Franchisor strategy: a proposed model and empirical test of franchise versus company ownership.: An article from: Journal of Small Business Management

This digital document is an article from Journal of Small Business Management, published by International Council of Small Business on April 1, 1994. The length of the article is 6083 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: The agency and risk spreading theories of franchising provide perspectives which can be utilized to create a comprehensive model of franchisor strategy. Analysis of data gathered from a survey of franchisors yielded empirical support for hypotheses generated based on both models, while little support was obtained for hypotheses grounded on the resource scarcity theory. Larger companies were found to make more use of franchising rather than company ownership in achieving their expansion goals, while older fimrs used franchising less. Recent growth did not significantly affect franchisor decisions.

Citation Details
Title: Franchisor strategy: a proposed model and empirical test of franchise versus company ownership.
Author: James G. Combs
Publication: Journal of Small Business Management (Refereed)
Date: April 1, 1994
Publisher: International Council of Small Business
Volume: v32 Issue: n2 Page: p37(12)

Distributed by Thomson Gale

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Pizza Scooter Musgrave excelling under new ownership

The new owner of the scooter store Pizza Musgrave, Govender, Vishnu is believed to serve a customer is an honor and a privilege and an ethos that he is driving among its employees. Having previously worked in a senior management role at a pulp and paper factory, Govender decided to pursue a career as an affiliate of scooters Pizza to put into practice his knowledge of business at his shop and because he believes that the fast food industry in South Africa remains a profitable investment choice.

He argues that the key to running a successful franchise is the ability to understand customer needs and have a key objective on service delivery and product quality. His approach involves management involving all staff in the achievement of transparent store set for 2013 and to reward exemplary performance through incentives. "My principal objectives include the business back to profitability within the next three months and to increase the revenue of the shop of fifty percent within the next six months".

Govender is adamant that the goals are achievable like buying an existing store has several advantages, including tapping into a long-standing customer base and profit off existing opportunities that previously were not exploited. Since taking over ownership of the shop, the community responded positively as Govender is the introduction of a delivery system for the surrounding areas, and committed employees are not only committed to the new vision of business, but strive to improve the overall operation of the business.

Christo Calitz, CEO of the food Division of taste Holdings asserts that the required unit Govender, passion and business acumen to reconstruct scooters Pizza Musgrave in a successful shop. "Vishnu is a leader, that is not only practical in its approach to management, but he also knows how to exploit the specific talents of its employees, keeping them motivated to run as productive and profitable as possible. I have no doubt that his people-oriented approach will help the business achieve its financial goals he set as motivated employees finally attract the loyalty of customers. "

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