The franchiser strategy, such as mcdonald’s, includes creation of a product in the home country, but then relies on foreign personnel to assist with remote marketing and sales.
What is franchising?
- Franchising is an established business expansion strategy that has proven to deliver rapid growth – with arguably reduced risk. Some stellar examples include MacDonald’s, Singer and Coca Cola.
- More recent successful exponents of this model include:
- Typically, a franchising company (a ‘franchisor’) licenses its Trademarks, Copyright, know how and established business model to ‘franchisees’.
- These franchisees adopt that business model, including the brand and then operate in new markets.
- The franchisor’s business model changes subtly to a “support” rather than “operational “ model and market share, brand recognition, and revenues grow as a result.
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