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Du succursalisme à la franchise:un choix de désinvestissement stratégique

Author

Listed:
  • Allessandro Baroncelli
  • Angelo Manaresi

    (Université de Bologne)

Abstract

The focus of this paper is on divesting in-house trade activities into franchising operations. Conventional wisdom and assets analysis would suggest that firm growth objectives could only be attained through investments whereas an asset shrinking (a divestment) will necessarly determine a reduction of the strategic scope of business. Similarly, franchising is usually regarded as a means for fast expansion of the franchisor's retail network, characterised by a low capital investment and a high level of control on marketing policies. However, companies often carry out divestments by changing the form of control on retail operations, from ownership to contractual relationships (i.e. franchising). In this paper the authors describe the circumstances under which franchising is used as a form of divestment ; in this context it is shown how divesting assets and substituting them with contractual relationships such as the franchise business format can lead to a network organization.

Suggested Citation

  • Allessandro Baroncelli & Angelo Manaresi, 1998. "Du succursalisme à la franchise:un choix de désinvestissement stratégique," Revue Finance Contrôle Stratégie, revues.org, vol. 1(2), pages 33-56, June.
    • Handle: RePEc:dij:revfcs:v:1:y:1998:i:q2:p:33-56
    as

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    References listed on IDEAS

    as
    1. Irene M. Duhaime & John H. Grant, 1984. "Factors influencing divestment decision‐making: Evidence from a field study," Strategic Management Journal, Wiley Blackwell, vol. 5(4), pages 301-318, October.
    2. Jung Hoon Derick Sohn, 1994. "Social Knowledge as a Control System: A Proposition and Evidence from the Japanese FDI behavior," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 25(2), pages 295-324, June.
    3. Sarah J. Freeman & Kim S. Cameron, 1993. "Organizational Downsizing: A Convergence and Reorientation Framework," Organization Science, INFORMS, vol. 4(1), pages 10-29, February.
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