment of employees' salaries and not meeting the due date. 0.2 - - TOTAL 1.00 3.02 STRATEGIC ALTERNATIVE 9: IMPROVE THE QUALITY OF PRODUCT CAN ATTRACTAND OUT PERFORM COMPETITORS KEY FACTOR WEIGHT AS TAS OPPORTUNITIES 1. Increase of e-Wallet payments method growing 45% 0.11 3 0.33 2. Consumer demand for unique ready to eat food product growing 4.0% annually. 0.05 3 0.15
40 3. Rural areas demand for convenience stores 0.07 2 0.14 4. Consumer demand for loyalty and store app growing 92 % 0.06 - - 5. Consumer demand for foreign imported products. 0.06 1 0.06 6. Consumers seeking for more payment service, such as paying their bills, gift cards, and mobile reloads. 0.08 4 0.32 7. New Malaysian government supporting technology integration from stores 0.06 3 0.18 THREATS 1. More convenient stores opening nearby 7 Eleven stores (KK Mart, Speedmart, Family Mart) 0.08 3 0.24 2. Households with income levels below RM 2,000 spent 95% of their income on everyday essentials and those earning below RM 5,000 will have to reduce on household food consumption 0.10 1 0.1 3. Family Mart obtaining more daily revenue around RM 2500 due to ready to eat food product offered to consumers 0.08 3 0.24 4. Other convenient store retailers have loyalty programs up 73% 0.05 3 0.15 5. Competitors are taking viable retail space to expand 0.08 3 0.24 6. Price increase from manufactures, suppliers, and importers of product 0.06 4 0.24 7. Numerous robbery cases, because stores are opened for 24 hours 0.06 1 0.06 TOTAL 1.00 STRENGHT 1. The major business assets in pharmacy industry have four pharmacy outlets. 0.02 - - 2. The culture and work environment is praised by the employees of the company where the supervisor is aware of the situation of the employees and most of the customers are friendly. 0.01 - - 3. Employees in the company benefit from personal insurance. 0.02 1 0.02 4. Caring Pharmacy Group Berhad plans to expand the market in 7-Eleven Malaysia Holdings Berhad covering Penang, Kedah and Perlis. 0.03 3 0.09
41 5. Provides a licensed and fully operational pharmaceutical business in the Northern Malaysia region with significant consumer needs. 0.08 3 0.24 6. Flexible in terms of logistics time and logistics division employees can learning in logistics management, warehousing, how to interact in various levels of positions, participate in management meetings and conduct training. 0.03 - - 7. Encourage personal and professional growth by promote education as they provides tuition reimbursement. 0.02 - - 8. Shares Buy Back by a Company Pursuant to Section 127 (16) of CA 2016 in 7- Eleven Malaysia Holding Berhad. 0.2 - - 9. The company's financial statements show that sales increased on 30 September 2020 from 30 September 2019. 0.12 2 0.24 10. Dealings in the securities during closed period by MIDF Amanah Investment Nominees (Tempatan) Sdn Bhd. 0.03 1 0.03 WEAKNESS 1. The Board does not expect any change in the company's risk as a result of the Proposed Acquisition. 0.02 - - 2. Imperfections in the Proposed Acquisitions and the risk of competition among pharmaceutical industry traders. 0.12 - - 3. Conditions that cause a person to stop being a major shareholder. 0.03 1 0.03 4. Retirement as a major shareholder following the sale of common stock through the open market. 0.01 1 0.01 5. Employees in the company are not given free food every break and have to face every risk when there are not enough staff so they have to work alone at night. 0.03 1 0.03 6. Jobs at the company's outlets require a fit body to carry heavy stocks and this is a risk to women workers. 0.01 1 0.01 7. Sell alcoholic beverages. 0.02 - - 8. The management department also has problems with late payment of employees' salaries and not meeting the due date. 0.2 - - TOTAL 1.00 3.15
42 QSPM is designed to determine the possible actions that a company can take to improve its overall position. (David, 2009). Information from the input and matching stages should be considered when determining nine potential alternatives. The results show that there are Nine quantitative strategy planning after gathering information to determine the current state of the organization. As we can see in table 1, each strategy gets their own score. The score is to provide information for organizations in choosing the best strategy for their company. Further, referring to table 2, this table is the specific strategies of the Nine strategies that should be given the organization has a clear view for them to choose the best of the best strategies above. Table 2 shows that the first strategy is Provides a good service at minimal cost. This strategy has the highest score value of 3.73 compared to other strategies. The second higher score is the Introducing more ready to eat food strategy which has a score value of 3.43 while the third strategy is Upgrading existing technology. The score is 3.16 which is a higher final score when compared to the nine strategic. Therefore, it is best to say that this three strategic is the best strategy for 7-Eleven. 6.0 RECOMMENDATION STRATEGIC There are several recommendation strategies to be pursued for sustainable management and operations that should be implemented for the company. As the market share strategy enhances, 7-Eleven needs to implemented their market activities such as involving of market segmentation, market expansion, strategic marketing, using of social media platform to market the product, and making changes in company policy management based on Islamic compliance. Strategies that need to be implemented more sustainably in the 7-Eleven market is intensive strategies. This intensive strategy requires proactive efforts to make the company's position more competitive with existing products in the market. 7-Eleven also can even improve all existing shortcomings in order to improve a stronger market pattern in the future in order to compete with other market competitors (Fred R. David, 2017). Product Development Product development is a process that involves the involvement of the company in identifying the required needs and being the focus of the consumers in the market. In identifying targeted goods to consumers, companies need to upgrade the company's innovation towards the process of further developing products in their own company's market in order to meet the needs and wants of consumers. To expand the product range, companies need to use the methods and strategies of the product life
43 cycle framework. The product life cycle framework refers to all products manufactured by a company that involve life cycles based on varying levels of sales and profits. Every company that conducts marketing activities especially should know to find a suitable marketing strategy in developing their new products. They should also be smart in managing the product development process produced and be able to cope with all the changes in tastes, technology, and competition that exist. Competitive conditions are an important factor in business activities between competitors. It also affects the length of the height and life cycle curve of the product and how long it takes for a product to be well received by consumers and can last a long time in the product marketing framework. From this strategy managers can make an assessment of useful methods to see the level of competitiveness of a product of goods produced by them (Kuka, 2018). For example, managers at 7-Eleven should use this product development strategy in further increasing the sales and marketing profits generated by their company. 7-Eleven managers need to act in producing a new product that is capable of replacing their old products that are increasingly experiencing a declining level of product life cycle. As another example, 7-Eleven’s management and operations should also provide promotions by commercializing limited items of their products that are only released during certain periods such as ready-to-eat food sets. Each set of meals will only be available at breakfast, lunch, afternoon tea, and dinner with reasonable price quantity and quality. From here, customers will feel that they need to seize the opportunity to taste each set of food provided by 7-Eleven at a set time. If the production of ready -to -eat food products can remain in the market for a long time, it will lead to increased sales profits of the company and also be able to make the expansion of products produced comparable to its nearest competitor, Family Mart. So that, management in 7-Eleven can learn and find out about how to manage a new product of their release. Last but not least, 7-Eleven also need to optimize and ensure that their output can move from one level to the next in line with the output of their nearest competitors. Market Segmentation Market segmentation refers to a very important strategy in developing marketing programs and activities. By implementing this market segmentation, it is hoped that marketing efforts can be achieved to achieve the company's goals efficiently and effectively. Market segmentation is divided into several different parts.
44 These include geographical segmentation, demographic segmentation, psychographic segmentation, and behavioral segmentation (Yossie Rossanty, 2018). 7-Eleven is a convenience store that operates 24 hours a day. 7-Eleven has their main objective in meeting the needs and wants of each of its customers. Inside 7-Eleven, a wide selection of product types has been provided. These include of foodbased products, beverages, magazines and so on. 7-Eleven needs to maintain a system that provides convenience to its customers so that they can become one of the affordable department stores provide convenience from various types of products that are the choice of consumers. In order to have a convenience store that is competitive with other management and operations, competitors conducted within 7-Eleven must divide their market activities according to the geographical and demographic characteristics of consumers in area that they have been chosen. As an improvement, 7-Eleven needs to open and add more of their branches in rural areas. This is because most areas such as rural areas do not have many convenience stores operating and running. In addition, the management and operations of 7-Eleven need to assess the importance and needs of the management of their convenience store based on the demographics of users which include the characteristics of age, religion, and level of consumer income. This is able to give the management and operations of 7-Eleven in identifying their target users before making a final decision in opening a new branch to a new place. 7-Eleven also needs to act by targeting specific segments of the Malaysian market by identifying and analyzing the patterns and lifestyles that are the needs of its users. Management and operations within 7-Eleven also need to expand their market segment by furthering the introduction of ready-to-eat food. 7-Eleven should also target their targets to ready-made foods that are easily available and eaten either in the store itself or can be eaten anywhere according to the convenience of its users. Every finished food should be fresh food and able to attract consumers. The main focus should be given to young consumers between the ages of 15-30 years and above because these groups are more favored and interested in ready-made food that facilitates and saves their time. Therefore, it is very important for the management and operation of 7-Eleven to monitor and identify in advance in introducing their products to consumers based on the geographical and demographic features of a particular area focus. With detailed analysis through the analysis of geographical areas and consumer demographics, it is
45 able to make the management and operations of 7-Eleven able to compete with other external markets that offer similar product offerings such as Family Mart. Market Expansion There are various different terms used in describing the meaning of market expansion. Market expansion refers to the choice of strategies used in an enterprise in growing its business to be more advanced. There are also other opinions that say, this market expansion is a strategy used in a business firms to increase their market growth. In general, the expansion of this market is associated with growth in market share involving domestic business transactions and its penetration which also involves foreign markets (Lazaro Quimi, 2012). In management and operations, 7-Eleven needs to ensure that every product they produce is homogeneous in which all products are able to provide satisfaction to each of its users. In general, it can be clearly seen that the management and operations of 7- Eleven have had great success in several developed countries such as Japan, Thailand and Taiwan. However, some establishments established in most Asian countries such as Malaysia itself are still relatively slow in terms of development and business processes compared to businesses such as Family Mart which offers similar products to consumers. Therefore, it would be great if 7-Eleven further expanded their market everywhere based on the suitability of the economic and cultural environment in each country. In pursuit of the ever-changing market diversification, the management and operations of 7-Eleven should be more focused on service quality service in order to meet the demands and wants of customers. Therefore, 7-Eleven needs to act like other competitors in order to be a company that can conduct its marketing globally more widely. Strategic Marketing In order to implement the marketing strategy reform in the company, every change from the reform must be made the main focus in the company. This is intended for companies to be more sensitive in formulating better marketing strategies based on observations made on each change over the time. With the introduction of readymade food, 7-Eleven is able to increase and stabilize their daily income. This, also makes 7-Eleven strive to be one of the competitors that can compete with their other rivals are like Family Mart.
46 To be strategic marketing, 7-Eleven needs to act by creating new promotions for each product released using the various methods and alternatives available to further increase their sales volume. Operational management for 7-Eleven needs to make their changes by advertising the unique features of the product items available in their store. For example, 7-Eleven further strengthens the promotion of new products such as SLURPEE water. The unique strategic marketing of the sale of SLURPEE water needs to be highlighted to the general public about the advantages and uniqueness contained in it so that buyers feel more interested in buying a product. Good product appearance and quality can increase the total number of buyers to try new products produced by the company. Using Of Social Media Platform To Market The Product Most department store retail and marketing businesses are not involved in marketing activities on social media. If we seen nowadays, social media is one of the contributors to increase the marketing activities. Like 7-Eleven, they need to further strengthen their marketing business using social media by providing their main website platform to facilitate customers in making a survey first before making a purchase on a product of their choice. With this social media facility as well, 7-Eleven is also able to advertise new products and make more extensive promotions on the products and promotions provided by them. 7-Eleven needs to make the most of the strength and presence of the media available now as well as the viral capabilities of social media can make customers remember every product that is only available in department stores. For example, when 7-Eleven wants to create marketing by introducing ready-to-eat food, they need to take the initiative by engaging in the field of viral marketing. Through such marketing, can raise and introduce more widely about the 7-Eleven brand. In addition, with this kind of marketing, 7-Eleven is able to receive support and build trust in its users on the products of their company. Therefore, 7-Eleven can further strengthen their brand and be known everywhere. Making Change in Policy Management Based on Islamic Compliance Every company, especially those who carry out marketing activities, they desperately need a new change for improvement in the marketing operations management that is carried out same goes to the policy management in their company. 7-Eleven needs to make a change in terms of marketing food products produced by them. In ensuring that the products from 7-Eleven can also be used by Muslim consumers, some management policies need to be changed.
47 The management of 7-Eleven operations needs to obtain a valid halal certificate as prescribed by the Suruhanjaya Syarikat Malaysia (SSM) in order to convince its users that every product produced by them is quality, fresh, and most importantly safe for consumers from Islam. For example, every management of the handling and preparation of food products produced should be done properly and should ensure that the surrounding area is also in a clean condition. Every employee who manages the food product division needs to get a Typhoid Immunization Injection before handling food so that consumers will feel more confident to buy each product from their company. Based on the policies, standards and strategies to be implemented by 7- Eleven, they need to be prepared in introducing more new products especially in the production of ready-to-eat food products. With the marketing of ready-to-eat food this will make 7-Eleven become more competitive and can be like other department stores like Family Mart. In addition, 7-Eleven needs to prioritize their food products according to Islamic compliance so that consumers do not feel hesitant to continue to buy products from them. To strengthen their own brand, 7-Eleven needs to improve their management system by producing each item with the provision of a halal logo for each product. For example, the marketing of products such as instant nasi lemak, various types of cakes, etc. can be marketed and distributed to various other types of stores. This, is able to make the brand from 7-Eleven more known and favored by many consumers because its products are safe to use by various walks of life. So, 7-Eleven needs to implement standard operating procedures related to proper handling in order to ensure their products meet the requirements of halal standards that can be used comfortably by every user. 7.0 CONCLUSION In conclusion, here it can be seen that 7-Eleven is a very stable convenience store and 7-Eleven Malaysia has achieved success in the field of retail and has been a well-known icon for more than 28 years. This can be proved by looking at the development of this company today. If you look at the current 7-Eleven company has proven its progress by expanding its stores nationwide and currently has over 2411 stores throughout Malaysia. This is a very impressive achievement for the 7-Eleven department store. They expanded the company by opening up opportunities to the local community as a franchise partner with 7-Eleven. This has a positive impact on