Select Currency
Translate this page

EXAMINING THE IMPEDIMENTS TO EFFECTIVE FRANCHISING IN NIGERIA

Format: MS WORD  |  Chapter: 1-5  |  Pages: 63  |  447 Users found this project useful  |  Price NGN5,000

  DOWNLOAD THE FULL PROJECT

EXAMINING THE IMPEDIMENTS TO EFFECTIVE FRANCHISING IN NIGERIA

 

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

In the recent decades, foreign markets across the world have opened up and allowed many firms to move from a national scale to competing internationally in other countries. The opening of international open market has made it easy for international firms to look for new markets and opportunities in other countries away from their countries of origin. They have been several factors that have prompted franchisors to pursue the African markets such relaxed trade barriers in some African countries, western market saturation. This has forced franchisors to look for alternate distribution channels for their products and services in African markets. (Kendal H, 2014) Nigeria is often viewed as one of the African markets with growth potential which is why many franchises are setting camp in Nigeria.

Nigeria has been part of the World Trade Organization since 1st January 1995 as a result of the Nigerian trade reforms that started in the 90s. Kiringia (2004) noted that in the Nigerian market, the years after 1990 led to a steady reduction of tariff rates and tarrif bands. This greatly helped Nigeria position itself in the international trade space.

Kiringai (2004) explained in her study that ―From 1990, duty rates on imported raw materials and spare parts were also targeted for reduction so as to reduce the antiexport bias and improve the country‘s competitiveness.‖ One of the ways Nigeria has opened up its market is by imports from international firms by allowing them to set up and operate in Nigeria through various modes one which is international franchising. However, foreign market entry through international franchising is only appropriate for certain kinds of companies. Burton & Cross (1995) stated that ―International franchising is a foreign market entry mode that involves a relationship between the entrant(franchisor) and a host country entity, in which the former transfers, under contract, a business package(or format), which it has developed and owns, to the latter.

Malinda (2016) in her World Bank report noted that increased disposable income amongst the Nigerian population had spiked the consumer expenditure. This means that more people in Nigeria have extra money to spend on food, drinks and shopping. This can also be attributed to the increased construction of shopping malls and recreation facilities that are in most urban areas of Nigeria. Most if these shopping malls have a food court section which in most cases is occupied by one or two fast food franchises. Malinda, C (2016) observed that as a result of this increased consumer expenditure more money and time was being spent by Nigerians on new drinking and eating habits, For example there were more people eating out during lunch breaks and ordering for fast food in the evenings. A factor that has contributed significantly to the growth of the fast food industry in Nigeria. Most fast food restaurants in Nigeria run till late hours because there is a large urban population that prefers to eat fast food as opposed to going home to cook as previously done.

According to the Nigeria Franchise Association data, ―the average startup investment in money and time for a franchise in the food/restaurant industry in Nigeria is US$100,000.‖ Due to the different business operating environments in different countries, organizations have to carefully consider before entering any market. A company may be able to successfully set up and operate in one country but might find it extremely difficult to survive in another country because of the business environment. Some of the factors a company has to consider before going into a new country are its own resources (financial), structures and the country‘s cultural environment. These are the two biggest challenges firms are likely to face when entering a new country.

According to research by Timothy Bates on survival of franchised businesses in the US, after 4 years of operation on 62% of franchised business has survived at the end of the period. According to the British Franchise Association, 50% of franchise systems fail over a period of 10 years. There are many internal and external factors that determine the survival of an international franchise when operating in a host country. Some international firms are able to strategically deal with these factors to operate successfully, but some may not have the capability to survive these factors and end up exiting the host country.

1.2 Statement of Problem

One of the modes of entry into international markets is franchising. Franchising is one of the ways an organization can participate in global trade. Just like all other modes of entry, franchising has several challenges that both the franchisor and franchisee must try and overcome if they are to succeed in the new market. When it comes to the Nigerian market, many franchising have faced the problem of adapting to the market properly. Many franchises assume that the marketing strategies they used in other parts of the world will work in Nigeria. However, the Nigerian market and consumer is very complicated to crack especially when it comes to lifestyle choices such as food.

For example, fast foods such as the popular fish and chicken restaurants (Kenchick) are still far more popular than any international franchise. This can be attributed to the cost of their products. Many franchises have to figure out how to compete with the low prices their competitors offer and still make profits to survive. While the Nigerian middle class is growing and has a considerable amount of disposable income, one has to carefully study the market to understand how to penetrate it. This is where most franchises face problems.

Nigeria‘s GDP increased by 5.9 percent in the first quarter of 2016. According to a report by World Bank, the accommodation and restaurant industry grew by 12.1 percent. Despite its past problems, the last decade has seen Nigeria restore stability to its currency markets and significant structural and economic reforms have contributed to sustained economic growth. This has made Nigeria very attractive for investors. According to the latest report by World Bank, Doing Business in Nigeria index (2015), Nigeria rose 28 places in ease of doing business in Nigeria. This means that businesses are finding it easier to establish in Nigeria but there are still certain regulations and policies that international franchises still have to overcome to be able to compete and operate in the Nigeria market. For example, there are certain labor laws they have to follow that are not necessarily in other countries. They also have to adhere to the city council regulations and food standards which some franchises find restrictive.

With this scenario, many international franchises have found it extremely difficult to survive in the Nigerian market and many of them opt to leave the market. However, there are many franchisees that have managed to study the market and adapt accordingly and have been able to survive the market. This study seeks to identify the challenges franchisees face and how they can overcome them to survive the ever growing Nigerian market. This proposal then aims to answer the question; what are factors (both internal and external) that affect the performance of international food franchises operating in Nigeria?

1.3 Objectives of the study

The main objective of this study was to identify the factors that affect franchising in the Nigerian market.

The study was guided by the following objectives:

i. To identify the external factors that affect the performance of franchises in Nigeria

ii. To establish the internal factors that affect the performance of franchises in Nigeria



1.4 Significance of the Study

The findings of this study will be of benefit to international franchises seeking to set up in Nigeria as it highlights the challenges they are likely to face and how to overcome these challenges. The study will help management and decision makers come up with proper strategies to help them enter and survive in the Nigerian market.

Academics and business researchers will also find this study useful for support literary citations as well as for developing themes for further research. The study hopes to make theoretical, practical and methodological contributions in the international business field. Researchers will be able to use the study to further their study in this area by reviewing the literature and highlighting academic gaps to fill. Franchising is an important strategy when it comes to international trade for Nigeria and this study will provide useful information for government and trade policy makers. From the challenges and recommendations highlighted in this study, policy makers will have information to help them understand what is hindering international trade when it comes to franchising in Nigeria.

1.5 Research Question

1. what is the external factors that affect the performance of franchises in Nigeria?

2. what is the internal factors that affect the performance of franchises in Nigeria?

1.6 Scope/Limitation of the study

The limitation faced by the researcher during data collection was the availability and busy schedules of the managers. Despite the questionnaires being submitted early enough to the mangers, some of the managers filled in the questionnaires hurriedly as the researchers deadline was approaching. This may have affected the study as they did not take time to think through analyze the questions. Another limitation was that the respondents were hesitant to give some information which they considered as sensitive and confidential, hence did not give adequate feedback. As a result, one organization in the census refused to respond to the questionnaires completely.

  DOWNLOAD THE FULL PROJECT

EXAMINING THE IMPEDIMENTS TO EFFECTIVE FRANCHISING IN NIGERIA

Not The Topic You Are Looking For?



For Quick Help Chat with Us Now!

+234 813 292 6373

+233 55 397 8005


HOW TO GET THE COMPLETE PROJECT ON EXAMINING THE IMPEDIMENTS TO EFFECTIVE FRANCHISING IN NIGERIA INSTANTLY

  • Click on the Download Button above.
  • Select any option to get the complete project immediately.
  • Chat with Our Instant Help Desk on +234 813 292 6373 for further assistance.
  • All projects on our website are well researched by professionals with high level of professionalism.

Here's what our amazing customers are saying

Joseph M. Yohanna
Thanks a lot, am really grateful and will surely tell my friends about your website.
Excellent
Temitayo Ayodele
Obafemi Awolowo University
My friend told me about iprojectmaster website, I doubted her until I saw her download her full project instantly, I tried mine too and got it instantly, right now, am telling everyone in my school about iprojectmaster.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work
Very Good
Ibrahim Muhammad Muhammad
Usmanu danfodiyo university, sokoto
It's a site that give researcher student's to gain access work,easier,affordable and understandable. I appreciate the iproject master teams for making my project work fast and available .I will surely,recommend this site to my friends.thanks a lot..!
Excellent
Abdulrazak Bello Marsha
Usman Dan fodio University
It was quite a better guide for project and paper presentation purpoting. Many thanks.
Average
JONNAH EHIS
Ajayi Crowther University, Oyo
I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!
Excellent
Musa From Ahmadu Bello University
Thank you iprojectmaster for saving my life, please keep it up and may God continue to bless you people.
Excellent
Samuel From Ajayi Crowther University
You guys just made life easier for students. Thanks alot iprojectmaster.com
Excellent
Oluchi From Michael Opara University
If you are a student and you have not used iprojectmaster materials, you are missing big time! iprojectmaster is the BEST
Excellent
Dau Mohammed Kabiru
Kaduna State College of Education Gidan Waya
This is my first time..Your service is superb. But because I was pressed for time, I became jittery when I did not receive feedbackd. I will do more business with you and I will recommend you to my friends. Thank you.
Very Good
MATTHEW NGBEDE
Ahmadu Bello University
I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!
Excellent

FREQUENTLY ASKED QUESTIONS

How do I get this complete project on EXAMINING THE IMPEDIMENTS TO EFFECTIVE FRANCHISING IN NIGERIA?

Simply click on the Download button above and follow the procedure stated.

I have a fresh topic that is not on your website. How do I go about it?

How fast can I get this complete project on EXAMINING THE IMPEDIMENTS TO EFFECTIVE FRANCHISING IN NIGERIA?

Within 15 minutes if you want this exact project topic without adjustment

Is it a complete research project or just materials?

It is a Complete Research Project i.e Chapters 1-5, Abstract, Table of Contents, Full References, Questionnaires / Secondary Data

What if I want to change the case study for EXAMINING THE IMPEDIMENTS TO EFFECTIVE FRANCHISING IN NIGERIA, What do i do?

Chat with Our Instant Help Desk Now: +234 813 292 6373 and you will be responded to immediately

How will I get my complete project?

Your Complete Project Material will be sent to your Email Address in Ms Word document format

Can I get my Complete Project through WhatsApp?

Yes! We can send your Complete Research Project to your WhatsApp Number

What if my Project Supervisor made some changes to a topic i picked from your website?

Call Our Instant Help Desk Now: +234 813 292 6373 and you will be responded to immediately

Do you assist students with Assignment and Project Proposal?

Yes! Call Our Instant Help Desk Now: +234 813 292 6373 and you will be responded to immediately

What if i do not have any project topic idea at all?

Smiles! We've Got You Covered. Chat with us on WhatsApp Now to Get Instant Help: +234 813 292 6373

How can i trust this site?

We are well aware of fraudulent activities that have been happening on the internet. It is regrettable, but hopefully declining. However, we wish to reinstate to our esteemed clients that we are genuine and duly registered with the Corporate Affairs Commission as "PRIMEDGE TECHNOLOGY". This site runs on Secure Sockets Layer (SSL), therefore all transactions on this site are HIGHLY secure and safe!