FRANCHISING AS A CORPORATE STRATEGY FOR INCREASING ORGANIZATIONAL PROFITABILITY
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Abstract
This study is aimed at investigating franchising as a corporate strategy for increasing organizational profitability. The study focused on British American Tobacco (Nig) Ltd Zaria (BAT). The study used primary data collected with the use of questionnaire distributed to 50 managers of BAT, Zaria. The data was analysed using frequency percentages and weighted mean to answer the research questions. The findings of the study agreed with some previous research findings that the processes of strategic management generally include environmental scanning, formulation and implementation of strategies, and evaluation and control; but disagreed with some who posited that franchising have been fully embraced in Nigeria. The study finds that some corporate organizations are yet to fully come to terms with the processes of franchising. It found that some will formulate strategies but will not work according to its precepts. Finally, it is discovered that formulating the strategies without following the other processes is like not having any strategy at all. Therefore, the study concluded that franchising have not been fully adopted by corporate organizations in Nigeria, and that to enhance franchising; the full processes as identified by the model must be followed. And this will activate its positive impact on the firms’ competitive advantage as well as profitability.
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