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1、FranchiseManagementofInternationalizedHouse-furnishingIndustry—CaseStudyofIKEA’sWorldwideExpansionChapter1Introduction1.1ContextWiththerapiddevelopmentofeconomy,franchiseemergesastheproductofmodernindustrialrevolution.Asinnovativewaysoforganizationandmanage
2、ment,thefranchise,originatedfromtheU.S,quicklyspreadoutworldwidesimplybecauseitcanbepracticedbeyondrestrictionsofcountries,cultures,andindustries.Statisticsindicatethattherewerenearly16,000franchisesystemsinoperation,withtheirpartners’amountto160million.The
3、globalfranchisingindustryhasasaleofmorethanonetrillionU.S.dollarsannually,providingasmanyas20millionjobs.China,beingincreasinglyattractiveintheinternationalfranchisemarket,isnowlookingforopportunitiestoinvestinprofitablefranchisingprograms(中国投资咨询网,2007中国特许经
4、营业研究咨询报告,URL:http://www.ocn.com.cn/reports/2006098liansuojingying.htm<27Dec.2006>).In2004,China’stop100franchiseenterprisesachievedatotalsalesvolumeof496.8billionyuan,rising39%comparedwiththatof2003.Employeesinfranchisingcompaniesreached810,000,increasedby2
5、7%fromthe640,000ayearbefore.Andin2005,thesalesvolumecontinuallyflowsupto236.53billionyuanfortheformerhalfyear,grownby29.9%fromthatof2004(中国投资咨询网,2006年中国连锁经营行业分析及投资咨询报告,URL:http://www.ocn.com.cn/reports/2006104texujingying.htm<10Dec.2006>).50FranchiseManagem
6、entofInternationalizedHouse-furnishingIndustry—CaseStudyofIKEA’sWorldwideExpansionFranchisinginChinahasbeenescalatedintotheeraofhigh-speeddevelopment,albeit,manyproblemsalsoexistbehindtheprosperoussurface.Culturecollision,laggingadministrativestrategiesandi
7、nefficientlogistics,challengedthefranchisesysteminChina.Forthehouse-furnishingindustryespecially,themarketisstillfarfrommature.WiththepurposetopromoteChinesehouse-furnishingindustries,thisstudytriestoexplorethesuccessfulworldwideexpansionofthefamousSwedenfu
8、rnitureretailer—IKEAanditsimplicationswhichChinesehouse-furnishingindustriesmightbenefitfrom.1.2SignificanceoftheStudySinceWTOgaveitsadmissiontoChinafiveyearsago,Chinahasgraduallyopenedwideritsmarketst