Franchising is defined by Czinkota et al as “the granting of the right by a parent company (the franchisor/ franchiser) to another, independent entity (the franchisee) to do business in a prescribed manner. (2011).
4. The Toronto headquarters must the proceed to design the corporate strategy of DHL Canada. Corporate strategy encompasses “the long-term, organisation-wide strategy for a business, formulated by top-level managers” (Johnson, Scholes and Whittington, 2009). In doing this, we must get accurate information about important elements of doing business across Canada, namely an Operational Model, Legal Model, Marketing Strategy and Franchising Model.
5. The Operational Model must define how logistics and goods will be moved from one point to another to Canada. This will involve the identification of warehousing, transportation and other systems that would be used. In doing this, we will need to globalise or localise. If we globalise, it would mean that we will maintain the standards in the home country of DHL in Canada. If we decide to localise, we will examine the way other courier companies work and marketing conditions in Canada and then define a different operational model from the scratch. I recommend a mixed strategy of globalisation and localisation. This will enable us to be flexible in drawing up operational requirements for the company.
6. After this, we have to define the legal requirements for our franchising agreements. We will identify the capital base that each franchisee needs and the rules that they have to follow. Also, the contributions they will make to the company for marketing costs will be defined. Additionally, Franchising fees will be given and a timeline for meeting requirements will also be given.
8. When the major planning activities are completed, we can come up with a time, budgetary and resource ...Show more