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7 – Eleven in Taiwan
According to the article “Taiwan Convenience Stores 2010”, “In 2009, Taiwan’s four major convenience store chains such as 7-Eleven, Family Mart, Hi-life, and OK operated a total of 9,184 stores around the country, a density of one store per 2,500 people, making Taiwan the densest market in the world in terms of convenience stores. (Yuko Matsumaro 2013)” Among several convenience store chains, 7-Eleven is the most popular one in Taiwan now. Convenience stores control theory of law "Convenience stores, development and trends, according to the stores need to think about the history of Taiwan, Uni - President Industry Corporation (UPEC) - played an important role in the development of convenience stores in Taiwan (economic , 2000)" May 27, 1979 in The UPEC ten chain stores in which UPEC most have a long history of South America 's largest convenience store chain, Southland Corporation, in collaboration with Taiwan 7 - Eleven goods (administration, economics, 2000)” . The first in Taiwan 7 - Eleven opened 27 stores in 1980, the annual sales of is only was one NTD 1.2 billion. 7 - Eleven stores, but sales still increased by 62 in 1984 is not a lot of improvement, and in 33 stores (Lu and Luo, 2010) has been closed. However, the 7 - Eleven did not stop the company will increase the number of stores, 168 shops, 24, who in 1987 began working hours. This turning point, 7 - Eleven try to expand their businesses, and in April 2010, since the 7 - Eleven sell the year NTD 1017.6 billion (Lu and Luo, 2010), 4733 has been expanded to the chain stores.
“The main difference was made in the floor size of the store. The stores in US were big and were generally in the suburban areas so that people have a drive way and sample p...
... middle of paper ...
...dit to their work.
When we consider “Customizing Global Marketing (John A. Quelch and Edward J. Hoff)”, we should check which strategies are used; adaptation or standardization. When we analyzed the case, we see that 7- Eleven made adaptation strategy in Taiwan. Because, there is not enough space in stores to apply standardization strategy. In U.S., 7 – Eleven uses so much space in stores, but they cannot have similar conditions in Taiwan. Therefore, they are used adaptation strategy to this conditions and they are designed their stores again. Another reason is applying this strategy is that Taiwan culture.
In conclusion, Differences the operation format of 7-Eleven in Taiwan can be expanded to South Korea but not the UK. Cultural, geographical and economic differences or similarities should be taken into account when considering expanding business to other regions.
The department store began as an expansion of the small family- owned draper’s shop but soon grew to be a capitalist power in the French economy. By the twentieth century, in order for to be considered a department store, an establishment needed to be
Globalization is a factor that is prevalent for companies wanting to succeed in gaining competitive advantage over their competition. Taking advantage of markets overseas can prove to be a process that can serve a company well. The Home Depot is no different. In 1998, the company saw the opportunity and went with it, opening stores in Santiago, Chile, and in San Juan, Puerto Rico. In order to avoid the obvious roadblocks of cultural and language barriers, as well as product barriers, the company shaped an alliance with a local retail chain. Prior to opening these stores, The Home Depot’s international portfolio consisted of stores located solely in Canada (Johnson, 1998). The company had the foresight to realize that certain barriers would likely come up with the location of these stores, and planned to team up with a local retail chain in order to ease some of the difficulties. This move allowed The Home Depot the ability to control the external factors involved in the openings.
Each floor I stopped at had a variety of stores. From eery-looking stores selling Halloween and magic merchandise to a magazine shop selling vintage Playboys and Time magazines from the 40s, to a saloon that invited customers, every corner filled up with something worth staring at or dropping my jaw on. Tibetan artefacts, leather bags, indie artist studios, thrift shops, liquor stores, stationary, carpentry shops, jewellery stores, clothing like t-shirts, hats, ties, and belts, pet care, human care, hair styles, Seattle mementoes, and thousands of other little and large shops lit up as customers
stores are smaller because the products are mainly grocery items. They have wide aisles and
Each country has its own culture, with subcultures inside the dominant culture (Schaefer, 2009, p.69). “Culture is the totality of learned, socially transmitted custom, knowledge, material objects, and behavior” (Schaefer, 2009, p.57). Values, artifacts, and ideas are also part of culture (p57). With globalization there is the integration of these cultural aspects, as well as language, social movements, and ideas throughout the world (Schaefer, 2009, p.20). Internationalization helps with this integration. Internationalization is the process of planning and implementing products and services so that they can easily be adapted to specific local languages and cultures (Linfo, 2006). Numerous American retail firms have expanded to other countries. Many have been quite successful due to their internationalization. However, failure to study the culture, retail practices, and consumer market of the country they intend to expand to can be quite costly. Although Home Depot is one of the world’s largest home improvement stores, their expansion to Chile cost them enormous financial loss, resulting in their divestment (Bianchi & Ostale, 2006, section 1, para3). This paper will look at successful international expansion of Home Depot stores, analyze what mistakes were made in Chile, and make suggestions of what could have been done differently.
Q2. How did the sales and marketing affect operations when they began to sell standard pieces to retail outlets?
Harrison, J. S., Chang, E., Gauthier, C., Joerchel, T., Nevarez, J., & Wang, M. (2005). Exporting a north American concept to asia: Starbucks in china. Cornell Hotel and Restaurant Administration Quarterly, 46(2), 275-283. doi: 10.1177/0010880404273893
All choices made by Seven-Eleven are structured to lower its transportation and receiving costs. For example, its area-dominance strategy of opening at least 50 to 60 stores in an area helps with marketing but also lowers the cost of replenishment. All manufacturing facilities are centralized to get the maximum benefit of capacity aggregation and also lower the inbound transportation cost from the manufacturer to the distribution center (DC). Seven-Eleven also requires all suppliers to deliver to the DC where products are sorted by temperature. This reduces the outbound transportation cost because of aggregation of deliveries across multiple suppliers. It also lowers the receiving cost. The information infrastructure is set up to allow store managers to place orders based on analysis of consumption data. The information infrastructure also facilitates the sorting of an order at the DC and receiving of the order at the store. The key point to emphasize here is that most decisions by Seven-Eleven are structured to aggregate transportation and receiving to make both cheaper.
McDonald’s is one of the popular fast food chains in Hong Kong and the success of McDonald’s is due to it is able to create a homogeneous “global” culture that suit to the demands of a capitalist world. In Hong Kong, Time is money thus McDonald’s strategy is consistently fit to the fast food industry. The company has both economic strategy targeting at customer globally and locally.
In conclusion, it can be said that global marketing has been emerged very rapidly in recent years. It has provided various opportunities for the companies to expand their business to the other regions of the word. However, there remain certain environmental issues that need to be considered before entering in to the desired region. These issues can be resolved with designing the strong global marketing plans and strategies, the data for which can be gathered through conducting global market research. Despite numerous issues, one can easily say that globalisation has reduced the global reach of the organizations as well as customers. It would not be wrong to conclude that
7-Eleven, founded in 1927 in Dallas, Texas, is the world’s largest operator and licenser of convenience stores with more than 21,000 units worldwide and nation’s largest independent gasoline retailers. The name 7-Eleven was originated in 1946 when the stores were open from 7am to 11pm. Today, offering customers 24-hour convenience, seven days a week is the cornerstone of 7-Eleven’s business.
Mom and pop shops are the traditional back bone of the retail industry employing a significant amount of the populace. They are located conveniently near residential areas and have fewer operational costs. There are fewer aspersions nonetheless that the shops have been facing survival threats from large conglomerate such as wall mart. Several researches that have been conducted agree that the introduction of large wall mart stores have had predominantly negative effect on mom and pop shops.
Metro Holdings Ltd is a multi-national company that operates two major business segments, namely Property Development and Investment, and Retail. This report explores the retail arm of Metro, which manages three department stores and four specialty “accessorize” stores in Singapore, and another five department stores in Jakarta and Bandung, Indonesia.
...ing in unique outcomes in different geographic areas” (Guo, 2013). Guo gives an example of Starbucks in China (2013). In China, Starbucks stores have incorporated Chinese cultural design elements despite the corporations branding is based on Americana (Guo, 2013).
It operates and franchises convenience stores around the world. It has been the prominent franchise in the convenience store industry for 46 years. (http://franchise.7-eleven.com) 7-Eleven is part of an international chain of convenience stores that is operating under 7-Eleven Japan Co. Ltd. The US subsidiary of the Japanese firm has its headquarters are located in One Arts Plaza building in Downtown Dallas, Texas. (http://corp.7-eleven.com) 7-Elevens are located in many different countries. Few of the largest markets being Japan, United States, Canada, the Philippines, Hong Kong, Taiwan, Malaysia and Thailand. They all have very similar 7-Eleven stores from the interior to exterior. The company entered franchising in 1964, also signing the first U.S. are licensing agreement in 1968. 7-Eleven operates more then 9,400 stores in Japan and Hawaii. (http://franchise.7-eleven.com)