Effective Franchise Management
Abstract
Purpose: This paper aims to explain: How does the franchisor maintain the franchise network relationship and manage the franchisee effectively.
Methodology: In order to collect the data for the research I used both primary and secondary information. Primary data was collected through an interview with the employee of Aiyaya company. Secondary data was collected through articles and online resources.
Findings: The research reveals that investment in information technology, high quality of support and the contract are effective operation to manage franchisees in the franchise network. In addition, information technology enable the franchisor have the flexibility to adjust the marketing strategy.
Limitations: It is only one case was examined empirically in this paper. Because of the limited resources I get, the result from the analysis may be only applied in Chinese marketing.
Suggestions for future research: There are lots of powerful systems in the market, but a number of them are too complex and expensive to use in franchise system. It may also be interesting to analyze the problem cause by those high technology systems.
Key word: Franchise relationship, Franchisor
Contents
1. Introduction 1
2. Methodology 2
3. Literature Review 3 3.1 Franchise Relationship 3 3.2 Features of franchise relationship 4 3.3 Theories explaining franchise relationship 5
4. Empirical Finding 7
5. Discussion 8
6.Conclusion 9
7. References 10 7.1Articles 10 7.2 Web Pages 11
1. Introduction
Franchising is one of the most popular and successful strategies for businesses to enter new markets and expand operations. It enables the franchisor to enter a new market with very low risks and initial investment (Saleh et al, 2005, pp.74). Franchising is a contractual business arrangement which franchisor offer franchisee to use its trademark, product and business system in a specified manner (Brookes and Altinay, 2011, pp.336).
Purpose: This paper aims to explain: How does the franchisor maintain the franchise network relationship and manage the franchisee effectively.
Methodology: In order to collect the data for the research I used both primary and secondary information. Primary data was collected through an interview with the employee of Aiyaya company. Secondary data was collected through articles and online resources.
Findings: The research reveals that investment in information technology, high quality of support and the contract are effective operation to manage franchisees in the franchise network. In addition, information technology enable the franchisor have the flexibility to adjust the marketing strategy.
Limitations: It is only one case was examined empirically in this paper. Because of the limited resources I get, the result from the analysis may be only applied in Chinese marketing.
Suggestions for future research: There are lots of powerful systems in the market, but a number of them are too complex and expensive to use in franchise system. It may also be interesting to analyze the problem cause by those high technology systems.
Key word: Franchise relationship, Franchisor
Contents
1. Introduction 1
2. Methodology 2
3. Literature Review 3 3.1 Franchise Relationship 3 3.2 Features of franchise relationship 4 3.3 Theories explaining franchise relationship 5
4. Empirical Finding 7
5. Discussion 8
6.Conclusion 9
7. References 10 7.1Articles 10 7.2 Web Pages 11
1. Introduction
Franchising is one of the most popular and successful strategies for businesses to enter new markets and expand operations. It enables the franchisor to enter a new market with very low risks and initial investment (Saleh et al, 2005, pp.74). Franchising is a contractual business arrangement which franchisor offer franchisee to use its trademark, product and business system in a specified manner (Brookes and Altinay, 2011, pp.336).
References: 7.1Articles Beatriz, M.R., Concepción R.B., José,I.L.S., (2012),"Knowledge complexity, absorptive capacity and weak ties: An empirical analysis of its effects on franchise systems uniformity", Journal of Manufacturing Technology Management, Vol Perry, C., Cavaye, A. & Coote, L., (2002),"Technical and social bonds within business-to-business relationships", Journal of Business & Industrial Marketing, Vol. 17 Iss: 1 pp. 75 – 88 Lapiedra, R., Palau, F Croonen, E.p.m. & Brand, M.J., (2001),“What Makes Franchisees Trust Their Franchisors?”, Paper for the EMNET 2011 conference Justis, R.T Abizadeh, N.,(2010),”Adoption of Franchising: Cultural barriers and pitfalls in Iran” 2010:056, ISSN:1653-0187 Harmon, T.R., Griffiths, M.A Brookes, M., Altinay,L. (2011),"Franchise partner selection: perspectives of franchisors and franchisees", Journal of Services Marketing, Vol. 25 Iss: 5 pp. 336 – 348 7.2 Web Pages Aiyaya official WebPages,(2012) 2012/10/23 http://www.aiyaya.com/