Question

After its success in Japan, Starbucks worked with local operators, collecting initial fees and then royalties on store revenues as it entered other Asian countries. Starbucks insisted that the local operators incorporate an intensive employee-training program and follow strict specifications regarding the format and layout of the stores. This type of relationship best describes which strategy

Answer 1

Answer:

Franchising.

Explanation:

Franchise is a license consisting of a contractual arrangement between a parent company (franchiser or franchisor) and another (franchisee), that allows individuals or an organization access to its knowledge, processes, trademarks in order to provide a service.

One of the main advantages of a franchise is that, franchisers such as Starbucks do not require additional capital and development expenses to have their businesses being situated in a foreign market or country, as they only required to issue licenses to franchisors who are interested in being part of their business by paying a fee. For instance, Starbucks could give the authority to an individual or group of people which would enable them to do the same business in another geographical location.

Hence, this type of relationship best describes franchising because Starbucks worked with local operators while collecting initial setup fees and then royalties on store revenues generated by the franchisees as it entered other Asian countries.