Super Cola
U.S.-based Super Cola, one of the top five cola manufacturers, has previously attempted entering the Asian beverage market with little success. Lacking the name recognition of its competitors, Super Cola was unable to gain market share and ceased shipping its products overseas after six months. Super Cola realizes that the large Asian market would be extremely profitable, but the company requires a new strategy. Consultants hired by Super Cola propose two different methods for entering the market: licensing and franchising.
-Why would franchising be an unlikely solution for Super Cola?
A) Super Cola needs the use of a beverage manufacturing facility in Asia.
B) International shipping would slow down the distribution of Super Cola.
C) A lack of raw materials in many Asian countries would hinder manufacturing.
D) Strict laws in China prohibit many corporations from franchising.
Correct Answer:
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