• Title/Summary/Keyword: Regional Development Strategy

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Research Framework for International Franchising (국제프랜차이징 연구요소 및 연구방향)

  • Kim, Ju-Young;Lim, Young-Kyun;Shim, Jae-Duck
    • Journal of Global Scholars of Marketing Science
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    • v.18 no.4
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    • pp.61-118
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    • 2008
  • The purpose of this research is to construct research framework for international franchising based on existing literature and to identify research components in the framework. Franchise can be defined as management styles that allow franchisee use various management assets of franchisor in order to make or sell product or service. It can be divided into product distribution franchise that is designed to sell products and business format franchise that is designed for running it as business whatever its form is. International franchising can be defined as a way of internationalization of franchisor to foreign country by providing its business format or package to franchisee of host country. International franchising is growing fast for last four decades but academic research on this is quite limited. Especially in Korea, research about international franchising is carried out on by case study format with single case or empirical study format with survey based on domestic franchise theory. Therefore, this paper tries to review existing literature on international franchising research, providing research framework, and then stimulating new research on this field. International franchising research components include motives and environmental factors for decision of expanding to international franchising, entrance modes and development plan for international franchising, contracts and management strategy of international franchising, and various performance measures from different perspectives. First, motives of international franchising are fee collection from franchisee. Also it provides easier way to expanding to foreign country. The other motives including increase total sales volume, occupying better strategic position, getting quality resources, and improving efficiency. Environmental factors that facilitating international franchising encompasses economic condition, trend, and legal or political factors in host and/or home countries. In addition, control power and risk management capability of franchisor plays critical role in successful franchising contract. Final decision to enter foreign country via franchising is determined by numerous factors like history, size, growth, competitiveness, management system, bonding capability, industry characteristics of franchisor. After deciding to enter into foreign country, franchisor needs to set entrance modes of international franchising. Within contractual mode, there are master franchising and area developing franchising, licensing, direct franchising, and joint venture. Theories about entrance mode selection contain concepts of efficiency, knowledge-based approach, competence-based approach, agent theory, and governance cost. The next step after entrance decision is operation strategy. Operation strategy starts with selecting a target city and a target country for franchising. In order to finding, screening targets, franchisor needs to collect information about candidates. Critical information includes brand patent, commercial laws, regulations, market conditions, country risk, and industry analysis. After selecting a target city in target country, franchisor needs to select franchisee, in other word, partner. The first important criteria for selecting partners are financial credibility and capability, possession of real estate. And cultural similarity and knowledge about franchisor and/or home country are also recognized as critical criteria. The most important element in operating strategy is legal document between franchisor and franchisee with home and host countries. Terms and conditions in legal documents give objective information about characteristics of franchising agreement for academic research. Legal documents have definitions of terminology, territory and exclusivity, agreement of term, initial fee, continuing fees, clearing currency, and rights about sub-franchising. Also, legal documents could have terms about softer elements like training program and operation manual. And harder elements like law competent court and terms of expiration. Next element in operating strategy is about product and service. Especially for business format franchising, product/service deliverable, benefit communicators, system identifiers (architectural features), and format facilitators are listed for product/service strategic elements. Another important decision on product/service is standardization vs. customization. The rationale behind standardization is cost reduction, efficiency, consistency, image congruence, brand awareness, and competitiveness on price. Also standardization enables large scale R&D and innovative change in management style. Another element in operating strategy is control management. The simple way to control franchise contract is relying on legal terms, contractual control system. There are other control systems, administrative control system and ethical control system. Contractual control system is a coercive source of power, but franchisor usually doesn't want to use legal power since it doesn't help to build up positive relationship. Instead, self-regulation is widely used. Administrative control system uses control mechanism from ordinary work relationship. Its main component is supporting activities to franchisee and communication method. For example, franchisor provides advertising, training, manual, and delivery, then franchisee follows franchisor's direction. Another component is building franchisor's brand power. The last research element is performance factor of international franchising. Performance elements can be divided into franchisor's performance and franchisee's performance. The conceptual performance measures of franchisor are simple but not easy to obtain objectively. They are profit, sale, cost, experience, and brand power. The performance measures of franchisee are mostly about benefits of host country. They contain small business development, promotion of employment, introduction of new business model, and level up technology status. There are indirect benefits, like increase of tax, refinement of corporate citizenship, regional economic clustering, and improvement of international balance. In addition to those, host country gets socio-cultural change other than economic effects. It includes demographic change, social trend, customer value change, social communication, and social globalization. Sometimes it is called as westernization or McDonaldization of society. In addition, the paper reviews on theories that have been frequently applied to international franchising research, such as agent theory, resource-based view, transaction cost theory, organizational learning theory, and international expansion theories. Resource based theory is used in strategic decision based on resources, like decision about entrance and cooperation depending on resources of franchisee and franchisor. Transaction cost theory can be applied in determination of mutual trust or satisfaction of franchising players. Agent theory tries to explain strategic decision for reducing problem caused by utilizing agent, for example research on control system in franchising agreements. Organizational Learning theory is relatively new in franchising research. It assumes organization tries to maximize performance and learning of organization. In addition, Internalization theory advocates strategic decision of direct investment for removing inefficiency of market transaction and is applied in research on terms of contract. And oligopolistic competition theory is used to explain various entry modes for international expansion. Competency theory support strategic decision of utilizing key competitive advantage. Furthermore, research methodologies including qualitative and quantitative methodologies are suggested for more rigorous international franchising research. Quantitative research needs more real data other than survey data which is usually respondent's judgment. In order to verify theory more rigorously, research based on real data is essential. However, real quantitative data is quite hard to get. The qualitative research other than single case study is also highly recommended. Since international franchising has limited number of applications, scientific research based on grounded theory and ethnography study can be used. Scientific case study is differentiated with single case study on its data collection method and analysis method. The key concept is triangulation in measurement, logical coding and comparison. Finally, it provides overall research direction for international franchising after summarizing research trend in Korea. International franchising research in Korea has two different types, one is for studying Korean franchisor going overseas and the other is for Korean franchisee of foreign franchisor. Among research on Korean franchisor, two common patterns are observed. First of all, they usually deal with success story of one franchisor. The other common pattern is that they focus on same industry and country. Therefore, international franchise research needs to extend their focus to broader subjects with scientific research methodology as well as development of new theory.

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Assessment of Strategy and Achievements of Eco Industrial Park (EIP) Initiative in Korea (우리나라 생태산업단지 구축사업의 추진전략과 성과평가)

  • Park, Jun-Mo;Kim, Hyeong-Woo;Park, Hung-Suck
    • Journal of Korean Society of Environmental Engineers
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    • v.36 no.12
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    • pp.803-812
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    • 2014
  • This study assesses the strategy and performance of Eco-industrial Park (EIP) initiative implemented by Korea Industrial Complex Corporation (KICOX) with the support of Ministry of Trade, Industry and Energy (MOTIE), Korea since 2005 to 2013 and recommends future directions. After the concept of EIP based on industrial symbiosis (IS) is introduced, the background and implementation procedure of the EIP initiative are described. Then, economic and environmental achievement was assessed. During the project periods (2005-2013), 449 industrial symbiosis project were explored, among which 296 projects have been implemented. Among (Of these 296 projects,) them, 244 projects have been completed in which 118 projects have been commercialized which shows 48% commercialization rate of the completed projects. Through these commercialized projects, around 311.1 billion won/year of economic benefits and reduction of waste by-products of 828,113 tons/year, wastewater of 215,517 tons/year, reduction in energy consumption of 250,475 toe/year and GHG emission reduction of 1,107,189 $tCO_2/year$ were achieved. This results confirmed that EIP initiative based on industrial symbiosis can enhance eco-efficiency of industrial parks and harmonize economy and environment. However, there are obstacles like absence of interagency coordination and cooperation, laws and institutional barriers, increased demand for local governments, funding for project investment. Thus, to utilize EIP initiative as a strategic tool for competiveness and environmental management of industrial parks, it needs intergovernmental collaboration and interdisciplinary approach to lower barrier in implementation.

A Study on Organizational Strategy and Operational Elements of Community-based Agricultural Management Bodies (마을단위 농업경영체 조직전략 및 운영요소 도출 연구)

  • Kim, Jong An;Kil, Cheong Soon;Kim, Gi Tae;Kim, Won Gyeong
    • Journal of Agricultural Extension & Community Development
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    • v.20 no.3
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    • pp.777-822
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    • 2013
  • This study attempts to elicit the organizational strategy and operational elements of community-based agricultural management bodies as new main farm management. We analyzed the newest discussion trend, cooperated community management, between Republic of Korea and Japan based on theory of organizing regional agriculture, and also researched on the organization management and business management about cooperated management of community. In this study, the main conclusion of the organizational strategy and operational elements of community-based agricultural management bodies are as following. i) The community-based agricultural management bodies is the cooperation managed individual agriculture resources as joint stock for purposing compound goal, an expansion agricultural income, maintenance farm productivity and rural societies. ii) The domain of cooperative management focus on secondary and tertiary industry like food process, farm produce distribution, rural experience more than farm produce production. The study suggest business promotion system of village unit farmers groups, element of organization management as executive decision organization, business management, operating factor for each steps and management element of cooperation farm working. iii) The policy direction for invigoration community-based agricultural management bodies is to make facilitation for each steps instead of standardized support.

Economic Feasibility Analysis Study to Build a Plant-based Alternative Meat Industrialization Center (식물성 기반 대체육 산업화센터 구축을 위한 경제적 타당성 분석)

  • Yong Kwang Shin;So Young Lee;Jae Chang Joo
    • Journal of Practical Agriculture & Fisheries Research
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    • v.25 no.4
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    • pp.118-126
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    • 2024
  • Recently, the alternative meat (food) market is growing rapidly due to the increase in meat consumption due to global population growth and income improvement, as well as issues such as equal welfare, carbon neutrality, and sustainability. The government is also developing a green bio convergence new industry development plan to foster alternative foods, but there are difficulties in commercialization due to the lack of technology and insufficient production facilities among domestic small and medium-sized enterprises, so it is necessary to build joint utilization facilities and equipment to resolve the difficulties faced by companies. am. In addition, small and medium-sized enterprises are having difficulty developing and commercializing plant-based meat substitutes due to a lack of technical skills, and related equipment is expensive, making it difficult to build equipment on their own. Accordingly, Jeollabuk-do is pursuing a strategy to secure the source technology for development, processing, and industrialization of plant-based substitute meat at the level of developed countries by establishing a plant-based alternative meat industrialization center. In this study, an economic feasibility analysis study was conducted when a plant-based alternative meat industrialization center is built in Jeollabuk-do. As a result of the analysis, B/C=1.32, NPV=374 million won, and IRR=4.8%, showing that there is economic feasibility in establishing an alternative meat industrialization center. In addition, as a result of analyzing the regional economic ripple effect resulting from the establishment of an industrialization center, if 38 billion won is invested in Jeollabuk-do, the nationwide production inducement effect is 74 billion won, the added value inducement effect is 29.8 billion won, and the employment inducement effect is 672 people

National brand development research strategy using traditional Korean patterns (한국 전통 문양을 활용한 국가 브랜드 연구 개발 전략 - 금문(錦紋)을 중심으로 -)

  • KIM, Mihye
    • Korean Journal of Heritage: History & Science
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    • v.54 no.4
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    • pp.232-245
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    • 2021
  • The present study is about a brand development strategy that utilizes Korean traditional patterns. The global culturenomics phenomenon confirms the value of the cultural aspects of design when a national brand is established. People succeed with their unique aesthetic sense and reinterpret it in a modern view, and this design acts as today's national brands. In this way, people used traditional patterns and original designs, along with regional characteristics and formative style, in developing their designs. However, due to recent changes in the global environment, modern people live in an "untact" world, and consumption culture shifted toward online marketing. In this environment, where one is isolated from social activities, there needs to be a strong image that can dramatically change the mood of one's home. I would like to re-examine the Dan-Chung pattern, whose painting depends on the aesthetic characteristics of architecture to protect the wooden members of the framework in traditional architecture. The pattern and color of Dan-Chung, coated in traditional architecture, differs by the type of construction used, which includes a palace, a Buddhist temple, and a Confucianism Dan Chung. The Geummoon pattern contains aesthetic factors to add solemnity to the Main Buddhist Halls, which contain Buddha. This is a new medium that continues the current traditions instead of remaining in the past. Among different Dan Chung patterns, Geummoon has magnificent decoration consisting of the highest grade materials and unique composition; therefore, it is suitable to be reinterpreted in modern terms. The same pattern can be interpreted in different ways with different colors, so there is a great aesthetic impression in the Geummoon pattern. The value of preservation for exploration and theoretical study of the traditional pattern is important, but recreating the pattern into modern formative art can present a new angle of view and national brand, bearing pride in our cultural assets. The study used multidimensional molding methods for realistic presentation after going through the two-dimensional design process. The significant value of Korean molding beauty which hangs onto the past will play a crucial role in establishing our national brand.

City design identity with application of the region's emotional image factors (감성적 지역 이미지요소를 적용한 도시디자인 아이덴티티)

  • Heo, Seong-Cheol;Hong, Seong-Soo;Kim, Eok
    • Science of Emotion and Sensibility
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    • v.12 no.3
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    • pp.307-316
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    • 2009
  • The basic objective of this study is to suggest the city image ideas and methods of application based on the analysis of the regional characteristics and image factors in making proposal for integrated design for public facilities. Through understanding and analyzing natural, environmental, industrial characteristics, the city was subdivided into urban, marine, inland, and industrial complex areas. Also, local residents' attitude survey and the city's cultural iconic image survey analysis was performed simultaneously, and the survey results were used to establish the strategy for Pohang's city design identity and were applied in public facility design development process. Developing from the identity motive, "texture", the images of "iron", "marine", "science" were selected as core image of identity and were applied as design factors. Four unique colors were selected for each areas based on scenery color analysis. For facilities that needed to be installed separately in all four areas, "application of color and material consistency" and "application of shape consistency and partial color diversity consistency" were suggested to integrate the image of the city as a whole through establishing distinctive image for each area.

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Port's Successful Global Supply Chain Strategies - Focusing on the case of Dubai port - (항만의 성공적인 글로벌 공급사슬 전략 - 두바이항의 사례를 중심으로 -)

  • Han, Chul-Hwan
    • Journal of Korea Port Economic Association
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    • v.24 no.2
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    • pp.175-192
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    • 2008
  • Today's individual firms no longer compete as solely autonomous entities, but rather as supply chain. As such the competitive position of a port is not only determined by its internal strengths but also it is also affected by its links in a global supply chin. In other words, port competitiveness is becoming increasingly dependent on external coordination and control of the whole supply chain. The main purpose of this paper is to examine how a port embeds itself into supply chain in order to strengthen its competitive position by focusing on Dubai port case. This paper found that Dubai port used three phases-insertion, integration and dominance-as a strategies for how it can embedded into global supply chain successfully. Dubai's global supply chain strategies give some implications for the further development of the Port of Gwangyang. First, the Port of Gwangyang should fully utilize symbiotic relationship with Gwangyang free Economic Zone. Second, the integration between Korea Container Terminal Authority and GYFEZ can be recommended for fast decision-making and providing a one-stop-service. Finally, Gwangyang should pursue an aggressive supply chain strategy, aims at dominance in the regional port network through port alliance with small and medium ports in neighboring area.

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A Study on Institutional Improvement for effective Operation of Korea's Free Economic Zone (한국의 경제자유구역의 효율적 운영을 위한 개선과제에 관한 연구)

  • Hong, Song-Hon;Lee, Jae-Young
    • International Commerce and Information Review
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    • v.13 no.2
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    • pp.235-258
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    • 2011
  • Our country is operating designating the 6 free economic zones. Korea has designated fixed areas as economic special zones and made their management and living conditions equivalent to the level of advanced countries they are to support. One-Stop Service for the administrative demands that require the assistance at a national level in foreign investment, education, finance etc. However, these free economic zones are modified by regional development projects rather than inviting foreign capital. For the free economic zones to be operated effectively, the following methods should be followed: first, active management support activities should be constructed for the purpose of attracting foreign capital, second, a business model specifically designed to attract foreign capital should be implemented, third and finally, the independence and professionalism for the free economic zones should be strengthened.

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Strategy for Application of Geospatial One-Stop (GOS) in Korea

  • Kyung Won-Choi;Kiyun Yu;Jung Ok-Kim
    • Spatial Information Research
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    • v.12 no.4 s.31
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    • pp.299-305
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    • 2004
  • According to the facility of effective search and user-friendly access to various spatial data by building GIS, the demand for application of information and social effect has been increased. To meet such domestic demands, it has become necessary to develop local, regional, and global SDI(Spatial Data Infrastructure) which can support discovery, access, and use of spatial information in the decision-making process. Many developed countries are implementing and managing GSDI in accordance with their state and purpose. There are two typical international cases; U.S. Geospatial One-Stop and European Geo-Portal. These systems are observed the international standards so they provide standardization and interoperability of GI. In domestic cases, however, each sector is managing separately geospatial data management systems. From this point of view, this paper proposed implementation approaches of GOS that can provide interchange of geospatial information between supplier and user. This paper focused on standardization, considered technical and political factors and analyzed two cases of GOS such as U.S. and Europe cases into our spatial information environments. It is possible to search and access geospatial data effectively by introducing GOS. In addition, it is possible to promote popularization of geospatial information and development of GIS industy.

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The Factors Affecting on the Integration Intention among the Port Authority Members in Korea (우리나라 항만공사 조직구성원들의 통합의도 및 영향요인 연구)

  • Song, Yong-Soo;Ha, Myung-Shin;Choi, Sung-Kwang
    • Journal of Korea Port Economic Association
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    • v.28 no.1
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    • pp.25-52
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    • 2012
  • In order to solve the current problems and inefficiencies within the Port Authorities(PA) in Korea, this study introduces the concept of the integration of PA and analyses the intention of integration. This study is based on analysing the surveys participated by the members of PA. The surveys consist of six main factors which could influence the intention of integration of PA; contribution, autonomy, strategic factor, financial factor, marketing factor and environmental factor. The two main implications from this study can be categorised as follows. First, this study identifies the structural problems such as regional self-centredness of PA, obscurity of organisations' roles and their rights, limitations on diversification of business and restrictions within PA. Second, this study extensively discusses the option of improving the inefficiency whilst maintaining the current system or to switch to the integration of PA. In addition, it has been found that individual PA recognise the little need for integration. Since the results show that the strategic, financial, marketing and environmental factors would cause both significant and little significant impacts, it would be too haste to decide on a conclusion. However, it is possible to say that the rapid integration of PA can neither improve the efficiency nor improve the characteristics of each region. Therefore, the significance of integration of PA must be further discussed from many different perspectives. The results of this research will serve as a basic literature for further studies on the integration of PA in Korea. Moreover, the problems that have been identified and analysed in this study will contribute to establishing the strategy for further development of PA in Korea.