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Study on the effect of small and medium-sized businesses being selected as suitable business types, on the franchise industry (중소기업적합업종선정이 프랜차이즈산업에 미치는 영향에 관한 연구)

  • Kang, Chang-Dong;Shin, Geon-Chel;Jang, Jae Nam
    • 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.

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The hydrodynamic characteristics of the canvas kite - 1. The characteristics of the rectangular, trapezoid canvas kite - (캔버스 카이트의 유체역학적 특성에 관한 연구 - 1. 사각형 캔버스 카이트의 특성 -)

  • Bae, Bong-Seong;Bae, Jae-Hyun;An, Heui-Chun;Lee, Ju-Hee;Shin, Jung-Wook
    • Journal of the Korean Society of Fisheries and Ocean Technology
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    • v.40 no.3
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    • pp.196-205
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    • 2004
  • As far as an opening device of fishing gears is concerned, applications of a kite are under development around the world. The typical examples are found in the opening device of the stow net on anchor and the buoyancy material of the trawl. While the stow net on anchor has proved its capability for the past 20 years, the trawl has not been wildly used since it has been first introduced for the commercial use only without sufficient studies and thus has revealed many drawbacks. Therefore, the fundamental hydrodynamics of the kite itself need to ne studied further. Models of plate and canvas kite were deployed in the circulating water tank for the mechanical test. For this situation lift and drag tests were performed considering a change in the shape of objects, which resulted in a different aspect ratio of rectangle and trapezoid. The results obtained from the above approaches are summarized as follows, where aspect ratio, attack angle, lift coefficient and maximum lift coefficient are denoted as A, B, $C_L$ and $C_{Lmax}$ respectively : 1. Given the rectangular plate, $C_{Lmax}$ was produced as 1.46${\sim}$1.54 with A${\leq}$1 and 40$^{\circ}$${\leq}$B${\leq}$42$^{\circ}$. And when A${\geq}$1.5 and 20$^{\circ}$${\leq}$B${\leq}$22$^{\circ}$, $C_{Lmax}$ was 10.7${\sim}$1.11. Given the rectangular canvas, $C_{Lmax}$ was 1.75${\sim}$1.91 with A${\leq}$1 and 32$^{\circ}$${\leq}$B${\leq}$40$^{\circ}$. And when A${\geq}$1.5 and 18$^{\circ}$${\leq}$B${\leq}$22$^{\circ}$, $C_{Lmax}$ was 1.24${\sim}$1.40. Given the trapezoid kite, $C_{Lmax}$ was produced as 1.65${\sim}$1.89 with A${\leq}$1.5 and 34$^{\circ}$${\leq}$B${\leq}$44$^{\circ}$. And when A=2 and B=14${\sim}$48, $C_L$ was around 1. Given the inverted trapezoid kite, $C_{Lmax}$ was 1.57${\sim}$1.74 with A${\leq}$1.5 and 24$^{\circ}$${\leq}$B${\leq}$36$^{\circ}$. And when A=2, $C_{Lmax}$ was 1.21 with B=18$^{\circ}$. 2. For a model with A=1/2, an increase in B caused an increase in $C_L$ until $C_L$ has reached the maximum. Then there was a tendency of a gradual decrease in the value of $C_L$ and in particular, the rectangular kite showed a more rapid decrease. For a model with A=2/3, the tendency of $C_L$ was similar to the case of a model with A=1/2 but the tendency was a more rapid decrease than those of the previous models. For a model with A=1, and increase in B caused an increase in $C_L$ until $C_L$ has reached the maximum. Soon after the tendency of $C_L$ decreased dramatically. For a model with A=1.5, the tendency of $C_L$ as a function of B was various. For a model with A=2, the tendency of $C_L$ as a function of B was almost the same in the rectangular and trapezoid model. There was no considerable change in the models with 20$^{\circ}$${\leq}$B${\leq}$50$^{\circ}$. 3. The tendency of kite model's $C_L$ in accordance with increase of B was increased rapidly than plate models until $C_L$ has reached the maximum. Then $C_L$ in the kite model was decreased dramatically but in the plate model was decreased gradually. The value of $C_{Lmax}$ in the kite model was higher than that of the plate model, and the kite model's attack angel at $C_{Lmax}$ was smaller than the plate model's. 4. In the relationship between aspect ratio and lift force, the attack angle which had the maximum lift coefficient was large at the small aspect ratio models, At the large aspect ratio models, the attack angle was small. 5. There was camber vertex in the position in which the fluid pressure was generated, and the rectangular & trapezoid canvas had larger value of camber vertex when the aspect ratio was high, while the inverted trapezoid canvas was versa. 6. All canvas kite had larger camber ratio when the aspect ratio was high, and the rectangular & trapezoid canvas had larger one when the attack angle was high.