Expansion Through Franchising Case Study Example | Topics and Well Written Essays - 1250 words - 7

amplification Through Franchising - Case Study ExampleWith the expansion and maturity of the franchise, the chain management often buys them or became interested in opening own installs for themselves which help in gaining a better understanding and positive of the operations. And with increasing control and understanding the franchising fees get supplemented by profits. Secondly, the decision to choose the town, the neighborhood and even which gradient of the street as the region of the location is an important key factor of success. A difference in the location of the store can make a huge difference between the success and the failure. olibanum the importance of scale economies is to be recognized at the store level because the fixed cost of the outlets argon precise high and so to meet the cost, the small returns per unit cell and the traffic volume is very crucial. Efficiency in store management is also an important factor of profitability within the industry. Since the op portunities of waste, inefficiency, and shoplifting are many there is a supplicatement of an efficient management system. Thirdly the efficiency of the store managers in building relations with the local public, developing goodwill with the customers, maintenance of the morality of the employees and keeping an marrow on the competing chains are important for ensuring the short-term profits. Fourthly with the development of the industry, a clear boilers suit market image of the chain is very important. There is a need for maintaining consistency and reliability of the reaping line throughout the chain. Introducing more innovative recipes often becomes risky as it may deviate from the underlying and core theme of the industry. (Bartlett and Rangan, 2)Dick Mayer emphasizes on Strategic planning. According to him strategic planning can get hold of effective changes in the way of marketing and brings accountability in the function. Every product and their pricing proposals require analysis and review by the management to evaluate their ability to meet long-term strategies. He focus mainly on the subsidiary in Japan as it was one of the fastestgrowing units with the highest strength also a challenge for the entire international operations.