Management MGT 100 Lecture Notes - Lecture 16: Franchising, Candela, Ikea
Document Summary
Five f"s: friendliness, flavorful, fun, flexibility, family. Location + high traffic (need sales high, must cover fixed costs!) Efficient operations: prices low (entry easy, margins low 5% typical. Franchisee pays franchisor (corporate) + can use business model. Mcd: k fee + 4% of sales: menu items, store design, assista(cid:374)(cid:272)e . Franchisor- easy expansion + new revenue stream. Political turmoil (assassination: mcd: investment down, j: national pride, continue expansion. Singapore: trust issues, local manager prevented inspection. Taiwan: revenue not great, butting heads, real estate ^ so exist. Brunei: silent partner, j in control, successful. Indonesia: street vendor competition, conflict with manager. Ikea (small market in sweden: nintendo (labor, industry knowledge local market) Why not internationalize: advantages in your home market may no longer apply, video game characters, manufacturing plant, increased disadvantage by operating at a distance. Local responsiveness: products or services are customized for each country based on cultural, tastes, political & economic differing.
