• The Korean Journal of Franchise Management
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• v.4 no.1
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• pp.1-24
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• 2013

The purpose of this work is to analyze the case that Yeongju Municipality Government of Gyeongbuk and Jung Donuts Co., Ltd., a franchise company, activated local economy through Farm's Franchise Commercialization (FCC) and to establish the concept of FCC. As a food service franchise company, Jung Donuts specializes in making and selling glutinous rice donuts. In cooperation with Commodity Dept. of Yeongju Municipality Government, the company cultivates raw materials under contract. Such farm's franchise business has the following advantages: First, it is meaningful in the point that it contributes to opening a new market of local agricultural products in a stable way. In short, by using most agricultural products of Yeongju as raw materials, the business serves as a stable market for farmers. Secondly, it is possible to set a reasonable price through stable supply of raw materials. It is to advantages of both producers and consumers. Thirdly, the business brings about the effect of employment rise. It can cause increases in employment of franchise head office and its agencies, and of the Commodity Dept.. Lastly, it produces the promotion effect of local special products. By expanding its agencies across the country, a franchise business can promote the items of raw materials in terms of marketing. The successful FCC needs to meet three requirements as follows. The first one is to establish systematic logistic system. Stable logistic system is required in order to directly distribute and deliver products to nationwide agencies by a producing place. The second one is constant R&D activity. Through the activity of R&D of raw materials and equipment, they should be used most effectively. The third one is to build mutual trust relationship. For long-term business achievements, it is required to establish mutual trust relationship in which relevant entities share their visions with each other and cooperate with each other.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.12 no.2
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• pp.686-693
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• 2011

Small-to-medium retailers in local neighborhood have been managing to survive without outside influence. However rapid change in business environment including consumer needs for goods and the quality of life has brought turbulence into retail business. Petty retailers are facing a crisis as large-sized discount stores owned by big enterprises are entering into traditional markets. To protect small-to-medium retailers from such threats and revive the traditional commercial markets the government is taking on the policy of subsidizing small-to-medium businesses. However, recent emergence of SSM (an industrialized supermarket in forms of direct management and affiliation) in local commercial areas has brought about conflicts and frictions between large companies and local merchants. Under this background this study attempted to make an analysis of vulnerable factors of small-to-medium retailers coping with SSM and probe for the alternatives to SSM business restructuring.

• Review of KIISC
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• v.18 no.4
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• pp.66-75
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• 2008

신용카드 및 직불카드 회사들의 연합체인 PCI SSC(PCI Security Standards Council)는 2004년 가정이나 소매상과 같은 소규모 환경에서 고객들의 금융 정보 유출을 방지하기 위한 목적으로 PCI DSS가 제정되었다. 국내에서는 2007년부터 PCI DSS 보안감사제도가 시행되었으며 유일하게 PCI DSS 보안감사자를 보유한 (주)에이쓰리시큐리티사가 가맹점1) 및 PG/VAN사(社)를 대상으로 PCI DSS 보안감사를 실시하였다. 본 연구에서는 2007년 한 해 동안 국내의 PCI DSS 보안감사를 수행하면서 요구사항에 만족하지 못하는 항목들에 대한 사례를 분석함으로써 국내 PCI DSS 보안감사 도입의 현 주소를 파악하고 이에 대한 개선안을 도출하여 보안감사에 보다 유연하게 대처할 수 있도록 하고자 한다. 2007년 한해 국내 보안감사 실시 결과 PCI DSS 보안감사 대상자의 요구사항 준수율은 평균 81%로 측정되었으며, 전체 233개의 요구사항 중 미적용으로 평가된 항목은 평균 38.7개로 나타났다. 전체적인 평균으로 따져봤을 경우 어느 정도 양호한 수준으로 판단할 수도 있으나 피감사 기업의 업태나 사전준비의 유무에 따라 많은 격차가 있었다. 특히, 기반이 튼튼한 PG사나 VAN사에 비해 신규로 등록되어 사업규모가 작거나 타사에 비해 카드결제산업이 차지하는 사업비중이 작은 곳은 PCI DSS 보안감사의 요구사항을 준수하는데 어려움을 겪고 있는 것으로 나타났다. 따라서, 본 연구에서는 PCI DSS 보안감사를 통해 도출된 미적용 사항 중 가장 많은 미적용율을 나타낸 10가지 항목에 대하여 분석하고 이에 대한 대안을 제시함으로써 향후, PCI DSS의 요구사항을 기업환경에 맞게 적용하기 위해 효율적인 가이드로써 활용되었으면 하는 바램이다.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.4 no.1
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• pp.89-111
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• 2009

Since the financial crisis in 1997, the Korean economy has a steady increase of people who tend to establish their own business by 2008. Business foundations can be divided into independent businesses and franchise businesses. This study focuses on what type of business owners among franchise enterprisers can achieve success. This is intended to reduce trial and error by drawing upon success factors in the stages of establishment, operation, and achievement based on a total sample of 350 individual business sites. The result shows that the success factors in the stage of establishment include (1) Preparation such as foundation education (2) Marketing capability (3) Appropriateness of Business Item (4) Other founder's entry barrier, conglomerate's entry regulation and (5) Head Office Support including service education, market survey education, marketing support. On the other hand, the success factors in the stage of operation include the supervisor capability, Marketing capability, Head Office Support, Customer Management Capability and Employee Satisfaction. Additionally after choosing the major factors according to each stage, multiple regression analysis was processed and interpreted. Finally, we believe that the franchise or independent business foundations can make a profit as well as increase continuous sales and customer satisfaction only with thorough and careful preparation in all stages of foundation and operation. This study is expected to contribute to those who prepare new business in franchise domain to minimize failures with deep consideration of the success factors in the franchise.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.12 no.5
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• pp.141-162
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• 2017

The International Monetary Fund (IMF) crisis introduced a system for easy layoffs. With recent economic downturn, employees have been asked to retire early and less new jobs have become available. More small businesses as a result have been started. The purpose of this research is to study weight and ranking on SWOT factors of korea food service franchise industry using the SWOT analysis. The Analytic Hierarchy Process (AHP) and Analytic Network Process (ANP) were used to analyze the SWOT found by the surveys. First, the SWOT analysis shows that the franchise owners and the expert group view the industry positively overall and there are more strengths, opportunities than weaknesses, threats. While there are negatives and threats to the industry overall, many people think that there are more opportunities and positive aspects. Second, the franchise owners rank proven business model and platform (S3) as the strongest strength of food service franchise businesses while the expert group ranks management supports (S2) from headquarters as the strongest strength. Third, the expert group and franchise owner group indicate that the weight on unfair franchise contracts with headquarters(W3) and high penalty from breaking a franchise agreement(W4) are 60% of weaknesses. Fourth, both the expert group and franchise owner group indicate that change in people's lifestyle, value system and consumption pattern(O3) as the most important opportunity. Fifth, both groups indicate that changes in consumption pattern(T1) due to ever changing food service industry as the biggest threat. It is ranked higher than the entry of korea food service franchises.

• Culinary science and hospitality research
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• v.20 no.6
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• pp.175-189
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• 2014

This study was intended to provide fundamental data concerning franchising companies' characteristics and performance in foodservice business by employing financial data from the firms' IDS(Information Disclosure Statements). Multiple regression analysis method was used to identify any correlations among franchising size, marketing competency, operational characteristics, and performance according to technique based upon 169 IDS data as of 2013. In terms of franchisor size and performance, the number of company-operated stores had statistically significant corelation with sales, net income, the total number of stores, and the number of franchisees. With respect to marketing competency and performance, advertising expenses showed statistically significant correlation with sales, the total number of stores, promotion expenses with sales, net income, and the total number of stores. On the other hand, there was no statistically significant correlation with current year's net income. At last, present study found significant correlations among business years, sales, current year's net income, and the total number of stores by regarding operational characteristics and performance, but there was no significant correlation between brands and performance. This study is cross-sectional study which is a limitation to be overcome in further studies. In addition, it is required to review the possibility for franchise management style to contribute to expanding the Korean traditional foods.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2003.05a
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• pp.780-791
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• 2003

최근 다양한 업무형태가 등장함에 따라 특정업종이나 기업을 대상으로 기업간 비즈니스에 대란 정보시스템 구현 및 업무 프로세스 리엔지니어링을 통한 혁신을 지원해 줄 수 있는 체계의 도입 및 구현에 대한 요구가 증가하고 있다. 기업이 해당 업무의 정보시스템 구현과 업무의 경쟁력 강화를 뒷받침하기 위해서는 현행 업무프로세스에 대한 표준화가 중요란 사항이나, 현재 기업간 업무에 대해서는 이를 뒷받침 해줄 수 있는 프로세스 및 데이터의 분류와 분석을 위한 통합화, 표준화 작업이 부족한 상태이며, 이를 기반으로 이루어지는 업종별 핵심 기능 프로세스에 대란 표준화와 개발 분야도 미비한 실정이다. 특히 보편적으로 기업간 업무가 많이 발생하는 유통 분야의 경우 이러한 업종내 업무프로세스의 표준을 체계화 하는 필요성이 크게 대두되고 있다. 최근 매우 활성화 되고있는 프랜차이즈 산업의 경우 프랜차이즈 비즈니스의 특성상 경영효율을 높이기 위해 본사의 관리 통제 하에 운영되고 있으며, 상품도 본사에 의해 통일적, 정형적으로 기획되는 둥 프랜차이즈 비즈니스 특유의 경영 특질을 갖고 있다. 그러나 업무에 대란 표준화가 되어 있지 않은 상태에서 프랜차이즈를 운영한다면 본사차원에서는 오히려 인원과 경비만 늘어 프랜차이즈의 가장 큰 장점인 다점화의 장점이 없어지게 되고, 프랜차이즈 사업을 하고자하는 가맹점 입장에서도 프로세스의 차이와 비표준에서 오는 혼란인 많아 이를 쉽고, 체계적으로 접근 딸 수 잇는 표준 프로세스 작업의 필요성이 높다고 할 수 있다. 본 논문에서는 보편적으로 기업간 업무가 많이 발생하는 유통 분야의 프랜차이즈 산업을 대상으로 기업정보시스템 구현 및 경쟁력 강화를 뒷받침하기 위해서, 기업간 프로세스 협업(collaboration) 부분의 데이터 및 서식, 이를 취급하는 기능과 프로세스에 대란 분석을 통해 업무 프로세스 모델링 방법론과 관련한 모델링 지침 및 메타모델을 이용한 표준 업무 프로세스 모델을 개발하여 기업간 업무 프로세스 표준화에 대한 체계적인 관리에 대한 방안을 연구하고자 한다.

• Korean small business review
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• v.41 no.3
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• pp.95-106
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• 2019

The Economic Gab-Jil, where the stronger are forcing the weaker to sacrifice, is not only a serious social problem, but also it exhausts the vitality of the national economy. Especially, the issue of 'cost reduction (CR) of delivery price' in automobile industry, and the issue of 'tolls' and 'retaliating' in the franchise business are becoming more controversial. This paper suggests some measures to rectify the problems by an analysis using a game-theoretic model. One of the ways to change the 'bad equilibrium', where economic Gab-Jil is prevalent, to the 'good equiblium' is to strengthen the bargaining power of the weak by legal and institutional measures. It is also a more market-friendly system that is self-enforcing, where the regulation is automatically enforced by the incentives of the participants, without relying solely on the enforcement power of regulatory or supervisory bodies

• Journal of Distribution Research
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• v.17 no.5
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• pp.1-23
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• 2012

The conflict between major corporations and small and medium-sized businesses is being aggravated, the trickle down effect is not working properly, and, as the controversy surrounding the effectiveness of the business limiting system continues to swirl, the plan proposed to protect the business domain of small and medium-sized businesses, resolve polarization between these businesses and large corporations, and protect small family run stores is the suitable business type designation system for small and medium-sized businesses. The current status of carrying out this system of selecting suitable business types among small and medium-sized businesses involves receiving applications for 234 items among the suitable business types and items from small and medium-sized businesses in manufacturing, and then selecting the items of the consultative group by analyzing and investigating the actual conditions. Suitable business type designation in the service industry will involve designation with priority on business types that are experiencing social conflict. Three major classifications of the service industry, related to the livelihood of small and medium-sized businesses, will be first designated, and subsequently this will be expanded sequentially. However, there is the concern that when designated as a suitable business type or item, this will hinder the growth motive for small to medium-sized businesses, and designation all cause decrease in consumer welfare. Also it is highly likely that it will operate as a prior regulation, cause side-effects by limiting competition systematically, and also be in violation against the main regulations of the FTA system. Moreover, it is pointed out that the system does not sufficiently reflect reverse discrimination factor against large corporations. Because conflict between small to medium sized businesses and large corporations results from the expansion of corporations to the service industry, which is unrelated to their key industry, it is necessary to introduce an advanced contract method like a master franchise or local franchise system and to develop local small to medium sized businesses through a franchise system to protect these businesses and dealers. However, this method may have an effect that contributes to stronger competitiveness of small to medium sized franchise businesses by advancing their competitiveness and operational methods a step further, but also has many negative aspects. First, as revealed by the Ministry of Knowledge Economy, the franchise industry is contributing to the strengthening of competitiveness through the economy of scale by organizing existing individual proprietors and increasing the success rate of new businesses. It is also revealed to be a response measure by the government to stabilize the economy of ordinary people and is emphasized as a 'useful way' to revitalize the service industry and improve the competitiveness of individual proprietors, and has been involved in contributions to creating jobs and expanding the domestic market by providing various services to consumers. From this viewpoint, franchises fit the purpose of the suitable business type system and is not something that is against it. Second, designation as a suitable business type may decrease investment for overseas expansion, R&D, and food safety, as well negatively affect the expansion of overseas corporations that have entered the domestic market, due to the contraction and low morale of large domestic franchise corporations that have competitiveness internationally. Also because domestic franchise businesses are hard pressed to secure competitiveness with multinational overseas franchise corporations that are operating in Korea, the system may cause difficulty for domestic franchise businesses in securing international competitiveness and also may result in reverse discrimination against these overseas franchise corporations. Third, the designation of suitable business type and item can limit the opportunity of selection for consumers who have up to now used those products and can cause a negative effect that reduces consumer welfare. Also, because there is the possibility that the range of consumer selection may be reduced when a few small to medium size businesses monopolize the market, by causing reverse discrimination between these businesses, the role of determining the utility of products must be left ot the consumer not the government. Lastly, it is desirable that this is carried out with the supplementation of deficient parts in the future, because fair trade is already secured with the enforcement of the franchise trade law and the best trade standard of the Fair Trade Commission. Overlapping regulations by the suitable business type designation is an excessive restriction in the franchise industry. Now, it is necessary to establish in the domestic franchise industry an environment where a global franchise corporation, which spreads Korean culture around the world, is capable of growing, and the active support by the government is needed. Therefore, systems that do not consider the process or background of the growth of franchise businesses and harm these businesses for the sole reason of them being large corporations must be removed. The inhibition of growth to franchise enterprises may decrease the sales of franchise stores, in some cases even bankrupt them, as well as cause other problems. Therefore the suitable business type system should not hinder large corporations, and as both small dealers and small to medium size businesses both aim at improving competitiveness and combined growth, large corporations, small dealers and small to medium sized businesses, based on their mutual cooperation, should not include franchise corporations that continue business relations with them in this system.

• The Journal of Industrial Distribution & Business
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• v.2 no.2
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• pp.39-45
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• 2011

The Korean distribution industry is gearing up for an endless competition. Greeting low growth era, less competitive parties will be challanged seriously for their survival. But for large discount stores, they have shown steady annual growth for years. However, because of the saturation for numbers of stores, the difficulty of gaining new sites, and the changes in the consumer's consumption behavior caused by the recession, now they are seeking for a new customers-based business formats. Accordingly, a large corporate comopanies made supermarkets which are belonged to affiliated companies of large corporate comopanies. They based on the strong buying power, focused on SSM(Super Super Market) ave been aggressively develop nationwide multi-stores. The point is that these stores are threatening at small and medium-sized, community-based private supermarkets. Private supermarkets and retailers, who are using existing old operation systems and their dilapidated facilities, are losing a competitive edge in business. Recent the social effects of large series of corporate supermarkets for traditional markets has been very controversial, and commercial media, academia, and industry associated with it have been held many seminars and public hearings. This may slow down the speed in accordance with the regulations, but will not be the crucial alternative. The reason for this recent surge of enterprise-class SSM up, one of the reasons is a stagnation in their offline discount mart, so they are finding new growth areas. Already in the form of large supermarkets across the country got most of the geographical centre point and is saturated with stages. Targeting small businesses that do not cover discount Mart, in order to expand business in the form of SSM is urgent. By contrast, private supermarkets are going to lose their competitiveness. The vulnerability of individual supermarkets, one of the vulnerabilities is price which economies of scale can not be realized so they are purchasing a small amount of products and difficult to get a quantity discount. The lack of organization and collaboration, and education which is not practical, caused the absencer of service-oriented situations. As a first solution, making specialty shops which are handling agricultures, fruits and vegetables and manufactured goods is recommended. Second, private supermarkets franchisees join the organization for the organization and collaboration is recomaned. It can be meet the scale of economy and can be formed a alternative business formats to a government. Third, the education is needed as a good service will get consumer's awareness. In addition, a psychological stores operating is also one way to stimulate consumer sentiment as SSM can't operate. Japan already has a better conditions of their lives through small chain expression. This study includes the vulnerabilities of private supermarkets, and suggests a competitiveness reinforcement strategies.