Theodore and James have formed TJ Soft, an entrepreneurial venture to develop games and other kinds of software for consumers. Their company, which includes TJ Soft stores, is looking for opportunities in the future that include international operations.
-A firm in South America wants to open a TJ Store in a shopping mall.What is the best approach for this firm?
A)strategic alliance
B)licensing agreement
C)franchise
D)foreign subsidiary

Question

Quizplus · Accepted Answer

A franchise agreement would be the best approach in this situation as it allows the South American firm to open a TJ Soft store using their established brand name, products, and systems. This would provide brand recognition and allow for a consistent customer experience across all TJ Soft stores, while also giving the South American firm the autonomy to operate the store within the guidelines set by TJ Soft. A strategic alliance or licensing agreement may not provide the same level of control and consistency as a franchise agreement, while a foreign subsidiary would involve TJ Soft setting up an entirely new company in South America, which may not be necessary for just one store.

Theodore and James Have Formed TJ Soft, an Entrepreneurial Venture