FIN 540 WRITE-UP QUESTIONS FOR THE TANPIN KANRI CASE/ TUTORIALOUTLET FIN 540 WRITE-UP QUESTIONS FOR THE TANPIN KANRI CA | Page 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