Marketing

Management
Group# 1

Project Report of Organizational

Behavior
Submitted to: Sir. Abdullah Khar
Submitted by: Group# 6
Qurat ul ain
(120131)
Noshaba Nargis
(1201302
Sidra Shafqat
(120139)
Mina Ali (120154)
Syed Muhammad Awais
(120152)

Shakeeb Faheem
(120157)
Numeera Yousaf(120167)

Seven eleven

introduction
7-Eleven branded stores under parent company Seven & I Holdings Co.. The
stores are located in 16 countries with its largest markets being Japan (15,000),
the United States (8,200), Thailand (6,800), Indonesia, Canada, the Philippines,
Hong Kong, Taiwan, and Malaysia.

Top Honors
7-Eleven has been honored by numerous companies and organizations
Throughout its 86 years in business. Recent 7-Eleven accolades include:

No. 1 on the CNN TRAVEL International staffers list of favorite chains in the
World for travelers.
No. 1 on Entrepreneur magazine's "Top Global Franchises" list for 2013
No. 3 on Fast Company's "World's Top 10 Most Innovative Companies in Retail"
for 2013
No. 4 on Entrepreneur magazine's "Top 10 Franchises" for 2013
America's Best Franchises ranks 7-Eleven in the Top 50 of its 2013 Franchise
500
No. 1 in Store Growth by Convenience Store News for 2012
No. 2 on Forbes magazine" for 2012 and ranks no. 3 in brand awareness and
no. 6 in
longevity among top franchises
No. 4 among Top 100 Global Franchises by Franchise Direct for 2012
No. 12 among Top 75 Retailers & Wholesalers by Supermarket News for 2012
NEs "Top Franchise for the Money" for 2012
Forbes magazine rates Slurpee Lite frozen drink as one of nine products that
triumphed in 2012

No. 2 on All Business "Top 5 Franchises

Advertising and Marketing Campaigns That Connect

7-Eleven is one of the best known brands in the world, in part because it pursues
timely, innovative and attention-grabbing advertising campaigns that connect with core
customers and keep them coming back into the stores.
National Marketing and Advertising Initiatives
7-Eleven doesnt only drive sales with TV and radio spots, billboards, websites
and PR. Check out the Advertising Gallery below!
Local Marketing Support
7-Eleven provides a full range of local marketing support services and materials so that
franchisees can get the word out about store products and promotions efficiently:
Grand Opening packages
Bilingual support
Customized point-of-purchase,-

7-Eleven rolls out mobile marketing test campaign in 200 stores

7-Eleven Inc. is testing a mobile marketing campaign in San Diego, with approximately
200 of its stores participating in the program.
The test runs through Dec. 31. During this time, local residents can send the keyword
FAST (in Spanish, RAPIDO) to short code 72579. In response, they will receive a
message informing them which of 7-Elevens best-selling beverages they have won.
We are experimenting with mobile marketing to see how customers will react to getting
coupons from 7-Eleven for free proprietary beverages, said Margaret Chablis, director
of communications at 7-Eleven, San Diego. Basically we are just testing to try and get
a sense of whether customers like it.

Mission And Vision

At 7-Eleven, our purpose and mission is to make life a little easier for our guests
by being where they need us, whenever they need us.
Our vision is to be the best retailer of convenience.
Our mission is to be your convenient neighborhood store.

The Supply Chain Management Concept

A supply chain is a group of partners who collectively convert a basic commodity

(upstream) into a finished product (downstream) that is valued by end-customers,
and who manage returns at each stage.

Supply chain has also been a major, and continuing, focus for the organization
Back in 2005/06 7-Eleven began a sizable project with SAP to go from a
completely distributed supply chain to one in which about 90 per cent of stock
can now be automatically replenished.
Under the old system, every store would order from an agreed-upon list of
suppliers and all the stock would be delivered directly to the store. The stores
then sent the invoices to 7-Eleven headquarters for payment.

Under the new system, 7-Eleven HQ generates store orders, which are reviewed
by the stores via an SAP portal so that adjustments can be made. The
consolidated orders then run through a centralized supply chain.
The organization more recently introduced what it calls a virtual supply chain to
enable it to sell more value-added services.

Major operations
1: material flow
2: information flow

How to Achieve Strategic Fit

Understanding the Customer
Lot size
Response time
Service level
Product variety
Price

Benchmarks for next 5 years

what is benchmarking?
A standardized method for collecting and reporting critical operational data in a
way that allows meaningful comparisons between different organizations

Why benchmark?

Benchmarking allows seven eleven to compare performance against others and

is an excellent way to share best practices, highlight areas for improvement,
and/or demonstrate above average performance!

Why Is It Important
Identify areas of seven eleven operation needing improvements, as well as areas
of excellence.Establishes creditable standards for productivity and cost
effectiveness. Compare seven eleven operation to others based on
Common standards of measurements. Identify organizations with best
practices from which you can learn.

Asda:
Introduction
Asda was obtained by US corporation Wal-Mart in June 1999. Wal Mart is the worlds
largest retailer. Stores are concentrated mainly in the North of England and Wales.
It is a British supermarket chain which retails food, clothing, general
merchandise, toys and financial services. It also has a mobile phone
network, Asda mobile. Its head office is at Asda House in Leeds, west yorkshier
In 1999, Asda became a subsidiary of the American retail company Walmart and
today is the UK's third largest chain by market share after Tesco and Sainsbury's. As
of October 2013, Asda's share of the UK grocery market stood at 16.4%.
Purpose
Offers services such as CDs, DVDs, Groceries, Games, Electrical, Flowers,
Furniture, Local Gifts, and Mobile phones, Opticians, Pharmacy, Photo, Travel,
Delivery and Insurance.
Asda aim is to produce good quality products at low prices.
Finance
Asda has retained its title as the UK's cheapest supermarket ahead of rival
Tesco, according to new research.
Since being bought by Wal-Mart, ASDA has set off a price war in the UK by
initiating Wal-Mart's aggressive "price-rollback" program.
The chain came out on top in the annual report produced by trade magazine The
Grocer, which compares the cost of household items in each of Britain's major
stores.
Asda again came out the cheapest, at an average of 167.60 per basket.
Marketing campaigns
Asda has developed a new 45 million marketing strategy that will see the end of
the "always low prices" slogan.
The new phrase will be "more for you for less", which Asda believes will
emphasise the quality and freshness of its food and drink products as the low
price angle was not working as well as it used to with consumers.

 Asda's marketing promotions are usually based solely on price, with Asda
promoting itself under the slogan Britain's Lowest Priced Supermarket, 16 Years
Running. As a wholly owned division of Walmart, Asda is not required to declare
quarterly or half-yearly earnings. It submits full accounts to Companies
House each October.
In the "Asda price" campaign, customers tap their trouser pocket twice,
producing a 'chinking' sound as the coins that Asda's low prices have supposedly
left in their pockets knock together.
Asda's marketing promotions are usually based solely on price, with Asda
promoting itself under the slogan Britain's Lowest Priced Supermarket, 16 Years
Running. As a wholly owned division of Walmart, Asda is not required to declare
quarterly or half-yearly earnings. It submits full accounts to Companies
House each October.
In the "Asda price" campaign, customers tap their trouser pocket twice,
producing a 'chinking' sound as the coins that Asda's low prices have supposedly
left in their pockets knock together.
Advertising for Asda had featured the fairground Attraction song perfect.
In 1997, the Spice Girls licensed their name and image to Asda for the creation of
over 40 different Spice Items for Christmas 1997, including goods such as party
supplies, official merchandise etc.
In the smiley face "rollback" campaign, a CGI smiley face bounced from price tag
to price tag, knocking them down as customers watch.

Major operations
Operations management in ASDA stores is concerned with creating, operating
and controlling a transformation system which takes inputs of a variety of
resources and produces outputs of goods and services which are needed by
customers. Within large and complex organizations operations is usually a major
functional area, with people specifically designated to take responsibility for
managing all or part of the organizations operations processes.
Operations management is concerned with the design, management, and
improvement of the systems that create the companies goods or services.
Operations management is therefore critical to organizational success.
Producing goods and services needed by customers: It is the major part for the
management of ASDA Company. Developments of products according to the
interest of customers, delivery, advice to the customers etc. are the roles of the
operations management.
SWOT Analysis
Strengths low prices, friendly employees
Weaknesses quality of food substandard
Opportunities expansion
Threats other supermarkets, price wars etc.

Issues from retail perspective

Could mean a fundamental redesign:

inputs
Manufacturing process
Investment hurdles
Start with iconic areas:
Packaging material types
Transportation
Responsible sourcing initiative
Goal:
Build a more environmentally and socially responsible supply chain.

Initiatives:
Required demonstration of compliance with environmental laws and regulations.
Improved supplier energy efficiency.
Higher standards of product safety and quality.

Greater transparency and ownership

Benefits for suppliers

Increased engagement opportunities.
Opportunity to leverage the power of Asda network.
Inventory reduction.
Improved collaboration and improved flow.
Think out of the box.
Multi supplier collaboration
Three suppliers, all based within nine miles of each other.
Ordering 2/3 times a week in full trucks.
Day 1 for 3 lead time.
Concept:
Coordinate together
Seven day ordering
Customer demand based
Keys to successful collaboration with asda
Take risks
Dont be afraid to be innovative.
Work together to see the opportunities.
Be open and dont give up.
There isnt one collaboration mode! Its not one size fits all.
Organizational Culture:
Asda beliefs that every colleague within the company makes and help influence the
organization's culture. These are:

to provide excellent service to our customers

to show respect for the individual
to strive for excellence
To act with integrity.
Organizational Culture:
The four colleague pledges demonstrate what Asda is committed to providing for
its workforce. These are:
Fairness at work.
Opportunity for all.
Respect for each other.
Pride in Asda.
Leadership:
An audit of management at Asda indicated the following positive behaviors:
Fairness brought to life by leaders who are empathetic and recognize their
colleagues.
Opportunity for all promoted by leadership that encourages colleagues and is
communicative.
Respect for each other shown by leadership which is collaborative and listens to
colleagues.
Pride in Asda by inspirational and motivational leadership
HRM involves consideration of:
Workforce planning
Recruitment and selection
Training
Appraisal
Motivation and employee recognition
Asdas comprehensive HR strategies engage colleagues and support the
organizational culture. This includes Asdas Best Welcome induction
programmed, Star programmed to recognize excellent customer service, as well
as Asda Academys framework for training and development and its Colleague
Steps for career progression. Asda offers its colleagues a wide range of
opportunities for career development. This includes supporting and investing in
its colleagues to gain qualifications that will enable them to become the next
generation of leaders at Asda.
Recruitment:
Asda promotes career opportunities on its dedicated careers website. When
recruiting, it aims to attract and retain talented colleagues with the best fit for the
job. Part of the attraction comes from offering competitive salaries and benefits
such as its Share save scheme and colleague discounts. In 2013 Asdas Share
save scheme had record payouts where 19,040 colleagues shared 61.7 million.
Asdas online recruitment process has improved the speed and efficiency of
recruitment, making applications easier for candidates and selection faster for
management. Asda advertised 27,000 jobs last year and its dedicated careers

site handled over 1.5 million applications. Asda also uses social media channels
such as LinkedIn, as well as recruitment firms such as Remploy, to access the
widest range of potential recruits when advertising job vacancies.
Roles and responsibilities:
As one of the UKs largest employers Asda offers a wide scope of opportunities.
From students seeking work experience to apprenticeship and graduate training
in a variety of areas. Living Asdas colleague pledges means that everyone is
treated fairly and given the opportunity to progress their career. Regardless of
what point of entry a candidate chooses, Asda has the same goal for recruitment,
to recruit colleagues who share the same beliefs and outlook as the company.
Selection:
Applications are registered through Asdas online recruitment system, Asdas HR
team then shortlist appropriate candidates for interview or an assessment center.
Two documents are vital here: a job description and a personal specification. A
job description indicates what the job entails, specifying what tasks will be
undertaken by the appointed colleague. The personal specification outlines the
essential and desirable personal qualities and skills required for the role. These
inform applicants and help managers select the candidates that best match the
requirements for the position
Training and development:
At Asda, each new colleague is put into a specific training plan designed for their
role. This is based around the companys Colleague Steps process which has
three key stages Step In, Step On, Step Up. This training varies from
attending training workshops to taking formal qualifications relevant to their role.
Step In is a four week induction programmed that all new colleagues undertake.
This culminates in the award of an accreditation certificate and a performance
review to allow colleagues to move into the Step On stage after six months of
service. This stage includes coaching, a City and Guilds retail apprenticeship and
further responsibilities such as first aid training, moving to a new department and
becoming a training buddy. Next in career development at Asda is Step Up.
Again, following a positive performance review, colleagues can seek career
progression. Experienced colleagues, through progression, are able to build
upon their knowledge to deliver excellent customer service within a variety of
roles.
Asdas success relies on its effective and engaged teams of colleagues. Through
Asda leaders living the colleague pledges, the company can ensure that it
recruits the right person for the job across all formats and levels of seniority. Asda
focuses on recruiting colleagues that share its beliefs and will help the company
to continue to grow and deliver excellent customer service. By providing
structured training and development programmers, supported by it being such a
large organization,

Walmart...

Introduction:
Founded by Mr. Sam Walton in 1962 and incorporated on October 31, 1969.
First store opened in Bentonville, Arkansas
Today 6600 stores worldwide in countries
It is an American public corporation & also largest public corporation by revenue
in the world.
1.3 million People working.

It operates under its own name in U.S.A having operations in 50 states.

It operates in Mexico as Walmex.
In United Kingdom as Asda.
In India as Best price.
It has wholly owned operations in Argentina, Brazil and Canada.

Rewards and Recognition:

Year 2001:

Co. named Walmart, as the 3

rd.

most admired company of America.

The financial Times & Price water house Coppers ranked it as the 8
company in the world.

the

most admired

Year 2002:

Rated as the no. 1 company on the fortune 500 list presented with the Ron Brown
award for corporate leadership.

Major Operations:
Operations management (P.O.M) is about the transformation of production and
operational inputs into outputs, that when distributed, meet the needs of
customers.

Operations strategy:
Capturing market share with everyday low price strategy.
The process of creative destructions.
Cultural adaptation.

Training employees because people are key to Walmarts business.

Buy at less to sell at less.
Withdrawal strategy.
Competitive strategy:
Different shop designs for each demographic group.
All product in one store.
Competence in use of information technology for logistics system.
Highest customer satisfaction.

Productivity:

Creating more than 210,000 jobs in the U.S.

Saves working families more than $2500 per year.
Discounting on food alone boosts the welfare of American shoppers by approx.
$50 billion per year.

Porters five forces of competition:

Rivalry of existing competitors.

Barriers to entry.
Power of buyers.
Power of supplies.
Substitutes.

Service layout:
Introduce new layout to improve customer experience with faster service.
Always offer unbeatable prices.
Layout of the stores will save customers time as they shop for everyday
necessities.
In this layout, create an open shopping environment that helps customers find
what they are looking for quickly.

 Facility factors:
Shop location.
Shop layout.
Shop size.
Warehouse size.
Warehouse layout

Product & Service factors:

Price.

Low prices than competitors...

Sales.

Net. Sales of Walmart $ 405 billion...

Suppliers.

Networked communication and just in time...

Human resource factor:

Number of employees.
Age, gender and sexual orientation.
Skill.
Wages.
Wal-Marts Supply Chain

Hub and Spoke System

In the early 1970s, Wal-Mart became one of the first retailing companies in the
world to centralize its distribution system, pioneering the retail hub-and-spoke
system.
Under the system, goods were centrally ordered, assembled at a massive
warehouse, known as distribution center (hub), from where they were
dispatched to the individual stores (spoke).
Wal-Marts Procurement
Wal-Mart emphasized the need to reduce purchasing costs and offer the best
price to the customer.

The company directly procured from manufacturers, by passing all

intermediaries.

Wal-Marts Procurement

Wal-Mart finalizes a purchase deal only when it is fully confident that the products
being bought is not available elsewhere at a lower price.

Using EDI for Procurement

The computer systems of Wal-Mart were connected to those of its suppliers.

EDI enabled the suppliers to download purchase orders along with store-to-store
sales information relating to their products sold.

On receiving information about the sales of various products, the suppliers

shipped the required goods to Wal-Marts distribution centers.

Logistics Management

An important feature of Wal-Marts logistics infrastructure was its fast and

responsive transportation system.

The distribution centers were serviced by more than 3500 company owned
trucks.

Cross-docking

To make its distribution process more efficient, Wal-Mart also made use of a
logistics technique called cross-docking.

In this system, the finished goods were directly picked up from the manufacturing
plant, sorted out and then directly supplied to the customers.

Inventory Management

Wal-Mart invested heavily in IT and communication systems to effectively track

sales and merchandise inventories in stores across the country.

With the rapid expansion, it was essential to have a good communication system.

Hence, Wal-Mart set up its own satellite communication system in 1983.

Wal-Mart was able to reduce unproductive inventory by allowing stores to
manage their own stocks, reducing pack sizes across many product categories,
and timely price markdowns.

Instead of cutting the inventory across the board, Wal-Mart made full use of its IT
capabilities to make more inventories available in the case of items that
customers wanted most, while reducing the overall inventory levels.

Employees at the stores had the Magic Wand, a hand-held computer which
was linked to in-store terminals through a radio frequency network.

These helped them to keep track of the inventory in stores, deliveries, and
backup merchandise in stock at the distribution centers.

The order management and store replenishment of goods were entirely executed
with the help of computers through the Point-of-Sales (POS) system.

Through this system, it was possible to monitor and track the sales and
merchandise stock levels on the store shelves.

Voice-based Order Filling (VOF)

In 1998, Wal-Mart installed a voice-based order filling (VOF) system in all its
grocery distribution centers.

Each person responsible for order picking was provided with a

microphone/speaker headset, connected to the portable (VOF) system that could
be worn on waist belt.

They were guided by the voice to item locations in the distribution centers.

Inventory Management
(quick replenishment)

Since the floor area of any Wal-Mart store varied between 40,000 to 200,000
square feet, movement of goods within the store was an important part of
logistics operations.

Wal-Mart made significant investments in IT to quickly locate and replenish

goods at the stores.

Inventory Management
(retail link system)

In 1991, Wal-Mart had invested approximately $4 billion to build a retail link

system.

More than 10,000 Wal-Mart retail suppliers used the retail link system to monitor
the sales of their goods at stores and replenish inventories.

Details of daily transactions (~10 million per day) were processed through this
system.

CPFR

By the mid-1990s, Retail Link had emerged into an Internet-enabled SCM system
whose functions were not confined to inventory management alone, but also
covered collaborative planning, forecasting and replenishment (CPFR).

RFID Technology
(Radio Frequency Identification)

In efforts to implement new technologies to reduce costs and increase the

efficiency, in July 2003, Wal-Mart asked its top 100 suppliers to be RFID
compliant by January, 2005.

Wal-Mart planned to replace bar-code technology with RFID technology.

The company believed that this replacement would reduce its supply chain
management costs and enhance efficiency.

Targets of Wal-Mart

Wal-Mart U.S., the largest unit of retail giant Wal-Mart stores Inc., it is confident
about its momentum heading into the holidays, as it outlined a strategy that
includes more emphasis on smaller-format stores and more e-commerce.

For the first time since it began online sales in 2000, Wal-Mart broke out its ecommerce goal: Speaking at the annual analyst meeting, executives said the
company targets world-wide online sales of $9 billion by fiscal 2014.

Last year, Wal-Mart U.S. had total sales of about $260 billion, including ecommerce, accounting for roughly three-fifths of the company's business.

Coming off a strong back-to-school period, Wal-Mart U.S. said it plans to

increase its marketing, including featuring commercials on layaway, as well as on
ad-matching guarantees and price comparison on a basket of goods against rival
retailers.

Wal-Mart U.S. also will use Facebook and other social media to drive sales, such
as allowing its 22 million Facebook fans to vote on toys they'd like to see
"rollbacks," or temporary discounts, on.

Wal-Mart U.S.'s comparable sales for the first half have risen 2.4%, as it
increased traffic and gained market share

Wal-Mart U.S. last year returned to comparable sales growth following two years
of declines, helped by its strategy to broaden product assortment and add back
products such as hunting and fishing equipment, and to lower prices.

CSD:
INTODUCTION

Before independence there were combined csd stores in sub-continent. In

August 1947 emerged the CSD Pakistan.

Between 1948-59, CSD enjoyed the status of a full-fledged Government

Department, with complete tax exemption / rebates /

In 1959, CSD was re-designated as a Full-Fledged, Self-Sustaining Commercial

retail merchandising.

Today, it comprises
6 Zones,
126 Outlets,
5 Zonal Depots,
32 Hire Purchase Business Centers and
3 Petrol Pumps. The growth of CSD outlets in the past five years is depicted
below:-

Why Shop With CSD?

Reduced Rates: CSD provides daily-use items to all clients at a price 6-8 %
lower than the market.
Profit Sharing with Customers: through concessional/discounted rates and
Loyalty Cards.
No Credit Card Fee:
Special Sales / Promotional Packages:

Refund/ Exchange Policy: We offer refund/exchange of the goods, purchased

at any CSD Shop, within 7 days of purchase.

Major operations
Procurement Enhancing Supplier Base: In new era, CSD has ventured in
establishing new stores, equipped with modern facilities.
In order to feed such stores with increased customer flow, procurement has been
stream lined, made effective and very proactive.
Bulks of the products are being procured from Producers to eliminate middle
man.
The suppliers base has been enhanced specially by registering CSD for E
Procurement with M/S Tejari Pakistan which has put CSD in a better negotiating
position. It is bringing more transparency and effective savings in procurement

Low/Competitive Pricing:

The new business operations are designed to work on low profits, selling large
volumes thus, and passing on relief to more customers and at the same time
generating more profits through huge turnover.

In-store branding was also carried out in which CSD earned substantial amount.
It incl renting out spaces, branding of store pillars, checkout counters, cat signs
and Narrow Casting.

Supply chain

a. Distribution:
To ensure timely availability of max items at each outlet, a comprehensive
replenishment program exists; adequate stocks are maintained at local/outstation
shops and Depots. To attain a comfortable financial flow, bare min stocks to cater
for requirement of 15/20 days of sale are being kept at local and outstation Shops.
Most of the stocks are delivered by suppliers directly at major shops and at
Depots, thereafter bulk breaking is done for further distribution to smaller shops of
far flung areas.

b. Control of Losses:

Stock taking of each shop is done on monthly basis. Besides, due to increased
frequency of Surprise Stock Taking by the central team and effective mechanism,

NO case of theft/embezzlement has been found or registered during period July

2006 to date.

c. Stock Management:

The inventory is monitored, regulated and distributed as per demand at various

locations.
CSD Volume of Business

d. Quality Management
CSD Management ensures procurement of best quality products for its
customers. Quality of all products is ensured.

Benchmark for next five years

a. Simplification rectification of minor objections
Decentralization. Previously all applications were received and processed at
Head Office Level which took more time and added difficulties for the customers.
Now this process has been decentralized by establishing HPBCs at various
stations which is more effective
Establishment of Hire Purchase Business Centers (HPBCs). 34 x HPBCs with
independent Telephone lines have been established at various stations to
provide speedy information about HP Schemes, Issue /receipt

Customer Service Center. HP Customers Service Center (CSC) has been

established which provides speedy access to information and resolution of
complaints

Additional Benefits to JCOs and Soldiers.

Customer Feed Back.

Being a customer Oriented organization; CSD management caters for the
customer needs and to facilitate them, by providing befitting shopping
atmosphere and quick response to their suggestion/observation

DIFFERENCE BETWEEN WALMART AND CSD

CSD

WALMART

Particularly targets defense servants

No such agenda

Located only in one country

Located all over the world

Comparatively small scale retailer with small

number of employees

A huge retailer giant with large number of employees

Less bulk purchase of inventory so small amount

of capital invested

Heavy purchase of inventory so large amount of capital inv

Simple distribution channel

Complex distribution channel

Hard to access

Easily accessible

Comparatively low variety of products available

Wide range and variety of products available

A rise in prices do impact its sales and profit to

great extent
Rise in incomes or good economic
cause no grand effect on its sales volume
Offer small discounts

Offer deep discounts

Offer in certain products only to its specific

customers

Nothing like that

Dont have any significant marketing campaign

Huge marketing and promotion campaign

Csd rejected modernization

Suffers from conventional and slight inconsistent
management
Located in main areas of the cities

All the modern methods are employed

Highly efficient and consistent management

Makes stores in small markets , wipes put businesses

there and gain monopoly

losses

Its growth rate is very small

Its growth rate is very high

Its closely held business

Its publicly held business now

Majority of the stores are going into

Majority of the stores are going into profits