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ENTE 2516 Progressive Franchising

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ENTE 2516 Progressive Franchising

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ENTE 2516 Progressive Franchising

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Course Code: ENTE2516
University: De Montfort University is not sponsored or endorsed by this college or university

Country: United Kingdom

Analyse the relevance of the various common characteristics of franchise systems and discuss how and why they affect the franchisee’s decision making process. 

The research is based on franchising which is considered to be adopted by an organisation as a major strategy to understand the use of business model, brand and rights to sell the branded products. The important strategy for the firms to expand their business, mainly in retail and service chains, is through franchising. The job opportunities with economic and local development helps in handling the continued increase of franchise (Nijmeijer, Fabbricotti and Huijsman, 2014). This can be seen in different countries like US, France, Germany. Franchising is for different countries where the major sales portion is for restaurants, preparation of tax and other food retailing sectors. The multinational corporations have been working to enter the emerging markets with governance by contractual agreement to provide a better competitive advantage.
Some of the major characteristics of franchising includes alignment which is about the values and ethics of a business that are important for setting up with internal behavior and externally for the business partners. The system includes value consistency, ethical and behavior approach which is critical and help in defining the system. The alignment affects the behaviors of franchise decision making process where they need to extend beyond the franchise system for setting up business relationships (Yeung, Brookes & Altinay, 2016).
The commitment is also important to building a long-term business that will provide a solid structure basis for trust different parties. The focus is on the long-term goals and the intention is to build a better delivery service. The success comes with flourishing an investment in effort. It is important to build trust by properly delivering and then communicating in an open and honest manner.
The third characteristic is the mutual interest where the franchise and the franchisor need to seek and understand the different business expectations and points of view for identifying mutual interest that could easily be pursued through profitable outcomes (Lee, Kim, Seo & Hight, 2015). The adoption of collaborative approach helps in solving the different problems which helps in achieving common interests.
The communication needs to be clear with ensuring and understanding the positions, obligations or any other issues which should be met. The poor communication is considered to be a major reason for handling the breakdown of relationship and so a proper clarity for the business partners is important for a better approach. A regular face-to-face communication needs to be taken as per the requirements, where the different means of communication can certainly lead to certain unintended interpretations as well as consequences (Nyadzayo, Matanda & Ewing, 2016).
The fifth characteristic is about the accountability and responsibility where the business have to work on different obligatory factors. There are clear and written agreements which are for handling the avoidance of uncertainty or mis-matched expectations. This characteristic helps in building a clear and written agreement where-in when the problems arise, one has to be prepared about informing the parties for attempting a collaborative approach for addressing the different problems at work. 
The professional conduct helps in building the business relationship which includes that there are ways to personally interact and work on the different behaviors set with professional conduct (Evanschitzky, Caemmerer, and Backhaus, 2016). Some of the pre-agreed dispute resolution are depending upon the critical addressing of disputes where there is a need to enable a relationship for working on litigation of commercial disputes. This is costly, as well as time consuming, destroying the relationship of business along with it. Franchising Code of Conduct requires the franchise disputes to proceed with the mediation if the different matters cannot be solved in the parties. Here, the approach is adopted for commercialized disputes as well.
The franchises are important to make decisions where there are independents to make small business owners with decision making process that appears not be governed by easy formal organizational structure (Kashyap & Murtha, 2017). There is a need to understand about the purchase processes which will help to target the potential partners from taking hold of obstacles to hinder subsequent stage. The purchase decision making process includes recognition, information search and other alternative evaluations which might be distinguished depending upon the comprehensiveness and the sophistication. The empirical model suggests that there is a need to go through a process which begins from need recognition, searching for information and other evaluation. The focus is on the consequences of franchisee satisfaction which is based on post purchase consequences (Brookes, 2014).
The research makes use of the coarse-grained inventories for the potential factors where the extant is about genuine experiences that are made significant with valuable contributions for the international franchise. The focus is on the emerging markets, where the study will be able to address the problems related to the extant of literature. The empirical franchise purchase model differs mainly on the consumer behavior theory. It is imperative for the prospective franchise owners to make the informed decisions about selection and the contract that needs to be signed. Here, the process of selection includes the discussion on opportunities which are holding a wide array of industries for potential benefits and drawbacks. According to decision making process, there is a need to evaluate the external and internal environmental goals that needs to be achieved and evaluated for a potential alternative (Nijmeijer et al., 2015). The rationality model helps in focusing on the decisions that are not mainly considered as a linear or logical approach.
The political model of the decision-making approach involves the different human dynamics where the power and the conflict-based factors tend to feature the power of bargaining and compromising different ways to solve problems. The decisions involves a cycle of bargaining to view and influence powerful individuals with knowledge, experience and resource access to adopt the viewpoints. The decision makers might be behaving in a way which can manipulate or ignore information for better support.
The process model helps in advocating the decisions which are not linear or holds the logical approach. Instead, the decisions are important to be made in a incremental way which includes different recycling periods, with iteration, and reformulation techniques. The decisions need to proceed with the series of steps rather than identifying or implementing the solutions in a major large step. Hence, the decision makers have to assess alternatives through using a series of patterns and then assessing them. The alternatives are searched, with options that might be rejected, and some new options can be added. The processes include the decision makers who need to conform to the pre-established standards beliefs, with unwritten rules of organization that are for minimizing the risks for a better outcome.
The garbage model is about focusing on the decisions that are made under different conditions. The approach requires to focus on rational and bounded rationality model that advocates the different series of steps that begins with the problems and end with a particular solution. There are decision results that comes from a complex interactions with different independent elements like the problems, solutions and participants (Argyres & Bercovitz, 2015). The components of decisions generally pour to organizational garbage with better outcomes of collusion.
As per the studies done previously, the franchise decision making process involves the different human factors where the stakeholder groups works on diversified needs and expectations. The study is determined through selecting the franchise partners and then emphasizing the appropriate decisions, in regard to selection partner for a better operation of franchise system.
With the recent times, the franchising has been able to grow and consider the strategies for developing business by owners. It involves the franchise system for creating better opportunities for running a business with lower risks and recognized brand. The importance of franchise for countries include success of economy and growth which is applied to different industries, mainly to service industries. The investigation of franchising includes the perspectives which has received less attention. Hence, for the small business, survival, performance are of major interest. The study includes the succeeding or showing success in outlets with major importance of consequence for the franchisees. The variations are determined through considering firms as autonomous entities with focusing internal resources and capabilities. It involves the interfirm relationship to go beyond the firms’ internal resources along with taking rationalized view.
Argyres, N. and Bercovitz, J., 2015. Franchisee associations as sources of bargaining power? Some evidence. Journal of Economics & Management Strategy, 24(4), pp.811-832.
Brookes, M., 2014. The dynamics and evolution of knowledge transfer in international master franchise agreements. International Journal of Hospitality Management, 36, pp.52-62.
Evanschitzky, H., Caemmerer, B. and Backhaus, C., 2016. The franchise dilemma: Entrepreneurial characteristics, relational contracting, and opportunism in hybrid governance. Journal of Small Business Management, 54(1), pp.279-298.
Kashyap, V. and Murtha, B.R., 2017. The joint effects of ex ante contractual completeness and ex post governance on compliance in franchised marketing channels. Journal of Marketing, 81(3), pp.130-153.
Lee, Y.K., Kim, S.H., Seo, M.K. and Hight, S.K., 2015. Market orientation and business performance: Evidence from franchising industry. International Journal of Hospitality Management, 44, pp.28-37.
Nijmeijer, K.J., Fabbricotti, I.N. and Huijsman, R., 2014. Making franchising work: A framework based on a systematic review. International Journal of Management Reviews, 16(1), pp.62-83.
Nijmeijer, K.J., Fabbricotti, I.N. and Huijsman, R., 2015. Creating advantages with franchising in healthcare: an explorative mixed methods study on the role of the relationship between the franchisor and units. PloS one, 10(2), p.e0115829.
Nyadzayo, M.W., Matanda, M.J. and Ewing, M.T., 2016. Franchisee-based brand equity: The role of brand relationship quality and brand citizenship behavior. Industrial Marketing Management, 52, pp.163-174.
Yeung, R.M., Brookes, M. and Altinay, L., 2016. The hospitality franchise purchase decision making process. International Journal of Contemporary Hospitality Management, 28(5), pp.1009-1025.

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