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1 Introduction 2 Theory and Research Methodology Notes 1 Introduction 1. www.thecqi.org/knowledge-hub/Resources/Factsheets/ Continual-improvement 2. www.encyclopedia.com/doc/1G1-12150099.html 3. Industry Week (2008/03/05), ‘Everybody’s jumping on the lean bandwagon, but many are being taken for a ride.’ 4. Mellor et al. (2000), for instance, find that most continuous improvement programs are restricted to the manufacturing sector and not used in other areas. See also Hyland et al. (2003) 5. Japan Post annual report www.japanpost.jp/en/group/past/2004/pdf/ jp/01.pdf 6. Toyota official website www.toyota.co.jp/en/vision/production_ system/just.html 7. Excluding area franchise firms in Asian countries. 8. For detailed work on Southland’s history see Sparks (1995) and Kawabe (2003: 281 et seq.). 9. For instance, sophisticated stocking solutions are offered by a Texas-based subsidiary of NEC, which originally helped developing the system for Seven– Eleven Japan. See Costello (2001). 10. Sankei Shinbun (2008/08/06), ‘J¯oki no konbini uriagedaka, hyakkaten uemawaru’ (Convenience store sales top department stores in the first half-year). 2 Theory and research methodology 1. A monthly issued magazine for business professionals that also includes interviews with CEOs, reviews by business consultants and analytical reports. 2. Some examples are presented in Kawabe (1995). 3. Schreyögg and Kliesch-Eberl (2007: 919) provide a good overview by classi- fying the various suggestions under three different groups, that is the radical dynamization approach, the integrative approach and the innovation routine approach. 4. Front-line employees stand for the lowest hierarchical level within the orga- nization with direct contact to customers who have first-hand knowledge of customer reactions (Ishikawa, 1985: 137). Although store owners are legally not employees of the CS chain due to franchise regulations, they are referred to as front-line staff hereafter to highlight their role in capturing improvement ideas. 5. For instance, quality control programmes can include an iterative four- step problem-solving process for business process improvement called PDCA (plan–do–check–act). The philosophy of total quality control (TQC), a key 178 Notes 179 characteristic of lean systems, is discussed in Ishikawa (1985); Imai (1986); Nakamura (1993). 6. Some authors use different terms such as ‘Logistics Marketing System’ in Morita (2007: 235), but they generally refer to the same concept. 7. Japan Times (2009/09/30), ‘Store managers sue 7–11 over discount sales ban’, http://search.japantimes.co.jp/cgi-bin/nn20090930a3.html 8. Interview with Lawson CEO, Nikkei Weekly (2007/08/20), ‘Lawson chief thinking outside the format’. 9. Nikkei (2008/12/09), ‘Convenience stores lift sales by drawing in homemakers, elderly’. 10. Reuters (2009/01/20), ‘Japan convenience store post strong growth in 2008’, http://uk.reuters.com/article/idUKT34766720090120 11. (2010/05/24), ‘konbiniensu sutoa no gy¯omukaizen jirei’ (example of con- venience store process improvement), www.keieikikaku-shitsu.com/ report/89/ 12. Adjustment for a short-term jump in tobacco sales in 2008 resulted from the introduction of new cigarette machines requiring identification cards which prompted customers to buy cigarettes at CS instead. 13. Financial Chronicle online article (2008/12/19), ‘Convenience stores in Japan gain from recession’. 14. Kawabe (2003: 281–342) has a complete chapter on the Japanese Seven– Eleven/Southland corporation relationship. 15. Stickiness can be defined as the incremental expenditure for a unit to transfer information to a specific site in a form usable by a given information seeker. See Ogawa (1998: 778). 3 Historical overview and the CS system 1. For a chronological overview, see also Chen (2004). 2. The manual was created by the Distribution Economics Institute of Japan (Ry¯uts¯uKeizai Kenky¯ujo)in 1972 (107 pages). 3. Nikkei Ryuts¯ u¯ Shinbun (1975/04/21), ‘Konbiniensu sutoa chakujitsu ni nobiru’ (Steady growth of convenience stores). 4. See also Nikkei Research Inc. (2005/05), ‘Study concerning Japan’s Experience of Foreign Direct Investment Liberalization’ by the Ministry of Finance Japan, www.mof.go.jp/international_policy/research/fy2005tyousa/ 1705tyokusetu_1.pdf 5. See Kawabe (2003: 129). A voluntary chain is basically defined as a non- contractual group working together in order to achieve economies of scale. 6. FamilyMart company report (2006) www.family.co.jp/company/eco/ report/pdf/report_06_04.pdf 7. An excellent overview on the history of convenience stores in the US is provided by Kawabe (2003). 8. Source: Nihon Keizai Shinbun Ry¯uts¯uKeizai no Tebiki (1979 issue: 323, 326). 9. This definition is relevant for the DEA analysis presented in this book which is based on the dataset by METI. 10. See, for instance, FamilyMart annual report (2007), www.family.co.jp/ english/investor_relations/annual_report/pdf/07/07_e_08_b. pdf 180 Notes 11. The location where transactions of electronic cash registers occur. 12. Seven–Eleven Japan Co. (2003: 22 et seq.) has details on its product line-up. 13. Details available in an official document on store operations by Seven & i Holdings Co., Ltd., www.7andi.com/en/ir/pdf/corporate/p24_33.pdf 14. Nikkei (2008/03/26), ‘Konbini kaji daik¯os¯abisu shinshutsu’ (Convenience stores launching homemaker service). 15. Nikkei Weekly (2002/08/12:11), ‘Convenience stores peddle financial services’. 16. Although historically wholesalers have taken a leading role by providing the necessary financial or trading capital, manufacturers eventually overtook leadership in the 1960s, backed up by accumulated production capital. See Kuwahara (1997: 111). 17. An OFC is a field consultant responsible for several stores in a specific area. 18. See also overview available on Seven–Eleven Japan’s official website, www.sej.co.jp/corp/aboutsej/info_03.html 19. Details available on Seven–Eleven Japan’s official website, www.sej.co.jp/ corp/news/2006/pdf/052502.pdf 20. See Lawson’s 2000 interim report, www.lawson.co.jp/company/ir/ library/pdf/value_book/vb_26c.pdf 21. See Ogawa (2002: 584) for a detailed explanation. 22. For a detailed overview see Table 2 in Naruo and Toma (2007: 391). 4 New challenges in a dynamic environment 1. Asahi News Service (2003/09/02), ‘Convenience stores falling to earth from retail heaven’. 2. According to JFA konbiniensu sutoa tokei¯ chosa¯ nenkan shukei¯ (annual conve- nience store statistical summary report) (2009), www.jfa-fc.or.jp/misc/ static/pdf/2009cvs_year.pdf 3. Nikkei Marketing Journal (2008: 45). 4. Nikkei Weekly (2008/08/25/). 5. According to the METI research paper, ky¯os¯otoky¯od¯o no naka de shakai to tomo ni shinka suru konbini (convenience store’s evolution together with the Japanese society through competition and cooperation), www.meti.go.jp/press/20090420007/20090420007-3.pdf, p. 6. 6. Existing stores are commonly defined as stores which existed at least one year before the observed period. 7. Nikkei Financial Daily (2000/02/23), ‘Stock in focus: FamilyMart’. 8. Asahi News Service (2003/09/02), ‘Convenience stores falling to earth from retail heaven’. 9. Nikkei Weekly (2008/03/17), ‘Seven & i chief sees merger synergies still on their way’. 10. Nikkei Business (2007/05/28). 11. Nikkei (2000/07/26), ‘Stock market gives Lawson IPO the cold shoulder’. 12. See JFA convenience store statistical research, www.jfa-fc.or.jp 13. Nikkei handbook of distribution and marketing (2002: 110). 14. See, for instance, CAWW Magazine (The Center for the Advancement of Work- ing Women) (2003/08, Vol. 13: 2 et seq.), ‘The Current Status of Japanese Working Women and Business Startup by Women’. Notes 181 15. According to National Institute of Population and Social Security Research, www.ipss.go.jp 16. Nikkei (2002/11/06), ‘Convenience stores target more products, services at older consumers’. 17. Nikkei (2008/12/09), ‘Convenience stores lift sales by drawing in homemakers, elderly’. 18. Gekkan Conbini magazine (2005/07/25). 19. The survey is published by the Research Institute of Industry and Regional Economy (Nikkei sangyo¯ chiiki kenkyujo¯ ). 20. A model that assesses the strengths, weaknesses, opportunities, and threats of an organization. 21. Datamonitor Seven–Eleven Japan Co., Ltd. SWOT analysis (2007: 8). 22. Kim (2001: 29) refers to the first attempts of starting price discounts in the 1990s. 23. Nikkei Marketing Journal (2002: 111). 24. Japan Today (2007/12/17). 25. Gekkan Verdad magazine (2007/02). 26. Nikkei (2008/04/16), ‘Lawson to pay Y160 yen annual dividend over 3 years’. 27. Joffe (2003: 116 et seq.) provides a comparative overview of leading CS firms’ e-business. 28. Nikkei Weekly (2001/08/27), ‘Convenience stores find e-commerce slow to grow’. 29. This section is primarily based on an article by an attorney pub- lished in Mainichi shinbun (2006/02/26), ‘Konbini wa haiki sh¯ohin keigen wo’ (Convenience stores to reduce items for disposal). See also (2005/06/29), ‘Losu ch¯ajimondai ni tsuite’ (On the loss charge problem), www.ver-law.ne.jp/franchise_sunkus.html 30. Nikkei Marketing Journal (2006: 109). 31. Nikkei handbook of distribution and marketing (2004: 276 et seq.). 32. 1999 values have been estimated by adjusting each entity’s share of part-time workers in the 1997 dataset of Matsuura and Motohashi (2005) using the aggregated value of the ‘1999 Establishment and Enterprise Census’ by the Ministry of Internal Affairs and Communications. 33. (2006/05), ‘Kiro ni tatsu konbini gy¯okai,aratana seich¯ono gend¯oryoku wa mitsukaruka’ (Convenience stores at the crossroads, can they find a new driving force for growth?), www.tbr.co.jp/pdf/sensor/sen_a009.pdf 34. Note that results are discussed here in the same order as presented in the survey except for question 2 which is discussed in the last section. 35. Statements have been formulated according to the decision area subcategories as presented in Table 2 of Anand et al.
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