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Chan
TOPIC QUESTION - PAPER 1
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Chan
June 16, 2021 at 8:44:31 AM
Feb/Mar 2019
Version 2
1.0 Understanding Business Activity
1.4 Types of Business Organization
YOUR ANSWER
Should DGC open shops as franchisor in country Z, DGC would have to provide rights to franchisees to use DGC’s brand to sell its clothes and shoes. DGC would have to ensure that franchisees sells quality products to maintain DGC’s reputation. However, customers in country Z may not like DGC’s designs, as market research showed that customers in country Z have different cultural and social trends. But as DGC have experience in successfully establishing a strong brand in 10 other countries, DGC may be able to enter the market in country Z because of strong brand awareness.
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