Franchising Strategies for Dartmoor Soap Company in Global Markets

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This research proposal investigates the globalisation strategies of Dartmoor Soap Company, a UK-based firm specializing in natural soap bars. The study aims to analyze the effectiveness of franchising in global markets, specifically examining its relationship with globalisation, the challenges faced by Dartmoor Soap Company, and potential strategies for survival. The proposal explores key literature sources related to franchising, globalisation, cultural nuances, political environments, and the importance of reliable partnerships. It discusses direct exporting, partnering, and company acquisition as potential strategies. The research intends to offer effective recommendations for Dartmoor Soap Company to succeed in the competitive global market. The proposal outlines the research objectives, questions, and the reasons for choosing the project, highlighting the researcher's interest and the potential to enhance skills and knowledge. The proposal also provides a detailed literature review, exploring various themes and perspectives on franchising, globalisation, and market challenges.
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Research Proposal Form
Proposed Title: ______________________________________________
Section One: Title, objective, responsibilities
Title or working title of the research project (in the form of a question, objective or
hypothesis)
Title- “ Strategies for loacl companies in emerging market in globalisation- A study
on Dartmoor Soap Company”
Aim: “ To analyse the effectiveness of Franchising in global market- A case study on
Dartmoor Soap Company”
Introduction of a firm: Dartmoor Soap Company is small firm in UK which provide
natural soap bars to their customers at reasonable rates.
Research objectives (e.g what is the question you want to answer? What do you want
to learn how to do? What do you want to find out?):
Objectives:
To understand the relationship between the franchising and globalisation.
To examine the effectiveness of franchising in global market.
To identify the issues and challenges faced by Dartmoor soap Company while
competing in global market
To provide effective strategies and recommendations to survive in global market.
Research Questions:
What is the relationship between the franchising and globalisation?
Describe the importance of franchising?
What are the challenges and issues faced by Dartmoor Soap Company while
competing in global market?
What alternative strategies help Dartmoor to survive in global market?
Section Two: Reasons for choosing this research project
Reasons for choosing the project (e.g links to other subjects you are studying,
personal interest, future plans, knowledge/skills you want to improve, why the topic is
important):
Globalisation is the wide concept and the main reason to choose this topic is that the
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researcher have their personal interest and through this the researcher also enhances their
knowledge as well as skills which further help to make the future project better way. Apart
from this, by researching on this topic also helps researcher to enhances their research
skills so that it will be help in their further projects. Moreover, by studying on this topic,
the researcher also know different ways of survival strategies and further it will also help to
know about issues and challenges which are faces by the firm.
Section Three: Literature sources searched
Use of key literature sources to support your research question, objective or
hypothesis:
Theme 1: Understand the relationship between the franchising and globalisation.
As per the view of Mani, Wathne and Antia, (2019) Franchising is that form of
business by which the franchisor of a product or service obtains the distribution through
dealers or the franchisers. This is the wider marketing concept which is adopted by the firm
in order to reach at global level. On the other side, Rhou, Li and Singal, (2019) states that
globalisation is the wide process through which a firm interact among peoples, companies
and government at world level. Therefore, it is the economic process of integration which
is further linked with the social and cultural aspect.
According to Song, Park and Lee (2019) franchising is the successful strategy that
helps to provide opportunities for the new and existing franchisee who are looking for the
further expansion options. It is one of the most relatively smooth and easy process for the
survival strategy which helps Dartmoor Soap Company . Therefore, it has been analysed
that franchising is one of the fastest growing segments which is also spread in every sector
and through this method, the firm also reach at its global market. While, Link (2019) critic
that franchising may also creates social pressure and the cultural clashes in order to run a
business in global level. As globalisation is the process of interaction and also provide
many opportunities in order to emerge the current business into new market.
Theme 2: Examine the effectiveness of franchising in global market
According to Fan, Kühn and Lafontaine, (2017) franchising is one of the most
effective strategy that helps to reach a business at global level. This strategy also keep neds
small amount of investment at initial level as compared to other strategies. Such that, as the
firm uses this then it helps to protect firm from extra training and hiring employees, thus it
has been analysed by the author that it is quite cost effective strategy which helps to keep a
business to reach at global level without investing many. While on the other side, as per
the views of Madanoglu and Castrogiovanni (2018) franchisee is the well established part
for the local community and it may be in the terms of personal level or the past business
activities. Thus it helps to gain high competitive advantages for the new established
business which is not provided by other business firms.
The effectiveness of the Franchisee also helps to reduce the chances of risk,
franchisee is responsible for the entire investment and they also focus on the growth
without the unit level risk which is incurred by the franchisee. As Kacker and et.al., (2016)
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states that this method also helps to provide a greater commitment because a franchisor
also uses their brand and loyalty, customer base etc. beside this, on opting the franchise as
a survival strategy, a firm did not have to spend money on recruitment and selection
procedure because they also use the already existing employees into the working area.
Thus, it shows that to compete in this global market, there is a need to use bets and
effective strategy which helps to sustain in this competitive world. In the same way,
Dartmoor Soap Company is also uses franchising in order to reach at international way.
Theme 3: Issues and challenges faced by Dartmoor while competing in global market
To compete in the global market, Dartmoor Soap Company is also faces many
issues and challenges and as per the views of Badrinarayanan, Suh and Kim (2016) cultural
nuance is the biggest challenge such that consumers are also influenced to purchase the
products by marketing message which is delivered through the media and magazines. But
the firm also require deeper understanding of the culture, customs and morals which also
affect the sales of a business. On the other side, López‐Bayón and López‐Fernández,
(2016) critics that political environment is the most affecting factor which also creates
some issues for competing in the global market. In this, every states and country has
different terms and condition which has to follow by the firm and it is not possible for
every firm to keep adhering the sudden changes or the laws which is made by the
government.
According to Koh and et.al., 92018) finding reliable partners is another issue which
is faces by a firm in which the quoted company has to establish the better relationship with
their distributor whose market they are seeking to enter. Thus the firm has to choose the
best partners who help in franchising in which it may engage the local marketing and
public relations firms. While on the other side, Wathne and Antia, (2019) states that tariff
and export fees is another challenge which is faced by the firm while competing in the
global market. Such that most of the countries also have some type of tariff which is also
charged by the companies in order to bring the goods into country. In order to incorporate
this challenge it is quite necessary to make planning.
As if the firm did not have proper knowledge related to the market need then it
creates another major issue which needs to be minimized. A key success in a business is to
offer the products and services to the customer and complete their demands. Even though if
the customer faces any problem that needs to be solved in an effective way. So that it will
also help to complete in the global market.
Theme 4: Effective strategies and recommendations to survive in global market.
As per the Badrinarayanan, Suh and Kim (2016) direct exporting is the another
survival method through which the firm also compete the global world. As this method is
consider one of the most simple and cost effective method as compared to other strategies.
Therefore, it is also recommended to the Dartmoor Soap Company that they can also use
this strategy. Beside this, according to the view of Song, Park and Lee, (2019) partnering is
the another method through a small and local firm can easily reach at global level. In this
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method, a local firm also makes partnership with new foreign company which is also helps
to those market where the culture, both business and social is also substantively different
than the local partners.
On the other side, Fan, Kühn and Lafontaine (2017) express their views that apart
from franchising, the firm can also use buying a company as a strategy, in which the local
firm also buy the big firm from another company in order to make their brand image in
further countries or to make it globalised. This method is also helpful to the existing big
firm also have the direct competitors as well as its high customer base which helpful to
maximises the profit and sustain its brand image. On the other side, Madanoglu and
Castrogiovanni (2018) critics that it is one of the most costly method which it is quite hard
to determine the true value of a firm in the foreign market. Though this strategy also
helpful to provide a clear status of being local and benefited of local market knowledge. So
that it is also recommended to a firm to use buying a company in order to compete in the
global market.
Section Four: Activities and timescales
Activities to be carried out during the research project (e.g research, development
and analysis of ideas, writing, data collection, numerical analysis, tutor meetings,
production of final outcome, evaluation, writing the report):
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Milestone one: _________________
Target date (set by tutor): ____________________
Milestone two: _______________________
Target date (set by tutor): ______________________
Gantt Chart
Section Five: Research approach and methodologies
What type of research approach and methodologies are you likely to use and why?
What your areas of research will cover:
Research methodology is the simplest process or a technique which is used to select and
identify the more information related to a topic. For the report, selecting an appropriate
method is quite crucial in order to attain the aims and objectives of the study.
Research philosophy: It is the belief about the way through the researcher gather
and analysed the data. For this research project, the researcher will take Interpritivism
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research philosophy because it helps to conduct the research report in systematic manner
and also helps to attain the aim of the report in more precise manner as compared to other
elements.
Research approach: It is the plan which is consist of step by step method of data
collection and analysis. For this report, researcher will take deductive research approach.
The reason of choosing this method is such that it helps to achieve the desired results and
this method further consider the nature of problem (Kumar, 2019). Apart from this,
deductive approach also enable investigator to attain defined goals which can be explored.
Research Design: It is the set of methods and the procedures which are used in
order to collect and analyse the measures which are specified in the research problem. For
this, researcher chooses descriptive research design because it will be help a researcher to
reach an exact result. On the other side, if researcher chooses another method which are
based upon hypothetical and they did not provide the exact result and did not help to attain
the defined goals (Mackey and Gass, 2015).
Qualitative method: In research, this method are basically used to uncover the trends in
their thoughts and opinions such that they are also vary using unstructured and semi-
structured techniques. For this, exploratory methods are used which merely explore the
research questions and does not intend to offer final and conclusive solutions for an
existing problems.
Data collection: It is the process through which the data are collected and gathered
in order to evaluate the outcomes. For this study, researcher will take both primary and
secondary data collection method in order to achieve the defined aim and objectives. In this
primary data collection means that the research which is done for the first time, while on
the other side, secondary data collection means that the research which is already done and
data are collected through magazines, newspaper and Journals.
Data Analysis: It is the method in which investigator investing, cleansing and
transforming the data by using the useful information. For the present study, researcher
uses thematic data analysis in which the researcher makes different themes which are based
upon the question in order to get exact result (Silverman, 2016). Thus it helps to attain the
defined goal.
Sampling: It is the process in which the researcher chooses few people out of the
large population. For this report, researcher will be taken simple random method in which
the it chooses 20 employees of the Dartmoor to get the effectiveness of the Franchising
strategy in order to compete in the modern world.
Time Horizon: It is needed for the research design which is independent of the
research methodologies used. Therefore, there are two types of time horizon i.e.
Longitudinal and cross sectional, in which the longitudinal studies are repeated for an
extended period and cross sectional are differ from time series data, where the small scale
or total entity is observed.
Ethical issues: There are some issues such as:
the participants should not be harm in any ways whatever is concern.
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Confidentiality should be maintained such that proper privacy should be
maintained.
Full consent should also be obtained from the participants.
References
Books and Journals
Badrinarayanan, V., Suh, T. and Kim, K. M., 2016. Brand resonance in franchising
relationships: A franchisee-based perspective. Journal of business research. 69(10).
pp.3943-3950.
Fan, Y., Kühn, K. U. and Lafontaine, F., 2017. Financial constraints and moral hazard: The
case of franchising. Journal of Political Economy.125(6). pp.2082-2125.
Kacker, M. and et.al., 2016. How firm strategies impact size of partner‐based retail
networks: Evidence from franchising. Journal of Small Business Management.54(2).
pp.506-531.
Koh, Y. and et.al., 2018. Does franchising alleviate restaurants’ vulnerability to economic
conditions?. Journal of Hospitality & Tourism Research.42(4). pp.627-648.
Kumar, R., 2019. Research methodology: A step-by-step guide for beginners. Sage
Publications Limited.
Link, H., 2019. The impact of including service quality into efficiency analysis: The case
of franchising regional rail passenger serves in Germany. Transportation Research
Part A: Policy and Practice.119. pp.284-300.
López‐Bayón, S. and López‐Fernández, B., 2016. Partner empowerment and relationship
failure in franchising. Journal of Small Business Management.54(4). pp.1059-1079.
Mackey, A. and Gass, S. M., 2015. Second language research: Methodology and design.
Routledge.
Madanoglu, M. and Castrogiovanni, G. J., 2018. Franchising proportion and network
failure. Small Business Economics.50(4). pp.697-715.
Mani, S., Wathne, K. H. and Antia, K. D., 2019. Franchising research in marketing:
suggestions for future research. In Handbook of Research on Distribution Channels.
Edward Elgar Publishing.
Rhou, Y., Li, Y. and Singal, M., 2019. Does managerial ownership influence franchising in
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restaurant companies?. International Journal of Hospitality Management. 78.
pp.122-130.
Silverman, D. ed., 2016. Qualitative research. Sage.
Song, S., Park, S. and Lee, S., 2019. Does franchising reduce geographically diversified
restaurant firms’ risk?. International Journal of Contemporary Hospitality
Management.
Comments and agreement from tutor
Comments (optional):
I confirm that the project is not work which has been or will be submitted for another
qualification and is appropriate.
Agreed: ________________ (name)_______________ Date ______________
Comments and agreement form project proposal checker( IV sampling)
Comments (Optional):
I confirm that the project is appropriate.
Agreed /Disagree: (Name of the IV)
Date
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