a case study on the franchising of oriental optics company（一个案例研究在东方光学公司的特许经营）（27页）.docVIP

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a case study on the franchising of oriental optics company（一个案例研究在东方光学公司的特许经营）（27页）.doc

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A Case Study on the Franchising of Oriental Optics Company, Shanghai, China Qiongyao Zhang (Research Assistant and MBA student, University of Michigan-Flint) Email: qiongyaozhang@ Address: 625 East 3rd. St., Flint, Michigan, USA Phone: 1 352 870 0219 ABSTRACT This case study concentrated on a formally state-own company in Shanghai, the economic capital in China, the Oriental Optics (OO). OO has a history over 80 years. Its business focuses on selling prescription glasses to consumers. As an effort to modernize its sales channels, OO started its franchising venture about 10 years. During the last 10 years, OO expanded smoothly in Shanghai to over 100 sales outlets citywide. However, its quick growth also incurred many serious managerial and financial issues. The purpose of this case study was to analyze those issues and to make suggestions for OO’s future development. Additionally, this study aimed at providing some insight for other state-owned firms that are undergoing an ownership and/or management transaction. Topic areas: Chinese company, optics industry, franchising Methodological areas: franchising theory, operation management INTRODUCTION The China economy is growing rapidly, thanks to huge foreign direct investment, strong exports, and expending from the newly-emerged wealthy domestic consumers. Meanwhile, the competition in the consumer marketing is escalating. For many traditionally state-owned companies, their survivals depend on how they adjust themselves to compete with foreign brands and products as well as local firms from the private sector. This case study concentrated on a formally state-own company in Shanghai, the economic capital in China, the Oriental Optics (OO). OO has a history over 80 years. Its business focuses on selling prescription glasses to consumers. As an effort to modernize its sales channels, OO started its franchising venture about 10 years. During the last 10 years, OO expanded smoothly in Shanghai to over 100 sales outl