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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 business life. It is the biggest city in the Malaysia. It contains around 14 million population. This location can attract more customers. Our franchise store can use the professional advertising promotes that we are the Canadian distributor and retailer of hardware, home improvement, and gardening products. (RONA, 2007). We are the professional store. Our company also cooperates with some local large companies to supply the specific materials for their need, so people will know and accept RONA through the local companies.

Control and Evaluation


Since RONA use the franchise as mode of entry, our company will use the licensing of trademarks to control franchise. And use the financial statement to evaluate the franchise. For example, our company will use the financial statements report to evaluate the franchise. The financial statements report is ¡°are formal records of a business' financial activities. These statements provide an overview of a business' profitability and financial...