Ebite, Edrian D.

Activity #2
BSBA-FM4A International Business and Trade

1) Differences between franchising and licensing.

Franchising is a business model where an individual or entity (franchisee)
purchases the rights to operate a business using the branding, products, and systems of
an established company (franchisor) while licensing refers to a legal arrangement where
one party (the licensor) grants another party (the licensee) permission to use certain
rights, assets, or intellectual property, typically for a specified purpose and within defined
terms and conditions. Licensing can encompass various forms of rights and assets, and
it is commonly used in business and creative fields. Franchising is a partnership in which
one party allows another to borrow its business model or brand name. This is usually
done at a fee. The party which lends its name or business model is called the franchisor,
while the party paying for the permissions is the franchisee while licensing is also a legal
partnership between two parties. In this type of arrangement, one party (the licenser) sells
the rights for the use of its intellectual property to the licensee. The licensee can then
manufacture the products of the licensor, while paying royalties to the licensor. In simpler
terms, franchising means that you're allowing another person to duplicate your business
in another location, and licensing is when you allow someone else to sell your products.

2) Search for the business that operates in the Philippines and in other countries. Provide
the system how they differ in operation.
Jollibee
Jollibee, a popular fast-food chain originating from the Philippines, has expanded
internationally to numerous countries. While the core menu and brand remain consistent,
there can be differences in the Jollibee experience between the Philippines and other
countries due to local preferences and cultural adaptations. There are many reasons how
the system and operation of Jollibee in Philippines differs from other countries. Starting
from the menu variations, there are many foods that are different just like the “Adobo
Rice” present in other countries but not here in the Philippines. Next is serving sizes, it is
evident that the portion sizes of foods offered here in the Philippines differs in other
countries. For example, the Chicken Joy in Malaysia is bigger and comes with a lot of
gravy while in the Philippines, from my personal experience is the opposite. Lastly, are
cultural adaptations, here in the Philippines, there are no available halal or vegetarian
options of foods for the Muslims while in the other country they have a wide range of
foods offered depending on their culture not only the Muslims.

Marawoy, Lipa City, Batangas 4217 | https://www.facebook.com/KLLOfficial/

H&M
H&M, a global fashion retailer, typically maintains a consistent brand identity and
core product offering across its stores worldwide. However, there can be some
differences between H&M stores in the Philippines and those in other countries due to
factors like local fashion preferences, store locations, and inventory. Some of the reasons
why H&M Philippines differs from other countries. First is store design, the interior design
and visual merchandising of H&M stores can be adapted to suit local aesthetics and
cultural preferences. For example, in H&M Philippines the design of the stores mostly
relies on white color backgrounds while in H&M Korea stores focuses on details and
structures but with the same color palette to H&M Philippines stores. Second is product
selection, the availability of certain clothing items may vary based on local fashion trends
and customer preferences. In some cases, you might find a broader selection of specific
styles or clothing items tailored to the local market. For example, in H&M Philippines offers
tees, and dresses that suits the preferences of Filipinos while in H&M Saudi Arabia they
offer clothes that is aligned with their culture and beliefs. Lastly is pricing, prices can differ
due to factors such as import tariffs, taxes, and currency exchange rates. Local economic
conditions may also influence pricing strategies. For example, in H&M Philippines the
prices of the clothes they offered increases as well as the stores in other countries. It is
all because of the underlying economic conditions that are being experienced worldwide.

7-Eleven
7-Eleven is a well-known convenience store chain with locations in various
countries, including the Philippines. While the core concept of 7-Eleven remains
consistent, there can be differences between 7-Eleven stores in the Philippines and those
in other countries due to local preferences, product offerings, and cultural adaptations.
Here are the reasons why 7-Eleven Philippines differs from other countries. Starting with
seasonal offerings, 7-Eleven often introduces seasonal products or promotions, and the
availability of these items may differ by region. For example, the samgyupsal set of
Romantic Baboy that is only limited in 7-Eleven stores in Philippines due to high demand
and limited stocks. Next is branding and marketing, 7-Eleven may incorporate local
branding, marketing, and promotions that reflect regional events, festivals, or cultural
references. For example, in Philippines, the local artist promotes the products of 7-Eleven
while in Korea, the Korean artists are the ambassadors. Lastly is food and beverage
menu, 7-Eleven stores often adapt their food and beverage menus to include items that
cater to local culinary preferences. This can include regional or culturally significant foods
and drinks. For example, in 7-Eleven Philippines, the menu for rice meals are the Filipino
delicacies like giniling, sisig, kare-kare, adobo, and many more while in 7-Eleven Korea
they offer their own delicacies like kimchi, bibimbap, tteokbokki, and many more.

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