Question

In: Accounting

in context to internationalization of business explain the concept of franchising and strategic alliances

in context to internationalization of business explain the concept of franchising and strategic alliances

Solutions

Expert Solution

International franchising is the expansion of domestic business into international countries and markets. The aspects of international franchising are discussed as below:

-- Replication: In international franchising, companies usually strive to replicate successful business models in domestic markets to the global markets.

-- Benefits: International franchising can result to new customers in new markets and selling potentials.

-- Challenge: Differences in laws, language, and financial systems among the franchising business and host foreign market may result to difficulties during international expansion

-- Adaptability: The learning to adapt according to the international demands may attract local buyers and customers, leading to more business in a new country

-- Counsel: The experts in International franchising can assist the companies understand a global market before expansion. They may provide advice on numerous subjects, from financing to culture gaps

A strategic alliance refers to an inter-firm collaboration over a given time and space in an economy to achieve the desired goal. The main characteristics of international strategic alliances are:

-- Two or more unit of firm pursue a set of agreed upon targets however remain independent subsequent to the Alliance formation.

-- The firm's partner share the gains of the alliance and also holds control over the performances; and the one that makes them so tough to manage.

-- The firm's partner contributes on a continuing basis in one or more key strategic areas, such as product, technology, and so forth


Related Solutions

Select one of the following entry strategies: Export/Import Business Licensing Franchising Strategic Alliances Joint Ventures Foreign...
Select one of the following entry strategies: Export/Import Business Licensing Franchising Strategic Alliances Joint Ventures Foreign Acquisitions Wholly – Owned Foreign Subsidiaries Provide a real-world example of an organization that experienced the choice you selected. Explain the entry strategies taken by the organization.
What are the major challenges facing strategic alliances? Explain.
What are the major challenges facing strategic alliances? Explain.
Cross Border Alliances Collaborative agreements with foreign companies in the form of strategic alliances or joint...
Cross Border Alliances Collaborative agreements with foreign companies in the form of strategic alliances or joint ventures are widely used as a means of entering foreign markets. They are also used as a means of acquiring resources and capabilities by learning from foreign partners. They are used to put together powerful combinations of complementary resources and capabilities by accessing those resources and capabilities of a foreign partner. The Case Study below provides an example of a strategic alliance that Walgreens...
Explain Coca-cola diversification and strategic alliances through Build-Borrow-or-Buy Framework.
Explain Coca-cola diversification and strategic alliances through Build-Borrow-or-Buy Framework.
Strategic Alliances can create value for firms. Explain how this can be achieved and use an...
Strategic Alliances can create value for firms. Explain how this can be achieved and use an example to support your answer. 400 words
What is franchising? What is the advantage and Disadvantages of the franchising business structure?
What is franchising? What is the advantage and Disadvantages of the franchising business structure?
a. Differentiate between trade name franchising and business formate franchising.
a. Differentiate between trade name franchising and business formate franchising.
Discuss the advantages and disadvantages of strategic alliances (i.e. cooperative strategy). What impact do these alliances...
Discuss the advantages and disadvantages of strategic alliances (i.e. cooperative strategy). What impact do these alliances have upon brand recognition/exposure? Are there any concerns with regard to quality control and/or brand loyalty? Strategic Resource Allocation and Planning-is the name of the class
understanding about real options with the knowledge on strategic alliances.
understanding about real options with the knowledge on strategic alliances.
Subject Name:Multinational ManagementCan you cite other examples of international strategic alliances? How are these alliances doing?...
Subject Name:Multinational ManagementCan you cite other examples of international strategic alliances? How are these alliances doing? can you cite other examples of international strategic alliances? How are these alliances doing?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT