Maliks: Franchising the Brand
(9 pages of text)
Maliks, a major stationery retailer and provider of photocopy and printing services, had operated in Beirut, Lebanon, for over 25 years. The company’s founder was considering the most suitable strategy for his goal of 100 branches by 2020. He was assessing the advantages and disadvantages of adopting the franchising business model as an expansion strategy and wondered what operational problems he would encounter. The Maliks management team was also assessing the viability of using the franchise model to expand beyond the greater Beirut area to achieve substantial growth. The company enjoyed strong brand-name recognition, but there were still many questions about the company’s next steps, including whether the franchise business model was the most suitable strategy for Maliks. Did the company have the necessary resources and skilled management team to adequately monitor and support prospective franchisees? How would prospective franchisees be selected? What marketing and operational costs was the company likely to incur as a franchisor? Most importantly, did the Maliks management team have the required skills to effectively manage the franchise model?
This case is suitable for undergraduate- and graduate-level management and strategy courses. It provides a practical example for students to understand the key factors that must be considered when a business contemplates expansion through domestic franchising. It primarily addresses corporate growth strategies through franchising and local expansion. By working through the case and assignment questions, students will have the opportunity to do the following:
- Analyze a company’s key success factors and challenges to determine if the business is suitable for the franchise model.
- Assess the relationship between franchisor and franchisee, and highlight the elements that make such a relationship successful.
- Discuss the importance of management commitment, leadership, and knowledge to a successful franchising venture.
- Evaluate various types of franchises and assess typical constraints such as financial limitations, operational matters, and legal issues.
Lebanon, Medium, 2014
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
$4.50 CAD / $4.25 USD Digital Download