Successful fast-food franchising in brazil and the role of culture

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SUCCESSFUL FAST-FOOD FRANCHISING IN BRAZIL AND THE ROLE OF CULTURE: FOUR CASES

By MARY E. RISNER

A THESIS PRESENTED TO THE GRADUATE SCHOOL OF THE UNIVERSITY OF FLORIDA IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS UNIVERSITY OF FLORIDA 2001

ACKNOWLEDGMENTS I would like to express my gratitude to Dr. Terry McCoy, my thesis committee chair, for being ahelpful mentor as I have became more and more involved with the study of business aspects in Brazil. I thank my other committee members, Dr. Ginway and Dr. Perrone, for their scholarly suggestions on the Brazilian cultural issues considered in my research. I also would like to thank the Center for Latin American Studies for its financial support in the form of the Tinker Grant I received in order toconduct my research in Brazil. I sincerely thank Peter Rodenbeck, a kind and helpful businessman in Brazil, whose efforts allowed me to set interviews with key professionals associated with franchising in Brazil. Finally, I thank the all the Brazilian executives that took the time to meet with me for my research.

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TABLE OF CONTENTS page ACKNOWLEDGMENTS.................................................................................................. ii LIST OF TABLES ............................................................................................................. vi CHAPTERS 1 INTRODUCTION ...........................................................................................................1 Significance of theStudy................................................................................................ 2 Franchising...................................................................................................................... 3 Definition .................................................................................................................... 3 Standardization vs. Adaptation................................................................................... 5 Franchising In Brazil....................................................................................................... 5 Organization of the Study............................................................................................... 8 2 REVIEW OF THE LITERATURE................................................................................10 InternationalFranchising Research............................................................................... 10 Why Expand Internationally? ................................................................................... 10 Advantages of Franchising Over Other Foreign Investment.................................... 12 EntryModes.............................................................................................................. 13 Franchising Studies on Brazil: Contributions and Findings ................................... 14 The Role of Culture in International Franchising......................................................... 16 What is “Culture”?.................................................................................................... 17 Adapting to LocalCulture......................................................................................... 18 Case Studies Dealing with Cultural Differences....................................................... 19 Other Factors to Consider Before Franchising Internationally..................................... 20 BrazilianCulture........................................................................................................... 23 Hierarchy/The Elitist Tradition..................................................................................... 27 Personalism............................................................................................................... 28 Paternalism................................................................................................................ 30...
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