2. corporate alliances and acquisitions; franchising.

3. alliances, acquisitions, franchising ? To stay competitive on the market

4. Joint venture Merger Acquisition

5. companies acquire a bigger market share; companies increase their capital and budget on different purposes; companies use the best of each other ’ s management and labour force; companies use the best of each other premises, equipment, technologies, procedures; companies don ’ t spend extra money to acquire more customers – they receive another company ’ s customer base.

6. companies are afraid that a voluntary joint venture or merger will turn into a forced takeover;

7. companies don ’ t want to lose their identity and corporate style, as a result they may lose their loyal customers;

8. when the negotiations about an alliance have started, companies learn more details about each other and come to the conclusion that an alliance will be no good for their business and financial position;

9. there can arise difficulties to agree on costs and prices;

10. companies don ’ t agree to reduce their staff or change work conditions;

11. both the personnel and shareholders may feel lack of trust in management personalities;

12. companies can ’ t agree which company representative will become the CEO.

13. Franchisor (franchiser) Franchisee Franchise fee (front end fee); Royalty (management service fee); Advertising fee Operations manual; Master franchisee

14. corporate style and corporate culture; a code of practice where the franchisor sets the standards customer care; a list of preferred suppliers; the fixed range of goods and services that should be provided by the franchisee; dress code for employees; a list of documents that the franchisor demands to carry out the supervision.

15. FOR FRANCHISER FOR FRANCHISEE selling a franchise allows them to expand their business and cover a bigger territory with their products or services without investing money. a franchisee doesn ’ t need to spend money on promoting a company and making it known to the public; investing in business that is already established on the market implies less risk; franchisee doesn ’ t need to think over business procedures, structures, schemes, rules; a franchisee can always get quick advice from the franchisor when facing some difficulties.

16. FOR FRANCHISER FOR FRANCHISEE the franchisor risks the reputation of the company in case the franchisee does something incorrectly and breaks the established rules. a franchisee has almost no room for creativity, in order to follow established rules and procedures carefully; a franchisee is always under tight control.