3 Risk spreading, which compensates for the decisions surrounding any expansion, is accomplished through franchising. The investment
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3 Risk spreading, which compensates for the decisions surrounding any expansion, is accomplished through franchising. The investment risk is lowered through franchising compared with joint ventures, which can involve large capital investments and legal complications. Franchising creates sales and brand recognition at a much lower cost. In international expansion, the political risk and the overall risk of failure are primarily borne by the franchisee.
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Strategic Management Awareness And Change
ISBN: 9781473786530
10th Edition
Authors: John Thompson, Frank Martin, Jonathan Scott
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