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Book part
Publication date: 30 November 2020

Jihad Mohammad and Farzana Quoquab

Over the last three decades, corporate social responsibility (CSR) has evolved significantly as a worldwide trend in both the management literature and the modern economy…

Abstract

Over the last three decades, corporate social responsibility (CSR) has evolved significantly as a worldwide trend in both the management literature and the modern economy. However, it is still at its infancy stage in the developing countries like Malaysia. It is more prevalent in the coffee industry, due to the challenges that this industry encounters. In addition, not much information is available in the academic literature in order to understand these challenges that this industry is facing in performing CSR. Therefore, this chapter aims to highlight the main challenges that the coffee franchise industry faces in incorporating the activities of CSR in their operations. Lack of top management support, performing CSR in isolation, and lack of capable employees to do CSR are some of the major challenges. This chapter is expected to advance the knowledge about CSR practices and challenges in the Malaysian context.

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Article
Publication date: 12 June 2019

Laurent Tournois and Damien Forterre

Franchising has become an increasingly popular overseas expansion strategy for companies in various industries. A successful development in a transition economy such as…

Abstract

Purpose

Franchising has become an increasingly popular overseas expansion strategy for companies in various industries. A successful development in a transition economy such as Serbia has been exclusively associated with McDonald’s, which raises concerns about the ability of other international franchises to penetrate the Serbian market. The purpose of this paper is to explore the customer-based constraints that may hamper the spread of franchising in a post-communist country. Specifically, factors such as country-of-origin (COO) effects, longevity and brand localness/globalness that may affect consumers’ preferences are considered.

Design/methodology/approach

This paper uses mixed methods, that is to say a combination of qualitative and semi-quantitative approaches. Primary data were collected using (45) semi-structured interviews with local customers. The (success) story of McDonald’s in Serbia serves as the reference point.

Findings

The findings suggest that COO and localness are both relevant in explaining consumer preferences. Longevity signals the ability to adhere to international standards as well as regular local engagement. The results also stress that, contrary to widespread belief, global franchise names do not have an advantage over local players.

Research limitations/implications

Further investigation is needed to empirically examine the relationships between several key variables identified in the present study (longevity, COO, tradition, patriotism, trust, emotional attachment, perceived quality, authenticity, satisfaction, behavioral intentions). These may influence franchise system penetration and, ultimately, its performance.

Practical implications

Although post-communist countries have become highly appealing for international fast-food and coffee-shop chains, these countries are hard-to-please environments for setting-up and operating a franchise business. These findings advocate franchises to find the right balance between their global name and a quick integration of indigenous attributes to compensate for their late entry. Franchise marketing managers must develop a brand narrative that includes both local brand associations and global/international standards to increase franchise brand awareness and generate a positive consumer attitude.

Originality/value

Despite the call for more studies on franchising in emerging markets and their realities, not much attention has been paid to (local) customer-related constraints. The inclusion of a temporal perspective appeared to be highly relevant in investigating the potential effect of longevity on the local development of the franchise system. Moreover, there is a scarcity of scholarly branding research in the franchising sector. Local competition, although a neglected dimension in prior studies, has been examined through consumer preferences toward global and local brands. The chosen research methodology responds to the recent call of scholars for more diverse approaches. Finally, as a post-communist, transition and emerging economy, Serbia serves as a stimulating and yet uncovered research setting, given its tumultuous history with Western countries, as well as the long successful history of the McDonald’s franchise.

Details

Journal of Business Strategy, vol. 41 no. 3
Type: Research Article
ISSN: 0275-6668

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Article
Publication date: 9 October 2007

Stephen Choo, Tim Mazzarol and Geoff Soutar

Although international franchising has occurred in East Asia over the past 20 years, surprisingly very little academic research has been undertaken to understand key…

Abstract

Purpose

Although international franchising has occurred in East Asia over the past 20 years, surprisingly very little academic research has been undertaken to understand key dynamics of this marketing phenomenon. The purpose of this paper is to examine franchise resources, which is a key construct in the internationalization of retail franchising.

Design/methodology/approach

A multiple case study approach has been adopted to generate rich data designed to aid understanding of the complexities inherent within such an international marketing relationship. The data were drawn from five US food service retail franchises, which are household brands across East Asia, operating in Singapore.

Findings

This study presents several interesting findings for the retail franchise industry. First, consistent with resource scarcity theory, international franchising relationship begins with a high degree of franchise dependency on the local franchisees. Next, international franchisors will be well served to select their overseas franchisees with strong financial resources to engage in rapid expansion, good contacts to secure early stores in prime retail locations and well‐proven local knowledge to modify the concept to suit particular market needs.

Practical implications

Findings from this study have important managerial implications for international retail franchisors on how to effectively select franchisees to successfully launch and manage their brands in East Asia.

Originality/value

This empirical study has made a major contribution in adding to the limited body of empirical knowledge on franchisee selection in international retail franchising, particularly in East Asia. It is hoped that this paper will encourage more academics to investigate why certain international retail franchise concepts perform relatively better in East Asia than others.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 19 no. 4
Type: Research Article
ISSN: 1355-5855

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Article
Publication date: 2 February 2015

Sabrina Rashid and Kamal Ghose

The purpose of this paper is to explore the relationship between organizational culture and brand identity in the retail food and beverage industry and also to explore how…

Abstract

Purpose

The purpose of this paper is to explore the relationship between organizational culture and brand identity in the retail food and beverage industry and also to explore how independent retail coffee shops and cafes build their brands. The evolution of coffee drinking in many new markets is following a pattern similar to the one witnessed in New Zealand.

Design/methodology/approach

A qualitative approach using semi-structured interviews, field notes, photographs and empirical material was carried out with 15 independent coffee shops and nine franchise coffee shops in Christchurch, New Zealand. In total five different approaches were adopted to provide diverse observations to compliment every angle of the research setting by using triangulation.

Findings

The findings from this research reveal that an appropriate brand name helps to ease the process of brand identity creation. The personality of the market leader strongly influences organizational culture, and a constant flow of updated business intelligence plays an important role in creating a distinctive brand identity. Internal marketing and personal values are key to constructing internal culture while the acculturation process plays an important role in developing internal culture and building brand identity.

Research limitations/implications

Difficulty in getting participants was a major limitation because many employees/owners declined to take part in the research due to the nature of their work which required full attention to serve customers when the outlet is operating.

Originality/value

In previous years, research has focused on interaction between the organization and their customers (Hoeffler, 2003). This study extends previous research by investigating the internal culture of the organization and its relation to brand identity building within the organization.

Details

Marketing Intelligence & Planning, vol. 33 no. 1
Type: Research Article
ISSN: 0263-4503

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Case study
Publication date: 13 September 2019

Amna Abdullah Mohammed and Syed Zamberi Ahmad

The learning outcomes are as follows: to enable the learners to understand advantages and disadvantages of franchises in the company; to understand the strength and…

Abstract

Learning outcomes

The learning outcomes are as follows: to enable the learners to understand advantages and disadvantages of franchises in the company; to understand the strength and weakness points of Café2Go, its underlying strategy and what makes the company a unique outlet; to acquire a better understanding on the key challenges or dilemmas that Café2Go faces and to provide recommendations to address such dilemmas; to evaluate innovative marketing plans that would aid in expanding Café2Go internationally; and to understand cause-effect analysis of project management and the reason for the increase in the operationalization cost on Café2Go.

Case overview/synopsis

This case study presents the story of Jassim Al-Bastaki who was once rejected as a franchisee and later managed to be a pioneering franchiser in the UAE. The case aims to highlight the new coffee products and distribution methods Al-Bastaki used to compete in the over-saturated coffee market in Dubai. Al-Bastaki distinguished the first Café2Go by offering camel products in a mobile truck. It was the first “café-on-wheels” in the UAE, and it marketed the slogan of “wherever you are”. This case study discusses the challenges the project faced while marketing the unpopular, salty drink camel milk and issuing the necessary licenses for the coffee truck. The case study also elaborates on the innovative strategies Al-Bastaki used to convince customers of the health benefits of camel milk, to serve camel milk in appealing forms such as milkshakes and to replace the banned mobile truck with kiosks, cubicles, mobile trolleys and free phone call services. The case study also aims to highlight the obstacles associated with the franchise model and to reveal how Al-Bastaki overcame such challenges, using the franchise model, to expand Café2Go beyond the UAE. What started as a mobile coffee truck in 2009, in Dubai, has changed into an expanding business in Qatar, Libya, Bahrain, Saudi Arabia, South Africa and Spain (Masudi, 2013).

Complexity academic level

The case study is relevant for undergraduate and post-graduate management degrees, and specifically business administration, entrepreneurship, small business management courses.

Supplementary materials

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Subject code

CSS 3: Entrepreneurship

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Case study
Publication date: 1 January 2011

Asmat-Nizam Abdul-Talib, Samshul-Amry Abdul-Latif and Norhayati Zakaria

Franchise, strategic management, food and beverages, Malaysia.

Abstract

Subject area

Franchise, strategic management, food and beverages, Malaysia.

Student level/applicability

First year undergraduate students of management courses.

Case overview

This case study explores the strategies employed by franchisor Gloria Jean's Coffees (GJC) in reestablishing its market presence in the Malaysian coffee market. GJC recently underwent an exchange of ownership. Under the new leadership, the company decided to appoint a new strategic master franchisee in Malaysia to see a section of its expansion plan in the ASEAN region reestablished. The selection of a suitable and well-connected master franchisee is very important for reestablishing presence and brand name development. The deteriorating position of GJC's brand name in Malaysia prior to the appointment of a new master franchisee created a unique situation requiring an in-depth evaluation and examination of unseen but highly related critical factors. In-depth and “behind-the-scene” examination on efforts made through the implementation of business and marketing strategies to reestablish its brand and presence in Malaysia; given demanding market challenges and intense competitions.

Expected learning outcomes

After carrying out this exercise, students are expected to be able to: understand how business start up grows in foreign markets; identify the basic issues of international franchising and how the system works; analyze the various factors of considerations prior to internationalization; and evaluate strategies undertaken by company in establishing its market in foreign countries.

Supplementary materials

Teaching note.

Details

Emerald Emerging Markets Case Studies, vol. 1 no. 1
Type: Case Study
ISSN: 2045-0621

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Article
Publication date: 26 October 2012

Blessing Maumbe

The purpose of this paper is to describe the rise of South Africa's quick service restaurant (QSR) industry by examining the structural changes and competitive strategies…

Abstract

Purpose

The purpose of this paper is to describe the rise of South Africa's quick service restaurant (QSR) industry by examining the structural changes and competitive strategies driving the industry.

Design/methodology/approach

The paper uses Michael Porter's Five Forces and secondary data to describe the structural reorganization of South Africa's QSR industry and market positioning strategies being used to respond to the growing industry competition and global challenges.

Findings

The paper finds that South Africa's QSR industry has risen tremendously and has expanded globally. The evolving fast food market comprises South African franchises and multi‐national franchise corporations co‐existing with modern supermarkets, contract food caterers, and informal traders. The industry uses a mix of market coordination, operational and competitive strategies to counter the intense global competition. Further research is needed to examine the potential of information communication technologies in QSR industry market coordination and consumer willingness to pay for increased convenience, healthy products, sustainability, and food traceability.

Practical implications

South Africa leads the continent in mobile phone penetration and there is scope for QSR managers to integrate mobile commerce when dealing with QSR industry customers and other stakeholders. South Africa's fast food franchises should craft strategies that adapt menus to local cultures and ethnic foods in other countries. With increasing attention on food safety and traceability, South Africa's QSR firms could provide leadership in marketing high quality food and gain competitive advantages through positive industry image.

Originality/value

The paper addresses the highly topical issue of rising competition in the fast food industry and successful strategies being utilized by South African firms to penetrate both regional and global markets.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 2 no. 2
Type: Research Article
ISSN: 2044-0839

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Book part
Publication date: 12 February 2021

Muhamad Hafizi bin Sulaiman

The franchising business becomes an essential to the economy of Malaysia and social. It also considers a popular choice to develop entrepreneurs particularly among…

Abstract

The franchising business becomes an essential to the economy of Malaysia and social. It also considers a popular choice to develop entrepreneurs particularly among Bumiputera in Malaysia. Recognizing the importance of the franchising business, the Government of Malaysia through the Ministry of Domestic Trade and Consumer Affairs (MDTCA) has developed programs and activities to accelerate growth of the franchising business. In February 2020, a total of 915 franchise systems or franchisors have been registered under Malaysia Franchise and subsequently few franchisors have penetrated worldwide such as in Saudi Arabia, Indonesia, United State of America, and Australia. At the same time, Perbadanan Nasional Berhad (PNS) and Malaysia Franchise Association also strongly take part in many franchise initiatives, programs, and activities to support the development of franchising business in Malaysia. Besides that, Malaysia also has developed the Franchise Act to safeguard the franchising industry. Nevertheless, there still exist some issues and challenges. Hence, this paper aims to review the franchising business in Malaysia by discussing the development of franchise business in Malaysia, the supports, and the issues and challenges.

Details

Modeling Economic Growth in Contemporary Malaysia
Type: Book
ISBN: 978-1-80043-806-4

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Book part
Publication date: 31 December 2010

The following is an introductory profile of the fastest growing firms over the three-year period of the study listed by corporate reputation ranking order. The business…

Abstract

The following is an introductory profile of the fastest growing firms over the three-year period of the study listed by corporate reputation ranking order. The business activities in which the firms are engaged are outlined to provide background information for the reader.

Details

Reputation Building, Website Disclosure and the Case of Intellectual Capital
Type: Book
ISBN: 978-0-85724-506-9

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Article
Publication date: 13 October 2017

Soon-Ho Kim and Seonjeong (Ally) Lee

The purpose of this study is to investigate how service brand loyalty can be enhanced through customer involvement, based on involvement theory and symbolic interaction…

Abstract

Purpose

The purpose of this study is to investigate how service brand loyalty can be enhanced through customer involvement, based on involvement theory and symbolic interaction theory as theoretical backgrounds.

Design/Methodology/approach

This study investigated how service brand loyalty can be enhanced through customer involvement, based on involvement theory and symbolic interaction theory as theoretical backgrounds.

Findings

Results identified customer–brand identification and service value influenced both service brand involvement and service brand-decision involvement. However, self-congruity only influenced customers’ service brand-decision involvement. Results also confirmed that customer involvement positively influenced service brand satisfaction and service brand loyalty.

Research limitations/implications

This study contributed to involvement and brand loyalty research, investigating the role of customer involvement on service brand loyalty.

Practical implications

Results suggested what factors could enhance brand loyalty to gain competitive advantages.

Originality/value

This study proposed and empirically investigated ways to enhance brand loyalty in the context of the coffee shop industry.

Details

Journal of Services Marketing, vol. 31 no. 7
Type: Research Article
ISSN: 0887-6045

Keywords

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