ACCT3206 Study Guide - Final Guide: Convenience Store, Chain Store, Franchising
Document Summary
Knowledge in convenience stores research paper 3 (campbell, datar and sandino) This paper mainly investigates why franchising and standard the chain is used in the market dispersion. Market dispersion is one of the most common phenomena in markets and it would lead to monitoring problems from different locations and uniforming products or service for customers problems. To solve these two problems, delegation and incentive can be used in organizations. Therefore, this paper wanted to examine the relationship (from the chain level and store level) between market-type dispersion and organizational design choice (franchising, the degree of decentralization and the variable pay). Companies operating across various markets serving diverse customer bases can make it difficult senior management to control local manager behaviour and satisfy customers. The study analyses market dispersion and finds that it is an important factor in deciding to give decision rights to local managers and their incentive structures.
