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bodyNew 国际贸易方向毕业论文模板正文 1.1 Context With the rapid development of economy, franchise emerges as the product of modern industrial revolution. As innovative ways of organization and management, the franchise, originated from the U.S, quickly spread out worldwide simply because it can be practiced beyond restrictions of countries, cultures, and industries. Franchising in China has been escalated into the era of high-speed development, albeit, many problems also exist behind the prosperous surface. Culture collision, lagging administrative strategies and inefficient logistics, challenged the franchise system in China. For the house-furnishing industry especially, the market is still far from mature. With the purpose to promote Chinese house-furnishing industries, this study tries to explore the successful worldwide expansion of the famous Sweden furniture retailer—IKEA and its implications which Chinese house-furnishing industries might benefit from. 1.2 Significance of the Study Since WTO gave its admission to China five years ago, China has gradually opened wider its markets to more fields, house-furnishing industry particularly. When IKEA from Sweden opened the forth chain super mall in Chengdu last November, its retail volume in China immediately amounts to 1.6 billion yuan (丁鹏飞, 许凤婷 ， 2006) . Its successful franchising management renders a new promising way to develop house-furnishing industry, especially for those who are also in the process of worldwide expansion and towards the international market. Through chain stores and franchising, enterprises engaged in house-furnishing may find their access to the international market more easily. However, in this process, risks also by-produced. Thus, a theoretical analysis of franchise management and the case study of IKEA will definitely offer some help for those who would like to develop in house-furniture industry to gain a better understanding of franchise management. The study may provide some hinds as well to those who even would like to adopt this promising way to develop their own business when facing international opportunities. By an insightful study of IKEA, the address of the strategies of IKEA adapted in marketing, logistics, price-controlling and culture in this paper are bound to be fruitful experience to franchise management for both the potential customers and the prospective Chinese house-furnishing enterprisers who intends to seek opportunities in international markets. 1.3 Shape of the Paper This dissertation will be developed in seven chapters. Chapter 1, the Introduction part, which will be initiated by introducing the context, research problems, and significance of the study. Chapter 2 is functioned to define and categorize characteristics of franchise management. This chapter also present a tentative analysis of the advantages to both the franchisers and the franchisees. Chapter 3 will present an analysis of some factors such as manageable and unmanageable factors that impact on the house-furnishing industry. Chapter 4 will mainly focus on the analysis of marketing strategies of IKEA. Its unique logistics, culture, etc., which contribute much to the success of IKEA. Chapter 5 will state the current situation of Chinese house-furnishing industry and pinpoints some inspirations form IKEA. The concluding chapter generalizes the secret of IKEA, inspirations from IKEA to Chinese house-furniture industries and some tentative suggestions are made to those who are going to take franchise management in international markets. Chapter 2 Characteristics of Franchise and Its Advantages This chapter mainly discusses the definition and characteristics of franchise and the advantages of taking the franchising system as a way to expand market internationally. Some unique management concepts will also be given proper attention to so as to generalize some fruitful implications to house-furniture industries. 2.1 Definition According to the International Franchise Association (IFA), franchise is a contractual relation between franchisor and franchisee. As per the contract, the franchisor provides a unique business concession, guidance and assistance in the aspect of staff training, organize structuring while the franchisee make certain payments in return. ( 中国品牌网 , 什么是特许经营 , While the Chinese government gives another version: A license granted by the franchisor to operate a particular business using the franchisor"s name, where the franchisor provides assistance to the franchisee, exercises continuing control and receives periodic financial consideration from the franchisee for the services provided. Yet, according to the Europe Franchise Association, franchise is (Investorwords. WebFinance, Inc. Franchise, From the above definitions for franchise, it can be identified that regardless of the underlying difference, the core of those different versions lies in: franchisor provides assistance; franchisee makes payment in exchange for the using of brand, franchisor controls over the franchisee’s behaviors. There are basically two types of franchise when divided by the development stage of franchised, while the major differences lie in the scope of franchising right（谷素华,2005）. 1. The early type of franchise, called trademark products franchise or products distribution franchise is that the franchisor empower the franchisee certain rights to manufacture and operate products of a specially appointed brand. The franchisor gives concession to a franchisee that has been provided intellectual property rights such as technical, patents and trademarks in the scope of the right to use on the business activities as stipulated, but is not engaged in production for the stringent requirements. Typical examples of such forms of franchise lie in automobile dealers, gas station and beverage cans and marketing. This mode of development at the international level has been decreased and gradually turned to evolutes towards the manage-pattern franchise model. 2. The manage-pattern franchise model is a second-generation franchise, and the franchise that people are familiar with falls into this category. It requires the franchisee not only handle with the franchisor’s products and services, but also operate to the same level of quality standards and business objectives as the franchisor stipulated. Entry fees and subsequent payment for keeping their rights paid by the franchisee provide the franchisor capitals enough for training, advertising, research and development and follow-up support. This model is currently being developed rapidly. 2.2 Characteristics of Franchise As a matter of fact, franchise is the expanding of technology as well as brand value. It involves not only visible products, but also invisible services such as patent right, continual services and necessary training. Franchise usually features comprehensiveness, unique brand sense, ongoing royalty fees, instance help and strategies. 2.2.1. Comprehensiveness The system and business method must be capable of being passed on; otherwise the franchisee cannot get full understanding over the system. The franchised business must be thoroughly tested and proven in practice to be successful. No one would join a franchise system which has to struggle to surrive. Not until the franchisor has tested his ideas in the market place and proves that it is efficiency that will he win the follow up joiners. Therefore, the existing franchise system must have some unique advantages to win a share of the market. 2.2.2. Unique Selling Points The franchise should have some unique points such as branding, the method or system of operation. The costs and returns must be worthwhile for the Franchisor and all the franchisees that operate within the franchise system (Die Welt, 1995). Set McDonalds’ as an example. Compared with the rest fast food restaurants, McDonald’s is no doubt the biggest in the world, whose selling point is brand value, which always means clean and comfortable environment, high quality of services and standard flavor as well as prices. Though quite a lot of fast food restaurants today copy the model of McDonald’s, it still wins the largest customer group due to the developed operation skills and continual innovation. 2.2.3. Ongoing Royalty Fees The franchisee would make a payment of an initial fee to purchase the franchise as well as ongoing fees for maintaining it. Just like in IKEA, franchisees usually pay a 3 percent of royalty fees to the Inter IKEA group, who plays as the franchisor. 2.2.4. Immediate Help and Assistance 2.3 Advantages of Franchise If the real success of one business is up to factors such as: packaging of the product presentation, trade name, trade marks, service marks, the service it provides, the image, the distinctive appearance of the premises, promotional indicia--including get-up logos etc., or the owner operating enthusiasm and personal attention, then franchising may be the number one which should contain all those qualities. It is that business format which offered relatively easy accessibilities to individually owned franchise outlets. 2.3.1. Advantages for Franchisees Seven major advantages are involved in franchise management for franchisee. -- The opportunity for successful investment is increased. -- Systematically management training is available. -- Costs could be lowered. -- Famous trademark or services of the headquarter is available. -- Advertising costs could be reduced. -- Financial support by the headquarter or the bank are within easy access. -- A wider source of information. As mentioned above, taking part in the successful franchise system would definitely promise the franchisor a better future. Their capital returns are usually guaranteed. The franchisees could overcome their shortage of being lack of expertise through systematic training provided by the headquarter. In addition, as the brand is proved to be successful, costs involves advertisement, logistics and management could be reduced to a minimum level for the benefit of scale economy, when energy could be saved on the other hand. 2.3.2. Advantages for Franchis...
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