International Retail and Franchise Business R&D Center
Faculty of Business Administration
Sripatum University
Index
Sripatum University Profile
International Retail and Franchise Business R&D Center
History
Concept
Objective
Mission
Processing
Main Project of the Organization
Target Group
Admission Process
Organization Structure
Organization’s Development Plan
Problems and Ideas on the Development of Franchise Business in Thailand
Overview of the Development of Thai Franchise Business
The Management Team of International Retail and Franchise Business R&D Center
International Retail and Franchise Business R&D Center
Establishing of the International Retail and Franchise Business R&D Center (IRF) had been part of the Sripatum University’s policy aiming to develop the standard of Thai’s business management pattern and help increase the competitive level of Thai business in the real market situation. For knowledge base approach, training is one most necessity activity to the organization development. It is well accepted that the sustainability and successfully of an organization are achievable thru the training process where emphasis on building up knowledge thru continuous learning. It can help develop and improve every level of employees to have proper vision and knowledge to fulfill their task.
The crucial mission of the International Retail and Franchise Business R&D Center (IRF) of Sripatum University is to academically develop and support management knowledge in order to increase business efficiency of trade sector by providing an international business management training system on necessary issues for example, Franchise Business Management, Establishing Branching Business, SME Management and Control, Organization Management and Development, etc. In addition, IRF will also provide consultancy, academic documentary service, and trade disputary information. IRF will be organizing a routine training program according to the demand from business sector, in order to help develop efficient personals for business entities and various organizations. The IRF are pleased to serve you, for further information and requesting for service, kindly contact: -
International Retail and Franchise Business R&D Center
Sripatum University
61 Phaholyothin Road, Chatuchak
Bangkok 10900
Tel. (662) 579-1111, 561-2222 ext. 2343
Webstie : www.irf-spu.com
History of International Retail and Franchise Business R&D Center
For years, Sripatum University has played a significant role in developing and providing college education to the society, including offering research assistance service, training, and provides educational related activities. When Thai economy had focusing and emphasizing on the development of Small –Medium Enterprise (SME), Sripatum University had also revised its educational plan to make sure that it still be part of the significant supporter in improving the efficiency of the business. It had been aiming to improve the management ability and increase the efficiency level of business personal in order to lead to the development of Thai business sector.
Therefore, providing knowledge and experience base study services of an international retails and franchise management skills are to serve the university’s purpose, hence the IRF center was founded. International Retail and Franchise Business R&D Center is the first and only university level organization in Thailand who provides an international standard training where originate/focus in research and study of retail and franchise business. IRF will also introduce the neo-management technique to the Thai business sector.
International Retail and Franchise Business R&D Center given highest priority to the training activity, which believed to be most significant mission in improving and increasing efficiency of business management team, business man, employees, and all company’s related personals, so that personals can response quicker and better to all business requirements and issues. It’s also trying to help reduce personal development related expenses and help make sure business enterprises can continue their personal development activities in the future.
Currently, International Retail and Franchise Business R&D Center is operating under a supervision of the Faculty of Business Administration, Sripatum University.
Vision
To be the center of Retail and Franchise business knowledge both domestically and internationally
Concept
The duty of International Retail and Franchise Business R&D Center is to initialize a more standardize business management model, especially for retail and franchise business in Thailand, to help increase the competitiveness level in the international market which in turn will leads to a continuously development of Thai business standard.
It’s widely accepted that the most efficient trading system, which can generate continuously market, is the business that expand by branching out, so call “Franchising business” investment system. It is quite crucial in managing such business, as it requires a specialized management skill that had been developed for decades.
In addition, a common problem facing by retail and franchise business both servicing and trading sector are management methodology and human resource management issues where it’s typical that these type of business will face high rate of employee turnover. High employee turnover rate can consecutively lead to more problems and issues, e.g. acquiring new employee, job training for those new employee. While coping with those issues business can easily lost it’s focus and potentially lost some of the business opportunity.
Therefore, Sripatum University would like to improve the business training system to be more up to date in various areas for example, retail business, franchise business, and small –medium enterprise, hence the founding of International Retail and Franchise Business R&D Center mainly to support the rapid growth of retail market including service type of business e.g. restaurant. The IRF will also be a leader in holding related seminar, both practically and academically, so that it can comply in the real life situation.
Objective
The main objective is to take on the general employee training and to develop necessity knowledge require in managing neo- business system, e.g. retail business and franchise business, both theoretically and practically in all business aspects: - services management, development of business standard, basic computer skill and knowledge (both hardware and software), and logistics.
Two levels of personals will be train by the IRF; primary management employees such as branch manager, and operational employees. After training both will become keen employees who understand clearly on their entire task and can be main/efficiency force to the success of their organization.
With the objective and corporations from all related organizations and entities, Sripatum University then create the training center who will help provide the required knowledge and experiences thru class training and real life experience. In addition, the IRF will also provide academic seminar to the member including giving out consultancy services on the proper management and marketing system.
1. To create a helping/supporting channel to all retail business participated in the project thru setting up a prototype business model and giving out formal standardize management knowledge
- Creating clear business image and business model for the new retail and franchise business system in which can be implement in the real business circumstance with a reasonable profitability
- Distributing retail and franchise business management knowledge to the public so that it can be self- implement according to the international standard
- Generating an academic networking throughout small trading businesses so that they can be operated with proper standard and necessary mutual sharing of information
2. To improve retail and franchise business management knowledge of Thai people in order to increase competitiveness level of existing retail and franchise business and new start up enterprise.
3. To support personals who interested in improving their skill & knowledge, including sharing the retail and franchise management skill to both business owners and their employees
4. To coordinate academically with every other organization which related to the improvement of retail and franchise business system
Mission
International Retail and Franchise Business R&D Center is the center of all knowledge on retail and franchise business management. Focusing on information system development and business knowledge base, the IRF spread out the information and skills to both government and private sector by hosting a training course for Thai businessperson and others, processing retails and franchise business related project for government entities, setting up an international business management standard e.g. franchise business management and retail business management, and finally generating a business specialist training center with coordination from other related training centers. This is to help assure that Thai franchise and retail business can be developed to the international standard and can be compete efficiently in the market.
In order to support and improve the retail business management skills, main mission are:-
1. Networking with retail trading companies and related organization both domestically and internationally in order to make sure that the seminar being help will be most benefit and always suitable to current world market circumstance, including to make sure that the seminar will meet international standard
2. Generate career path for business owner and operational personal in the neo- business area
3. To be a center of all knowledge on retail and franchise business management
Main Project of International Retail and Franchise Business R&D Center
IRF emphasizing on setting up practically base training courses and hosting research projects as follow: -
Ø Franchise business management programs and programs for franchise business manager
Franchise Management Program
Mini MBA in Franchise Management
Franchise Management: Business Development Program
Franchise Management Executive Program
Franchise Management Short Program
Marketing and Selling in Franchise Business
Franchise Relationship Management
How to Set up Franchise
Organizing Franchise Business
Ø Business development program for business owner
Ø Branching business management program in retail business management
Mini MBA in Retail Business Management
Retail Business Executive Programs
Branching Management
Shop Operation Management
Logistic Operation in Retail Business
Restaurant Management
Beauty and Spa Management
Ø Researching on the evaluation of business competitiveness level of each province in Thailand
Ø Providing sub-program for business development on all aspect of SME business
Target Group
There are two sets of target group for the seminars: -
Franchise business operators and those who interested in franchise business
Consumable / Non-consumable retail trading business e.g. drugstore, clothing store, hardware store, etc. including retail servicing business e.g. restaurant, laundry store, etc.
Program Admission Process
1. General Admission
2. Admission under any special project
e.g. Organizations corporative project
Organization Structure
Management Structure when coordinating with other enterprise
Organization Chart of International Retail and Franchise Business R&D Center
Development Plan of International Retail and Franchise Business R&D Center
Operational Plan
1. Establish a specialized organization under the supervision of Sripatum University
2. Create a center of Franchise business
3. Arrange incubator project for specialized business
4. Coordinate with other institution that is related to various business incubator process
5. Continuously perform a market survey to ensure that the IRF can be placed in the center of Small-medium enterprises in Thailand
6. Participate in the business development activities with other trade institutions
Problems and Ideas on the Development of Franchise Business in Thailand
There had been a long history of the development of franchise business in Thailand. Each period required the different adaptation and approaches in developing the business system. Franchise business is the business system that help gathering the small business forces in order to build up standardized services and products and compete in the large market. These in turn help develop an overall economic and increase society standard of living.
In general, Thai franchise businesses are still having a very low rate of success because most of franchise businesses are operating under the wrong concepts or lack of continuous development. The same mistakes/problems always happen repetitively when setting up new franchise. Therefore, both franchisors and franchisees need to understand that mistakes needed to be investigated then used to adapt and improved the existing system. If both franchisors and franchisees have a clear understanding of problems and processes, it will be a true benefit to the system as a whole.
Primary problems of franchise business system are: -
1. Franchisees problems
Franchisee is the franchise buyer/investor. In Thailand, the franchisees normally have very little or no knowledge about the franchise business. When franchisors tender their copyright/franchise, franchisees normally don’t understand why they have to pay for those copyright/franchise fees. Consequentially, the problem creates a difficulty for franchisor to collect those fees. With out the franchise fees, franchisor will not be able to efficiently develop their franchise system; their product image and the product itself can easily turn unsuccessful and lead to the business close down at the end.
Sub Franchisors system can also be a part of franchise development problems. In this case, the franchise development and management get delegated to trade partners where mostly be the very large investor who lack the management attention. As franchise/branching business normally requires a very detailed attention in managing each branches, without close attention, the business can be easily unsuccessful. Besides, choosing the franchise buyer (franchisees) is also very crucial to the success of the business. It needs proper system and standard to select the buyer. Normally, franchisees and franchisors only concern about the investment, they normally believe that only investment require to be part of franchise business and bring the success to the business. In fact, franchise businesses need a very close control and continuous development from both franchisors and franchisees. Hence, improper policy in expansion of franchise business can cause problems to the overall cooperate image and in turn highly affect the success of the overall organization.
2. Market management problems
For those franchise businesses that already have an existing large competitor, without clear concepts of their business, customer cannot to identify the difference. Having competitiveness over the large competitor is nearly impossible since the competitors would have much higher negotiation power in the market and can offer a better services and product to the market. Finally, franchise business with unclear development plan and strategy will have to automatically fade out of the market.
In the current market situation where abundant information and plenty options are available, continuous development of product and services become very significant to the company survival. Without development business might soon need to close down. Misunderstanding of product development to be the only part of the advertising process will leads to the product quality and image being unsatisfied by customer. This is because the product image needs to be accompanied by business value, which comprises of the product itself, the convenience, and a proper service practices. Besides the suitable publication to the right target group will increase company creditability especially to those who need to acquire the product license.
Branching out internationally is also a very interesting point to study. If we can open a branch in the proper target country, the product will be able to penetrate the market faster and last in the market longer than the typical export methodology. Anyway, open up a branch in foreign country without complete readiness can also cause bad effect to the company and product image, especially if the branch needs to finally be closed down. Branching out internationally require much more dedicated study and development than normal. Therefore, branching out internationally need to be well planned; any mistakes will be harder to recover in the foreign country.