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Current Scenario History of Ito Yokado

Comparison with competition

Challenges vis--vis Japans economic conditions

and changing customer needs

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About Reform Program HR and empowerment of the employee

Rationalization of distribution

Utilization of sophisticated MIS system

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Reform Program and

improvements Improvements

00.5

11.5

22.5

33.5

44.5

Returnon

sales

Returnon

sales

Returnon

sales

Returnon

sales

Returnon

sales

1984 1985 1986 1987 1988

Ito Yokado

Daiei

Jusco

-2

0

2

4

6

8

10

Returnon

assets

Returnon

assets

Returnon

assets

Returnon

assets

Returnon

assets

1984 1985 1986 1987 1988

Ito Yokado

Daiei

Jusco

Top FiveCompaniesAverage

Return on Sales Graph(%)

Return on Assets Graph(%)

All graph shows exceptionalperformance by Ito Yokado ascompared to its peers. Thecompany performance hasshown good growth in the year

1987 and 1988.

0102030405060

IncomeAftertaxes

IncomeAftertaxes

IncomeAftertaxes

IncomeAftertaxes

IncomeAftertaxes

1984 1985 1986 1987 1988

Ito Yokado

Daiei

Jusco

Income after Tax Graph

(Yen)

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Reform Program and

improvements

0

5

10

15

20

1982 1983 1984 1985 1986 1987

Total Ito Yokado

Inventory Turnover

InventoryTurnover

0

20

40

60

80

100

1982 1983 1984 1985 1986 1987

Total Ito Yokado

Return on Inventory(%)

Return onInventory(%)

The graphs displays that the inventory management of Ito Yokadohas become efficient over the years.

Problems with the current MIS system:-

*Executives considered MIS to be less important then innovativehuman resource program and the rationalization of distribution*Employees are not confident of using the current MIS system*Employees still calculate the number of units required to be ordered

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Reform Program and

improvements Improvements

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Where can MIS intervene?

MIS

HRInventory

ManagementDistribution

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MIS AND HR Knowledge Management

Strategy Management

Innovative idea repository (store-wise

%implemented and % dropped)

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MIS AND Inventory Management

Specific Examples:

Tunafish:Reduce dependency on human judgement and

estimation to predict future salesTrain employees so that they learn to trust the figures

generated by the computer

Apparel:Reduce element of human intuition for predicting

expected sales

Utilize trend analysis on a daily basis to further reduceresponse time to changing fashion trends

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