Super Cola (Scenario) U.S.-Based Super Cola, One of the Top Five Cola Manufacturers

question 24

Multiple Choice

Super Cola (Scenario)
U.S.-based Super Cola, one of the top five cola manufacturers, has previously attempted to enter the Asian beverage market with little success. Lacking the name recognition of its competitors, Super Cola was unable to gain market share and ceased shipping its products overseas after six months. Super Cola realizes that the large Asian market would be extremely profitable, but the company requires a new strategy. Consultants hired by Super Cola propose two different methods for entering the market: licensing and franchising.
-Which of the following, if true, would render franchising unattractive for Super Cola?

• A) Franchisors have limited control over branches abroad.
• B) Studies indicate that American franchisees are less relationship-oriented than are Asian franchisees.
• C) Studies indicate that franchisees are more aware of and responsive to the needs of local markets than are salaried employees.
• D) Franchised businesses are more likely than not to benefit from existing business models.

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