Introduction
Seven & I Holdings is a Japanese diversified retail chain with its head office located within Tokyo, Japan (Seven & I Holdings, 2013). Established originally during the year 1920 as Ito-Yokado, the company is now considered as the fifth leading retailer globally, with around 35,000 outlets in around 100 distinct nations. Seven & I Holdings was set up in 2005 like the parent corporation of the 7-Eleven Japan network of convenience outlets, the Ito-Yokado clothing and grocery outlets as well as the Denny's Japan family hotels. In December 2005, the corporation declared its acquirement of Millennium Retailing holding corporation, parent of the Seibu and Sogo Department outlets chains (Seven & I Holdings, 2013). This acquirement makes the company the biggest retailing and distribution business within Japan. In the year 2012, Seven & I, via its 7-Eleven subsidiaries got hold of around 23 convenience outlets from Strasburger Enterprises within the United States (Seven & I Holdings, 2013).
Seven & I Holdings is basically a Japan-based holding corporation. The firm functions within six business sectors (Seven & I Holdings, 2013). Firstly, the Convenience Store sector runs convenience outlets under the label 7-Eleven via franchising and direct operation. Secondly, the Super Store sector runs general supermarkets, specialty outlets and food supermarkets. Thirdly, the Department Store sector manages department outlets with an emphasis on Seibu. Fourthly, the Food Service sector is involved in the restaurant operations, the fast food operations and the contract food operations. Fifth, the Financial-related sector is involved in credit card, banking service and lastly, electronic money facilities. The last sector is involved in the IT (information technology) business.
Moving ahead, the vision of Seven & I Holdings is to be the most excellent convenience retailer (Seven & I Holdings, 2013). Being the paramount at what it does implies that every staff member holds an opportunity to brighten somebody’s day and make existence a less simple, whether it’s provision with a smile within the outlet or making sure that the company has the freshest items available and all the day. Further, the mission of Seven & I Holdings is concentrated not only on what it offers or how much it offers, but instead on the experience of the customer and the way that could influence a person’s day. The mission and purpose of the company is to make life a less easy for its customers by being wherever they require them, whenever they require (Seven & I Holdings, 2013).
PEST Analysis
PEST Analysis refers to the environmental impacts on a company or business (Dess et. al., 2006). PEST stands for Political, Economic, Social and Technological factors. Further, the continuing sections provide PEST Analysis of Seven & I Holdings.
- Political Factors
The political factors affecting a business or a company involve government regulations, labour law, tax policy, trade restrictions, environmental law, political stability and tariffs (Mathur and Kenyon, 1998). The decisions of Seven & I Holdings are greatly influenced by developments within the political or legal atmosphere. The atmosphere includes regulations, government entities as well as pressure groups which impact all operations of the corporation. The regulations having impact on the retail operations of Seven & I Holdings have steadily incremented with passing years. The company needs to have a good knowledge about the major regulations protecting customers and the wider society (Whetten, 1997).
- Economic Factors
The economic factors take in interest rates, economic growth, inflation and exchange rates (Dess et. al., 2006). These forces hold a key affect on the way companies function and form decisions (Mathur and Kenyon, 1998). Economic forces are of concern to Seven & I Holdings, since they are expected to impact demand, prices, costs and profits. One among the highly influential forces on the economy is undoubtedly high unemployment rates that decreases the efficient demand for several products, unfavourably impacting the demand needed to manufacture these products. Further, these economic forces are greatly outside the company’s control, but their impact on the performance as well as the marketing mix could be intense.
- Socio-cultural Factors
These factors take in cultural and demographic facets of the external macro-environment. These forces have an impact on the consumers’ needs as well as the size of potential sector (Dess et. al., 2006). Few social forces take in population growth rate, health consciousness, age distribution, emphasis on safety and career attitudes. The social factors can have a profound impact on Seven & I Holdings. The kind of services and products demanded by the customers is considered as being a function of their social condition along with their resulting beliefs and attitudes. Customers are turning out to be highly conscious about health concerns and their outlook towards food items is constantly altering (Hoyer, et.al., 2012). Further, demographic changes like the aging populace, a rise in female employees as well as a decline in meals prepared at home implies that retailers like Seven & I Holdings need to focus on added-value services and goods.
- Technological Factors
Technological factors could lower down the entry barriers, trim down the minimum effective manufacturing levels and affect outsourcing decisions (Mathur and Kenyon, 1998). Some technological forces affecting companies include automation, R&D activity, level of technological change and technology incentives (Middleton, 2003). Technology is observed as being an important macro-environmental factor that greatly influences the development of several products at Seven & I Holdings. The new techniques benefit both consumers as well as the company. Consumer satisfaction increases when products are easily available, services could become more personalised as well as shopping more expedient (Kotler, 2000).
Conclusion
References:
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