Problem of franchising in Nepal and possible solutions
K. C., C., Biswas (2017)
K. C., C., Biswas
Seinäjoen ammattikorkeakoulu
2017
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2017082614557
https://urn.fi/URN:NBN:fi:amk-2017082614557
Tiivistelmä
The study focuses on exploring problems of franchising in Nepal. Its main objective is to discover obstacles franchisees encounter when bringing a franchise to Nepal and recommendations that are beneficial to their success. The thesis considers the topic both from the franchiser’s and the franchisee’s perspectives.
In the literature review, the main concepts presented are franchising, franchiser, franchisee, international franchise, types of franchise systems and franchise agreements, pros and cons of opening a franchise, and the steps of purchasing an international franchise. The ideas of purchasing a franchise are presented and the process is described.
The empirical part features a case study of Pizza hut Nepal as a successful international franchise in Nepal, under the management of the RJ Corp. The problems from the PESTEL analysis are analysed. For collecting data, qualitative methods were used, including a documentation study and a survey analysis. Eventually, the findings from the analysis of documents are analysed and evaluated, and the research questions are answered.
In summary, the key obstacles for franchisees in Nepal are shown.Cultural differences, a lack of proper infrastructure development, a high share of people with low income in the population, political instability, and a lack of government policies. And for franchisers, matters such as customers’ interest in more franchises and other cities, like Pokhara, offering an opportunity for franchising were analysed.
To survive, they should conduct a good market study, have a proper understanding of the culture, make calculations of costs and returns, enter well-negotiated agreements, and seek professional help
In the literature review, the main concepts presented are franchising, franchiser, franchisee, international franchise, types of franchise systems and franchise agreements, pros and cons of opening a franchise, and the steps of purchasing an international franchise. The ideas of purchasing a franchise are presented and the process is described.
The empirical part features a case study of Pizza hut Nepal as a successful international franchise in Nepal, under the management of the RJ Corp. The problems from the PESTEL analysis are analysed. For collecting data, qualitative methods were used, including a documentation study and a survey analysis. Eventually, the findings from the analysis of documents are analysed and evaluated, and the research questions are answered.
In summary, the key obstacles for franchisees in Nepal are shown.Cultural differences, a lack of proper infrastructure development, a high share of people with low income in the population, political instability, and a lack of government policies. And for franchisers, matters such as customers’ interest in more franchises and other cities, like Pokhara, offering an opportunity for franchising were analysed.
To survive, they should conduct a good market study, have a proper understanding of the culture, make calculations of costs and returns, enter well-negotiated agreements, and seek professional help