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Expanding the brand through acquisition
This Case Study investigates how 7-Eleven Australia managed the acquisition of 295 Mobil/Quix branded stores. It examines how 7-Eleven Australia developed strategies to effectively manage the complex integration of two business operations as part of a change management process. It also evaluates the ongoing success of this strategic change, with particular reference to the process of store conversions.
As a result of reading this Case Study, students should be able to:
- Describe the acquisition undertaken by 7-Eleven Australia in response to pressures and opportunities for change
- Explain the activities undertaken by 7-Eleven Australia to integrate the two business operations with reference to a change management process
- Evaluate the success of the acquisition and store conversions program.
7-Eleven is Australia’s leading convenience retailer operating more than 650 stores along the eastern seaboard of Australia. As a privately-owned Australian company, 7-Eleven Stores Pty Ltd develops and franchises stores under license from 7-Eleven Inc, USA.
The commercial world is a dynamic and evolving environment. Structural change refers to longer-term change that fundamentally alters the major structures and activities of an organisation thereby impacting on all internal and external stakeholders.
It is vital that organisations anticipate the effect that change will have on stakeholders and work processes so they can plan appropriately to manage problems and reinforce positive outcomes brought about by change.
A key part of the acquisition was the rebranding of the Mobil/Quix stores. 7-Eleven has invested heavily in its brand, signage, promotional materials, store layout and other identifying features and needed to convert its new stores not only to its operational system, but also to the 7-Eleven look.
To reinforce the integration 7-Eleven Australia had to train new franchisees in the company’s systems and processes. One of the advantages of having existing franchisees take up another store was that they required less training. Conclusion
7-Eleven Australia has embarked upon an ambitious but well-managed expansion through horizontal acquisition.