Case Study: Pho 24 Vietnam

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This article was downloaded by: [RMIT University] On: 21 March 2013, At: 13:11 Publisher: Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK Journal of Marketing Channels Publication details, including instructions for authors and subscription information: Pioneering Asian Franchise Brands: Pho24 in Vietnam Lorelle Frazer & Bill Merrilees a a a Asia-Pacific Centre for Franchising Excellence, Griffith Business School, Griffith University, Australia Version of record first published: 30 Aug 2012. To cite this article: Lorelle Frazer & Bill Merrilees (2012): Pioneering Asian Franchise Brands:…show more content…
This capital acquisition explanation argued that organizations were forced to resort to franchising because it allowed them to expand quickly without having to source scarce external financial resources or to relinquish control as in a joint venture or stock market operation (Caves & Murphy, 1976). Thus, over time, it was expected that franchisers would repurchase or take over the (best) franchised units in the system and eventually become fully company owned (Oxenfeldt & Kelly, 1969). However, research into this phenomenon has produced mixed results in the United States (for example, Hunt, 1973; Brickley & Dark, 1987; Lafontaine, 1992). Moreover, it has been found that where ownership redirection occurs it is ‘‘more strategy driven than opportunistic’’ (Dant, Kauffman, & Robicheaux, 1998, p. i). Indeed, Blair and Lafontaine (2005) comment that ‘‘most franchise chains are hybrids: partially vertically integrated and partially franchised’’ (p. 107). In contrast, while some large fast food chains (such as McDonald’s) strategically ensure a mix of franchised and company-owned units, most franchise systems in Australia are almost fully franchised (Frazer, Weaven, & Wright, 2008). Hence, different franchising models are employed around the world, and there is no ‘‘one-size-fits-all’’ approach. An alternative explanation of franchising, first put forward by Rubin (1978), focuses

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