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Continuous improvement strategies : Japanese convenience store systems
Taking into consideration the recent structural changes in Japan's consumer market, David Marutschke presents an analysis of the continuous improvement strategies of Japanese convenience store operators. This study highlights the efforts of companies operating under lean management systems to reenergize their organizations and to identify new, dynamic, firm-specific capabilities in markets which are highly competitive and in an evolutionary stage of maturity. It challenges existing views that incremental innovation is directly linked to a culture of risk avoidance and a focus on organic growth. This book suggests that the Japanese strategy for continuous improvement and lean thinking is able to overcome cultural rigidity if projects that promote change include a comprehensive organizational strategy. It suggests how companies can sustain continuous long-term improvement: an objective which western firms often fail to achieve.
BOOK
Continuous improvement strategies : Japanese convenience store systems
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Taking into consideration the recent structural changes in Japan's consumer market, David Marutschke presents an analysis of the continuous improvement strategies of Japanese convenience store operators. This study highlights the efforts of companies operating under lean management systems to reenergize their organizations and to identify new, dynamic, firm-specific capabilities in markets which are highly competitive and in an evolutionary stage of maturity. It challenges existing views that incremental innovation is directly linked to a culture of risk avoidance and a focus on organic growth. This book suggests that the Japanese strategy for continuous improvement and lean thinking is able to overcome cultural rigidity if projects that promote change include a comprehensive organizational strategy. It suggests how companies can sustain continuous long-term improvement: an objective which western firms often fail to achieve.
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A clinical study of Japanese convenience stores' lean retail system
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Introduction Theory and Research Methodology Historical Overview and the CS System New Challenges in a Dynamic Environment New Developments in Recent Years Discussion of Rigidities and New Approaches Conclusion
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DAVID MARUTSCHKE Associate at J.D. Power Asia Pacific in Tokyo, Japan. He graduated in International Business Administration and Japanese Studies at Tübingen University, Germany. For his PhD thesis and research he was based at the German Institute for Japanese Studies (DIJ), Tokyo, and at Kyoto University, Japan, as a JSPS scholarship holder.
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This book discusses continuous improvement strategies of Japanese convenience store operators. The study highlights the efforts of companies operating under lean management systems to identify new, dynamic, firm-specific capabilities in highly competitive markets.
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Comparative research in Business Administration A new look at Lean Management A study of innovation
eBook
Continuous improvement strategies
This book discusses continuous improvement strategies of Japanese convenience store operators. The study highlights the efforts of companies operating under lean management systems to identify new, dynamic, firm-specific capabilities in highly competitive markets
Publication
Conclusion
A major problem of western companies implementing lean thinking into their operations is often the‘backsliding to old ways of doing’after initial progress, insufficient implementation of know-how or getting stuck at a certain point of progress without providing the basis for sustainability.1 This issue is the subject of much debate in a variety of operations manage-ment literature which proposes different frameworks for how a company can improve and sustain its competitive position through exercising continuous improvement tools. An important challenge for sustain-ing a culture of ongoing change through lean management is not only the development and implementation of problem-solving activities but also to overcome the risk of getting trapped in changing environments. Dynamic capabilities and ambidextrous systems are the result of the con-tinued infusion of tacit knowledge and stable patterns of innovation routines. However, replicating and stabilizing a pattern of certain activ-ities can also lead to inherent structural inertia causing the same set of problems reappearing on a higher level (Schreyögg and Kliesch-Eberl, 2007).
Book Chapter
Introduction
In times of high competition, rapid development of technology and increasing dynamics of business environments, organizations no longer compete on processes but rather on the ability to continually improve processes. In order to cope with such challenges, a growing number of manufacturing and service organizations is successfully implementing lean management systems to achieve continuous improvement of their performance, while terms such as kanban, kaizen, just-in-time (JIT) inventory and performance-based logistics (PBL) have become broadly accepted methods to reduce cost of operations and increase their efficiencies.
Book Chapter
Theory and research methodology
The purpose of this research is to provide new insights into how Japanese firms cope with individual change challenges, regain employee motivation, redefine their organizational goal and sustainably strengthen their organizational structure. These insights, based on a clinical study, may be used for future strategy formulation, especially for western firms which enter an evolutionary stage of maturity, surrounded by high competition, market saturation, diverging customer demand and other structural changes in the business environment.
Book Chapter
Historical overview and the CS system
In an attempt to construct a conceptual model of retail innovation, Yahagi (1997: 18) used two analytical frameworks when analysing the historical development of CS: the determination of marketing channel structure and the concept of technological innovation. He introduced the term ‘convenience store system’ to explain the store concepts success with system innovations. It stands for a lean management system that controls the interaction between highly efficient store operation, product/service development, joint distribution and integrated information system. This term is generally used by other researchers and industry professionals as well, making the business concept of Japanese CS a prime example of achieving a leading position through epoch-making innovations and advanced management styles.
Book Chapter
Discussion of rigidities and new approaches
The previous chapters examined the business model of Japanese convenience stores developed in the past decades and modifications observable increasingly after the turn of the millennium. Although from an evolutionary point of view, convenience stores are relatively young participants in the Japanese retail industry compared with traditional formats such as department stores and supermarkets, recent problems of high competition, saturated markets, more complex business environments and increased difficulties in meeting diverse customer demands reflect typical characteristics of the current stage of maturity. The fact that the three largest operators have a market share of over 70 per cent suggests a major shakeout, where many firms were unable to develop and sustain sufficient dynamic capabilities to meet the change challenge that became necessary for survival.
Book Chapter
New developments in recent years
In an attempt to investigate the market dynamics and productivity of the Japanese Retail Industry, Matsuura and Motohashi (2005) compiled a comparative overview of market entry and exit of establishments by sales form in a five-year period presented in Table 5.1.
Book Chapter