Asked by
Mariana Cervantes
on Nov 22, 2024
Verified
DoItBurgers, one of the leading fast-food restaurants serving large-sized burgers, is involved in a unique form of licensing in which it has granted several small fast-food houses to produce and supply its trademark burgers. However, DoItBurgers continues to be an active participant in the ongoing operations of the restaurants that serve its burgers. In the context of entering a foreign market, which of the following entry modes is exemplified in this scenario?
A) Exporting
B) Turnkey operation
C) Franchising
D) Joint venture
Trademark Burgers
Proprietary burgers that are legally protected by trademarks to distinguish their origin and ensure the uniqueness.
Licensing
An agreement in which a company allows another party to use its intellectual property, brand, or product in exchange for a fee or royalty.
- Familiarize oneself with the different mechanisms for breaking into foreign markets and the considerations that sway the choice of entry mode.
- Assess the impact of exporting and licensing on a company's international expansion efforts.
Verified Answer
AR
Learning Objectives
- Familiarize oneself with the different mechanisms for breaking into foreign markets and the considerations that sway the choice of entry mode.
- Assess the impact of exporting and licensing on a company's international expansion efforts.