Distribution channels around the world are highly differentiated. However these differences cannot be explained just by culture and income level of the existing market. What is the difference between organic growth and franchising?
What will be an ideal response?
Organic growth occurs when a company uses its resources to open a store on a greenfield site or to acquire one or more existing retail facilities from another company. For example, Marks & Spencer's announced in 1997 plans to expand from one store to four in Germany via the purchase of three stores operated by Cramer and Meerman. Franchising is the appropriate entry strategy when barriers to entry are low yet the market is culturally distant in terms of consumer behavior or retailing structures. It is a contractual relationship between two companies. The parent company-franchisor authorizes a franchise to operate a business development by the franchisor in return for a fee and adherence to franchise-wide policies and practices. The key to a successful franchise operation is the ability to transfer company know-how to new markets. Benetton, IKEA, and other focused, private-label retailers often use franchising as a market entry strategy.
You might also like to view...
Maid to Clean is considering implementing a system that will pay its cleaning workers based on the number of completed residential jobs, coupled with satisfactory ratings on random inspections to ensure quality. Managers believe that this will reduce labor costs. Maid to Clean is focusing on changing employee
A. performance. B. skills. C. attitudes. D. management. E. structure.
A corporate treasurer typically handles both the cost accounting and financial accounting
Indicate whether the statement is true or false
Antitrust issues for brokers arise in which area?
A) Price fixing B) Monopolization C) Restraint of trade D) None of the above
_____ of the NLRA requires that the union be designated or selected by a majority of the employees in order for the union to become the exclusive bargaining agent.?
A) ?Section 8(a)(3) B) Section 7? C) Section 2(3)? D) ?Section 9(a)