International Business - Franchising - Essay Example

Only on StudentShare

Extract of sample
International Business - Franchising

Arnold (2003) claims franchising is an under-explored entry mode in international markets but that it has been widely used in North America and Western Europe, most notably by fast food chains, hotel or car rental services. The business format is fixed, including the operation and guidelines so that its ability to adapt is limited. The same is expressed by Toncar (2005), where franchising, he said, is dependent upon the ability to provide a marketing mix that matches expectations of consumers in different cultures.
But major players are said to be increasingly learning. McDonalds, for example, as described in MFFI (2003) is "thinking globally and acting locally," a fortunate global marketing strategy. This sensitivity for the locals is expressed in so many ways to include their not using beef in India in their food preparations, their not using lard also in food preparations in Muslim areas, their launching of China burger in Asia in recognition of China as market for them, their introduction of chicken sandwich the Arab way.
Further, management experts credit McDonalds for its maintaining the same efficiency in time to deliver, work-processes, cleanliness, changes in their menus, and ad-campaigns which are region-specific. Their use of franchising helps them set up business all over the world. ...
Download paper


International franchises do not just happen in a vacuum. They succeed due to some factors. Franchising implies a professionally put-together concept whereby a franchisee sinks in money with the franchisor. The latter provides access to a tried-and-tested business plan to the former and helps him get established in the business…
Author : arne44

Related Essays

International Business Practices
The penetration of the company into the global market is facilitated by its market entry strategy which is licensing. When deciding to expand its market, Coca-cola sells a domestic firm the right to use the company's manufacturing process, trademark patent, trade secret, and other item of value for a fee or royalty.…
2 pages (502 words) Essay
International Business (Domino's Pizza)
The paper will discuss the methods of international expansion the company used to date and its appropriate development methods, Domino's Pizza methods using in different markets, as well as the possible combination of international expansion methods. The paper will also critically appraise the current strategy and give appropriate recommendations for further development. …
7 pages (1757 words) Essay
Researchers have pointed out that the impact of the fast-food restaurant on the society is much greater and therefore the evolving competitive environment is determined by the degree of operational freedom that these franchisees have in adding side dishes to the main menu and so on. This trend has been particularly marked during the last decade from 1999 to 2009.…
40 pages (10040 words) Thesis
Comperative Study of International Food Franchising and Domestic Food Franchising in Saudi Arabia
The country is experiencing a tremendous population growth, along with the fact that its oil reserves are finite. These two major dynamics has and is changing the foundations of the country. The realities of globalisation as well as the understanding that its oil reserves will one day be depleted has seen the country's leadership plan changes to the economic structure of the country to meet current and future needs to bring Saudi Arabia in line with the economic make up of a post oil situation, via the development of a diversified economic structure.…
35 pages (8785 words) Essay
franchising - marketing
property rights or inventions or special characteristics of a business owned by the other party (Franchisor) based on payment as determined by the Franchisor for supplying or marketing certain products and/or services. The Franchisor and the Franchisee can be entities or individuals”.…
8 pages (2008 words) Essay
Examine the role of Business Format Franchising in multinational businesses and define the effect of International Franchising on globalisation.
The franchisor-franchisee relationship is based on mutual support and trust. In this relational exchange, they share benefits and costs (Grunhagen & Dorsch, 2003). The franchisor provides support, technology and advice to the new franchisee and guarantees continued support. In exchange, the franchisee has to pay an entry fee and a continued royalty on sales and advertising fees for regular services (Inma, 2005). Franchising is different from other forms of business. The franchise owners try to assess the value they receive in exchange for the sum paid. They would remain in the relationship as…
12 pages (3012 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!