Description

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 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).