CASE STUDY seven-Eleven Japan Co. Established in 1973, z3 Seven-Eleven Japan set

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CASE STUDY seven-Eleven Japan Co. Established in 1973, z3 Seven-Eleven Japan set up its first store when he joined his mother n May 1974. The company was first listed work in a small clothing s and elder brother and began to store in Tokyo. By 1960 he was in sole on the Tokyo Stock Exchange in October 1979. In 200 was owned by the Ito-Yokado group, which also m chain of supermarkets in Japan and owned a 4 it control, and the single store had grown into a anaged a pany After a trip to the United States in 1961, Ro became con- superstores were the wave of the future. At that majority share vinced that anaging 7-Eleven in the United time, Japan was still dominated by States On September 1. 2005. Seven & 1 Holdings Co. Ltd.,, chain of superstores in the Tokyo area was instantly popular was established as the holding company for Seven-Eleven and soon constituted the core of lto-Yokado's retail operations. Japan, Ito-Yokado, and Denny's Japan. Seven-Eleven Japan realized a phenomenal growth between the years of 1985 about the possibility of opening Seven-Eleven convenience and 2007. During that period, the number of stores stores in Japan. After rejecting his initial request, Southland increased from 2,299 to 12,034, annual sales increased from agreed in 1973 to a licensing agreement in e 386 billion to 2,574 billion yen, and net income increased o.6 percent of total sales. Southland gave tto exclusive rights from 9 billion to 91.5 billion yen. Additionaly, the company's throughout Japan. In May 1974, the first Seven-Eleven conven- return on equity (ROE) averaged around 14 percent between ience store opened in Tokyo 2000 and 2004. In 2004, Seven-Eleven Japan represented Japan's largest retailer in terms of operating income and Seven-Eleven Japarn number of stores. Customer visits to Seven-Eleven outlets there were already 591 Seven-Eleven stores in totaled 4.1 bilion in 2007, averaging almost 35 visits to a there were 2,001. Rapid growth continued (see Table 3-1), Seven-Eleven annually for every person in Japan In 1972, lto first approached the Southland Corporation This new concept was an immediate hit in Japan, and experienced tremendous growth. By 1979 resulting in 12,034 stores by 2007 On October 24, 1990, the Southland Corporation entered into bankruptcy protection. Southland asked for Company History and Profile Both to-Yokado and Seven-Eleven Japan were founded by Ito-Yokado's help, and on March 5, 1991, IYG Holding was Masatoshi lto. He started his retail empire after World War i formed by Seven-Eleven lapan (48 percent) and lto-Yokado TABLE 3-1 Stores and Annual Sales for Seven-Eleven Japan Annual Sales billion yen) Number of Stores Number of Year 1991 Year Stores 1,081.8 1,194.9 1,281.9 1,392.3 1974 69 1977 375 72.5 1961314 109.8 1,609.0 1979 1997 1998 1999 2000 2001 2002 2003 1,740.9 1,848.1 1,963.9 2,046.6 2,114.0 2,213.2 202.1 256.5 1981 1,643 2,001 2,299 9,690 10,303 10,826 6863 2005 11,310 931.9 2006 11,735 12,034 453.6 521.9 2,343.2 2,440.8 3.304 2,533.5 2,574.3 1990

Explanation / Answer

The decisions taken by seven eleven related to any aspect supports its strategy in Japan. The company have made choices in its facility location, transportation decisions and information infrastructure in such a way that are complement to its business strategies in Japan.

Facility Location:

All the stores are located in such places that are close to the distribution centers. This helps in reducing the time involved in distributing the goods to the distribution centers.
The demands of the customers are met and the delivery schedules can be modified according to the customers' needs as the location of the stores are achievable.
The company owns its own stores in different locations as well as third party franchise are located in different locations.
Number of manufacturing plants are located in different nearby locations so that fast foods can be manufactured for seven eleven on timely basis.
Transportation:

The transport facility was such that multiple trucks deliver goods to many retail stores during the time periods when demand is low.
Food items are delivered to the distribution centers so that they further supply them to retail outlets on time, without any delay.
The transportation system is quick as two way in nature, as from the suppliers to distribution centers and back from distribution centers to suppliers.
While transporting the items are stored under the controlled temperature so that they do not get spoiled.
Information Infrastructure:

The information technology is so advanced that it is installed at every retail outlet, distribution centers and are directly linked to the headquarters.
The technology allows the stores to record and receive the orders online, this will save the time and efforts.
The availability of the scanner on the counters and the POS system have eased the work of retail outlets to a great extent.
The order for receiving and delivery can be easily sorted out with the help of strong information technology.

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