Welcometo our

presentation

Presentation topic

Case Study On The Southland Corporation ©

Prepared By Group

Rawnak Parveen

Md. Sohel Rana

Md. Hasan Pathan

Shah Alam Asif Bhuiyan

Tazin Amin Bristi

Rawnak Parveen

ID: 142-401-033

The Southland corporation was the largestconvenience store chain in the world and thetwelfth largest retailer in the United States. Thesouthland Corporation has began as an icecompany formed by Joe C. Thomson, Sr., andseveral partners in 1927. In 1946, Southlandadopted for all its retail stores the name “7-Eleven”.Because it’s hours of operation, 7 a.m. to11 p.m. The first “7-eleven” store to open outsideof the Texas was in Florida, in 1954 soon after storewere opened in Virginia and California.

Introduction

Problem Statement

The main problem of southland corporationis huge debt. Because of this the southlandcorporation is moving closer to bankruptcy.

Md. Sohel Rana

ID: 142-401-055

Subjective analysis

Objective analysis

Analysis

Subjective analysis

Life cycle:

Now we analyze Southland Corporation (C) under life cycle.

Subjective analysis

Now we analysis Southland Corporation (C) under the BCG matrix.

Md. Hasan Pathan

ID: 132-401-136

Strength

Subjective analysis

SWOT Analysis

Opportunity

Weakness

Threat

0

20

40

60

80

100

120

140

160

180

1993 1994 1995 1996 1997 1998

Net Earning

Net Earning

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1993 1994 1995 1996 1997 1998

Profit Margin

Profit Margin

Objective Analysis

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

1991 1992 1993 1994 1995 1996 1997

Debt to Asset

Debt to Asset

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

1991 1992 1993 1994 1995 1996 1997

Debt to Equity

Debt to Equity

Objective Analysis

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

1991 1992 1993 1994 1995 1996 1997

Current Ratio Profile

Current Ratio Profile

Objective Analysis

Shah Alam Asif Bhuiyan

ID: 142-401-045

In this case we found that Southland Corporation (C) face financial crises. Because they financed the LBO tender offer.

Findings

To Reduce Southland's debt they reduce their advertisement cost.

They sold their 75% equity for $400 million to Japan's most largest & profitable company Ito Yokado & they gain additional capital.

Ito Yokado required Southland corporation to restructure its debt to approval from 95% of bondholders.

Southland failure to obtain bondholder approval for a restructuring plan further stressed for its cash flow & moving the company closer to bankruptcy.

Findings

Again the company with the approval of the Bondholders Committee and Ito Yokado, decided to attempt another exchange offer together with a request for approving a prepackaged bankruptcy filing.

Three conditions: 1) Feasibility 2) Approval 3) Liquidation

Tazin Amin Bristi

ID: 142-401-064

After analyzing both subjective and objective we find that the company has need for rising fund. 7-Eleven has to constantly think of people’s convenience and ways of convenient service to them.Use of integration information system in 7-eleven supply chain provides more effective retailing and improve customer service.

So we can say that they should obtain an infusion of new equity by selling control of the company to the Ito Yokado Group.

Conclusion