Essays on International Strategies of 7-Eleven Inc Case Study

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The paper "International Strategies of 7-Eleven Inc" is a good example of a business case study.   International strategies of a business organization are critically important for successful operations of the business in foreign countries. In the existing international business (IB) knowledge body, there are relationships between strategies and successful business operations in foreign countries. The study is intended to make an exploratory examination of the internationalization of multinational cooperation, 7-Eleven Inc. Findings reveal that effective formulation of strategies and optimal integration of them have led the organization to re-emerge of a firm which was once announced bankruptcy and fully regaining its market positions in foreign countries where it has been operating. I.

Introduction For the past decades, it was evident that there are many business organizations that entered international markets. It was found that the volume of international merchandise trade grew to 10.2 trillion $; export to GDP ratio grew from 14.9% in 1973 to 29% in 2002, and Global FDI outward stock rose to 10.67 trillion $. More than hundreds of multinational corporations have sales of more than $ one billion and new countries have emerged as major economic powers Helienek (2007).

Such international businesses around the world created linkages between and within the regions. There are several reasons for entering international businesses. Their benefits lie into four main areas (1) efficiency, (2) strategic, (3) risk, and (4) learning. When they conduct their businesses, they gain efficiency in terms of economies of scale from access to more customers and markets; opportunities to exploit resources such as labor, technology, and raw materials, an extension of the product life cycle of their existing products by selling old products in developing countries, and flexibility in operations in terms of cots, rates, etc.

In the strategic area, the international business organizations gain advantages over moving first into another international market, conducting cross-subsidization between countries, and strengthening reputation and brand identities. They also reduce risks associated with their business activities by diversifying both macroeconomic and operational risks. Last, their advantage is in the area of learning. They earned learning opportunities from a diversity of operating environments as well as from foreign customers, clients, suppliers, subsidiaries et al (Mercado, 2007). However, all the benefits above mentioned are not commonly agreeable to other IB researchers such as Kalra, Stoichev, and Sundaram (2004) and Jeong (2003).

Their defensive arguments are that all developed countries’ economies are tightly tied together and international diversification may not be an effective strategy to reduce risks. Business operations in developed countries will be more or less similar to one another and the risks associated with the economies are likely to have similar characteristics and levels. They also argued that the studies conducted previously were mostly companies in the USA and Europe and generalization of the international theories are difficult. With an aim to fill the gap in the knowledge body of international business strategy, this study explores existing generic theories of international business.

This study attempts to examine the international strategies employed by business firms in practice. Then explanations for use of the strategies were sought by grounding on the existing international business theories in the literature. This study set the following research questions:

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