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This study aims to help resolve some of the inconsistencies of the relationships between franchisor growth and its drivers in prior literature.

First, this study provides a meta-analysis with bivariate correlation analysis and moderation analysis. It then offers an additional analysis of secondary data to shed further light on the relationship between franchisor growth and its drivers.

This study confirms the diverse nature of the relationship between the various measures of growth and drivers. It finds that proportion of outlets franchised and brand reputation have the strongest relationships with geographic dispersion; age and proportion of outlets franchised have the strongest relationships with outlet growth rate; and size has the strongest relationship with the number of new outlets. In addition, these multiple relationships are moderated by all three research characteristics that this study investigates, including data source, time frame and industry context.

This meta-analysis merely offers an examination of the most commonly studied drivers and not a complete review of all potentially important variables. It calls for further research that examines the factors that lead to franchisor growth and performance in general.

Managers of young franchisors do not need to rush to expand their business across a wide range of geographic regions. Young franchisors instead should focus initially on gaining maturity, developing their business concept, building an attractive track record and improving their brand reputation. Beyond a strong brand and well-developed business concept, franchisors can attract potential franchisees by reassuring them and making them feel secure about their investment.

This study includes a bivariate analysis that was used to conduct a meta-analysis and also an empirical analysis of secondary data. By conducting the secondary data analysis, we were able to examine the extent to which the meta-analysis results of this study could be extended beyond the time period for papers included in the meta-analysis.

The paper summarizes predictions about the use of franchising as an expansion strategy and examines them through an empirical investigation of a sample of restaurant franchisors. The restaurant industry is an appropriate field for such an investigation as franchising is extensively used in this sector. The subject of growth is also important from the consumer’s perspective because of the increased desire for convenience and uniformity. The results suggest that franchising is an effective strategy for store expansion. However, larger chains have a lower need to use franchising as a growth strategy, apparently because they have their own resources. The paper also shows that the chain’s mix of company owned and franchised outlets is likely to be influenced by its past growth pattern. The results indicate that a significant increase in the proportion of franchised outlets is unlikely for chains that already have a relatively high percentage of franchised outlets. This is ostensibly because synergistic benefits are achieved through having both company owned and franchised stores.

The research paper examines the commercial evolution of retail tenants within the UK factory outlet sector. The research aims to identify the key characteristics of commercialisation and the resulting strategic positions occupied by tenants.

The paucity of research surrounding the research objectives necessitated exploratory research based on 32 in‐depth interviews conducted with factory outlet tenants, managers and owners.

The research presents four tenant segments used to analyse commercial evolution. Although many tenants are initially pushed into the channel to solve a physical stock problem they invariably increase their level of commercialisation as they apply the experience curve, economies of scale and opportunism. Ultimately, the key to commercialisation lies in the ability of a factory outlet tenant to make adjustments to their retail business model, through sales productivities and improved cost ratios. The single biggest adjustment lies in the potential of made for outlet merchandise which secures both product continuity and enhanced margin.

The research provides a conceptual framework for evaluating the relevance of current factory outlet leasing and performance management programmes. Practical application of the framework will require a correlation to be established between the stages of commercialisation and actual sales performance across a wider sample of tenants. The finding provide possible stepping stones to further research within the sector, not least the evolutionary pattern of factory outlet tenants across Europe. The findings provoke many questions related to the role of outlets within a tenant's overall multi‐channel distribution strategy. The sophistication of certain tenants' outlet business models and the high level of integration across channel of distribution suggest factory outlet centres are becoming increasingly accepted as part of mainstream growth strategies.

Explores and compares the strategic development of Spain’s two most important retail organisations, El Corte Inglés and Galerías Preciados. Both department stores were established in the 1930s, but while the former has gone from strength to strength, Galerías Preciados changed hands several times before going into receivership in 1994, when it was bought up by El Corte Inglés. A comparative case study approach which focuses on outlet growth, diversification, financial control and continuity is used to identify the factors which appear to account for the contrasting fates of the organisations. Concludes that careful planning, vertical integration and continuity of ownership and positioning within the context of the macro‐environment contributed to El Corte Inglés’ success and longevity.

The goal of this paper is to explore how an approach upfronting the notion of crisis and related restructuring processes may yield certain strategic stakes and anchor points by which to identify and measure the forms and extent of unfolding changes or innovations broadly understood. One key objective of this exploratory project is to undertake a comparative investigation of the major commonalities and differences between the specific forms, features and manifestations of “crisis” tendencies and counter‐tendencies in two sub‐sectors of mediated “content”: the music industry and the news media industry.

The paper engages with issues and concerns relating to these two particular sub‐sectors of the media and cultural industries and considers relevant concepts and indicators of crisis and recent developmental trends in these domains. It introduces the background setting and implications of “crisis” and introduces some distinctive concepts and other aspects of the approach of this exploratory study. It identifies key concepts in research literature surrounding deep economic crises akin to the current crisis and applies and advances initial conceptual frames further in light of manifest developmental trends and relevant indicators of crisis in the two sectors.

Drawing on recently completed research studies in the music and news media industries by the current authors, the paper highlights differences and specificities across the two media domains under study. This highlights the form, features and extent of some key changes and challenges unfolding in the media sector.

Its upfront engagement with the idea of “crisis” and related concepts of creative destruction, restructuring, multiple innovation and paradigm shifts makes this exploratory project distinctive, as does its efforts to conduct a comparative analysis of the relevant dimensions of “crisis” and restructuring based on the authors' primary research in two distinct sub‐sectors within the media “content” layers.

In attempting to solve agency issues associated with single-unit franchising and international adaptation issues with company-owned outlets, franchisors engage in multi-unit franchising. Extant research has examined the antecedents and positive outcomes of multi-unit franchising, but the dark side has largely been neglected. In a sample of 16 corporations that operate 25 brands from the period of 2005–2012, we examine how the density of multi-unit franchising impacts overall franchise system growth and internationalization growth. The results of our study show that multi-unit franchising negatively impacts franchise system growth and a franchise system’s internationalization efforts. While benefits of multi-unit franchising have been explicated by previous research, our results show that companies should be concerned about the long-term impact of multi-unit franchising and that there is indeed a dark side.

Explores the potential impact of recent changes in planning policy on the growth of a new UK retail format ‐ factory outlet centres. Factory outlet centres are a new out‐of‐town shopping genre which has been imported from the USA. In 1993, there were two such centres in the UK; by 1994, there were proposals for 18. During the same time period, government policy towards out‐of‐town shopping developments changed, with successive guidance notes aimed at restraining out‐of‐town developments in a bid to enhance the vitality and viability of town centres. Examines the impact of changing policy on the development strategies of factory outlet centre developers and outlines the current and potential future shape of factory outlet centre retailing in the UK.

The circular economy is a system that aims to conserve resources at every level for as long as possible with a minimization of waste. The core concept of the circular economy is to improve resource efficiency and prevent valuable materials from leaking out of the system. Better use of increasingly scarce resources can provide both economic and environmental benefits. When excess inventory, returned products, and end-of-life products are disposed of improperly, unnecessary waste is created, often with a detrimental impact to the environment. An effective system must exist to facilitate the proper handling of these products, and secondary markets are a crucial component in this system. In this chapter, we discuss the secondary markets’ role as an important mechanism for achieving a circular economy.

The learning outcomes of this paper are as follows: understanding the complexities of persuading a distributor to increase investments in the Pakistani fast moving consumer goods (FMCG) context. Understanding the data handled by an area sales manager (ASM) for effective territory management, along with the path taken for a focused approach to territory growth. Comparing the distinct perspectives of a company and an intermediary (e.g. distributor) who are pursuing similar business goals. Experiencing hands-on calculations of return on investment (ROI) for a distributor, in a straightforward situation.

In June 2015, Shah Mir, an ASM at PurePack Pakistan, was face-to-face with an irate distributor named Amir Kazmi, who ran Kazmi Agency in Sukkur, Sindh. PurePack Pakistan, a multinational organization dealing with FMCG products, had a turnover of approximately PKR 7.5bn¹ and was a fully owned subsidiary of PurePack Limited, UAE. Shah’s predecessor, Noor Azam, had managed the central Sindh territory very well and had recorded phenomenal growth. The retail outlet coverage had increased during Noor’s time, along with Amir’s investment in the territory. Knowing he was up against an outstanding past achievement, Shah had studied the data of the area and Kazmi Agency’s performance for the past two years and had concluded that there was still greater potential in the area. Amir Kazmi, owner of Kazmi Agency, was an astute businessman who visited his Sukkur market regularly. He knew the distribution business well and had benefitted from it. He was fully aware of the importance of working on relationships with his retailers in the FMCG industry because competition was high and loyalties needed to be nurtured. Like any businessperson, he was concerned about the growth and profitability of his business. Kazmi’s business had increased quite rapidly from a turnover of around PKR 8.7m in 2008 to one of around PKR 54m in 2014, indicating the potential in the Sukkur district. Shah, who was new to the territory and early in his career, was still grappling with the fact that the growth in central Sindh had been phenomenal and that expectations were high for him. He had gotten working on the territory while keeping in mind advice from his boss, Nabeel Asad, who had told him to identify one area at a time so that he could go about achieving his growth targets in a focused manner. This case brings out the challenges that young ASMs face while in the field, when they have to deal with experienced distributors in the Pakistani retail trade, especially in the smaller towns where relationships can greatly affect business. Students will gain an understanding of the key performance indicators required to focus on developmental issues in a territory. It will enable students to appreciate financial considerations as a major tool in dealing with intermediaries (distributors, in this case) and get hands-on experience in a method of convincing a distributor of his past investments and profitability and paving the way for further investment for retail expansion.

This case is designed for use at the postgraduate level in sales management, channel management and strategic marketing courses, as well as in executive management programs. It can be used at later stages of a course and show a link between a company’s requirements and a distributor’s goals. The students should have field experience or aspire to get into roles dealing with intermediaries, such as distributors. The case gives students a practical, hands-on experience in working on simple profitability calculations and pushes them to challenge the assumptions that need to be made. The case attempts to trigger a discussion on distributor management and its challenges in Pakistan, where managing relationships while keeping in mind the business perspective is imperative. Identifying the right geographical territories to focus on and working on the financials of the distributor are the key learning deliverables. The case is accompanied by a spreadsheet with calculations. This spreadsheet is for the instructor’s use and is for demonstrating calculations as the class progresses. By using the spreadsheet, the instructor can practically demonstrate the effects that changes in investments, expenses, etc. have on the distributor’s profits. It can even be used to build a far more complex situation than the one given in the case (advice for which is provided in this teaching note).

CSS 8: Marketing.

Teaching notes are available for educators only.

This paper aims to demonstrate how franchising firms can manage system expansion by weathering the economic effects of a location (i.e. country-level economic cycles) by shifting their resources.

The authors use a comprehensive database of 151 US hybrid franchising organizations, including observations for the years between 2001 and 2008. Data analysis is conducted with count model panel data with a Poisson distribution.

The model reveals a curvilinear U-shaped relationship between location (i.e. economic cycles) and franchising expansion.

This study contributes to competitiveness literature by showing how franchising firms respond to changing local conditions.