Franchising and Convenience Store free essay sample

I. Introduction Company Background MINISTOP is a convenience store  franchise  chain in  Japan. It was established in May 1980 as a wholly-owned subsidiary of Jusco Co. , Ltd. with an initial capitalization of 30 million yen. By year July 1980 they open its first store in Okurayama in Yokohama, Japan. MINISTOPs network breaks the 100 store mark with 80 franchised Stores and 20 stores directly managed by year May 1985. The first MINISTOP overseas store opens in Seoul, South Korea by November 1990. And in the year 1998 1,000 MINISTOP stores in full blast operation, 922 franchised stores and 78 stores directly managed. By August 2000 Robinsons Retail Group, Mitsubishi Corporation and MINISTOP Co. , Ltd. seal Shareholders Agreement to establish MINISTOP, Philppines. The first MINISTOP store in the Philippines opens at the MRT Central Station, a busy commercial hub. MINISTOP has always envisioned becoming the leader in the convenience store industry. MINISTOP has made its presence felt by being the communitys warmest and friendliest modern combo store. It takes pride in its wide range of quality products, at affordable prices and value-added service. The commitment to a customer-focused management has given MINISTOP a competitive edge not only in Japan but also in the Philippines. MINISTOP has been continuously expanding to service the Filipino consumer needs inside and outside the Metro Manila area. II. Company Vision/ Mission Vision MINISTOP is the leader in the convenience store industry, preferred by customers in terms of assortment, price and quality of products and value-added service. Mission 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. It provides business opportunities by offering attractive franchising package to local entrepreneurs. III. Products and Services MINISTOP is the convenience store that exudes energy and vibrancy with its modern, innovative, warm and pleasantly clean ambience The unique combo format of MINISTOP makes it the only convenience store that serves in-store prepared food products a definite plus in convenience shopping. Customers now enjoy the convenience of being able to indulge in freshly-prepared fast food in the stores dine-in corner that features clean and comfortable sitting facility. IV. Business Opportunities Since MINISTOP is a convenience store  franchise  chain, it continuously expands. Up to 1,000 Mini-Stop stores were in full blast operation, 922 were franchised and 78 stores were directly managed. MINISTOP franchising business objectives * To develop and establish systems and RCSI infrastructures to support the rapid growth of stores and needs of franchisees * To continuously develop systems and procedures to make store operations simple and more efficient. ’ Merits of MINISTOP Franchise System * Small capitalization  required Independent entrepreneurial management * Business experience not necessary * Full Franchisers support thru training programs,  advanced business systems,  distribution center  and  store operation guidance * MINISTOP  assists by investing key equipment and operating cost. V. Evaluation MINISTOP (Bucal Branch) MINISTOP Pansol is one of the hundred branches of MINISTOP all over the country established in year 2009. It is located at 55 km. National Road Brgy. Bucal Calamba Laguna and is owned by Mr. Nilcar B. Donato. Performing SWOT The most influential way of doing this is to perform a SWOT analysis of the company. Recognizing the Strengths and Weaknesses before tackling the Opportunities and Threats is the best way to approach the analysis: the more Strengths and Opportunities the better they can both be seen as the bigger influences for the success of your company. This may well depend on your company’s original objectives and goals but the whole process will certainly give an overall look at the current position of your business. STRENGTHS * MINISTOP is a convenience stall and fast food in one. Soft serve ice cream is one of the best selling products of this branch although other competitor has it but still customers’ satisfaction proves that ours is the best. * The market place is right or fit because they are surrounded by many schools and resorts. * They have a good management system. * They have an open communication. * Currently in a good financial position. * They have skilled workers. * They meet the satisfaction of their employees. WEAKNESS * Less customers during weekday mornings. * Competitors offer almost the same products as them. * Presence of good competitors in the area. OPPORTUNITIES * Good financial position creating a good reputation for future bank loans and borrowings * If their business continuously prospers, they will reach their goal to be the number one convenience store in the Philippines. * Because of their good management system, there is a big opportunity for expansion of the business. * More customers may be entertained. More customers more money. THREATS * Large and increasing competition * Rising cost of Wages * Local authority refusing plans for future building expansion * Existing product becoming unfashionable or unpopular The price can be no longer afforded by their customer due to economy crisis. VI. Conclusion Finally, with the results from the SWOT analysis we made, we evaluated that the business is worth. Based on our interview and our observation, it shows that the performance of MINISTOP is very good. They are well organized that is why no wonder they have a lot of customers and business runs well. Employees are enjoying the ir job with equal compensation and benefits given by their company. And as the business continuous to runs well there is no doubt for them to meet their goal to be the number one convenience store in the area.