7-11 SOM Study - Final
Group 1
LRSP - 433
March 3, 2010
Pledged 3/3/2010
Table of Contents
Background 2-3
Problem Statement 4
Scope 5
Service Design and Characteristics 6
Service Analysis and Selection 7-8
Sales Production & Forecasting 9-11
Breakeven Analysis 12-13
Capacity Management (includes Decision Tree) 14-15
Inventory Management and Materials Requirements 16
Logistics and Supply Chain Management 17
Quality Management and Implementation 18-19
Prototype Design 20-21
Conclusions & Recommendations 22
References 23
Appendices - Tables/Figures/Graphs 24
Background
Extensive research into 7 Eleven’s
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USE was expanded to include field consultants and market managers and today it gives franchisees, store managers and employees a chance to see and taste new products for upcoming seasons that are intended to address the changing preferences of customers. The merchandising plan for seasonal and high-potential new products is also shared. The centerpiece of the USE is the virtual 7-Eleven store, actual size 7-Eleven floor plans are built to show how seasonal products are assimilated into the standard store mix (7-Eleven About Us, 2010). For future reference, this capability should be the tool whereby the adjustments necessary to accommodate a drive thru capability are visualized and ultimately realized.
For perspective, as of January 2010, 7-Eleven, Inc. had earned the No. 3 spot on Entrepreneur magazine annual Franchise 500, which ranks top franchise opportunities in the U.S. An obviously healthy organization, this is 7-Eleven's 17th year to break into the top 10 (7-Eleven Inc, 2010).
Problem Statement
A major element of 7-11’s success is its focus on convenience. By staying open 24 hours a day and offering quick and easy pre-made food items, customers are able to make a speedy stop at the store at any point during the day. 7-11 continues to add to its selection of food items to better compete with fast food restaurants and other
Thousands of activities are performed and coordinated within an organization, and every company at least one supply chain relationship with another organization. Research has led to the conclusion that "the structure of activities within and between companies is a critical cornerstone of creating unique and superior supply chain performance" (Lambert, 2005). Successful supply chain management requires integrating business processes with key members of the supply chain, because valuable resources are wasted when supply chains are not effectively managed. Standard business processes enable managers from different organizations in the supply chain to use a common language and link-up their organizations' processes with other members of the
Chick-fil-A is one of the most successful fast food restaurant establishments in the country. With over 1,300 locations in 37 states in the Southern U.S., they continue to grow the brand by expanding to new territories (Chick-fil-A Company, 2009, para 1). In 2008 Chick-fil-A has seen a 12.17 percent sales increase over the chain’s 2007 performance and a same store sale increase of 4.59 percent (Chick-fil-A Company, 2009, para1). Throughout the years Chick-fil-A has come up with many innovative ideas to continue expanding business and satisfying their loyal customers. One of the ideas was to offer different types of restaurant set-ups to cater to customer’s needs. The different restaurant set-ups include mall/in
Reorders are placed at the time of review (T), and the safety stock that must be reordered is:
In order for IKEA to achieve design and sustainability objectives, they follow and balance four dimensions of design. The four different dimensions followed are form, function, quality, sustainability, and low price (Rafiq Elmansy, 2014). IKEA has already made changes by using cotton and water from sources that can be renewed. IKEA did this while posting strong sales figures. In 2014, its sales increased 5.9 percent from 2013 to $32.1 billion (Pantsios, 2015).
Organization is demonstrated through the planning process itself. After observing that people are more likely to try new things while on vacation, the company set out to enable customers to be able to try new things in stores. Trader Joe’s was successful in organizing and devising a plan in which it could incorporate the sampling of new products that will consequently broaden sales for sampled items. Also, they have effective systems for training purposes in place, which are used to effectively train their
You have asked for a unique approach to this project. We at Talking Quick Consultants are pleased you have chosen our firm and we are happy to provide the following feedback and observations from a “customer” perspective as requested. Our team took the time to visit one each of the requested fast food establishments, Moe’s Southwest Grill (a Focus Brands group establishment) and Panera Bread Company. For each one we have provided a Part I and a Part II breakdown of our observations. To get us started the explanation of the observation criteria is explained as follows:
Tasting Freeze is the local ice-cream store in Edgeley, North Dakota. I think this business has a marketing plan because it is a seasonal store. They only open in summer, they know that there is no one going to have ice-cream in winter. I think to know what are the local customers habits are the most important for this business. In summer, they do won't open when it rains or when the temperature is below 60F. They know there won't be any customers go their store for ice-cream on that day. Those people would like to sit at home and watch TV with the heater. This will cause to the financial loss if they open in those condition. In order to prevent financial loss, Tasting Freeze also buying the dairy almost out of date from the grocery store.
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- Consumer tastes are changing and are constantly on a lookout for something new and interesting. Therefore, making changes to their menu in accordance with trends and fashion will encourage the consumers to return. - Drive through restaurants and highway restaurants can be very helpful fro the company in the long term. Threats -
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