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Franchising: Global Markets

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1. McDonald's and other fast food restaurants have benefitted tremendously by using franchising as a mode of entry into different countries. What are the benefits of franchising and how does it differ from other modes of entry?

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The answer to this problem explains the advantages of using franchising for entry into global markets . The references related to the answer are also included in the solution.

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1. McDonald's and other fast food restaurants have benefited by using franchising as a mode of entry into different countries. The benefits of franchising are that the company can rapidly enter and grow in a new country. This expansion can be carried out with low financial and administrative investment. The additional sales in a foreign country provide the company with additional resources for development, expansion, and brand development. In foreign countries, because of cultural gaps, local customs of doing business, and familiarity with local laws, the performance of franchised units is better ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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