Thesis (MBA)--Stellenbosch University, 2006. / ENGLISH ABSTRACT: New economic activity is essential to create jobs that can absorb the surplus~ abour
being created by, amongst other things, the increase in population rate, particular1y in
developing countries like South Africa, and rationalisation and increased productivity
characterising larger organisations nowadays. Entrepreneurship has been identified
as one of the key sources and driving forces behind job creation and long-term
economic growth, yet South Africa performs well below average in terms of
entrepreneurial activity, particularly when compared to other developing countries.
The weaknesses in the training and education system, lack of financial support, lack
of research and development transfer and poor access to physical infrastructure were
consistently identified in the various Global Entrepreneurship Monitor studies as
accounting for the low entrepreneurial activity in South Africa.
v--
The franchising business model has be/ldescribed in terms of Porter's value-chain
analysis and shows that the franchisor prescribes to the franchisee a business model
by providing procedures, guidelines, sharing, training and support for the execution of
the primary and secondary activities within the franchisee's value chain. This is
achieved through the tangible interrelationships that exist between franchisor and
franchisee, which are characterised by the sharing and support of activities that are
related within the two value chains and the intangible interrelationships involving the
transfer of management know-how through training and mentoring. Considering the
nature and the advantages of the franchise business model as described in terms of
Porter's value-chain analysis, franchising can go a long way towards overcoming the
lack of training and education and access to finance many entrepreneurs in South
Africa are faced with. There is therefore evidence to suggest that franchising as a
business model can reduce many of the risks associated with starting up a new
business and contribute towards the improvement of the entrepreneurial status of
South Africa.
One of the main rationales behind purchasing a particular franchise is the confidence
that the franchise will contribute to making the individual's business success more
predictable. For this to become a reality requires that the franchisor provides an
individual with a tried and test concept linked to a respectable and well-known brand
within a structure that provides extensive initial and continuous support. However,
although there are clear guidelines for the structure and conduct within the franchise
business model, there are no all-encompassing rules regarding the extent to which all
the aspects of a franchise business model have to be present for a particular
franchise system to be considered good or bad. One franchise system may allow
franchisees more leeway in some aspects of the business and have less formalised
interrelationships within its value chain compared to another franchise system yet
they may be equally successful systems depending on the extent to which their
structure and the personal profile of the prospective franchisee complement each
other. Therefore there are different management styles applied within different
franchise systems and whether a particular franchise system will be successful for a
particular franchisee depends upon the fit between the individual's personal profile,
which encompasses the individual's skills, personality, entrepreneurial profile, risk
profile, control profile, independence profile, work habits, ambitions, dreams,
strengths and weaknesses and the franchise culture, functionality, structure, dynamic
inter-relationships and regulation that prevails in the franchise network being
considered. These factors, combined with others such as the current franchisor
recruitment practices; abuse of the franchise concept and the balance of power
considerations between franchisor and franchisee, emphasise the necessity for a
prospective franchisee to take responsibility by performing his/her own thorough
evaluation.
The aim of this study was therefore the development of an analytical framework,
which can be used by a prospective franchisee as a guideline for evaluating and
deciding whether he/she is suited for franchising, whether a particular franchise
opportunity is a sound and legitimate option and whether there is a fit between the
personal profile of the individual and the profile of a particular franchise investment
option being considered. By following the proposed analytical framework a
prospective franchisee is able to develop a personal profile according to
recommended guidelines and evaluate each potential franchise being considered / AFRIKAANSE OPSOMMING: Nuwe ekonomiese aktiwiteit is noodsaaklik om werk te skep wat die ooraanbod van
arbeid kan absorbeer wat onder andere veroorsaak word deur die bevolkingsaanwas,
veral in ontwikkelende lande soos Suid-Afrika, en rasionalisering en groter
produktiwiteit wat deesdae groter organisasies kenmerk. Entrepreneurskap is
ge'identifiseer as een van die sleutelbronne en dryfvere agter werkskepping en
langtermyn ekonomiese groei. Tog presteer Suid-Afrika ver onder die gemiddelde in
terme van entrepreneurskapsaktiwiteit, veral as dit vergelyk word met ander
ontwikkelende lande. Die tekortkominge in die onderwys- en opleidingstelsel, gebrek
aan finansiele ondersteuning, gebrek aan oordrag van navorsing- en
ontwikkelingskundigheid en swak toegang tot fisiese infrastruktuur is konsekwent
deur die Global Entrepreneurship Monitor ge'identifiseer as redes vir die lae vlak van
entrepreneursaktiwiteit in Suid-Afrika.
Die konsessie-sakemodel is in terme van Porter se waardekettinganalise beskryf en
toon dat die konsessiegewer aan die konsessiehouer 'n sake model voorskryf deur
prosedures, riglyne, deelname, opleiding en ondersteuning te voorsien vir die
uitvoering van die primere en sekondere aktiwiteite binne die konsessiehouer se
waardeketting. Dit word bereik deur die tasbare interverhoudings wat tussen die
konsessiegewer en konsessiehouer bestaan, wat gekenmerk word deur die
deelname aan en ondersteuning van aktiwiteite wat verwant is binne die twee
waardekettings en die ontasbare interverhoudings wat betref die oordrag van
bestuurskennis deur opleiding en mentorskap. As die aard en die voordele van die
konsessie-sakemodel oorweeg word, soos beskryf in terme van Porter se
waardeketting, kan die konsessiebedryf baie doen om die gebrek aan onderwys en
opleiding en toegang tot finansiering wat baie entrepreneurs in Suid-Afrika ondervind,
teen te werk. Daar is dus aanduiding dat konsessies as sakemodel baie van die
risiko's kan verlaag wat verband hou met die totstandbring van 'n nuwe onderneming
en kan bydra tot die verbetering van die entrepreneurstatus van Suid-Afrika.
Een van die hoofbeweegredes agter die aankoop van 'n spesifieke konsessie is die
vertroue dat die konsessie daartoe sal bydra om die individu se besigheid meer
voorspelbaar te maak. Ten einde dit moontlik te maak, moet die konsessiegewer 'n
individu voorsien van 'n beproefde konsep gekoppel aan 'n gerespekteerde en
bekende handelsmerk binne 'n struktuur wat omvattende aanvanklike en
deurlopende ondersteuning bied. Alhoewel daar duidelike riglyne is vir die struktuur
en bedryf binne die konsessie-sakemodel, is daar geen allesomvattende re~ls
betreffende die omvang waartoe al die aspekte van 'n konsessie-sakemodel
teenwoordig moet wees ten einde te bepaal of 'n spesifieke konsessiestelsel goed of
sleg is nie. Een konsessiestelsel mag konsessiehouers meer vryheid bied in terme
van sekere aspekte van die besigheid en minder formele interverhoudings he binne
sy waardeketting vergeleke met 'n ander konsessiestelsel, maar hulle mag ewe
suksesvolle stelsels wees afhangend van die mate waarin hulle struktuur en die
persoonlike profiel van die voomemende konsessiehouer mekaar komplementeer.
Daar word dus verskillende bestuurstyle toegepas binne verskillende
konsessiestelsels en of 'n spesifieke konsessiestelsel suksesvol sal wees vir 'n
spesifieke konsessiehouer hang grootliks af van die passing tussen die individu se
persoonlike profiel, wat insluit die individu se vaardighede, persoonlikheid,
entrepreneursprofiel, risiko-profiel, kontrole-profiel, onafhanklikheidsprofiel, werkstyl,
ambisies, drome, sterkpunte en swakpunte en die konsessie se kultuur,
funksionaliteit, struktuur, dinamiese interverhoudings en regulering wat bestaan in die
konsessienetwerk wat oorweeg word. Hierdie faktore, tesame met ander soos die
huidige konsessiegewer se aanstellingspraktyke, misbruik van die konsessiekonsep
en die magsbalans-oorwegings tussen die konsessiegewer en konsessiehouer,
beklemtoon die noodsaaklikheid vir 'n voornemende konsessiehouer om
verantwoordelikheid te neem deur sylhaar eie deeglike evaluering te doen.
Die doel van hierdie studie is daarom die ontwikkeling van 'n analitiese raamwerk wat
deur 'n voornemende konsessiehouer gebruik kan word as 'n riglyn vir die evaluering
en besluitneming ten opsigte van sy/haar eie gepastheid vir die konsessiebedryf, of
'n spesifieke konsessiegeleentheid 'n grondige en wettige opsie is en of daar 'n
passing is tussen die persoonlike profiel van die individu en die profiel van 'n
spesifieke konsessiebelegging wat oorweeg word. Deur die voorgestelde analitiese
raamwerk te volg, sal die voornemende konsessiehouer in staat wees om 'n
persoonlike profiel te ontwikkel volgens aanbevole riglyn en elke potensiele
konsessie wat oorweeg word, te evalueer.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/20891 |
| Date | 03 1900 |
| Creators | Jordaan, Adrian |
| Contributors | Maas, G., Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Rights | Stellenbosch University |
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