FACULTY OF ENTERPRENEURSHIP AND BUSINESS

ARS3063-FRANCISING & LICENSING

ARTICLE 3
GROUP MEMBERS:
NAME
NURUL FATIN BINTI YUSOF
NORYATI BINTI SHAARY
ZURAIDA BINTI IBRAHIM
KHAIRUNNISA BINTI RUZAINI

MATRIC NUMBER
A13A0961
A13A1512
A13A1403
A13A0308

LECTURER NAME : NADIA HANUM AMIRUDDIN

CLASS TUTORIAL : L4T1

Introduction
In franchising, one firm sells the right to market goods or services
under its brand name and using its business practises to a second
firm

Characteristic of
Franchising

g typically occurs in businesses where a notable service component that must be performed near customer is. The result is ser
llocation of responsibilities, decision rights, and profits between a centralized principal and decentralized agents.
-

The article seeks that why franchises from emerging markets have grown in importance

in their own market and have expanded internationally.

Based on Latin America cases, it seeks to explore the degree to which the findings from
research set in developed markets hold for franchises from emerging markets.
CASES IN LATIN AMERICA

Pollo
Campero
(Guatermala)

Sushi itto
(mexico)

Habibs
(brazil)

Churromania
(Venezuela)

EXPLANATION FOR INTERNATIONALIZATION OF FRANCHISES FROM

EMERGING MARKETS

1
2

The firm have had varying degrees of success.

For example, Pollo Campera has been so successful at internationalization that it now

has more locations overseas than it does in its domestic market.

The emerging market concepts that we studied all established a very strong presence

in the domestic base and were relatively large firms.

Top management is another firm specific variable that directly affects the decision to

internationalize.
The influence of top management is heightened in firms from emerging markets, in
contrast to concepts from developed markets, many emerging market franchise firms

are owned by individuals and families.

The emerging market franchise concepts appear to expand internationally for factors
other than resource scarcity and agency reasons.

CONCLUSION

The business model of the emerging market franchises

was not derived around the exportation of a traditional
local cuisine but rather the re export of imported cuisine.

the cases in this exploratory paper demonstrate

preliminary evidence that franchise concepts from
emerging markets are motivated to expand because of
top management, resource-based factors as well as for
unique institutional reasons.