...professional contributions are necessary for guiding business practices. Due to this reasons, the franchise systems were created as a mode of expanding businesses. Most of business minded people were selecting the franchising business as their way to expand their profits as well as their wealth. The concrete reason why they were selecting this kind of business is due to systematic management and cash flow which is provided by the franchisors. However, in these competitive markets, they still have their own weaknesses and might affecting failure of the franchising business itself. The weakness is depends in various aspects including surrounding cultures, afford abilities of the consumers, and etc. Therefore, the franchisors need to do a certain research in order to prevent their business from getting collapsed due to their own weaknesses and any surrounding problems. The remainder of this paper is structured as follows. Section A is regarding demographic, geographic and psychographic of the respondents involved throughout the research. Section B is examines the factors which causing the failure of franchising business in Malaysia. And on the last section examines the strategies which can be taken in order to improve franchising business in Malaysia. 1.1 Problem Statement. Recently, Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob, from his speech which is published on 31st March 2010 in Business Times, attribute that...
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...This report focuses on Malaysia. Some of the key issues that I would like to highlight in this forum are: the influence of globalization on International Business Trade for Malaysia, the roles of ASEAN Free Trade Agreement (AFTA) policies for ASEAN trade collaboration and competition, the macro environmental factors that international business should focus upon before launching market expansion, the roles of government in supporting international trade such as Foreign Direct Investment, how government should assist their businesses in competing in global arena either by protectionism or subsidizing, why has International Franchising strategy has work and what are the industries that have utilized this strategy for expansion successfully and why international business executive should pay attention to cultural influence in business negotiation process particularly Malaysia. Influence of globalization Globalization is taking significant role in many nations around the world. All products and services are strongly linked to each other. For example, different parts of computer can be manufacture in different location and assemble in China to save cost. Both developed and developing countries such as Malaysia are cautious of its benefits not only socioeconomically but also geopolitically. Realizing this, Malaysia has started to take initiative in globalization approach in the 21st century. For example, the export of Thai rice and sugar to Malaysia, telecommunication equipment...
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...Management 110: Assessment 2 1. Case study I choose Malaysia Airline System (MAS) because the whole world is focusing on Malaysia recently and especially Malaysia Airline due to the miserable crash of MH370. According to international newspapers and articles, I have found that MAS has plenty of debts and it occurred because of wrong management. Some presses refer to MAS is able to be bankrupted by the tremendous compensation of MH370. Therefore, I choose MAS in order to revive and overcome from poor management. 2. Contemporary management issue in relation to this article Issue: Poor management leads Malaysia Airline to billions of debt, MAS needs government rescue. Background and context of the company: Malaysia Airline System (MAS) is the home base of Malaysia and it was established in 1947. Nowadays, Malaysia Airlines secures a variety of routes such as Europe, North America and Asia continent. These days, Malaysia Airline has recorded the minus of Operating Cash Flow (OCF) over the past three years. Free Cash Flow (FCF) which minuses capital expenditure from OCF was negative for six years. (Tengku Bahar,2014) The financial issue presses the airline and about 19,000 employees. Key issues for the company: Before being the crash of MH370, MAS already faced their financial pressures, which is approximately 4.2 billion ringgit loss. The disappearance of MAS MH370 boosts the financial loss and it can be a critical damage for MAS. Furthermore, the main issue for MAS is its...
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...Franchising Law in Malaysia A comprehensive analysis of the Franchise Act Introduction 1. The business of franchising has transformed the face of most business practices in Malaysia and has become a revolutionary way for Malaysian companies to develop, increase their production capability and expand their distribution chain both vertically and horizontally. Franchising fosters business opportunities for Malaysian franchisees, particularly small start-up companies (the “Franchisee”) under the guidance and assistance of another company (the “Franchisor”), which has the requisite experience and knowledge of the market practice and industry. The Franchisee may leverage on the Franchisor’s international and/or regional reputation and goodwill through its use of the Franchisor’s trade marks and intellectual property rights as well as the Franchisor’s tested technologies, trade secrets and business systems. Before the enactment of the Franchise Act 1998 (the “Franchise Act”) on 8 October 1998, franchising in Malaysia was governed by contractual principles and the absence of complex statutory provisions or guidelines allowed parties to freely negotiate the terms of their franchising arrangement. In contrast, the Franchise Act highly regulates the franchising industry as it not only controls the terms of any franchise agreement but also implements a systematic scheme of registration for the Franchisor, Franchisee and franchise brokers. Although this has created a regimented...
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...................................................................................................................... 8 2.2 Identity or Branding .................................................................................................................................... 8 2.3 Expansion or Growth ................................................................................................................................... 8 3.0 Setting Up The Business ............................................................................................................. 9 4.0 Market Entry .............................................................................................................................. 9 5.0 Opportunity or Franchising ..................................................................................................... 11 6.0 Changes In Business Enviroment...
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...include Entry Objective (Market Development, Resources Access, Learning, Co-ordination), Need for control, Internal Resource and Capabilities, and Cost-Benefit analysis (Lasserre 2008).These both factors can be identifying through some framework like Porter Country Diamond (Porter, 1990), Country Risk, Market & Industry Attractiveness and PEST. Timing of entry comprises four phase: Premature phase, Window phase, Competitive growth phase and Mature phase. The wrong choice of timing can have a great impact of a company on Sales, Performance, Brand Awareness and etc. According to Frynas& Mellahi (2011, p. 164), the Entry Mode can be use by MNE(Multinational Enterprise) grouped into five main categories, that are Export, Licensing, Franchising, Joint Venture and Wholly Owned Subsidiaries- Greenfield Investment and Acquisition. Comparing Entry Mode (Refer to Appendix 1) There are two major types of entry mode using by MNE (Multinational Enterprise), Equity and Non-Equity modes (Refer to Appendix 2). Equity modes consist of Wholly Owned Subsidiaries – (Greenfield Investment & Acquisition) and Joint Venture that direct owner involvement. Also, Non-Equity modes such as Contractual...
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...The Coffee Bean & Tea Leaf were located at high traffic, high visibility locations in each market. The market entry strategies use by the coffee shop in managing their foreign franchisees when expanding into Asia including master franchising and company owned-stores. A master franchise is a person or entity that provides services to franchisees in a specified territory, typically a major market, geographical region or even one or more countries. The marketing approach is essential to gain a competitive advantage in the foreign market. The construct included market entry, site location, and market positioning. The reason is to choose master franchise as its form of franchising is because of that the master franchising was the most popular mode of entry into distant band cultural dissimilar market such as Asia. The Coffee Bean & Tea Leaf found that the sale of a master franchise as a quick method of establishing a franchise operation. Instead of sub-franchising the units, the master franchisees prefer to own and run the entire unit. The reason also is too attributed largely to be limited size of the marketplace as the products are targeted at specific niche rather than the general public. It entered Singapore, Malaysia, and Taiwan by master franchising. In the other hand, the coffee shop prefers to use company-owned stores in Hong Kong, Australia and United States. Whereas for the more complex markets is more favored like Japan, Philippines and the Middle East. The company is quite...
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...environment of the company such as consumer/customer, Supplier, competitors, the media (public) and in the microenvironment have the internal environment that is men, money, machinery, materials and minute. The micro environmental factors that Yum! Brands, Inc needs to consider before attempting to open up Taco Bell stores in the Malaysia markets are the supplier, customer, competitors, the media (public) and the internal environment of the Taco Bell that is men or employees, money, machinery, materials and minute . To open up the Taco Bell in Malaysia market, Yum! Brands must consider with the suppliers in micro environment. Yum! Brands must make sure that Taco Bell in Malaysia market have the supplier that can supplies all the raw materials to prepare the Taco Bell’s product and other goods such as packaging material in the Malaysia market. Yum! Brands must to identify all the suppliers in Malaysia that can supply the goods to them and deal business with them for example Ayamas Food Corporation and Ramly Mokni Sdn Bhd can supply the meat to the Taco Bell restaurant. Other than that Taco Bell must ensure that the suppliers are not outside from the Malaysia, when the supplier logistic is far so the cost of delivery will be high....
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...Coffee Bean & Tea Leaf were located at high traffic, high visibility locations in each market. The market entry strategies use by the coffee shop in managing their foreign franchisees when expanding into Asia including master franchising and company owned-stores. A master franchise is a person or entity that provides services to franchisees in a specified territory, typically a major market, geographical region or even one or more countries. The marketing approach is essential to gain a competitive advantage in the foreign market. The construct included market entry, site location, and market positioning. The reason is to choose master franchise as its form of franchising is because of that the master franchising was the most popular mode of entry into distant band cultural dissimilar market such as Asia. The Coffee Bean & Tea Leaf found that the sale of a master franchise as a quick method of establishing a franchise operation. Instead of sub-franchising the units, the master franchisees prefer to own and run the entire unit. The reason also is too attributed largely to be limited size of the marketplace as the products are targeted at specific niche rather than the general public. It entered Singapore, Malaysia, and Taiwan by master franchising. In the other hand, the coffee shop prefers to use company-owned stores in Hong Kong, Australia and United States. Whereas for the more complex markets is more favored like Japan, Philippines and the Middle East. The company is...
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...in Taiwan when he stumbled upon Chatime and decided to take up the master franchise for Malaysia. After more than three years, and with 110 Chatime outlets in Malaysia now, Loo admits that he initially did not want to grow the brand in the country through franchising. He is not a big believer in the franchise model, preferring to own all the Chatime Malaysia outlets if he could. But out of necessity, he had to compromise. Loo’s father had given him RM500,000 to kick-start the business. That amount could only fund one outlet. After opening his first outlet at Pavilion in Kuala Lumpur, he came up with a strategy to make the best of his financial limitations. “My strategy was to sell two franchises so that I could get enough investment to open one direct outlet. So I did that until I achieved five direct outlets that generated enough cash flow for me to sustain my expansion,” he explains. According to Loo, a standard Chatime outlet’s startup cost could go up to RM500,000, but this depends on the store’s size and location as rent deposit and renovations are a big part of the initial investment. In the early days, most Chatime outlets broke even after six months of operation, but now it takes about one to two years. This is because there are more outlets around town as well as a myriad of competitors. Today, the company doesn’t offer any more franchising opportunities in Malaysia. As soon as Loo had enough cash flow to sustain the expansion on his own, he stopped selling...
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...The Beauty of Malaysia - Essay - Siyu 5/7/14, 2:16 PM Login Join The Research Paper Factory Join Search Browse Saved Papers Search over 100,000 Essays Home Page » Historical Events The Beauty of Malaysia In: Historical Events The Beauty of Malaysia Malaysia was called "Malaya" at first, after independent from the British Colonisation in 1957. It was only made up of Malay Peninsula and Singapore Island. After a few years, Sabah and Sarawak decided to join Malaya to form Malaysia in 1963. However, Singapore seceded in 1965. Now, Malaysia is independent for 53 years. This multi-racial and multi-cultural country consists of thirteen states and three federal territories and has a total landmass of 329,845 square kilometres (127,354 sq mi). The capital city is Kuala Lumpur, while Putrajaya is the seat of the federal government. The population stands over 28 million made up of Malays, Chinese, Indians and numerous ethnic groups. Malaysia gained its independent on August 31, 1957. Since independence Malaysia has had six Prime Ministers namely, Tunku Abdul Rahman the first Prime Minister and known as “Bapa Kemerdekaan” (Father of Independence), Tun Abdul Razak the second sitting Prime Minister, known as the Father of Development, Tun Hussein Onn was granted the soubriquet “Bapa Perpaduan” (Father of Unity) sited as the third Prime Minister ,Tun Dr Mahathir Mohamad was the fourth Prime Minister of Malaysia is the longest running leader in Asia serving...
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...CONSUMER FOODSERVICE IN MALAYSIA Euromonitor International October 2012 CONSUMER FOODSERVICE IN MALAYSIA Passport I LIST OF CONTENTS AND TABLES Executive Summary ..................................................................................................................... 1 Malaysians Spend More on Foodservice .................................................................................. 1 Increases in Prices Hit Consumers ........................................................................................... 1 Multinational Brands Maintain the Top Positions, But Local Companies Progress Well ........... 1 Increasing Trend of Dining Out ................................................................................................. 1 Positive Outlook for Multinational and Local Foodservice Companies...................................... 2 Key Trends and Developments .................................................................................................... 2 Rising Prices Affect Consumer Confidence .............................................................................. 2 Government and Private Sector Inject Growth Into Foodservice .............................................. 3 Healthier Choices for Consumers in Restaurants ..................................................................... 5 Foodservice Companies Compete for Customers Through Online Coupon Giveaways........... 6 Tackling Halal Issues in 2011 ....................
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...Question 1: Discuss any FIVE (5) management actions that have contributed to the success of McDonalds. Every organization has their different objectives, missions and visions to achieve in order to ensure company’s growth. However, the skills of management in the company are relatively important in order to motivate and provide guidance to employees so that everyone is in the right path to the common target. According to Pearson Educations (2012), management carries a definition of a skill that involves coordinating and overseeing the work activities of other employees so that the activities are completed efficiently and effectively. Managers, are those people who have the responsibility to ensure that the management of company is running smoothly and flawless. In an organization, there are different management actions that the company should be concerned. In the case study of McDonalds, our team has found out five significant management actions that have contributed to McDonalds’ success. There are strategic management, democratic leadership skills, human resources management, ethics management and 1.1 Strategic Management One of the management actions that have contributed to the success of McDonalds will be their strategic plan which called ‘plan to win’. The idea of this plan not only for them to be the biggest fast food restaurant chain but to be the best fast food restaurant chain. McDonald implement this plan by analyzing the 4 P’s which are product, price, promotion...
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...its famous slogan C.H.A.M.P.S “Cleanliness, Hospitality, Accuracy, Maintenance, Product quality and Speed”. And to meet customers’ needs fulfillment and highly quality requirements. The professionalism in applying the Supply Chain Management. The serve of different products (Sauteed Pastas, Beverages, Appetizers, Soups and Salads, Pizzas, Desserts) imposes a close dealing with many suppliers and to be delivered in the proper time and location. The supply chain mainly consist of Direct Suppliers (Pepsi, wheat, Chicken, Vegetable and Sauce) Pizza Hut’s entry into Malaysian Market Pizza Hut began its operations in Malaysia on 19th May 1982 with the opening of its first outlet at Yow Chuan Plaza, Kuala Lumpur. Cerebos, a Singapore based-company was the first owner. Cerebos had opened 29 outlets when it decided to sell the franchise to KFC Holdings Malaysia Berhad in December 1995....
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...Kelantan, Malaysia University of Technology Mara Malaysia, Shah Alam, 15-17 June 2009, Volume 2, pp. 128-137 Entry Mode Strategies of Malaysian Service Firms: A Resource-Based Approach Mohammadreza Asgari*, Mohd Nazari Ismail**, Syed Zamberi Ahmad*** Faculty of Business and Accountancy, University of Malaya, Kuala Lumpur ABSTRACT The rapid progress in services has attracted scholars to study the behaviour and decisions of service firms. Firms from Malaysia, as a developing country, with a fast growing economy that increasingly relies on services have shown a remarkable expansion into foreign markets, which has resulted in high foreign direct investment (FDI) outward inflows and increasing exports of services. This paper utilizes the resource-based theory, in which the main determinants of the choice of entry mode are organizational variables compared to environmental factors, to explain the choice of entry strategies made by Malaysian service firms and the motives for it. This study aims to develop a framework for the choice of entry mode strategies that has fewer shortages than others, analyze the determinants of entry mode strategy in order to find the similarities and differences existing between firms in the decision-making process for the choice of entry mode, and consider the role of psychic distance in adopting an appropriate strategy in different markets. Suggestions for future research are also presented. Keywords: Entry mode strategy, developing country, Malaysia, service...
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