Case Study Of Frranquicias And Franchising

A franchise is a legal agreement between franchisers and franchisees that consents use of the franchise’s trademark and trade name or marketing plan

Joint ventures are a more extensive form of participation than either exporting or licensing. In Zimbabwe, Olivine industries has a joint venture agreement with HJ Heinz in food processing.

Joint venture is an agreement between two or more parties to gather or pool resources together so as to accomplish a specified goal. The main objective is to implement a new business idea or project. The venture is a separate entity from the participants and their businesses. However proceeds, losses and costs incurred from the activities of the venture, the participants are responsible.

When the companies joining create a separate organization to create their product, the enterprise is called a joint venture.

Joint Ventures (JV)- an agreement under which two or more partners own or control a business.

A joint venture is characterised by the need to achieve a business transaction while remaining separate from each other. Each firm maintains its resources and independence while engaging in an activity, with the objective of achieving certain objectives. The need for joint ventures in the Pharmaceutical industry may be characterised by the need to reduce high R&D costs and by so doing, share costs through common equity (Roijakkers&Hagedoon,2005, p.8). Joint venture as a mode of market entry may

“A joint venture is a legal organization that takes the form of a short term partnership in which the persons jointly undertake a transaction for mutual profit. Generally each person contributes assets and share risks. Joint ventures are also widely used by companies to gain entrance into foreign markets.” (Cornell University Law School) In way to engage ones customers with new stuff, joint venture has become paramount in satisfying customers with variety and also infuse modernization and advance technology. An example is the introduction of the popular video streaming website “HULU” created by a joint venture in the year 2008 by NBC Universal Television Group, Fox Broadcasting Company and the Disney –ABC Television Group. This venture

International joint ventures is an overseas business owned and controlled by two or more partners; starting such a venture is often as an entry strategy (Deresky, H. 2014.p.377), while joint ventures refers to an independent entity jointly created and owned by two or more parent company.

cases, co-marketing is not enough to enter a foreign market. This is why expansion in joint ventures are more successful than co-marketing agreement.

To begin with, the concept of “franchising” originally appeared in Britain in the 10th century and as a term described a variety of benefits, which were provided to the citizens in the context of the electoral process. However, the revival of franchising as a modern business institution is marked by the year 1840, the year of the appearance of the first worldwide franchise network (the system of “tied pubs”) in the UK, which was used by the brewers in order to maintain the necessary volume of sales. In fact, the “tied pubs system” operated in accordance with the following principle: in exchange for a loan or rental property a brewer was provided with an inn, that is, with the possibility to sell beer and alcoholic beverages (Lashley & Rowson, 2002). At this point, it should be noted that the abovementioned system still exists these days, which illustrates the effectiveness of such type of business.

“A franchise is a business system in which private entrepreneurs purchase the rights to open and run a location of a larger company. The franchising company, or franchisor, signs a contractual agreement with the franchisee, explaining

The phenomenon of Joint Ventures (JV) in both international and local level has been growing the last decades (Geringer and Woodcock 1989; Harrigan 1988; Hergert and Morris 1988). According to Geringer and Hebert (1991:2)

The second mode is joint ventures. Joint venture is a step that is mutually possessed and worked by two or more firms. Numerous firms enter the foreign market by taking part in a joint venture with firms that

When companies work together, the investment burden is shared and production time is significantly reduced. The synergy between the four companies will allow them to each focus on a particular area in order to achieve their strategic plan. In addition to more efficient resource pooling and shared responsibility, risk is significantly reduced. According to the Harvard Business Review, a “company sets up a joint venture with a partner that has complementary assets and capabilities, in order to limit up-front investments, speed up market entry, and reduce risk” (Vantrappen, Deneffe). If one of these companies could handle all of the operations themselves, initiating a joint venture might need to be reconsidered; the competitive advantage would be too valuable. Unfortunately, none of these companies have that luxury, so the joint venture is warranted.

‘As a result, expansion can proceed at a much faster pace than would otherwise be possible, enabling the franchisor to achieve increased market share whilst benefiting from economies of scale.’ (http://www.butterfield.co.za) Finally, franchisors can benefit from the cultural knowledge and know-how of local managers. This can be helpful in lowering the risk of business failure in unfamiliar markets, as well as creating a competitive advantage. Franchising offers franchisees the advantage of starting up a new business quickly based on a proven trademark and way of doing business, as opposed to building a new business from scratch. The franchised business is based on a proven idea and has an existing customer base, therefore making it much easier to sell your product than it would if you were to start up your own business.