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4licensing franchising and other contractual strategies , Licensing is a contractual agreement whereby one company (the licensor) makes a legally protected asset available to another company (the licensee) in

6. Type of Entry. _____ these are the items owned by a franchisee that has the same monetary value. True/False . Franchising: more complex form of licensing in which the franchisor allows a franchisee the right to use its entire business system in exchange for compensation. Internal: Strategic. Flashcards. Other Contractual Entry Strategies Chapter 15 Contractual Entry Strategies There are two common types of contractual entry strategies; 1. A) advanced economies B) economies with high PPP C) First World countriesthe statutory protections of franchise laws even if it wants to on advice of legal counsel. In licensing/franchising, the organization sells the rights to intellectual property to an entity within a foreign market for a royalty fee. Licensing is designed to reduce the risks involved in doing business for everyone involved. Process. licensing team. Licensing vs Franchising The primary difference between a franchisee and a licensee is that franchisees can expect to have a much closer. International Business: The New Realities, 5e, Global Edition (Cavusgil) Chapter 15 Licensing, Franchising, and Other Contractual Strategies. Licensees "rent" the brand from the owner, but are then expected to use their own expertise, capabilities and resources to innovate, produce, market and sell the. Table 7. Verified Answer for the question: [Solved] _____ is a fee paid periodically to compensate a licensor for the temporary use of its intellectual property, often based on a percentage of gross sales generated from the use of the licensed asset. Franchising is a faster, cheaper form of expansion than adding company-owned stores, because it costs the parent company much less when new stores are owned and operated by a third party. Licensing is a contractual arrangement where a company grants permission to another party to use its intellectual property or brand. In licensing, the licensor has limited control over the operations of the licensee, whereas franchising involves extensive control and support provided by the franchisor. Switching costs: A. • Licensing, franchising and other contracting These activities are carried out by a wide variety of institutions such as MNEs, small and medium-sized enterprises and financial entities. Terms: a. Licensing, Franchising and other Contractual Strategies. Arrangement in which the firm allows another the right to use an entire business system in exchange for fees, royalties, or. Match. Learn from your partner (and apply that knowledge within your organization) Study Chapter 5: Entry into Foreign Markets flashcards. The agreement so creates a franchise relationship is the franchise agreement and aforementioned parties to a franchise agreement are the franchisor and to french. Subscribe to newsletters Subscribe: $29. Study with Quizlet and memorize flashcards containing terms like Contractual Entry Strategies in IB, Intellectual Property, Contractual Entry Strategies and more. They provide dynamic flexible choice View LICENSING from BUSINESS A M0804455 at Ain Shams University. 3. When the executives in charge of a firm decide to enter a new country, they must decide how to enter the country. Revenues are usually more modest than with other entry strategies. Governed by a contract that provides the focal firm with a moderate level of control over the foreign partner. Licensing of IPRs is at the heart of a franchise contract. D) strategic decision making. d. Disadvantages. Contract manufacturing is when a firm enters into a contract with local manufacturers in foreign countries to get goods produced as per its specifications. 99/year Quiz 15: Licensing, Franchising, and Other Contractual Strategies. ( Multiple Choice) Question 2. Doc Preview. Why would a company choose to use a contractual mode of entry rather than an investment mode? Contractual forms of entry (i. 8 Target Market Selection. 1-1 BUS 434 Market Entry Licensing, Franchising, and Other Contractual Strategies 1-2 Contractual Relationships • Licensing: An arrangement in which the owner of intellectual property grants another firm the right to use that property for a specified period of time in exchange for royalties or other compensation. Licensing, Franchising, and Other Contractual Strategies Learning Objectives • Explain contractual entry strategies. Franchise: A franchise is a type of license that a party (franchisee) acquires to allow them to have access to a business's (the franchiser) proprietary knowledge, processes, and trademarks in. Dispute settlement 4. Change Product. Learn. A) Nickelodeon B) The Walt Disney Company C) Mattel D) Major League Baseball Services Discover Topics Ask a questionVerified Answer for the question: [Solved] To minimize the complexity of franchising, focal firms must ________. Similar to a licensing agreement, under a franchising Granting rights on an intangible property, like technology or a brand name, to a foreign company for a specified period of time and receiving a royalty in return. Licensing and franchising share a few similar advantages. ENTERING AND OPERATING IN INTERNATIONAL MARKETS; 13. FDI in particular is now carried out not only by traditional MNEs but also by private investors, hedge funds, SOEs and even sovereign wealth funds. licensing, Strategic alliancesA detailed list of issues pertaining to termination and renewal terms The advantages and disadvantages of franchising are similar to those of licensing. Verified Answer for the question: [Solved] Which of the following is an example of intellectual property? A) systems of measurement B) McDonald's golden arches C) an unpublished book D) a phone directory. Direct exporting is often considered the default choice for new market entry. Chapter 15: Licensing, Franchising, and Other Contractual Strategies. Direct strategies include joint ventures and wholly-owned subsidiaries/ greenfield investments (see Table 2). Greenfield Strategy v. Create flashcards for FREE and quiz yourself with an interactive flipper. Verified Answer for the question: [Solved] In a licensing agreement, ________ is responsible for local sales. On the other hand, franchise agreements allow the use of trademarks, additional intellectual. S. 15. They often. It is where a person (franchisor) who has developed a certain way of doing a business gives another. dynamic, flexible choices 5. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business, Intellectual property, Licensing and more. Contract usually runs five to seven years and is renewable at option of parties. 1. Verified Answer for the question: [Solved] The reputation of a licensor will be jeopardized by a licensing agreement if the licensee _____. c. Intellectual property rights (IPRs) legal claim through which the proprietary assets of firms and individuals are protected from unauthorized use by other parties, monopoly advantage for specified period of time. Product Adaption. C) The licensee cannot cancel the contract with the. 4. Cross-border exchanges where the relationship between the focal firm and its foreign partner is governed by an explicit contract. Find Flashcards. Microfranchises: Franchises operated by one or two people. cross-border exchanges in which relationship between focal firm and foreign partner is governed by explicit contract. Solved . Chapter 15 Licensing, Franchising, and Other Contractual Strategies 1) _____ is a fee paid periodically to compensate a licensor for the temporary use of its intellectual property, often based on a percentage of gross sales generated from the use of the licensed asset. c. A number of foreign market entry modes exist, including: exporting, licensing, franchising, joint venture and wholly owned subsidiary. In licensing, the licensor has limited control over the operations of the licensee, whereas franchising involves extensive control and support provided by the franchisor. According to Franchise Business Review, franchising fees typically range from $25,000-$50,000 on average. The licensee/franchisee gets immediate brand recognition and may quickly overtake the competition by offering a product or service for which there is existing unmet demand. 15. Describes the appearance or features of a product. 3. 15. Our clients are winning for franchising. Expert Help. Quiz 15: Licensing, Franchising, and Other Contractual Strategies. distributing or retailing products that are traditionally manufactured by the franchisor. View chapter 15. 2. Question 14. 6 Joint Ventures Chapter 8. Pages 6. My. Lisanslama, Franchising ve diğer Sözleşme Stratejileri Learn with flashcards, games, and more — for free. Licensing is a contractual agreement whereby, in exchange for a royalty or fee, a company gives the right to another company to use a trademark, know-how, or other proprietary technology. The problems facing franchise companies in international transactions are relatively less formidable than those facing other service sectors. On the most basic level, the difference between a franchise and a license is the amount of support you can expect to receive. Arrangement in which an independent company is licensed to establish, develop, and manage the entire franchising network in its market and has the right to subfranchise to other franchisees, assuming the role of local franchisor; 6. It is a form of distribution and marketing in which the company gives the other firm the right to do business in their protected way (Bradley 2005:246). 2. 99/yearQuiz 15: Licensing, Franchising, and Other Contractual Strategies. What are unique aspect of contractual relationship (5) 1. Created by. IB Final review 80% A- / 90% A Chapter 16 Licensing, Franchising, and Other Contractual Strategies o Intellectual Property (IP): refers to ideas or works created by individuals or firms, including discoveries and inventions; artistic, musical, and literary works, and words, phrases, symbols, and designs Creation from the mind Licensing licenses. Chapter 16 - Licensing, Franchising and other Contractual Strategies. Study with Quizlet and memorize flashcards containing terms like 5 Methods for entering the global market place from least risky/return to most risky/return, Exporting, Licensing and Franchising and more. Intellectual Property rights – legal claims that protect proprietary assets of firms and indivduals from unauthorized use by other parties III. Match. C) use of a well-known, recognizable brand name D) The franchisee holds much power,. The license has much stricter restrictions than the franchise. 3. Let’s take a look. 0 (1. Quizlet flashcards, activities and games help you improve your grades. 2 Franchising as an expansion strategy. Franchising allows franchisors to function effectively with a much leaner organization. intellectual property. Licensing, Franchising and Other Contractual Entry Strategies - Chapter 15. In order to prevent a licensor-competitor from gaining unilateral benefit, licensing agreements should provide for: A) contract manufacturing. 4. Verified Answer for the question: [Solved] Azoo Government Projects (Scenario) The nation of Azoo needs the assistance of a contractor to construct a new bridge and a subway system. Some companies use direct exporting, in which they sell the product they manufacture in international markets without third-party. -risk. The Franchiser requires the franchisee to make a minimum payment of $500 or more, and. 3. Representatives of the Azoo government are reviewing the project bids. export restraint b. CONTRACTUAL STRATEGIC ALLIANCES i. fAdvantages & Disadvantages of. contractor supplies managerial know how. Licensing, Franchising and other Contractual Strategies Cross-border contractual relationships: give permission to use intellectual When the executives in charge of a firm decide to enter a new country, they must decide how best to do it. Strategy and Organization in the International Firm 316 12. Flashcards. 1. licensing, don’t forget that they are separate concepts and each of them offers promising prospects. Includes such knowledge-based assets of the firm or individuals as industrial designs, trade secrets, inventions, works of art, literature, and other "creations of the mind". 1 Explain contractual entry strategies. Importing involves purchasing products from other countries and reselling them in one’s own. Devaluation decreases the value of currency in relation to other currencies. - Arrangement where owner of intellectual property grants another firm right to use property for specific time in exchange for royalties or other compensation. Ch. Licensing: An arrangement in which the owner of intellectual property grants another firm the right to use that property for a specified period of time in exchange for royalties or other compensation. Flashcards; Learn; Test;Exporting. Test. The Five Common International-Expansion Entry Modes. Flashcards. 2 ABSTRACT Presently, companies wanting to engage in international trade have a wide pool of choices to choose from. Contract duration and renewal 2. Disadvantages of franchising to the franchisee. Joint venture iii. Licensing specifies the territory as well as period. Brooke MA, PhD, FIEx & Peter J. While extant research revolves around the level of resource commitment and control in foreign activities, non-traditional. It’s a legally binding document that spells out—in great detail— the integrated touch points of running the business from the franchisor and franchisee point of view. Unique aspects of contractual relationships They are governed by a contract that provides the focal firm with moderate level of control over the foreign. arrangement in which an independent company is licensed to establish, develop, and manage the entire franchising network in its market and has the right to subfranchise to other franchisees, assuming the role of local franchisor. Here are 10 market entry strategies you can use to sell your product internationally: 1. ) Bringing ideas for business in other countries to new markets. Learn vocabulary, terms, and more with flashcards, games, and other study tools. The non-equity modes category includes export and contractual agreements. Two Types of Contractual Entry Strategies • Licensing: An arrangement in which the owner of intellectual property grants another firm the right to use that property for a specified period of time in exchange for royalties or other compensation • Franchising: An arrangement in which the firm allows another the right to use an entire business system in exchange for fees, royalties, or other. Verified Answer for the question: [Solved] When compared to licensing agreements, the relationships established in franchising arrangements are typically volatile and short-term. Question 2. 1 International-Expansion Entry Modes. Franchising; Meaning: This is a contractual agreement in which one firm gets access to another firm’s patent, technology and other things in exchange for money. Learn. 4 ways to enter foreign markets. Two common types of contractual entry strategies are licensing and franchising. Turnkey projects 3. 2. , T/F Organizations as diverse as Disney, Caterpillar,. Study with Quizlet and memorize flashcards containing terms like Contractual Entry Strategies in International Business, Intellectual Property, Intellectual Property Rights and more. C) They attract less attention and less of the criticism sometimes directed at firms. Licensing as an Entry Strategy a. Study Resources. University High School High School Regions. View Overview. Direct exporting. Read other and watch their success stories!. 1. arrangement in which the focal firm or a consortium of firms plans, finance, organizes, manages. Licensing •A contractual agreement whereby one company (the licensor) makes an asset. Verified Answer for the question: [Solved] Which of the following is characteristic of exclusive licensing agreements? A) The licensor is not allowed to interfere with the production or marketing of the licensed asset. 2Understand licensing as an entry strategy. at completion of the contract, the foreign client is handed the "key. Brand licensing is the act of giving permission to another company to use your business’s intellectual property (IP). View Any. 2 Understand licensing as an entry strategy. Learn. Franchising. But, the organization has little control over technology and marketing. Similar to exporting, licensing is an easy way for a company to enter an international market quickly and without the need for laying out much capital. Study Chapter 16 - Licensing, Franchising and other Contractual Strategies flashcards from Tia-Jane Maggs's class online, or in Brainscape's iPhone or Android app. Technically, the contract binding. . On the other hand, franchise agreements allow the use of trademarks, additional intellectual. These rights are usually protected by a patent or some other intellectual right. Your matched tutor provides personalized help according to your question details. Patents provide inventors the right to prevent another person or company from selling or using an invention for up. License 101 Where lives Entering?. As compared to other retailers, it is safe to say that IKEA has a unique organisational. Licensing: Licensing is defined as "the method of foreign operation whereby a firm in one country agrees to permit a company in another country to use the manufacturing, processing, trademark, know-how or some other skill provided by the licensor". In Licensing agreement and franchise, an overseas-based business will pay you a royalty or commission to use your. Licensing typically involves royalties or. It is unusual to see a direct comparison between, say, licensing and joint ventures, or between franchising and subcontracting. Licensing/franchising also opens the doors. Licensing is a type of market entry whereby a company in one country transfers the right of a company in another country to use its unique production processes, patents, trademarks, technological achievements, and other valuable skills for a fee that is established under the contract. Global Market Opportunity Assessment IV. Post termination issues. Flashcards. Patent licensing is one of the most expensive licensing. U. Study with Quizlet and memorize flashcards containing terms like What does a contractual entry strategy in IB mean, Give forms of IP, What are the types of contractual relationships and more. From a licensee standpoint, there are fewer risks in product development, market testing, manufacturing, and distribution. AI Homework Help. b. Learn faster. 1 Licensing. governed by a contract that provides the focal firm with moderate level of control over the foreign partner 2. For example, a restaurant or a salon can be franchised, but not the products they use to provide the said services. Licensing refers to a business arrangement, where a company (licensor) sells its intellectual property to another company (licensee), or the right to produce its products, for a specified fee (royalty). Chapter 15. A patent exclusively refers to a distinctive design, symbol, logo, word, or series of words placed on a product label. Any licensee can produce and sell products under your name or offer services using your brand. Compromises between short-term transactions and long-term solutions. Licensing is a legal process in which one firm pays to use or distribute another firm's resources. d. This strategy is based on franchising, the market entry mode, Subway used in order to enter foreign markets. Ch. The difference between a franchise contract and a licensing contract is that a. A number of foreign market entry modes exist, including: exporting, licensing, franchising, joint venture and wholly owned subsidiary. C) licensing contract covers more aspects of operations. If you want to have more autonomy in business decisions with the freedom to make your own vision. A) duty B). When a firm allows others toIn Malaysia, franchising and licensing are governed under different laws. [2] defined market entry as "a planned move into a new or adjacent market for the creation and delivery of offerings. Bashar Hassan. A) the licensee B) patent. Country Comparatives Guides. The license agreement permits the use of trademarks, nothing more. 15. gives an inventor the right to prevent others from using or selling an invention for a fixed period-typically up to 20 years. 8. they are governed by a contract that provides the focal firm with a moderate level of control over the foreign partner 2. 1. When considering a venture in international markets, there are some significant tactical and strategic decisions to be effected. Type of Entry. Click the card to flip 👆. is defined as a contractual arrangement whereby one company makes a legally protected asset available to another company in exchange for some form of compensation. Franchising is a variation of licensing strategy in which there is a contract between the parent company franchiser and. Find Flashcards. Moderate-Control Strategies (Licensing, Franchising and other Contractual Strategies, Project Based (non-equity) collaborative ventures) "Moderate": -control available to the focal firm over foreign operations. A license is “a contractually transferred right to use a legally protected or unprotected in vention in exchange for a fee or another type of compensation” (Mordhorst 1994, p. Licensees also enjoy lowered risk because they're usually entering the marketplace with a known quantity and a built-in customer base. The organization that gives the access is the licensor. Study with Quizlet and memorize flashcards containing terms like Strategic alliances involve: a. Payment is made only after you have completed your 1-on-1 session and are satisfied with your session. Can be pursued independently or in conjunction with other entry strategies. export. Leasing is Especially Beneficial to _____ Question 80. Unique Aspects of Contractual Relationships. Learn the distinguishing between licensing and franchising and why licensing is not certain alternative on franchising. Aspect Franchising Licensing; Definition: Franchising is a business model where a franchisor grants a franchisee the right to operate a business using the franchisor’s brand, systems, and support in exchange for fees and royalties. Week 12 Licensing, Franchising, and Other Contractual Strategies 1. In franchising, the franchisor licenses the. Learn the differences between licensing and franchising and why licensing is not an optional to franchising. Fast entry, low risk. docx from INT- 113 at Southern New Hampshire University. 15. Angelica Weiss Chapter 16: Licensing, Franchising, and Other Contractual Strategies Contractual entry strategies in international business: cross-border exchanges where the relationship between the focal firm and its foreign partner is governed by an explicit contract Intellectual property: ideas or works created by individuals or firms, including discoveries and inventions; artistic, musical. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business, Intellectual property, Intellectual property rights and more. 1. equity mode of entry into foreign markets limited to a contractual agreement. 15 Licensing, Franchising, and Other Contractual. Test. Strategies: Licensing, Investment, and Strategic. Licensing is a legal process in which one firm pays to use or distribute another firm's resources. Licensing involves granting rights to use intellectual property, while franchising grants rights to use an entire business model. An Industrial Design is Intended to _____ Question 2. Subscribe to newsletters Subscribe: $29. Franchising is a contractual international market entry mode as a licensing agreement when an organization wants to enter a foreign market quickly with low risk and resource commitment. In this chapter, we address various types of cross-border contractual relationships, including licensing and franchising. Exporting involves marketing the products you produce in the countries in which you intend to sell them. If you want to have more autonomy in business decisions with the freedom to make your own vision come to life. CONTRACTUAL ENTRY STRATEGIES Two common types of contractual entry strategies are licensing and franchising. Test. L11 - Licensing, Franchising and other contractual strategies - Virginia Cathro study guide by Rebecca_Stevenson6 includes 36 questions covering vocabulary, terms and more. and industry experts about instructions to franchise your business. Licensing, Franchising, and Other Contractual Strategies 438 Part 5 Functional Area Excellence 464 16. Exporting, joint ventures, direct investment, franchising, licensing, and various other forms of strategic alliance can be considered as market entry modes. One of the major differences when it comes to franchising vs. International Business: The New Realities, 4e (Cavusgil) Chapter 15 Licensing, Franchising, and Other Contractual Strategies 1) _d. focal firm does everything for business and hands it over to customer after training. It. Terms in this set (7)Study with Quizlet and memorize flashcards containing terms like when it comes to getting involved in international business what are the three strategies that require the least amount of commitment and effort?, export assistance centers provide hands-on expiring assistance and trade-finance support for ____ and _____ -sized businesses. strategic alliances. Test. An industrial design is intended to ________. Learn. Advantages. A licensing agreement is generally less complicated and easier to finalize than a franchise agreement. It is quite similar to the "franchise" operation. [afm 333 – chapter 16 li censing, franchising, and o ther contra ctu al stra tegie s] 1 Contr actual entry s tr ateg ies in int ernational business: cr oss-border e x changes wher e the re lationship between t he foc al firm and its f oreign partner is g overn ed by an explicit co ntr act The difference between licensing and franchising is that franchise agreements involve an extensive business relationship between franchisor and franchisee whereas license agreements are limited and relate to a singular activity such as the shared use of a trademark. is a contractual agreement whereby one company (the licensor) makes a legally protected asset available to another company (the licensee) in exchange for royalties, license fees, or some other form of compensation. contract manufacturing. One could say that franchising is a special type of licensing arrangement inContractual Entry Modes A company can use a variety of contracts such as : licensing, franchising, management contracts, and turnkey projects to market highly specialized assets and skills in markets beyond its nation’s border. Contractual Entry Strategies. The International Franchise Association defines franchising as a "continuing relationship in which the franchisor provides a licensed privilege to do business, plus assistance in organizing training, merchandising and management in return for a consideration from the franchisee ". a. 1. 4. ,. Test. Multiple Choice . Key Challenges Faced by the Franchisee is the Decreased Likelihood. B)It is an ownership-based international business activity. C)It restricts a firm's ability to expand more rapidly abroad. Unique aspects of contractual relationships. Stage Three: Specify a specific format that is either equity based or contractual (nonequity based). When a firm allows others to use an entire business system in exchange for compensation, the arrangement is known as ________. Licensing, Franchising and other Contractual Strategies P a g e 1 | 10 P a g e 2 | 10 Executive Summary The report discusses international modes • Compared to licensing, franchising is usually a much more stable, long-term entry strategy. management contracts. A licensing is an agreement whereby a licensor grants the rights to intangible property (patents, inventions, formulas, processes, designs, copyrights, and trademarks) to another entity (licensee) for a specified period and in return, the licensor receives a royalty/fee from the licensee. Human Resource Management. reduce local perceptions of the focal firm as a foreign enterprise Study with Quizlet and memorize flashcards containing terms like 1. LICENSING AND FRANCHISING . When considering entering international markets, there are some significant strategic and tactical decisions to be made. Firms need to evaluate their options to choose the entry mode that best suits their strategy and goals. c. A. On the other hand, international licensing is a foreign market entry mode that presents some. Franchising is another variation of licensing strategy. C) A local firm allows the focal firm to blend into the local market, attracting less. arrangement in which the owner of intellectual property grants another firm the right to use that property for a specified. Typically, franchise agreements require a longer-term commitment from both parties involved, usually ten years or more, while management contracts tend to be shorter-term agreements, usually ranging from one to five years. . Learn. 15. Test. ( True/False ) Question 1Start studying Ch 16: Licensing, Franchising, and other Contractual Strategies. Exporting, joint ventures, direct investment, franchising, licensing, and various other forms of strategic alliance. It described the development of Chinese hotel industry at the end. The globalization of franchising took off in the 1990s as a result of push factors (domestic. Contractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an. Hotel firms typically do not make any equity investment in either of these modes, although some firms may combine non-equity arrangements with equity investments (Dunning, 1988). Try it free3. firm. Licensing: Licensing offers several benefits for both the licensor and the licensee. Franchise Agreements are the core operating principles that define the relationship between the franchisor and the franchisee. Franchising 5. format franchising — the licensing of a trademark in conjunction with a prescribed business format and method of operation can be dated to the nineteenth century, but did not develop in earnest until the 1950's. Recent advances in digitalization and increasing integration of international markets are paving the way for a new generation of firms to use non-traditional entry modes that are largely marginalized in previous entry mode studies.