Internartional Business (7 Eleven in Vietnam)

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International Business

Executive Summary

International business consists of business transaction between parties from more than one country. Examples of international business transactions include buying materials in one country and shipping them to another for processing or assembly, shipping finished products from one country to another for retail sale, building a plant in a foreign country to capitalize on lower labor costs or borrowing money from a bank in one country to finance operations in another. Franchising of 7-Eleven store in Vietnam is the choice of doing the international business for this assignment. 7-Eleven is a worldwide chain of convenience stores. It is since March 2007, the largest chain store in any category, beating McDonald’s by 1,000 stores. Its stores are located in eighteen countries, with its largest markets being Japan, the United States, Taiwan and Thailand. 7-Eleven has its origins in 1927 in Dallas, Texas, USA when an employee of Southland Ice Company started selling milk, eggs and bread from an ice dock. The origin location was an improved storefront at Southland Ice Company, an ice-manufacturing plant. 7-Eleven is moving toward franchising most of its remaining corporate locations inside the US. The 7-Eleven franchise system splits the gross profits 50:50 or close to it, between the company and the individual franchisee. Vietnam is the country which has the low labor cost, openly for the foreign investors to invest or running business in the country. The rules and regulations of the country is not so strictly, so that will be easily for anyone to running the business. Education of Vietnamese people is getting improving; their people in the age of 15 and above are able to read and write and most of them are able to speak English because the country want English to become their second language. Their economy is better, their labor cost is low, and everything in this country is in the good condition to running the business....
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