Write-Up Questions for the Tanpin Kanri Case Your Name: Length Requirement: While quality answers are the ultimate basis for my grading on this assignment, the following important length requirement may help ensure that enough effort, thoughts, and details are demonstrated in the answers. Please input your answers in this document and limit your answer to about 3 single-spaced pages, using size 12 of Times New Roman font and leave 1-inch margin

1. FIN 540 Write-Up Questions for the Tanpin Kanri Case
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Write-Up Questions for the Tanpin Kanri Case
Your Name:
Length Requirement:
While quality answers are the ultimate basis for my grading on this
assignment, the following
important length requirement may help ensure that enough effort,
thoughts, and details are
demonstrated in the answers. Please input your answers in this
document and limit your answer
to about 3 single-spaced pages, using size 12 of Times New Roman
font and leave 1-inch margin
on all sides. As my own questions and instructions already occupy
about 3 pages, please limit
the length of the whole completed document to about 6 pages.
Type your answers in blue.
There will be penalty for “net” write-ups significantly going over
the 3-page length limit (5
points deducted per extra page), and writer-ups coming
significantly less than 3 pages could miss
important, pertinent details needed for high quality answers.
Upload your completed write-up in the Assignments section and
for organizational purposes,
please name your file as “Your Last Name.First Name Initial”,
such as in “Gao.T”. You may
email it to me if you experience technical difficulties in uploading
your file.
Please also write your full name at the top of this page, aside from
naming your file as above.
Note on collaboration:
This is a completely individual assignment and no collaborations of
any form are allowed
between or among members of the class or with any outside

2. parties. Similarities among answers
from different students and outside sources will be closely
monitored.
Questions:
1.
Compute or list key financial performance measure for Seven-
Eleven Japan in fiscal 2003
(shown in Exhibit 1a as year ending in Feb. 28, 2004 and in Exhibit
1d) in terms of the total
sales (or sales revenue), gross margin (%), net profit margin (%),
inventory turnover, and
sales per square foot. Report your results in US$ when the results
are in currencies. (15
points)
Find the exchange rate between the US dollar and Japanese yen at
the end of February
2004 (e.g., Feb. 27, 2004) and use it to translate the total store sales
data for the 2003 fiscal
year into US$. Note that the fiscal years for Seven-Eleven Japan
ends on the last day of
February, so the data given in Exhibit 1a under 2004 are for the
2003 fiscal year.
Here is one website where you can locate historical exchange rates
data (Click on March 1
for the exchange rates on Feb. 27):
http://www.federalreserve.gov/RELEASES/H10/.
The company’s approximate average sales per square meter
number in 2003 is given on
page 1 of the case (at the end of the 3rd paragraph) but you will
need to convert it into an
amount in dollars per square foot).
Please use this formula to calculate the inventory turnover:
1 Inventory turnover (in a year) = Annual COGS ÷ average annual
inventory
Assume that the average total inventory per store for the entire
2003 fiscal year was
4,000,000 Japanese yens (as estimated from Exhibit 4). To get

3. COGs, use this formula
(with numbers from Exhibit 1d): COGS = Sales (1-Gross
Margin%).
Please show the processes of your calculations for questions 1 and
2 either in the text or in
an exhibit (Word or Excel).
Your answer:
2. Assume that for the 2003 fiscal year (ending on Feb. 28, 2004),
Seven-Eleven Japan’s
Marketing and Sales Expenses is 70% of its Operating Expenses.
Use the information give
in Exhibits 1a and 1d and the formulas given on pages 49-53 of the
Best book to calculate
Seven-Eleven Japan’s Net Marketing Contribution, Marketing
ROS, and Marketing ROI.
How do these numbers compare with Apple’s numbers reported in
pages 67-69 of the Best
book? Note that you may derive the company’s Operating
Expenses (or SG&As) by using
the following formula: “Operating Income = Gross Profit –
Operating Expenses,” which is
similar to the ones given in page 50 of the Best book. (10 points)
Your answer: 3. Briefly describe the key differences between the
Tanpin Kanri practice and the POS
systems typically used in Japanese (and similarly in North
American) stores since the 70’s?
(10 points)
Your answer: 4. What is meant by the term “hypothesis” as used in
the case? Who in the company (SevenEleven Japan) are mostly
responsible for “hypothesizing”? Give an example of a
hypothesis that the responsible party may form. (10 points)
Your answer: 5. Identify and discuss 5 specific, respective ways in
which the Tanpin Kanri system helps
enhance both the customer experience and the financial
performance of Seven-Eleven
Japan in the increasingly competitive Japanese retail environment.
(30 points – Please note

4. the particularly high score for this question) (Identify 5 ways for
Tanpin Kanri’s impacts
on customer experience and 5 additional ways for its impacts on
the firm’s financial
performance.)
Your answer: 2 6. While the benefits of the Tanpan Kanri method
to shopper demand management may be
compelling, the typical North American convenience retailer would
need to overcome
some major barriers in order to successfully implement it. Identify
4 such key barriers and
briefly discuss ways to overcome them. (15 points)
Your answer: 7. Briefly discuss what lessons about effective
marketing your own company/organization or
a manufacturer such as Kellogg could learn from this case.