MKT630 Assignment 1 Spring 2020
MKT630 International Marketing Assignment 1 Solution & Discussion Spring 2020
International Marketing (MKT630)
Topic: Modes of Entry into International Markets
Marks: 10 DUE DATE: TUESDAY 28 JULY, 2020
The main objective of this assignment is to make the students understand the modes of entry into the international markets.
After attempting this assignment, students will be able to understand the type of franchise agreements and potential threats associated to the mode of entry into international markets.
Franchising is a form of marketing and distribution in which the owner (the franchisor) grants to an individual or group of individuals (the franchisee) the right to run a business selling a product or providing a service using the franchisor's business system. Franchising is a very familiar form of contractual agreements. For example, KFC has franchised its operations in Pakistan to a Dubai based company name Cupola that drives its businesses in Pakistan in exchange for the profits. KFC has offered Cupola complete control over using the brand, inventories, and raw materials and in return, Cupola is taking the liability of operating all the franchises. However, in case of an incompetent franchisee or licensee, the company may find devastation to its brand name. Furthermore, if appropriate legal terms and conditions are not defined, then the contractual partner may become a threat in domestic market.
Keeping in view the above scenario and your understanding of the topic, which type of franchise agreement exist between McDonalds and Cupola? What are the potential threats McDonald must consider from its partner? (4+6=10 Marks)