Expanding a franchise business in Indonesia (PDF)

Bachelor Thesis from the year 2018 in the subject Business economics - Business Management, Corporate Governance, Anhalt University of Applied Sciences, language: English, abstract: The purpose of this dissertation is to answer the research questions "why should the Coffee Club expand a franchise business in Indonesia?", "how can the Coffee Club enter the Indonesian market?" and "what are the business risks along with a solution/s"? Data has been collected through primary and secondary research by conducting observation and interview.

Indonesia is a great potential franchise partner for the Coffee Club because of two factors, including strategic goal with location and cultural and institutional distances of the different entry country. To obtain and maintain a sustainable marketing, a franchisor must apply the triple bottom line for creating, communicating, and delivering value to customers.

Other than that, new franchisors who wish to enter the Indonesian market should follow the Minister of Trade's regulation ("Regulation 53"), which requires that eighty per cent of the raw materials must be local products. The franchisor and the franchisee need to adjust their similarities and dissimilarities in the scope of culture value to maintain a long-term relationship.

Before entering the Indonesian market, a franchisor is fully adviced to conduct research and development to be more familiar with the other additional aspects in order to protect their business from potential risks. The limitations to the research are lack of information, poor understanding of the respondent against the explanation of the researcher (interpretation may introduce a bias), and the lack of validity (how to build the truthfulness of the respondents)