Decentralization Effects of Parent-Subsidiary Corporation on Overseas Franchise Operation

• Main Authors: Ya-Chi Hsu, 許雅綺
• Other Authors: Jer-San Hu
• Format: Others
• Language: en_US
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/37403889232947002192

碩士 === 國立雲林科技大學 === 企業管理系碩士班 === 95 === American franchise restaurants are everywhere in Taiwan. Most companies choose to start up by running company-owned stores as a fundamental strategy for future expansion. However, Subway chooses a completely different model to enter each foreign market, and was ranked the top franchise restaurant in the U.S. for many years. However, in Taiwan, Subway is still growing, and that creates many problems that have to be dealt with. This research probes into Subway’s organizational design, factors to success, and the problems discussed by the interviewees. Here is the summary of result: 1. Subway expands its global market rapidly by hiring Development Agents as independent contractors in overseas markets. 2. Compare to franchisees in the U.S., Taiwan Subway franchisees receive fewer resources and less direct channel to communicate or consult. Therefore, the Development Agent and the franchisees have to count on themselves on certain issues. 3. Subway FAF (Franchise Advertising Found) in Taiwan has been performing weakly because of unprofessional board members and inefficient operations. 4. Poor relationship between the Agent and franchisees comes from franchisees’ distrust to the Agent, refusal to communicate, and different interest considerations. 5. Taiwan Subway’s biggest competitor Subber used to work for Subway and now consumes the share of Subway’s market. It not only reveals the future crisis for Subway but also the current defectiveness in Subway operation.