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Firms operating internationally via franchising have to choose franchise markets and franchise partners. Regarding the market and partner selection processes Doherty (2009), adopting a qualitative, case study approach (focusing on more mainstream, non-luxury, fashion retailers internationalizing from the UK) concludes that the market and partner selection process exhibits opportunistic and strategic behaviour. When firms adopt a strategic approach, they actively look to enter international markets through a planned search process. In this way, market attractiveness factors (such as retail structure and regulation) ultimately lead to the market selection decision, followed by the strategic partner selection where factors such as business know-how, local knowledge, a shared understanding of the business and brand and ultimately, the chemistry between the partners are crucial for partner selection. Partner selection may also be opportunistic for some firms. In this case the process reverses, that is, partner selection directly influences market selection: the franchisor enters markets and enters into franchise agreements with a partner as a result of the franchise partner approaching the franchisor without encouragement from the latter.
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