Franchising, franchisor, franchisee, franchise, licence, parent company, 7-Eleven, Seven Eleven, 7/11, PESTLE analysis, PESTEL analysis, marketing mix
Franchising is a way of licensing, between two firms in which the parent company (the franchisor) grants (the franchisee) which is a separate and independent entity the permission to do business by selling goods, or services that are provided by, or authorised by the (franchisor).
What is a franchisor? It is the owner of the company that has the legal ownership, trade mark and brand name.
What is a franchisee? It is the buyer of the rights to use the brand name of the franchisor to do business.
[...] In this type of franchise, the franchisor provides all kinds of things from the trade mark to equipment. (Masseti, 2013) 7-eleven's uses franchising as entry method, and is within the retail franchise type; also it operates within three main franchise models that had been proven successful: Single store franchise: it is the traditional franchise model; this model allows the franchisee to open a single store. To be able to get this franchise, one has to understand that there are many requirements to be filled, which are being able to obtain licences necessary for the sore, as well as having excellent credit over the years, having no criminal background, as well as having strong work experience within the field. [...]
[...] Does not directly deal with the end consumer, and only responsible for marketing and managing the business. - Retail franchises: operating in retail outlets which is the case of eleven and are usually operated by the owner, requires significant investment as well. Investment franchise requires significant amount of financial investment, and works as an advisor rather than direct operators and it is usually used by hotels. - Single operator franchises; which is a single operator selling the service or product. [...]
[...] Degree of development in technology (use of user-friendly systems, good security systems) 5. Legal Mixed legal system (civil law based on French law and Islamic law) -What could affect the franchise? Change in the law, licensing law, advertisement law, labour law Ecological Inclusion of many measures to strengthen the protection law and practices of the environment, but people's awareness is rather slow, climate change. -What could affect the franchise? Importance of energy consumption contamination and recycling issues (Pree7, 2016) Porter 5 forces 1. [...]
[...] References Gillis, W. Castrogiovani, J. (2012) ‘The franchising business model: an entrepreneurial growth alternative', International Entrepreneurship and Management Journal, pp. 78-98. Doi: 10.1007 /s11365-010-0158-8 Sherman, J. (2003) Franchising & Licensing: Two Powerful Ways to Grow Your Business in Any Economy, AMACOM, [online], Available at: https://ebookcentral.proquest.com/lib/cardiffmet/reader.action?docID=243028, [Accessed: 20 April 2019] Siebert, M. (2016) Unique Ways to Sell Franchises, entrepreneur, [online], Available at: https://www.entrepreneur.com/article/254865, (Accessed: 21 April 2019) Grossman, R. (2017) Ways to Market Your Franchised Business, entrepreneur, [online], Available at: https://www.entrepreneur.com/article/287930, (Accessed 21 April 2019) Pree7, (2016), MARKET ANALYSIS-PESTLE Analysis and TOWS Matrix, [online], Available at: https://pree7.wordpress.com/2016/07/11/market-analysis-pestle- analysis-and-tows-matrix/, (Accessed: 22 April 2019) Entrepreneur, (2018), 7-Eleven Inc. [...]
[...] 198-203) I would suggest a single store franchise at first, as a piloting test, then go to the multiple store franchise. 7-eleven is very famous all over the world, and I think it will be welcomed in Morocco, however, let's not forget that Moroccans are not trend setters but rather followers; therefore they would never try a product before someone else tries and give their feedback on it, I also suggest that the stores are not as tiny as in the US, I think it would be more suitable to make it as big as Acima which remains “average size” in Morocco, which would buy more credibility to the stores, simply because Moroccans tend to give greater value to something from its size. [...]
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