RETAILING INDUSTRY Convenience Stores

Click to Mary Rose subtitle style Prof. edit Master Blancaflor MGT - 110 Vea Karen Bomediano Veronica Camille Ng Karen Mae Rasing Bernadette Camangon
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Retailing Industry

Retailing - the sale of goods or commodities in small quantities directly to consumers.

Type of products as follows:

Food products Hard goods ("hardline retailers") appliances, electronics, furniture, sporting goods, etc.
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Types of retailers by marketing strategy:

Department stores Discount stores Warehouse stores Variety stores or "dollar stores" Demographic Mom-And-Pop (small business) General store
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Convenience stores Supermarkets Hypermarket Mall Category killers or Category Specialist E tailers Vending Machine

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Convenience Store

Is a small store or shop in a built up area that stocks a range of everyday items such as groceries, toiletries, alcoholic and soft drinks, and may also offer money order and wire transfer services. They may be located alongside busy roads, in urban areas, or near railway stations or other transportation hubs.
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Canada

Convenience Stores in Different Countries

Referred to as "corner stores," "mini-marts," or

"variety stores Mac's Convenience Stores and Beckers Milk, is the largest convenience store chain in Canada. 7-Eleven, has about 500 locations from British Columbia to Ontario
Key

Issues Alcoholic Beverages Adult Magazines

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Japan

Often shortened to konbini. Where 7-Eleven and Ministop originated. The Japan Franchise Association, as of August 2009 (data pertaining to the month of July 2009), there are 42,345 convenience stores in Japan.
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United States of America

Convenience store industry nearly has 145,000 stores, posted $511 billion in total sales in 2009, with $328 billion in motor fuels sales. often times called a "bodega", which literally means "warehouse" in Spanish. first chain convenience store was opened in Dallas, Texas in 1927 by the Southland Ice Company, which eventually became 7-Eleven, the 4/14/12 largest convenience store chain.

Are

The

Issues

Policies regarding the sale of adult magazines. Laws regarding the sale of alcoholic beverages. Often a direct target of armed robbery.
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Philippines
Philippine

NSO counted 437,325 establishments engaged in wholesale and retail trade in 2000, with the industry employing over 1.7 million people. sales in 2002 amounted to 1,692.3 billion pesos, and an 11.1% increase from 2001. of the countrys total retail sales are concentrated in Metro Manila. 4/14/12

Retail

30%

Social Issues
Trade

Liberalization

Mom

- Pop Stores (Sari-Sari Stores)

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Retail Industry Growth

4th place among Asian countries with fastest retail industry growth Nowadays, the Philippine retail industries growth is concentrated in Metropolitan Manila. In urban areas, the retail industries source of income comes from middle class families and professionals. The Philippines recorded a 40% of young people who become a key future consumption expenditure.
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Negative Aspects of C-Stores

Arrival of convenience stores has wiped out mom-and-pop operations and other smaller businesses to close. No space for storing inventory. The exhaust fumes from the trucks, and the noise from unloading the deliveries, have an adverse impact on neighborhood environments.
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Selling boxed meals that boast that the time is coming when households will no longer need their own refrigerators, cutting boards, knives, or pots. There are some people who fear that the distinctive quality of the home is being exchanged for convenience, and that the spread of convenience store is diluting traditional culture.

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Top two convenience stores in the Philippines

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MINISTOP

AEON Retail Groups Ministop Company Ltd. Japan sealed a joint venture with Mitsubishi Corporation and Robinsons Retail Groups Robinsons Convenience Stores, Inc. (RCSI) to open Ministop in the Philippines. first branch that was opened December 2000, Ministop has grown to 200 stores within Metro Manila and nearby provinces.
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The

Political Background - Philippines

Mr. Johnson Robert Go Jr.

Graduate of Bachelor of Arts degree in Interdisciplinary Studies (Liberal Arts) from the Ateneo de Manila University

Now:

- President and Business Unit Group Head of Robinsons Convenience Stores

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Social Issues

Ministop sets high standards of taste and quality for all of its products and works to maintain wide product lines that reflect customer preferences. Store personnel provide impeccable service to customers. Store personnel undergo intensive training through development and motivation. Ministop contributes to the enhancement of communities by providing customers with wide assortment of popular conveniently packaged merchandise and fast food products of high quality at affordable prices through excellent service in a clean, safe and friendly environment.
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7 Eleven

is run by the Philippine Seven Corporation (PSC). Its first store opened in 1984. Since 2004, PSC is operating 551 stores, 211 of which are franchise stores, 130 stores are operated under a service agreement, and the remaining 210 are company-owned stores.
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Social Issues

7-Eleven stores are part of the neighborhood and committed to serving the changing needs of our customers. Being a good neighbor and corporate citizen is part of doing business at 7-Eleven. 7 - 11s community relations initiatives are generally focused at the local level and on four key areas associated with strong communities and citizens: safety, education, health & wellness and community revitalization. 7-Eleven is truly committed in being thefriendly neighborhood convenience store. 4/14/12

Political Background
Mr. Vicente Tirona Paterno Current:

7 - 11 Inc.s Chairman of the Board of Directors

Formerly;

a Philippine Senator & Cabinet Secretary of the Department of Public Highways and Department of Industry4/14/12

Mr. Jose Victor Pardo Paterno

Current President of 7 Eleven Inc. since January 1, 2005, and Chief Executive Officer. President of Convenience Distribution, Inc., Managing Director for Electronic Commerce Payments, Inc., and General Manager for Support Services of PSC where he improved the site acquisition process enabling store expansion from 35 to 150 stores, 4/14/12 and instituted a supply chain management

Ethical Theories that may be applied to Retailing Industry

Utilitarianism In Utilitarianism theory, we enumerate the benefits and costs of different alternatives or options in a certain situation. Estimate the direct and indirect benefits and costs in every option then choose the alternative that gives us or produces the net benefit or the option that satisfies us the most.
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Rights Theory In Rights theory, it focuses more on the individuals, not for the greater number of people or the majority like in the utilitarianism, however it also considers the interests of the other people in the community. Every individual are tightly correlated with duties Every individual should be provided with autonomy and equality in the free pursuit of their interests Every individual should provide a basis for ones actions and for invoking the 4/14/12 protection or aid of

Kants Theory Within Kants Theory, a certain action is morally right when the maxim or the reason an individual in a certain situation has for doing what he plans to do is universal or other people in that situation would also choose that option for the same purpose. The first formulation in which well place ourselves on the place of the other person and ask ourselves, would we still take the same decision? The second formulation which states that we should never use people merely as means but always respect and develop their ability to choose for 4/14/12

Ethics of Care

Ethics

need to be impartial We have an obligation to exercise special care toward those particular persons. preserving and nurturing concrete valuable relationships It is not the isolated individual, but the community within which individuals discover who they are by seeing themselves as integral parts
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Emphasizes

Justice Theory Distributive Justice, it implies that the society has adutyto the individual in serious needs and that all individuals have duties to others in serious needs. Everyone is entitled to equal access to basic care necessary for living in a humane way. Retributive Justice refers to the just imposition of punishments and penalties to those who do wrong. Compensatory Justice, this refers to the extent to which people are fairly compensated for their injuries by those who have injured them.
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Lockean Theory All are free and equal. Every customer who enters to their stores has the right to be treated well and fairly. Each person owns his body and labor, and whatever mixes his labor into. The employees have the right to get receive their salaries and incentives because they earned it and they worked hard. People agree to form a government to protect their right to freedom and property. The employees of 711 and Ministop is under in the DOLE they are the responsible and they also protect the rights of the employees.
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Ethical Theories applied to Ethical Issues concerning the Industry

Age restricted Products Summing up, the most appropriate ethical theory for age restricted products issue is the rights theory because we do not only view on just one side. We pondered both on the crew and the minors point of view. And it does not only consider an individual but also the other people around, not like utilitarianism wherein we seek for the net benefits of the greater number of people.
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Store Inventory It is more preferable to use the Rights Theory because with this, people will know exactly about the duties of each person related in the business and it will be a big help for them to find who the wrongdoer or the person who did not do his duties in a proper manner. So, the Rights theory says that the store owner of 7Eleven have every right to punish and suspend the person in-charged of the inventories, because making sure that all the inventories of the store is in exact and proper count and condition of every item that 4/14/12 goes in their stocks is his primary duty, but he did not

Incentives and Benefits to the Employees

Summarizing all the theories, the appropriate theory for the incentives and benefits to the employees is the rights theory, we do not based on the positive or advantage side, rather the results of who what are the possibilities in giving incentives and benefits to the employees. It does not take the individual but as a whole.

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Relationship Between Customers and Employees The most appropriate theory in the relationship between customers and employees is Rights theory because it says there that every employee of the convenience store have the right to be respected by the customers and to be treated properly. The customers have the right to be served well and to satisfy their needs. The employees duty to the customers is to serve them well and if the customers have complaints the employees should entertain it so that the complaints will be resolved.
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 Security

With these six different ethical theories discussing security issues of the convenience stores, the most appropriate theory is the ethics of care because we are viewing it in a more detailed form. And we see to it that we consider the poor crews welfare who wanted to help his family by sacrificing his time for sleeping just to earn money.

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References

http://www.philippinesforum.com/resources/research/files/spe_retail.pdf

http:// en.wikipedia.org/wiki/National_Economic_and_Development_Authority#List

http:// en.wikipedia.org/wiki/Philippine_Securities_and_Exchange_Commission

http://en.wikipedia.org/wiki/Department_of_Trade_and_Industry_(Philippines )

http:// www.bplans.com/convenience_store_business_plan/market_analysis_summa 4/14/12

THANK YOU!

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