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McGraw-Hill/Irwin
Learning Objectives
Identify and differentiate the four domestic growth and expansion strategies. Discuss the nature of franchising from point of view of the franchiser and the franchisee. Differentiate between the three generic international strategies. Discuss the three factors to be considered in planning transnational operations. Discuss the five Cs that must be balanced in a borderless world. Identify and differentiate the five global service 14-2 strategies.
Expansion Strategies
Single Service Focused service: * Dental practice * Retail Store * Family restaurant Focused network: * Federal Express * McDonalds * Red Roof Inns Multiservice Clustered service: * Stanford University * Mayo Clinic * USAA Insurance Diversified network: * Nations Bank * American Express * Accenture
Single Location
Multisite
14-3
Franchising
Benefits to the Franchisee Management Training Brand Name National Advertising Acquisition of Proven Business Economics of Scale Issues for the Franchisor Franchisee Autonomy Franchise Contract Conflict Resolution
14-4
Global Strategy
Transnational Strategy
No International Strategy
Multi-domestic Strategy
Low
High
Multinational Development
The Nature of the Borderless World (Triad) Customers - information has empowered Competitors - nothing stays proprietary Company - fixed costs require large markets Currency - become currency neutral Country - deprive competitor of home market Planning Transnational Operations Cultural Transferability Worker Norms Host Government Policy
14-6
Operating Strategy
Service Concept
Appropriate managerial practice? Participative? Autocratic? Labor market institutions? Government regulations? Unions? Host government policies?
What are customer expectations? Perception of value? Service ethic? Service encounter? Language? Acceptance of self-serve? What are the usage patterns? Cultural transferability?
Educating customers?
14-7
Customization
Complexity
Information Intensity
Cultural Adaptation Labor Intensity
Usually a standard service Usually routine Satellite network Modify service Reduced labor costs Government restrictions
Other