• Title/Summary/Keyword: Korean Franchise Distribution

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Effect of Sustainable Supply Chain Management on Satisfaction and Win-Win Cooperation: Comparison of Small and Medium-Sized Distribution Logistics Center and Chain Store (지속가능 공급사슬관리가 만족과 상생협력에 미치는 영향: 중소유통물류센터와 체인점의 비교)

  • RIM, Yong-Jae;YONG, Suk-Kwang
    • The Korean Journal of Franchise Management
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    • v.13 no.3
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    • pp.17-30
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    • 2022
  • Purpose: Recent emergence of diverse businesses in the distribution industry has led small and medium-sized retailers and their distribution logistics centers to face difficulties. Transactions between companies are connected within a supply chain, and the companies have relationships in the form of a supplier and a buyer. Therefore, it is important to identify causes of problems among companies through supply chain and strategic partnerships, thus developing optimal management plans and maximizing performances of companies. This study proposes that sustainable supply chain management consists of product quality, price quality, distribution quality, and promotion quality based on stakeholder theory and resource-based view. This study examined the impacts of sustainable chain management factors on satisfaction and win-win cooperation. Research design, data, and methodology: In the proposed model, satisfaction plays a mediating role in the relationship between sustainable chain management and win-win cooperation. The data were collected from 245 owners who use small and medium-sized distribution logistics center and analyzed using 2SLS (two-stage least square) with SPSS 28.0. Exploratory factor analysis and correlation analysis were used to assess the validity and reliability of constructs. Results: The findings are as follows. In the case of the total and Nadeulgage samples, product, price, and distribution quality had a significant positive effect on satisfaction, but in the case of Neighborhood super, product and price quality have a significant positive effect on satisfaction. Satisfaction has a significant positive effect on win-win cooperation in the overall, Nadeulgage, and Neighborhood super. Satisfaction plays a partial or full mediating role in the case of total, Nadeulgage, Neighborhood super. Conclusions: This study emphasized the need for sustainable supply chain management of small and medium-sized distribution logistics centers by examining the relationship between small and medium-sized distribution logistics centers and chain stores. It was found that store satisfaction plays an important role in the win-win cooperation between small and medium-sized distribution logistics centers and chain stores. Small and medium-sized distribution logistics centers can maximize product quality, price quality, distribution quality, and promotion quality by understanding the effect of chain store-related satisfaction and win-win cooperation on chain stores.

Caffe Bene: Creating Values for Customers

  • Ahn, Kwangho;Yoo, Changjo;Kim, Youngchan
    • Asia Marketing Journal
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    • v.14 no.3
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    • pp.185-197
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    • 2012
  • Caffe Bene, one of the most notable coffeehouse chain brands in Republic of Korea, gives us some thought-provoking issues in terms of sustainable success. Despite harsh competition among various coffeehouse brands, Caffe Bene has been accomplished astonishing outcomes in domestic market and now ranked 2nd place in sales among the global coffeehouse franchise in 2010 and 2011. These achievements were possible mainly because Caffe Bene adopted distinctive shop design, maintained aggressive marketing strategy, developed new menu, and combined the unique Korean culture with ordinary concept of café to make its place attractive. However, since Korean coffeehouse market is getting saturated and consumers are becoming savvy about coffee, Caffe Bene needs to find a new solution to overcome growth stagnation. Besides, many experts pointed out that irrational increase in the number of stores might hurt its business in the aspect of managing distribution channel and providing consistent services. Also, customers of Caffe Bene have shown that it has to complement its critical weaknesses: inferior coffee taste and relatively high price for a cup of coffee. Especially, some people view that the company is shifting its high rental fee, interior cost and PPL marketing cost to consumers by charging high price for coffee. To get over the problems, Caffe Bene is currently using C/S Consumer Management System though experts are questioning about the efficacy because of the conflict between purpose of the system and the headquarters' plan. Present CEO Kim also announced that the company will complete its logistics system in the latter half of 2012 to provide stores with more high quality coffee beans to improve taste of coffee. Thus, in this case, we describe how Caffe Bene succeeded in Korean market and enumerate its key success factors. Also, we specify the long-term goals of Caffe Bene and introduce the current policies and strategies to show how the company is working on to achieve its ultimate goal. By reading and analyzing this business case, students could get useful insights regarding franchise management and think about issues on competing in a saturated market. Also, it would be worthwhile to generate creative solutions for the problems that Caffe Bene is now facing to broaden the practical perspective.

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A Study on the Relationship Among Brand Authenticity, Brand Identification, Educational Satisfaction, Brand Trust, Recommendation and Re-Contract Intention in the Pharmacy Franchisee (약국 프랜차이즈 가맹점(franchisee)의 브랜드 진정성, 브랜드 동일시, 교육만족도, 브랜드 신뢰, 재계약의도, 추천의도의 관계에 관한 연구)

  • Min, Byeong Seok;Park, Woojin;Bae, byung Yun
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.14 no.4
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    • pp.143-160
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    • 2019
  • The domestic pharmacy market has undergone a lot of changes starting from the division of medicine. Along with the division of medicine, patients who had previously visited the pharmacy were moved to a hospital or clinic. As the pharmacy became more dependent on the illness and the clinic, the pharmacy began various activities to search for ways other than prescription drugs. At this time, the importance of distribution was emphasized around the time, and as the need to strengthen the competitiveness of pharmacies increased, they rapidly grew into the franchise market. Pharmacy franchise companies continue to lecture on academic management to strengthen the expertise of pharmacists' functions in line with the pharmacy market, which is different from ordinary franchise, in addition to private brand products for pharmacies, diversifying pharmacy handling items, And strengthening its market competitiveness. but research to support it are insufficient. As a research to help this, we analyzed factors affecting the intention of re-contracting and recommendation intention that affect the maintenance and expansion size of the drugstore franchise market. As a result showed the intention of re-contracting and the intention of recommending are affected by positive influence in brand trust. In addition, Brand Promise, Employee authenticity, Originality, Product excellence, Brand reputation, Brand identification, Educational Satisfaction were found to affect brand trust.

Effects of Perception of Job Characteristics on Innovation Behavior and Innovation Resistance

  • YANG, Hoe-Chang
    • The Korean Journal of Franchise Management
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    • v.11 no.4
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    • pp.7-15
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    • 2020
  • Purpose: The purpose of this study is to clarify the role of decoupling between job characteristics, innovation behavior, and innovation resistance in order to seek ways for companies to survive and grow continuously through innovation activities in various uncertain situations. Research design, data and methodology: A total of 263 valid questionnaires were collected and used for analysis for employees working at the company. For the analysis, simple and multiple regression analysis, and 3-step mediated regression analysis were conducted using SPSS 24.0 and AMOS 24.0. Results: First, it was found that skill variety, task identity, autonomy, and feedback increase decoupling, and decoupling increases innovation resistance. In addition, it was confirmed that decoupling had a mediating effect between job characteristics and innovation resistance excluding task significance. Finally, it was found that task significance and feedback increase innovation behavior, and decoupling and task identity increase innovation resistance, but feedback can alleviate innovation resistance. Conclusions: As a result of the analysis, the fact that job characteristics excluding task importance have a positive effect on decoupling means that there are two sides of job characteristics perceived by employees. In other words, it means that the results of analysis on the jobs that the company assigns to its members may not be effective. In addition, decoupling, a phenomenon that seems to be accepting on the outside, but perceives that it is negative on the inside, means that there is a possibility to reject innovation. Therefore, prior to carrying out innovation activities, companies should give clear job specifications and meanings for the job and give them autonomy when assigning jobs to their members. In order to provide appropriate feedback, the company must design, operate, and provide feedback. It was found that there was a need to review the overall effectiveness. In addition, efforts such as strengthening corporate-level fairness, maintaining psychological contracts, and realizing authentic leadership should be preceded to reduce decoupling.

소비자파워에 의한 갈등이 경로관리에 미치는 영향

  • 서봉철
    • Journal of Distribution Research
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    • v.1 no.1
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    • pp.83-107
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    • 1996
  • The concern of external environment is growing up in the field of channel distribution. In the former channel distribution, the channel distribution environment is little bit unmoveable owing to a powerful manufacture control against poor distributor. Therefore intra-efficiency is channel member's core interest. The structure of channel governance, however, come to be changable because of the mature distributor power against manufacturer such as a Price Break, JIT of channel governance, and a serial of change. Accordingly, it is acceptable that the interest of external-environment of channel members' is more and more enlarged, and external-environment change in the channel distribution make the serious problems in intraorganizational system. Thus, it is meaningful that this study try to discover the consumer power as external environment factor and to find the best strategy to overcome this consumer power. Resource dependence theory, Transaction cost theory, Political Economic Approach, and Working partnership Approach are the theory foundation of the reasearch. Apparel franchise is a sample to analyse the hypothesis and correlation and multi-regression are a chief tools to estimate the hypothesis. Thus, the above results imply that a flexible governance is appropriate to consumer power, conflict is not intervening value between consumer power and channel governance, and the channel member's satisfaction can be confirmed in the flexible governance better than control governance.

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The Effects of Internal Polity on Commitment and Relationship Performance between Franchisors and Franchisees (프랜차이즈 본부와 가맹점간의 내부정치가 결속 및 관계성과에 미치는 영향)

  • Cho, Hyun-Jin
    • Journal of Distribution Research
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    • v.10 no.2
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    • pp.27-47
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    • 2005
  • This study is basically focused on the relationship between the franchisors and franchisees. The goal of this study is mainly to inquire the variables of relationship characteristics affecting the commitment which lies in internal polity, and secondly to comprehensively analyze the performance resulting from commitment and examine the efficient alternatives onto relationship management. The practical methodology using in this study has been done in a national representing food franchise system. This study has been resulted in following: First, the variables that show significantly to the commitment are noncoercive influential strategy, dependence, cooperation, and goal divergence. In the contrast the coercive influential strategy hasn't showed significantly; Second, the result has showed that the commitment when it would be related with performance furthered the financial performance and role performance; and. therefore, we finally conclude that it would be more important to make lots of efforts of establishing the win-win relationship through the long-term commitment between the franchisor and franchisee in order to develop the more effective relationship of the franchise system.

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Effects of CEO's Self-Determination on Start-up Entrepreneurship and Business Performance in Service and Distribution SMEs

  • SHIN, Hyang-Sook;BAE, Jee-Eun
    • The Korean Journal of Franchise Management
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    • v.11 no.4
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    • pp.31-44
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    • 2020
  • Purpose: The purpose of this study is to examine the effects of CEO's self-determination on entrepreneurship, business performance (operational and financial performance). Also, this research provide some strategic insights for improving business performance. In the proposed model, self-determination consists of autonomy, competence, and relatedness, and entrepreneurship consists of innovation, initiative and risk sensitivity, and proactiveness. More specifically, this study proposes a framework that entrepreneurship and operational performance will play mediating roles between self-determination and financial performance. Research design, data, methodology: In this study, an online survey was conducted on SME CEOs for analysis, and a total of 122 samples were used. In the analysis process for hypothesis verification and evaluation, frequency analysis was first performed to identify the demographic characteristics of the respondents, and confirmatory factor analysis was conducted to assess the reliability and validity of the measurement model. In addition, a structural model analysis was conducted to examine the structural relationships between CEO's self-determination, entrepreneurship, and business performance (operational and financial performance) using SmartPLS 3.0. Results: The findings and summary are as follows. First, the autonomy of self-determination has a positive effect on entrepreneurship. Second, the competence of self-determination affects entrepreneurship and operational performance. Third, it affects the innovation, initiative and risk sensitivity of the CEO's entrepreneurship, and ultimately, its operational performance. The results show that the business performance of Start-up also increases when self-determination can be a factor in increasing entrepreneurship in three sub-dimensionalities. Conclusions: The conclusion of this study is that in order for SMEs to develop into a sustainable company by securing competitiveness after start-up, external motivation such as external help and support from the state (local government) is important, but competence and relationship, which are components of self-determination. The intrinsic motivation of the CEO may be more important. To this end, CEO's should prioritize learning for competency development, and the government should pay attention to providing various educational programs through establishment of education policies and education systems to enhance the competency of start-up CEO's.

The Interaction Effects of the Shopping Situation and the Product Display Type on the Consumer Response in Mobile Shopping

  • Choi, Seung-Hoon;Lee, Dong Il;Lee, Hyejun
    • Asia Marketing Journal
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    • v.14 no.3
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    • pp.119-135
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    • 2012
  • The purpose of this research is to investigate the effects of the product display type on the consumers' purchase intention, attitude toward store, and revisit intention in the various mobile shopping situations. To test the hypothesis, between-subjects experiment with 3 mobile shopping situations (outdoor place, public transportation, commercial facilities) by 3 product display types (search, category, product) was conducted, and analyzed with ANCOVA (analysis of covariance). The result of the experiment shows there are no main effects of the mobile shopping situations and the product display types, but the interaction effects of the product display type and the mobile shopping situation on the purchase intention and the revisit intention are statistically significant. However the attitude toward the store is not affected by the treatments. Experiment results suggest that the positive consumer responses in terms of the purchase and revisit intention can be achieved when the product display is matched with the situation in the mobile shopping setting. Controlling consumers' evaluation on the product information and their experience of online shopping, we can take these effect as the results of match-up between the product display type and the situational factors surrounding mobile shopping. The result provides strong support for the location-based service in mobile shopping. Most of the mobile device can utilize the consumers' location which can be easily interpreted as the situational factors. With regard of the level of the external stimulation, the shopping service providers can offer the main interface with the right match with the consumers' situations. When the external stimulation level is high, they should provide the category display or product display in the target promotion in their mobile shopping apps. However if the target is on the way with the low external stimulation level, they should provide the search format as the main interface in their apps. More interestingly, this kind of manipulation does not affect the consumers' attitude toward the store according to our research result. Future research direction is discussed.

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An Empirical Study in Relationship between Franchisor's Leadership Behavior Style and Commitment by Focusing Moderating Effect of Franchisee's Self-efficacy (가맹본부의 리더십 행동유형과 가맹사업자의 관계결속에 관한 실증적 연구 - 가맹사업자의 자기효능감의 조절효과를 중심으로 -)

  • Yang, Hoe-Chang;Lee, Young-Chul
    • Journal of Distribution Research
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    • v.15 no.1
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    • pp.49-71
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    • 2010
  • Franchise businesses in South Korea have contributed to economic growth and job creation, and its growth potential remains very high. However, despite such virtues, domestic franchise businesses face many problems such as the instability of franchisor's business structure and weak financial conditions. To solve these problems, the government enacted legislation and strengthened franchise related laws. However, the strengthening of laws regulating franchisors had many side effects that interrupted the development of the franchise business. For example, legal regulations regarding franchisors have had the effect of suppressing the franchisor's leadership activities (e.g. activities such as the ability to advocate the franchisor's policies and strategies to the franchisees, in order to facilitate change and innovation). One of the main goals of the franchise business is to build cooperation between the franchisor and the franchisee for their combined success. However, franchisees can refuse to follow the franchisor's strategies because of the current state of franchise-related law and government policy. The purpose of this study to explore the effects of franchisor's leadership style on franchisee's commitment in a franchise system. We classified leadership styles according to the path-goal theory (House & Mitchell, 1974), and it was hypothesized and tested that the four leadership styles proposed by the path-goal theory (i.e. directive, supportive, participative and achievement-oriented leadership) have different effects on franchisee's commitment. Another purpose of this study to explore the how the level of franchisee's self-efficacy influences both the franchisor's leadership style and franchisee's commitment in a franchise system. Results of the present study are expected to provide important theoretical and practical implications as to the role of franchisor's leadership style, as restricted by government regulations and the franchisee's self-efficacy, which could be needed to improve the quality of the long-term relationship between the franchisor and franchisee. Quoted by Northouse(2007), one problem regarding the investigation of leadership is that there are almost as many different definitions of leadership as there are people who have tried to define it. But despite the multitude of ways in which leadership has been conceptualized, the following components can be identified as central to the phenomenon: (a) leadership is a process, (b) leadership involves influence, (c) leadership occurs in a group context, and (d) leadership involves goal attainment. Based on these components, in this study leadership is defined as a process whereby franchisor's influences a group of franchisee' to achieve a common goal. Focusing on this definition, the path-goal theory is about how leaders motivate subordinates to accomplish designated goals. Drawing heavily from research on what motivates employees, path-goal theory first appeared in the leadership literature in the early 1970s in the works of Evans (1970), House (1971), House and Dessler (1974), and House and Mitchell (1974). The stated goal of this leadership theory is to enhance employee performance and employee satisfaction by focusing on employee motivation. In brief, path-goal theory is designed to explain how leaders can help subordinates along the path to their goals by selecting specific behaviors that are best suited to subordinates' needs and to the situation in which subordinates are working (Northouse, 2007). House & Mitchell(1974) predicted that although many different leadership behaviors could have been selected to be a part of path-goal theory, this approach has so far examined directive, supportive, participative, and achievement-oriented leadership behaviors. And they suggested that leaders may exhibit any or all of these four styles with various subordinates and in different situations. However, due to restrictive government regulations, franchisors are not in a position to change their leadership style to suit their circumstances. In addition, quoted by Northouse(2007), ssubordinate characteristics determine how a leader's behavior is interpreted by subordinates in a given work context. Many researchers have focused on subordinates' needs for affiliation, preferences for structure, desires for control, and self-perceived level of task ability. In this study, we have focused on the self-perceived level of task ability, namely, the franchisee's self-efficacy. According to Bandura (1977), self-efficacy is chiefly defined as the personal attitude of one's ability to accomplish concrete tasks. Therefore, it is not an indicator of one's actual abilities, but an opinion of the extent of how one can use that ability. Thus, the judgment of maintain franchisee's commitment depends on the situation (e.g., government regulation and policy and leadership style of franchisor) and how it affects one's ability to mobilize resources to deal with the task, so even if people possess the same ability, there may be differences in self-efficacy. Figure 1 illustrates the model investigated in this study. In this model, it was hypothesized that leadership styles would affect the franchisee's commitment, and self-efficacy would moderate the relationship between leadership style and franchisee's commitment. Theoretically, quoted by Northouse(2007), the path-goal approach suggests that leaders need to choose a leadership style that best fits the needs of subordinates and the work they are doing. According to House & Mitchell (1974), the theory predicts that a directive style of leadership is best in situations in which subordinates are dogmatic and authoritarian, the task demands are ambiguous, and the organizational rule and procedures are unclear. In these situations, franchisor's directive leadership complements the work by providing guidance and psychological structure for franchisees. For work that is structured, unsatisfying, or frustrating, path-goal theory suggests that leaders should use a supportive style. Franchisor's Supportive leadership offers a sense of human touch for franchisees engaged in mundane, mechanized activity. Franchisor's participative leadership is considered best when a task is ambiguous because participation gives greater clarity to how certain paths lead to certain goals; it helps subordinates learn what actions leads to what outcome. Furthermore, House & Mitchell(1974) predicts that achievement-oriented leadership is most effective in settings in which subordinates are required to perform ambiguous tasks. Marsh and O'Neill (1984) tested the idea that organizational members' anger and decline in performance is caused by deficiencies in their level of effort and found that self-efficacy promotes accomplishment, decreases stress and negative consequences like depression and emotional instability. Based on the extant empirical findings and theoretical reasoning, we posit positive and strong relationships between the franchisor's leadership styles and the franchisee's commitment. Furthermore, the level of franchisee's self-efficacy was thought to maintain their commitment. The questionnaires sent to participants consisted of the following measures; leadership style was assessed using a 20 item 7-point likert scale developed by Indvik (1985), self-efficacy was assessed using a 24 item 6-point likert scale developed by Bandura (1977), and commitment was assessed using a 6 item 5-point likert scale developed by Morgan & Hunt (1994). Questionnaires were distributed to Korean optical franchisees in Seoul. It took about 20 days to complete the data collection. A total number of 140 questionnaires were returned and complete data were available from 137 respondents. Results of multiple regression analyses testing the relationships between the each of the four styles of leadership shown by the franchisor as independent variables and franchisee's commitment as the dependent variable showed that the relationship between supportive leadership style and commitment ($\beta$=.13, p<.001),and the relationship between participative leadership style and commitment ($\beta$=.07, p<.001)were significant. However, when participants divided into high and low self-efficacy groups, results of multiple regression analyses showed that only the relationship between achievement-oriented leadership style and commitment ($\beta$=.14, p<.001) was significant in the high self-efficacy group. In the low self-efficacy group, the relationship between supportive leadership style and commitment ($\beta$=.17, p<.001),and the relationship between participative leadership style and commitment ($\beta$=.10, p<.001) were significant. The study focused on the franchisee's self-efficacy in order to explore the possibility that regulation, originally intended to protect the franchisee, may not be the most effective method to maintain the relationships in a franchise business. The key results of the data analysis regarding the moderating role of self-efficacy between leadership behavior style as proposed by path-goal and commitment theory were as follows. First, this study proposed that franchisor should apply the appropriate type of leadership behavior to strengthen the franchisees commitment because the results demonstrated that supportive and participative leadership styles by the franchisors have a positive influence on the franchisee's level of commitment. Second, it is desirable for franchisor to validate the franchisee's efforts, since the franchisee's characteristics such as self-efficacy had a substantial, positive effect on the franchisee's commitment as well as being a meaningful moderator between leadership and commitment. Third, the results as a whole imply that the government should provide institutional support, namely to put the franchisor in a position to clearly identify the characteristics of their franchisees and provide reasonable means to administer the franchisees to achieve the company's goal.

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A Study on the Problem and Improvement of Distribution Structure of Farm Product in Korea (우리나라 농산물 유통구조의 문제점과 개선에 관한 연구)

  • Chol, Soo-Hwan;Kim, Joong-Won;Kim, Kyung-Rok;Lee, Young-Suk
    • The Korean Journal of Franchise Management
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    • v.2 no.2
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    • pp.70-83
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    • 2011
  • The number of agricultural products due to open in response to international competitiveness of the farming press and the need for structural adjustment in agriculture and in agricultural crops receive a fair market price, fair trade, such as improving efficiency sidaejeo appropriate response to the request of the government must have. For this purpose, compared to the communist bojaphan agricultural water efficiently changing the structure of the distribution, agricultural products originating from the acquisition phase choice of shipping a stable product supply and plans to expand production system to induce a smooth supply of agricultural products, expand processing capacity and sales control should be. Also, in the distribution process by eliminating various immoral conduct commerce retail establishment and enforcement of policies for efficient and accurate distribution statistics, information is needed. The ultimate goal of agricultural restructuring and ensure fair price for producers sangpuui and improvement of production facilities for maximizing and affordable for consumers, according to your preferences to receive the best offer will be Foo. Therefore, management increases the efficiency of just distribution costs, or margins, lowering the improvement is not practical to restructure the distribution structure of costs for the best product and must supply the next country of agricultural products, strengthen the consumer's purchase desire to meet will be.