The Disadvantages of Using a Franchising Strategy to Pursue Opportunities

question 23

Multiple Choice

The disadvantages of using a franchising strategy to pursue opportunities in foreign markets do not include

• A)maintaining quality control.
• B)having to decide whether to allow foreign franchisees to modify the franchisor's product offering to better satisfy the tastes and expectations of local buyers.
• C)foreign franchisees that do not always exhibit strong commitment to consistency and standardization.
• D)franchisees bearing most of the costs and risks of establishing foreign locations,so a franchisor has to expend only the resources to recruit,train,support,and monitor franchisees.
• E)the ability to build multiple profit sanctuaries.

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Definitions:

Market Size

The total volume of sales or potential sales for a particular product or service in a specific market.

Distribution Networks

Systems of intermediaries and channels a company uses to get a product from the manufacturer to the end consumer.

Global Distribution

involves the process of making a product or service available for consumption in multiple countries around the world through a systematic logistic network.

Local Needs

The specific requirements and preferences of a community or market, which can vary significantly based on cultural, economic, and geographical factors.