Retail & Franchisee Management

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1 Retail & Franchisee Management Puvathy Nadarajah 7Eleven Day 1 Social Media Technologies

2 7-Eleven Malaysia Sdn Bhd ALWAYS THERE FOR YOU 2

3 HISTORY - 7-ELEVEN INCORPORATION 7-Eleven was founded by J.C Thompson as The Southland Ice Company in Dallas, Texas. Started by selling ice, the company eventually began offering milk, bread and eggs on Sundays and evenings when grocery stores were closed. 3

4 HISTORY - 7-ELEVEN INCORPORATION This new business idea spawning the precursor of the modern convenience retail concept. The company s first convenience outlets were known as Tote m stores. In 1946, Tote m became 7-Eleven to reflect the stores s new, extended business hours 4 (7am - 11pm, 7 days a week)

5 HISTORY - 7-ELEVEN INCORPORATION The company s corporate name was changed from The Southland Corporation to 7-Eleven, Inc. in Together with its global licensees, franchisees and affiliates in 17 countries, 7-Eleven operates over 37,000 stores worldwide. 5

6 HISTORY - 7-ELEVEN MALAYSIA SDN BHD Incorporated on 4 June Eleven Malaysia Sdn. Bhd is the owner and operator of 7-Eleven stores in Malaysia. 6

7 HISTORY - 7-ELEVEN MALAYSIA SDN BHD 7-Eleven Malaysia Sdn Bhd opened it 1st store in1984 at Jalan Bukit Bintang Kuala Lumpur. 7

8 Today, 7-Eleven Malaysia is the largest retail outlet comprises total about 1300 stores throughout Malaysia 8

9 BE OUR BUSINESS PARTNER More than 170 of the 7-Eleven stores are now run by Franchisees 9

10 FRANCHISING IN 7-ELEVEN FRANCHISOR Provides a standard package of products, system and Management services. FRANCHISEE Provides capital and personal involvement in the business operations. 10

11 HOW TO BECOME OUR BUSINESS PARTNER PROCESS NO 1: 1 st Interview by Franchising Manager PROCESS NO 2: Selection of Franchisee who fit in the criteria set by the Company PROCESS NO 3: Short-listed candidates to be recommended to Franchising Committee 11

12 HOW TO BECOME OUR BUSINESS PARTNER PROCESS NO 4: 2 nd interview with 7-Eleven Franchising Committee PROCESS NO 5: Collect 2% payment as earnest deposit (non refundable) PROCESS NO 6: Training Department will arrange for 3 days On-the-job Evaluation for franchisee 12

13 HOW TO BECOME OUR BUSINESS PARTNER PROCESS NO 7: Collect full payment of Franchise Fee (nonrefundable) from Franchisee. PROCESS NO 8: Sign the Franchise agreement between 7-Eleven & Franchisee. PROCESS NO 9: Training Department to schedule 8-12 weeks training. Training is COMPULSARY. 13

14 HOW TO BECOME OUR BUSINESS PARTNER PROCESS NO 10: Prepare store for handover PROCESS NO 11: Payment of License Fees & Security Deposit prior to handover (10 years tenurerefundable) PROCESS NO 12: Store handover 14

15 HOW DOES FRANCHISING BRING VALUE TO 7-ELEVEN? Personal commitment from franchisee to build the business Better cost control Able to manage people turnover more effectively 15

16 HOW DOES FRANCHISEE BENEFIT FROM THE FRANCHSING PROGRAM? Only current money making store are handed over to Franchisee Support from all Departments Consultants consistently engage with Franchisees to assist in the operations 7-Eleven tie-in with AmBank for financial assistance for Franchisees 16

17 HOW DO 7-ELEVEN KEEP FRANCHISEES MOTIVATED? Incentives are given to Franchisees who manage the operations efficiently Profit sharing is based on Gross Profit Higher GP is equivalent to High Profit Franchisees stores are included in all activities that are tied-up in the Company (Competition Winning stores get $$$ or other Rewards) 17

18 HOW DO 7-ELEVEN ENSURE STANDARDS ARE FOLLOWED SOC (STORE OPERATIONS CHECKLIST) Completed by FM s/om s monthly Check on SOP & ensure policies & procedures are followed Must achieve minimum B level 18

19 HOW DO 7-ELEVEN ENSURE STANDARDS ARE FOLLOWED INTERNAL AUDITS Monthly Audit are conducted by IA Department to check on stocks, policy & procedures. TRAINING AUDIT 2 Training Audit per year to review the execution of Training in the Franchisee stores. 19

20 CHALLENGES Managing such a big number of stores is a huge challenge to every Department in the company. To run the stores operationally and how training is being provided will be the focus of this presentation. 20

21 ZONES FOR 7-ELEVEN STORES Operationally, 7-Eleven Stores have been divided into 6 zones 1. NORTHERN 2. CENTRAL NORTH 3. CENTRAL SOUTH 3. SOUTHERN 4. EAST COAST 5. EAST MALAYSIA 21

22 7-ELEVEN ORGANIZATION CHART SALES & OPERATIONS DEPARTMENT OPERATIONS MANAGEMENT TEAM GENERAL MANAGER ASSISTANT GENERAL MANAGER SENIOR OPERATIONS MANAGER OPERATIONS MANAGER AREA MANAGER SENIOR / FIELD MANAGER STORE TEAM STORE MANAGER ASSISTANT STORE MANAGER MANAGEMENT TRAINEE SENIOR STORE ASSOCIATE STORE ASSOCIATE 22

23 7-ELEVEN ORGANIZATION CHART GENERAL MANAGER ASSISTANT GENERAL MANAGER EACH ZONE SENIOR OPERATIONS MANAGER OPERATIONS MANAGER AREA MANAGER SENIOR / FIELD MANAGER > 200 STORES > 50 STORES > 20 STORES 5 7 STORES STORE MANAGER 1 STORE 23

24 TRAINING DEPARTMENT 7-ELEVEN (M) SDN BHD 24

25 7-ELEVEN ORGANIZATION CHART TRAINING DEPARTMENT POSITION SENIOR TRAINING MANAGER ASSISTANT TRAINING MANAGER SENIOR EXECUTIVE (TRAINER) EXECUTIVE (TRAINER) AREA TRAINER TRAINING BASE TRAINING CENTRE TRAINING CENTRE TRAINING CENTRE TRAINING CENTRE / REGIONAL OFFICE REGIONAL OFFICE / TRAINING STORE 25

26 Training Department Organization Chart 26

27 Trainer Nationwide KEDAH & PERLIS Executive = 2 PENANG Executive = 2 Officer (AT)= 1 KELANTAN Officer (AT) = 2 TERENGGANU Officer (AT) = 1 SABAH Officer (AT) = 1 PERAK Executive = 1 Officer (AT)= 1 TRAINING CENTRE Assist. Mgr = 1 Sr. Executive = 4 Executive = 5 KUALA LUMPUR & SELANGOR Executive = 4 Officer (AT)= 17 NEGERI SEMBILAN Sr. Executive = 1 Executive = 1 MELAKA Officer (AT) = 2 PAHANG Executive = 2 JOHOR Executive = 2 Officer (AT)= 3 SARAWAK Officer (AT) = 1 TOTAL NATIONWIDE Assist. Mgr = 1 Sr. Executive = 4 Executive = 17 Officer (AT) = 30 TOTAL = 52 27

28 Training Centre Nationwide KEDAH & PERLIS 1 Training Base 1 Regional office PENANG 3 Training Base 1 Regional office 2 Training Store KELANTAN 1 Training Base 1 Regional office TERENGGANU 1 Training Base 1 Regional office SABAH 1 Training Base 1 Regional office PERAK 2 Training Base 1 Regional office 1 Training Store KUALA LUMPUR & SELANGOR 20 Training Base 1 Training Centre, 5 Regional office 14 Training Store NEGERI SEMBILAN 1 Training Base 1 Regional office MELAKA 2 Training Base 1 Regional office 1 Training Store PAHANG 2 Training Base 1 Regional office 1 Training Store JOHOR 5 Training Base 1 Regional office 4 Training Store SARAWAK 1 Training Base 1 Regional office TOTAL NATIONWIDE 1 Training Centre (KL) 16 Regional office 22 Training Store Total Training Base 2839

29 Store Training Curriculum Flow 2011 NETP (VERIFICATION - SM/SIC) (CERTIFICATION BY TRAINING DEPARTMENT) TRAIN THE TRAINER - SMTP (CERTIFICATION BY TRAINING DEPARTMENT) ORDER WRITER (CERTIFICATION BY TRAINING DEPARTMENT) (POST CLASS ACTION PLAN VERIFICATION BY SM/SIC) MTTP - SELF LEARN MODULE & PRE-WORK (FOLLOW-UP & VERIFICATION BY SM/ SIC) FMTP - CLASS (CERTIFICATION BY TRAINING DEPARTMENT) (POST CLASS ACTION PLAN) FMTP - SELF LEARN MODULE & PRE-WORK (FOLLOW-UP AND VERIFICATION BY OM) SEMRIS AND FMIO - CLASS (CERTIFICATION BY TRAINING DEPARTMENT) (POST CLASS ACTION PLAN VERIFICATION BY SM / SIC) MTTP - CLASS (CERTIFICATION BY TRAINING DEPARTMENT) TRAIN THE TRAINER - NETP (CERTIFICATION BY TRAINING DEPARTMENT) TRAIN THE TRAINER - MTTP (CERTIFICATION BY TRAINING DEPARTMENT) SMTP - CLASS (CERTIFICATION BY TRAINING DEPARTMENT) SMTP - SELF LEARN MODULE & PRE WORK (FOLLOW-UP & VERIFICATION BY FM/AM/OM) TRAIN THE TRAINER - FRANCHISE (CERTIFICATION BY TRAINING DEPARTMENT) ASMTP - CLASS (CERTIFICATION BY TRAINING DEPARTMENT) 29 29

30 TRAINING CURRICULUM Corporate & Franchisees 1. NEW EMPLOYEE TRAINING PROGRAM - (NETP) 2. ORDER WRITER (BASIC ORDERING) 3. SEMRIS / FMIO (SYSTEM & ADVANCE ORDERING) 4 MANAGEMENT TRAINEE TRAINING PROGRAM - (MTTP) 5. ASSISTANT STORE TRAINING PROGRAM - (ASMTP) 6. STORE MANAGER TRAINING PROGRAM - (SMTP) 7. FIELD MANAGER TRAINING PROGRAM - (FMTP) 30

31 TRAINING CURRICULUM FRANCHISEE TRAINING PROGRAM ON JOB EVALUATION - 3 DAYS ON JOB TRAINING - 2 TO 3 MONTHS FINAL JOB VERIFICATION - 2 DAYS OTHER TRAINING HQ EXECUTIVE SELF ENHANCEMENT TRAINING PROGRAM - 2 DAYS 31

32 Total Class Conducted & Student Trained From 2008 May (Until May) TRAINING COURSE Total Total Total Total Total Total Total Total Class Student Class Student Class Student Class Student 1 NETP - 1 DAY NETP 3 DAYS HANDLING CUST.COMPLAINT Order Writer SEMRIS II FMIO SEMRIS & FMIO REFRESHER HHT & FMIO ICT MTTP NETP TTT FRANCHISEE TTT ASMTP SMTP MTTP TTT FMTP SMTP TTT SEPP NEPALISE TRAINING OJE MONTHS TRAINING MONTHS TRAINING HQ STAFF COMM & SUPERVISORY (CDC) SELF ENCHANCEMENT CLASS LOSS PREVENTION TOTAL

33 TRAINING CURRICULUM NATIONAL DUAL TRAINING SYSTEM (NDTS) This is a new training collaboration with Malaysian Government (National Skills Development) in producing skills worker in Retail Industry Training in Dual (2) learning system: Actual workplace Training Institute 33

34 BENEFIT 7-Eleven Malaysia: i. Reimbursement (PSMB)/Tax Deduction (LHDN) ii. Staff Retention & Minimize Turn Over iii. Improve Productivity iv. Certified Employee by Government Staff: i. Certified Employee ii. Qualify to further their education in chosen local University (E.g.: University Kuala Lumpur) 34

35 TRAINING CURRICULUM NATIONAL DUAL TRAINING SYSTEM (NDTS) 1st batch of Apprentice that will undergo NDTS program will start in November

36 Any Questions 36