what are the some main problem U.S franchisers encounter when attempting to expands their buisness in...

what are the some main problem U.S franchisers encounter when attempting to expands their buisness in a country such as china?

Expert Solution

The major challenges encountered when expanding business in China are:

There are regulatory challenges due to lengthy administrative procedures, political interventions, license and permit requirements etc.
Firms have to deal with lengthy bureaucratic processes and red tape to start and keep running a business successfully.
The local supply chain and distribution network are different from US. Firms have to adjust to changed requirements and successfully tackle this challenge.
The US franchisers looking to expand their business in countries such as China have to face competition from local firms for market access. Governments also favors local firms over the MNCs.
There is cultural gap between US companies and Chinese firms. Due to this, finding local labor becomes a challenging task.
There are differences in buying habits of local customers. US firms have to adjust and modify their products to meet the local demand.

keosha answered 1 year ago

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