The Importance Of International Franchising

1405 Words6 Pages
Number of franchised units, Number of company owned units, Royalty fees, Geographical scope, Investment Number of franchised units, Royalty fees, Number of company owned units, Age, Total Units, Franchise experience Initial Support, Earning Claims, Franchise experience, Total unit growth, company owned units, Chain size Franchising is one of the entry modes that companies use when they desire to enter to other markets and it is defined according to the level of risk and control that the firms can or want to have on their operations. Welch, (1990) identifies “direct stimuli”, which he defines as when third parties, such as local companies from the hosts markets make contact with the potential franchisor firm. Another direct stimulus is market…show more content…
Axinn, (1988) states that the relationship between management attitude towards internationalisation should not be undervalued. In her research, she found out that the single most important indicator of firm expansion performance was due to the manager’s attitude towards international operations. Zhu et al., (2011) expressed in their work that international franchising system life cycle is another determinant and the life cycle was divided into penetration, expansion, maturity, and late maturity. They stated that once the franchise system in the home country reaches a maturity state franchisors start to exploit international markets. Also, the international business experience is an important factor that affect international franchising with the greater the experience the greater the level of internationalisation. Elango (2007) research on internationalisation also pointed to the fact that the monitoring experience of the franchisor also contributed to the franchisor's ability to operate internationally. Zhu et al., (2011) argued that the country risk, location familiarity which consist of physical and cultural distance also determine international…show more content…
According to Hodson (2012) the Australian franchising market has been growing rapidly over the last five years, and as such many of the businesses are rapidly nearing, or have already reached the critical mass that is arguably necessary for a stock exchange listing. Even though, franchisors are very skeptical about listing on the stock market, listing has numerous benefits for firms such as an aggressive growth paths ranging from access to equity capital to fund expansion and acquisition, to extracting a percentage of value from the years invested in building the business, whilst still retaining in control. Furthermore, Hodson (2012) stated that there is a powerful and often underestimated benefit of listing which is the ability for the franchisors to retain franchisees and employee’s due to higher public profile as well as the ability to offer unique remuneration structures whiles using the listed company’s
Show More
Related

  • How Does Walmart Affect Indian Culture

    1402 Words  | 6 Pages

    State Government. The Constitution of India designates a bilingual approach for official language of the Government of India employing usage of Hindias well as English. As we already mentioned above, only common language can contribute to the international trade between two countries by 200% (Frankel and Rose, 2000). So, there was no language barrier faced by Walmart. Also, it is essential to mention that Westernized elites dominate in India. All these factors contributed to the reduction of cultural

    Read More

  • Levendarary Cafe Case Study

    807 Words  | 4 Pages

    true method for finding and supporting good partners to do business with. They partnered with people who managed their resources properly; they conducted proper market research and followed best practices by competitors. Levendary understood the importance of operational metrics and high quality. They also had built up a reputation of consistency; their clientele could go to any one of their stores and get the same feel and menu. But, the market was shifting, and many of their competitors were finding

    Read More

  • The Importance Of Tourism

    3648 Words  | 15 Pages

    1.0 Introduction The importance of tourism is increasing day by day. Tourism provides the foundations of foreign incomes, creation of employment, bases of both public sector and private sector income, cultural exchange, publicity of the country etc. In the 2012, the worldwide tourist visits exceeds 1.035 billion USD. Tourists spent over $1 trillion on the travel directly or indirectly, their spending was almost nine percent of the world’s GDP and six percent of its exports. Range of organizations

    Read More

  • Holiday Inn Case Study

    1232 Words  | 5 Pages

    corporation when it incorporated various hotel brands such as the all-suite, Embassy Suites and the luxury brand, Crowne Plaza. Holiday Inn is willing to try and embrace new technological innovation during its expansion, in 1965 it contracting International Business Machines to design and implement the chain's Holidex system. This computerized system made booking more efficient for guests and desk clerks alike, and provided a constant flow of information between the chain's hotels and the home office

    Read More

  • Swot Analysis Of 7 Eleven

    3433 Words  | 14 Pages

    stores and multi brand outlets under the name of ShoeTree and Value Station. They are thus a specialty retailer of premium international sports and lifestyle brands in India with a presence across retailing, designing, manufacturing, and franchising of sports and lifestyle products. They have a pan-India network of 238 exclusive branded outlets (“EBOs”) of leading international brands viz. Nike, Lotto, Levi’s, United

    Read More

More about The Importance Of International Franchising

Open Document