AMaheshwari_BUS540-LH_Module08_05-10-2011

AMaheshwari_BUS540-LH_Module08_05-10-2011 - Module81...

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Module 8      1 Module 8
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Module 8      2 Abstract Response to the first question refers to the clear case of channel conflict which would  definitely affect all Tiptoe body shops and the franchisee-parent company relationship.  Response to the second questions lists my own list of ethical implications and also  lists the check list of Organizational-change and describes how each would apply to  each projected change.                                .
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Module 8      3 Module 8 Deliverables Assignments:  Questions Question:   1.   The   Tiptoe   Body   Shop   started   its   business   by   developing   an  extensive network of franchises. Recently, franchisees have complained about  the parent company competing against them through using direct catalog sales  and   Internet   mall   sales   to   boost   company   sales.   How   would   this   type   of  competition affect all Tiptoe Body Shops and the prospect of further franchise  expansion? Use graphics with this answer.  Response :  Franchising is a legal contract between a parent company (a franchisor)  and an individual or firm (a franchisee) that allows the franchisee to operate a certain  type of business under an established name according to specific rules.  The   above   situation   where   franchisees   have   complained   about   the   parent  company competing against them through using direct catalog sales and internet mall  sales to boost company sales refers to the typical situation of a vertical conflict which is  preparation   and   tax   service   Company,   franchisees   complained   when   the   parent  company began using the internet to deal directly with customers, as shown in the 
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Module 8      4 figure. Similarly, office furniture maker  Ashley created conflict with its dealers  when   it   opened   an   online   store   at  https://www.ashley.com   and   began  selling   its   products   directly   to  customers. Although Ashley said that  the website was reaching only smaller customers who weren't being served by current  channels. This type of conflict occurs when one party perceives they’re putting more into  the relationship than the other; in other words, not being rewarded for a good effort. According to me,  there are  several reasons why companies create channel 
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This note was uploaded on 12/08/2011 for the course MBA 520,510,59 taught by Professor Kate during the Spring '11 term at Asian Institute of Management.

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AMaheshwari_BUS540-LH_Module08_05-10-2011 - Module81...

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