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Rona

Select and justify an appropriate mode of entry for your global product or service

RONA establishes as franchise in Malaysia since this type of store is a new operation in this country. A franchise is ¡°a form of business organization in which a firm which already has a successful product or service (the franchisor) enters into a continuing contractual relationship with other businesses (franchisees) operating under the franchisor's trade name and usually with the franchisor's guidance, in exchange for a fee.¡±(InvestorWords.com, 2007). RONA operates a network of more than 670 corporate, franchise and affiliate stores of various sizes and formats. (RONA, 2007). RONA will use the franchise as mode of entry. Franchise can reduce the risk. Open a business in another country is risky. Franchise¡¯s major benefit is risk minimization.

Implement strategy

RONA will be located at the capital city of Malaysia, Kuala Lumpur, because this area is the heart of country¡¯s......


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Approximate Word Count: 428
Approximate Pages: 2 (250 words per double-spaced page)

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