Franchise Operations and Management

This assignment is a comprehensive analysis of franchise operations and management. It covers various aspects of franchising, including the advantages and disadvantages of franchising, benefits of franchise ownership, global marketing strategies, and entry modes into international markets. The assignment also includes research papers on topics such as standardization and trust in franchise systems, product variety and online retail, and the value of postsecondary credentials in the labor market. It provides a valuable resource for students and professionals looking to study or work in the field of franchising and business management.

Global Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Development of the global marketing concepts.......................................................................1
2. Discuss global marketing by using various resource...............................................................1
3. Real life business example which support the development of global marketing...................2
TASK 2............................................................................................................................................2
1. BRIC market and background of that country.........................................................................2
2. Potential risk of emerging BRIC market.................................................................................3
3. Trade, tariff & non-trade barriers between the UK and the choose country............................3
4. Review the economic environment..........................................................................................3
5. Advantage or disadvantage of a UK company........................................................................3
TASK 3............................................................................................................................................4
1. Real business world company with their background.............................................................4
2. Factors affecting the foreign market entry mode decision.......................................................4
TASK 4............................................................................................................................................5
1. Fashion retailer company that use franchise as a entry mode..................................................5
2. Choose franchise method for the entry method mode.............................................................5
3. Advantage & disadvantage of using franchise methods..........................................................5
4. Benefits of choosing franchising methods of the business......................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Global marketing is the process where different strategy help the organization to adopt
external conditions in order to expand their business. Here, selling & distribution of products &
services will be on global level where they capture the large size of customers in order to
increase their productivity or profitability (Brookes, Altinay and Aktas, 2015). Stephen Jones
millinery Ltd fashion brand choose for the better understanding of this concepts. Stephen John is
the founder and company located in the London. It is one of the most prolific, hat developer for
the catwalk shows in the leading countries. This report include the various portfolios such as
global marketing and its development. BRIC market, trade or tariff barriers, economic
environment and advantage or disadvantage of UK companies. In addition, it includes the real
business example where foreign factors affect the company. Along with this, use franchise
method as a entry mode and what are their advantage, disadvantage or benefits of using this
method.
TASK 1
1. Development of the global marketing concepts
Global marketing means target the external markets which the help of globalization as
well use various technology. With the help of globalization, business capture the market
throughout the world and build a path to deliver their products and services. Organization have to
use better way of communication which develop the opportunities in the foreign market (Chiou
and Droge, 2015).
For the development of global marketing, organization have to develop or expand their
networks across the country with various consumers. Along with this, company have to identify
the other countries culture, value, consumer's demand and their desires regarding any products.
Organization also have to identify the nature of supplier in the worldwide to globally deal with it.
In addition, business also need to measure those factors which become barrier for them in the
foreign market and provide competitive advantage (Gillespie and Riddle, 2015). Manager of
Stephen Jones millinery Ltd, have to done intense research regarding demand, suppliers and
distribution channels. Organization can globally expand by using global marking concepts where
they have to focus on those products which is worldwide demanded by the customers.
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2. Discuss global marketing by using various resource
As per De Mooij 2018, it has been stated that global marketing helps the organization to
expand their business in order to increase their profitability. With the help of global marketing,
suppliers convert consumer's demand in the profit through global marketing (De Mooij, 2018).
According to Philip Kotler 2019, global marketing is the social or managerial process
where organization identify the need of individual or group of people and then build various
strategies to accomplish their demands. Organization offer or exchange various products &
services which create value for the customers.
Above mention authors has different opinion for the global market, where De Mooji think
that global marketing used to expand their business or profit margin (Twine, 2015). On the other
hand, as per Philip Kotler global marketing is the way of satisfying customers need across the
country. But it is obvious that when organization satisfy the need of customer it will increase the
demand and provide profitability. Same as, if they want to increase profit so they have to analyse
their demand to increase their sales.
3. Real life business example which support the development of global marketing
Stephen Jones millinery Ltd is the British fashion brand company where Jones design a
range of hats for the Fiorucci in 1979. In the 1982, Jones take part in the Paris fashion show
where they show their talent and attract the various top most people such as Diana, Princess of
Wales etc. as a customer. Due to their innovative ideas or creative in hats make them more
popular among the customers (Stephen Jones millinery Limited, 2019). It will increase their
popularity in the various country which make them globally known brand for the fashion. With
the help of global marketing, organization expand their products & services. Various marketing
& promotional strategy provide huge growth in the market.
TASK 2
1. BRIC market and background of that country
BRIC is used for the representation of four countries which are Brazil, Russia, India and
China. All these countries have homogeneous economic development. It was coined in the 2001
by Jim O'Neill but later in 2010 it became a formal institution (Cappuyns, Deweirt and
Rousseau, 2015). To understand the global market situation, Brazil is selected. It is among the
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South America's influential country. Economy of Brazil is a mixed economy which depends on
import substitution in order to achieve its economic growth.
2. Potential risk of emerging BRIC market
Brazil has political stability which motivates violence as well as terrorism. The political
risk is high as serious problems such as crime, muggings, kidnappings, gang violence and so on
are faced by residents of such country (Quan and Williams, 2018). Police brutality as well as
corruption is very high and at the same time is widespread. Brazil government has put liberal
restrictions in performing business by foreign country which encourages monopoly of particular
business men who has huge funds. Political system has not improved certain reforms based on
opening or running a business and also do not provide any support or subsidies to Brazilians for
starting their own businesses.
3. Trade, tariff & non-trade barriers between the UK and the choose country
Trade barriers between UK and Brazil are Voluntary Export Restraints,, Anti-Dumping
Duties, Subsidies, Regulatory Barriers and many more.
Tariff barriers between UK and Brazil are scientific tariffs, peril point tariffs and
retaliatory tariffs which impacts importing goods.
Non trade barriers are levies, quotas, sanctions, and embargoes between Brazil and UK.
4. Review the economic environment
The economic freedom score of Brazil is 51.9 and is ranked as ninth largest economy in
the world. From the 2018 figures, the GDP was $1,868,180 million and people of such country
earns 42.7% of total nation's income. In the past years, such country has faced various economic
crisis which resulted in decrease in commodity prices as well as country's limited abilities in ordr
to carry out significant fiscal reforms which undermined consumer along with investors
confidence (Fan, Gao and et.al 2016)(Deming and et.al 2016). By improving its legislations
based on labour freedom as well as government spendings can help in improving judicial
effectiveness along with government integrity. Brazilians pay income tax of 27.5% of income.
5. Advantage or disadvantage of a UK company
Advantages: By moving into a new market, Stephen Jones Millinery can attract
potential customers through promotional strategies and can enhance its market share. By
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understanding the needs of new market and delivering same services or products can benefit the
company in earning more profits (Ravenhill, ed., 2017).
Disadvantages: Selected company can face tough competition which will hamper
organisational strategies to enhance productivity. Changes in political system can also impact on
decision making by managers of chosen company.
TASK 3
1. Real business world company with their background
Stephen Jones millinery Ltd is British milliner, London based company which deals with
the different countries fashion designer such as John Galliano at Dior and Vivienne Westwood.
Jones use high level of technical expertise to build their designs with innovative ideas for the
fashion shows. In 1975, Jones go for the London exhibition which inspire them to start their own
fashion business.
2. Factors affecting the foreign market entry mode decision
There are various factors which affect the decision of entry in the foreign market. It
includes the internal as well external factors which influence the organization to take decision
regarding their entry in the foreign market (De Resende Melo and et.al., 2015). Internal factors
includes the internal strategies, methods to develop, international experience etc. along with this,
they manager also have to analyse their past experience which help them to build their further
strategies according to the previous information. Manager have to done intense research on the
foreign market where they going to expand. So they have to analyse their culture, values, attitude
or demands which help the manager to develop their strategy. Basically, organization have to be
flexibility to adopt changes as per the demand of customer and market. So manager of Stephen
Jones millinery Ltd have to identify their objective and them perform according to it and then
build effective strategy for that.
External factors includes the all trade or tariff barriers which reduce the opportunity to
expand their business. It also includes the market size, growth, government regulation,
competition etc. In addition, it includes the various risk such as political, operational, economic
risk which affect the organizational productivity or profitability (Wu, 2015).
In the Stephen Jones millinery Ltd, manager have to analyse internal as well as external
factors which can become barrier for the organization in the foreign market.
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TASK 4
1. Fashion retailer company that use franchise as a entry mode
Stephen Jones millinery Ltd company use the franchise method as an entry mode to
expand their business globally (Stephen Jones millinery Limited, 2019). Entry mode is the
method which used by the organization to participate globally which includes the risk, required
resources and investments too. Stephen Jones millinery Ltd is the fashion brand who done
various shows in the different countries. So they wanted to expand their business in German with
the help of franchise method which make them popular in the country and increase their market
share.
2. Choose franchise method for the entry method mode
Entered in the foreign market or into new business is the difficult task where organization
have to select best method to entered in the new market which help in increasing their customer
base as well as market share. Stephen Jones millinery Ltd use the franchise method to entered in
the German market. Company provide the franchise to local fashion retailer along with some
terms & conditions. It is used by the well known companies to expand their business globally
and increase their profitability margin. Stephen Jones millinery Ltd provide franchise and some
training regarding how to make hat and handle it in appropriate way (Franchise as an entry
mode, 2019). They also provide the selling range of their items along with presenting their items
in the stores. It will help the organization to expand their business in the German market to
increase their customer base as well as
3. Advantage & disadvantage of using franchise methods
Advantage of franchise method:
 With the help of this method, risk of business failure will reduce because idea is already
tested.
 Product & services are well known in the market and have established market share.
 Organization use the brand name with logo with help the business in their promotional
and marketing strategy.
 Franchisor also provide support which include the training regarding presentation of
packaging of products. Along with this, they also provide manual instruction to run
business in appropriate way.
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 For the franchise, no prior experience required only need some training which provided
by the franchisor.
Disadvantage of franchise method:
 It is costly process because in the starting they have to bear various cost such as franchise
cost, management service fees and other agreement charges.
 Franchise agreement already includes various restriction regarding how to run bruises.
 After some times, franchisor monitoring become instructive.
 Due to bad quality of product or services, brand bane going to damage and it affect the
the franchise business (Advantage or disadvantage of franchise, 2019).
4. Benefits of choosing franchising methods of the business
There are various benefits of franchise which help the organization to adopt and use a
entry mode in the various market (Benefits of franchise, 2019). Some of benefits discussed
below:
 It will provide the independence ownership of business which help the individual to grow
in the market.
 Franchise easily provided who have match the curtain criteria such as minimum capital to
invest, locality etc.
 Franchise have higher rate of success, so individual take this method to enter in the
market to earn profit.
 It has established brand image which helps in promoting their products among the
customers.
CONCLUSION
From the above discussion, it has been concluded that global market is the platform
which provide the huge growth in the market. BRIC market affect the organization as well as
foreign market too. Along with this, franchise is the best mode to expand their business globally
but it also have some advantage or disadvantages.
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REFERENCES
Books & Journals
Wu, C. W., 2015. Antecedents of franchise strategy and performance. Journal of Business
Research. 68(7). pp.1581-1588.
Brookes, M., Altinay, L. and Aktas, G., 2015. Opportunistic behaviour in hospitality franchise
agreements. International journal of hospitality management. 46. pp.120-129.
Chiou, J. S. and Droge, C., 2015. The effects of standardization and trust on franchisee's
performance and satisfaction: a study on franchise systems in the growth stage. Journal
of Small Business Management. 53(1). pp.129-144.
De Resende Melo, P. L., and et.al., 2015. International analysis of the countries where Brazilian
franchise chains operate. Revista de Administração. 50(1). pp.26-39.
Cappuyns, V., Deweirt, V. and Rousseau, S., 2015. Dredged sediments as a resource for brick
production: Possibilities and barriers from a consumers’ perspective. Waste
management. 38. pp.372-380.
Quan, T. W. and Williams, K. R., 2018. Product variety, across‐market demand heterogeneity,
and the value of online retail. The RAND Journal of Economics. 49(4). pp.877-913.
Fan, Z., Gao, and et.al 2016. Prevalence of brick tea-type fluorosis in the Tibet autonomous
region. Journal of epidemiology, p.JE20150037.
Deming, D. J., and et.al 2016. The value of postsecondary credentials in the labor market: An
experimental study. American Economic Review. 106(3). pp.778-806.
Twine, F. W., 2015. Outsourcing the womb: Race, class and gestational surrogacy in a global
market. Routledge.
Gillespie, K. and Riddle, L., 2015. Global marketing. Routledge.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Ravenhill, J. ed., 2017. Global political economy. Oxford University Press.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Online
Advantage or disadvantage of franchise. 2019. Available through:
<https://www.nibusinessinfo.co.uk/content/advantages-and-disadvantages-franchising>
Benefits of franchise. 2019.[Online]. Available through:
<https://www.business.qld.gov.au/starting-business/buying-business/buying-franchise/
advantages-disadvantages>
Development of Global Marketing by Dr. Philip kotler. 2019. [Online]. Available through:
<https://brainly.in/question/2873918>
Franchise as an entry mode. 2019. [Online]. Available
through:<https://slideplayer.com/slide/4732080/>
Stephen Jones millinery Limited. 2019. [Online]. Available through:
<http://www.stephenjonesmillinery.com/project/stephen-jones-hats-royal-pavilion-0>
Stephen Jones millinery Limited. 2019. [Online]. Available
through:<http://www.stephenjonesmillinery.com/DSM>
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