seven eleven

Topics: Supply chain management, Convenience store, Retailing Pages: 23 (7398 words) Published: September 28, 2014

Case study on

Case study on Seven-Eleven Japan Co.

Submitted to
Mohammad Anwar Hossain
Department of Marketing
Faculty of Business studies
University of Dhaka
Submitted by
Md. Ehsanul Hoque, Batch-18, ID:41018044
Md. Abdur Rahman Bhuiyan, Batch-10, ID:
Md. Atikul Islam, Batch-18, ID: 41018030
Department of Marketing
Faculty of Business studies
University of Dhaka

Date of submission: November 26, 2011

Letter of transmittal
November26, 2011
Mohammad Anwar Hossain
Department of Marketing
Faculty of Business studies
University of Dhaka, Bangladesh

Sub: Submission of case study on Seven-Eleven Japan Co.
Dear Sir,
It is a great pleasure for me to submit the case study on Seven-Eleven Japan Co. You assigned me to prepare this report as a part of Supply chain management course (MKT-530) requirement. While preparing this report I have tried to follow your instruction given in the class. I hope that this report despite its lack of information will be a gateway to understand the Supply chain management course. I appreciate you will asses our report considering the limitations of the study. Your kind advice will encourage me to do further study in future.

Sincerely yours,
Md. Ehsanul Hoque, Batch-18, ID: 41018044
Md. Abdur Rahman Bhuiyan, Batch-10, ID:
Md. Atikul Islam, Batch-18, ID: 410180
Department of Marketing
University of Dhaka

Overview of the case
Seven-Eleven Japan Co.
Established in 1973, Seven-Eleven Japan set up its first store in Koto-ku, Tokyo, in May 1974.In 2004, it was owned by the Ito-Yokado group, which also managed a chain of supermarkets in Japan and owned a majority share in Southland, the company managing Seven-Eleven in the United States. Seven-Eleven Japan realized a phenomenal growth between the years of 1985 and 2003. During that period, the number of stores increased from 2,299 to 10,303, annual sales increased from 386 billion to 2,343 billion yen, and net income increased from 9 billion to 91.5 billion yen. Additionally, the company’s return on equity (ROE) averaged around 14 percent between 2000 and 2004. In 2004, Seven-Eleven Japan represented Japan’s largest retailer in terms of operating income and number of stores. Customer visits to Seven-Eleven outlets totaled 3.6 billion that year, averaging almost 30 visits to a Seven-Eleven annually for every person in Japan. Company History and Profile

Both Ito-Yokado and Seven-Eleven Japan were founded by Mr. Masatoshi Ito. He started his retail empire after the Second World War when he joined his mother and elder brother and began work in a small clothing store in Tokyo. By 1960, he was in sole control and the single store had grown into a $3 million company. In 1972, Ito first approached the Southland Corporation about the possibility of opening Seven-Eleven convenience stores in Japan. Southland agreed in 1973 to a licensing agreement. In exchange for 0.6 percent of total sales, Southland gave Ito exclusive rights throughout Japan. In May 1974, the first Seven-Eleven convenience store opened in Tokyo. Seven-Eleven Japan experienced tremendous growth. By 1979, there were already 591 Seven-Eleven stores in Japan; by 1984, there were 2,001. Rapid growth continued (see Exhibit 1), resulting in 10,356 stores by 2004. On October 24, 1990, the Southland Corporation entered into bankruptcy protection. On March 5, 1991, IYG Holding was formed by Seven-Eleven Japan (48 percent) and Ito-Yokado (52 percent). IYG acquired 70 percent of Southland’s common stock for a total price of $430 million. Seven-Eleven Japan contributed 87.6 percent of the total income received from convenience stores by Ito Yokado. Effectively, Seven-Eleven Japan had become the dominant part of the Ito Yokado group.

The Convenience Store Industry and Seven-Eleven in Japan
From 1991 to 2002, the number of convenience stores in Japan...
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