Comparative Analysis On The Development Of Three Types Of Chain Operations

Since the 1850's, the chain operations have gone through more than 150 years. In most countries, there are three forms which are called regular chain, franchise chain and voluntary chain. In the western developed countries, these three types of operations are well developed. As a developing country, since the early 1990's, China has gradually transplanted and developed the chain operations after China's ten years'reform and opening up. The operations have promoted China's economic development, and they have made great contributions to the rapid growth of national economy, the increasing employment rates, the raising of the people's living standards. However, as the transplanted system, the three types of Chain operations have developed differently referring to the development pace and size. The regular chain has developed more smoothly, the franchise chain has had its ups and downs, and the voluntary chain has been developing slowly. So how to promote the rapid development of these three types of chain development is the meaning of this paper.Based on the questions above, this paper is divided into three parts and nine chapters. The first part is the formation of the development. Based on the theoretical foundation and the reference frame, it analyses the success of the transplantation of the chain management is the environmental adaptation, and also it compares the development conditions of the three chain management in the domestic and international markets. The second part is the analysis of the development mechanism. By the perspective of a macro, systems and dynamic, it analyses the driving force mechanism, the industrial adaptability and the store supervisions. And this part is the core of the paper. The third part is the development obstacles and the recommendations. It analyses the obstacles in the development processes of the three chain operations, the difficulties of the franchise chain and the voluntary chain, and based on this it proposes how to overcome the obstacles and gives the policy recommendations. This paper presents the following innovative ideas:1. By using the system changes theory and system transplant theory, it analyses the successful reasons of China's transplant of the chain operation system. In these theories, they think whether the system transplant can succeed depends on how to transplant and the mutual adaptation of the environments between the countries transplanting and transplanted. The success of China's chain marketing system is that companies can choose their own transplant ways, so that the transplanted chain marketing system fits up to China's system environment. After 10 years'quantitative change of reform accumulation, in the early 1990s, China has formed the basic cultural and social conditions for the chain operation development. These basic conditions conclude the significantly increasing of the urban residents'incomes, the firm establishment of a buyer's market situation, the formation of a competitive market economy, the learning template coming from the enter of the foreign multinational chain groups. At the beginning of the reform and opening up of China, the traditional commercial enterprises needed to form a new type of operation to overcome the difficulties, at the same time, the government's open-door policy helped to increase the supply of the chain management system. In this case, based on the lowering transaction costs and bringing the economies of scale, enterprises became to choose the form of chain operation.2. By the guiding of the population ecology theory, adding the theories of economics and management, from the perspective of macro concept, system concept and dynamic concepts, this paper gives a comprehensive analysis of the interactive process of these three chain operations'engine, and ultimately it forms the commercial symbiotic ecosystem which is developed by the competing and complement of these three chain operations. The first chain operation is the increasing competition of the environment, in order to obtain the competitive advantage, enterprises innovate the organization of the regular chain. The second one is because the headquarters want to get"non-physical capital expansion"and the entrepreneurs want to"improve the success rate of entrepreneurship", they work together to co-innovate the organization of franchise chain. In the environment of the extrusion of large-scale company, the small and medium-sized companies who don't want to lose their independence to innovate the organization of voluntary chain. All these three chain operations have endured organization variations, organization selection and organization retention, and in the end, they have found their own positions in the whole eco-group and cured them as an advanced circulation system. These three chain operations compete with each other and complement each other to form a vibrant commercial chain ecological community. And they play a role in the promotion of business development, in the efficient provision of marketing channels for manufacturers and in the provision for consumers with a convenient shopping place.3. Based on the data static's and case studies, and from the research of store investment revenues, store costs control characters, the core technique of the store operation and the brand consumption of chain enterprises, this paper concludes that these three chain operations adapt to different industries. The regular chain is characterized by: the store investment is high, and the store costs control belongs to the headquarter costs control, the core technology or the patents of the store operations are weak. The chain industry which have lower brand value companies or the large-scale retail industries can use the regular chain. The franchise chain is characterized by: a lower amount of store investment, and the store costs control belong to"the shop costs", the core technology or the patents of the store operations are strong. The chain industry which have higher brand value companies or the small-scale retail industry can use the franchise chain .And all kinds of restaurants and service industries which fit up to the four conditions can also use the franchise. The voluntary chain is suitable for smaller retail formats and it is focused on the grocery stores, small and medium-sized supermarkets, convenience stores and small specialty (such as pharmacies) and so on.4. By designing the monitoring effectiveness models of the store supervision and using the model, it analyzes the supervision characteristics and difficulties of the three types of chain store operations. The chain store carries the profits the company's profits and brand image, and the stores and the headquarters have the agency problems caused by the information asymmetry, and this will probably lead to stores defaults. Finally, to some extent, it will damage the headquarters'benefits and brand image. The monitoring effectiveness of chain stores is the result of the supervision supply of the headquarters'meets the store supervision demands. The supervision demands are the difficulty of supervision, because it is affected by the information of the store, the non-controlled service quality and the space distance between the stores and the headquarters. The regulatory ability of the headquarter company is the supervision supply and it is decided by the efficiency of the supervision and its regulatory input. This paper analyses the difficulty of store supervision in these three store chain operations, by using the principal-agent theory and collective action theory. The regular supervision has the smallest difficulty, the franchise supervision is more difficult, and the most difficult supervision is for the voluntary chain. Accordingly, the measurement of regular supervision are improving the human resource management, improving incentives-binding mechanism and improving the staff loyalty. The measurement of the franchise chain supervision is building a sound licensing system. The measurement of voluntary chain supervision is establishing a selective incentive mechanism, and the members can be different and should strengthen the alliance with the operating mechanism and the system.5. It points out the obstacles and difficulties of the development of chain operation in China, and based on this it proposes some policy recommendations based on how to promote the three ways of chain operation development. The obstacles of chain operation in China are the lack of environmental conditions, the extrusion of multinational companies, the channel conflict and the blindness of the cross-regional development. The problem faced by franchise chain is how to overcome the two-way non-compliance issues, the problem faced by voluntary chain is how to overcome the"collective action problem."In response to these obstacles and problems, this paper gives some policy recommendations such as the establishment of social credit system, the establishment of a unified market by breaking the regional division, building a sound logistics system, planning the commercial networks and supporting the development of small and medium-sized companies.