The influence of international franchising on corporate culture : a case study of Max Hamburgerrestauranger AB

Today’s business environment is undergoing a fundamental transformation as the result of globalization. In this constantly changing new world, it is important for companies to understand the behavioral role of management and organizations. The main challenge for global companies are to develop managers that are capable of working across cultures and who are competent in international business. Franchising is today a widespread entry mode and has become a cornerstone for companies who want to expand into foreign countries. It also helps companies to adapt to different cultures and business regulations. There are many advantages with franchising as an entry mode, such as the ability to expand the company rapidly and the spreading of risks and costs across the network. Although franchising is a popular market entry strategy for international companies, the research community has only recently begun to examine franchising within the context of internationalization. Research on international franchising has been dominated by studies on how companies, that have built domestic franchising business, bring their tried and tested franchising concept into the global market. A corporate culture is the personality of a franchise’s business and is reflected in its image, services and values. Culture is about how a franchise’s members act and interact and the right culture may create an environment that each individual within the company supports. One issue for the franchisor is to choose the right franchisee that will adopt the franchisors wide perspective and maintain the objectives. The relationship between the franchisor and the franchisee is what makes international franchising a unique form of business, and it also provides a strategic advantage over competitors in the market. It is important for both the franchisors and the franchisee to remember that the franchised company’s success almost entirely depends upon the strength of their relationship.Validerat; 20101217 (root