To properly manage business outputs, it is crucial to examine the external environment of the industry in question. The 7-Eleven organization could greatly benefit from implementing the I/O Model of Above-Average Returns, which relies on the examination of the firm’s external conditions. As such, the first stage involves the analysis of the industry and competitor environment, creating a clear picture of the general atmosphere (Hitt et al., 2007). For the 7-Eleven corporation, the competitors are such large-scale convenience stores as Walmart and Target. However, as the overall industry grows and generates a significant amount of revenue, it creates a positive atmosphere for further development.
Another factor to consider is the industry’s attractiveness, as it must possess a high potential for the firm to generate above-average returns. In the current age, the convenience store segment is considered exceptionally beneficial for securing above-average returns due to the increasing demand for large-scale product distribution shops (Graves, 2017). The demand for the variety of choices and the improving financial position of American citizens suggest that the industry’s structural characteristics are quite favorable.
After that, 7-Eleven would be required to select a strategy that would ensure the provision of above-average returns. A promising approach could be the implementation of the chain store method, where several branches are established across different countries. However, to apply this technique, particular assets and skills are needed (Hitt et al., 2007). The first criterion is the possession of the products and resources necessary to launch an international branch, as the costs of sustaining a new location in a different country can be demanding (Graves, 2017). In addition, the executives must account for the economic environment of the chosen state, meaning that it is vital to be skilled in international trade and branch management.
Finally, to implement the selected approach, it is necessary to establish which actions will be performed to achieve the above-average returns. For 7-Eleven, it would be beneficial to use the company’s strengths in this endeavor, namely the existence of other international branches and the successful history of operations in the US (Lee, 2021). By relying on the previously obtained knowledge and integrating global expansion into the organization’s goals, 7-Eleven might perfectly utilize the formulated strategy and earn above-average returns.