For a company whose core competency is management know-how, which entry mode would be optimal?

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The competitive advantage of many service firms is based on management know-how (e.g., McDonald's, Starbucks). For such firms, the risk of losing control over management skills to franchisees or joint-venture partners is not that great. These firms' valuable asset is their brand name, and brand names are generally well protected by international laws pertaining to trademarks. Many service firms favor a combination of franchising and master subsidiaries to control the franchises within particular countries or regions. The master subsidiaries may be wholly owned or joint ventures, but most service firms have found that joint ventures with local partners work best for the master controlling subsidiaries. A joint venture is often politically more acceptable and brings a degree of local knowledge to the subsidiary.

For a Company Whose Core Competency Is Management Know-How, Which