PROBLEM BASED LEARNING REPORT

WARALABA INTERNASIONAL

CASE III

Class 4 MPI ; Group 3

Lecturer : Dr. Iwan Setiawan, MBA

No Name Student ID Presence

Number Step 1-5 Step 7
1. Asep Rifky Rahman S 155264004 √ √
2. Edwin Gumilar 155264007 √ √
3. Fenfen Nurulita 155264009 √ √
4. Hasna Soraya Firdaus 155264010 √ √
5. Hilman Munawwar 155264011 √ √
6. Impo Philipus S 155264013 √ √
7. Irvana Amelia Wendani 155264016 √ √
8. Rana M Pribadi 155264025 √ √
9. Sabila Hanifan Ula A 155264027 √ √
10. Vita Karima 155264031 √ √

Leader Scriber
Sabila Hanifan Ula A Impo Philipus Sitindaon

MANAJEMEN PEMASARAN INTERNASIONAL

ADMINISTRASI NIAGA
POLITEKNIK NEGERI BANDUNG
Case V

It was back when Icih (owner) was a little that she was first introduced into her family
business, Argos Fire & Safety. She had begun to learn what the business was all about at this point.
On one fine summer’s day, siting on cliff-side, looking out upon the bay,it suddenly dawned on
Icih that she wanted to take up her family business and to start having a real input on the key
decision of the business. She always very passionate about her family business and spent countless
days helping out her father as much as she could when she was younger. It was from there that
Icih then believed that going into work every morning amidst family was the most perfect,
happiest, and most life changing decision that she was ever going to make.

“Argos Fire & Safety distribute the fire and safety products throughtout Indonesia and
provide a full back up service to all clients.” Clients respect this as they get ful support from the
company. Any issues or maintenance problems, the company will be on speed dial to fix, providing
prospective franchisees and clients the feeling of comfort and a sense of relief. “The aim is to grow
the business and help others become more independent in their professional careers by having their
own business.” To Franchise or not to Franchise!

“Argos Fire and Safety is a family run business that has been in operation for over 32
years.” Now is the time for Argos Fire & Safety to take the world by surprise and expand. This
has forever been playing on the minds of each individual in the Corcoran household and now they
have come to the conclusion that franchising is the route for them and for the business to achieve
expansion.

STEP 1 : CLARIFY UNCLEAR TERMS AND CONCEPT

1. Cliff-side = Sisi tebing

2. Dawned = Tersadar
3. Amidst = Di tengah-tengah
4. Corcoran housesold = Perumahan corcoran

STEP 2 :DEFINE THE PROBLEM

1. Does the business that will run affect the previous family business? (Fenfen)
 2. How to promote the Argos Fire & Safety business to attract business partners and
consumers? (Vita)
3. What should be considered to expand Argos Fire & Safety business to International?
(Edwin)
4. How to develop a family business, especially a franchise business (Hasna)
5. Which business is more profitable, family business or franchise? (Asep)
6. Why choose a family business rather than being a franchisee from a well-known brand?
(Irvana)

STEP 3: ANALYSE THE PROBLEM

The business that will begin is likely to have an influence with the previous parent's
business, but it does not rule out the possibility that the business that will begin has no effect at all
with the previous parent's business. Irvana explained that a child will start a business that is
influential with the previous parent's business because it has been educated by parents to run a
business like their parents do. Edwin added that the business run by the child must have had an
effect on his previous parents 'business to help the family business, because it affected the character
of a child from his parents' training as an example when his father was a cook so his son wanted
to be a restaurant owner. But Hasna has a different opinion that on the other hand the business
being run will not affect the business of his parents if there are different business industries, such
as if his father is a building consultant and children have a passion for business in the food world.
Rana again emphasized that there is an influence of the business of parents and children, as the
proverb of fruit does not fall far from the tree. Thus it can be concluded that the franchise business
that is run will affect the family business and family business can also affect, but it does not rule
out the business that will be run will not affect the family business
A good promotion is very necessary in order to attract the interest of consumers and work
partners. Edwin explained that as a company owner we must have clear and detailed proposals so
that they can attract work partners. To attract consumers we must be able to explain the benefits
that will be obtained so as to convince consumers of their needs for Argos Fire & Safety products.
Rana added an explanation where promotion can be carried out thoroughly to attract work partners
as well as consumers by describing fire disasters that occur specifically so that consumers must be
truly vigilant and foster consumer interest in their needs for these products. Hilman gave a support
satement where the promotion provided must explain the losses from fire disasters and the benefits
of the product. Thus, the promotion that can be done is by giving trust to consumers by giving a
real picture through the proposals offered so that the benefits and more value conveyed to
consumers.
In expanding a company to the international world, there is a lot of consideration needed
to achieve success. According to Fenfen it is not difficult because what is important is the courage
to take big steps and also have to know the market conditions abroad. Vita also explained that to
expand a business abroad, it must first know the regulations of the destination country. The
company must also know and understand the demographics of the community and building
standards. Asep added that product standards were also one of the main factors in the company's
success in expanding its products abroad. Thus, belief in being able to expand the company
becomes the main capital by participating in understanding the rules and standards before going
international.
There are several things that need to be done to develop a family business in the franchise
business. Edwin explained that the first thing to do was to conduct market analysis to find out the
strategies that must be used in the future. Hilman added that to expand the market, the promotion
must be intensified. Hasna argues that what is important in developing the business is by fixing
the organizational structure in it such as marketing, finance, production, ect. Asep also added from
an external point where what is needed to develop a business into a franchise requires a large
capital, after that it must establish partnerships with investors to increase capital, and establish
cooperation with other companies that can help sell our products. Thus, thing that needs to be done
develop a family business in the franchise business is first analyze it, then carry out the
implementation with integrated business development
Family business and franchise have advantages and disadvantages of each. Hilman
argues that the franchise will be more profitable because the product has been known to the
community, and the opinion was approved by Edwin. But according to Vita if the family business
is big and famous, it is better to continue the family business because it is inherited from the parents
and the benefits from the family business are entirely ours as the owner, different from being a
franchisee who shares profits with his main frachise. Hasna disagrees with Vita's opinion and
argues that choosing an outside franchise will be more profitable because the family business will
have more specific limitations in decision making. In conclusion, both have their respective
strengths and weaknesses depending on how to process a business through the right strategy to
achieve success.
Family business is a hereditary business that should continue to be carried out to maintain
business continuity. Fenfen explained that business came out clearly more important. If we already
have our own family business that has grown for what else to look for in other businesses. Edwin
also believes that choosing a business because of the benefits obtained is more convincing because
it is not like a franchise that divides its profits with the main investors. Rana added that the family
business is more important because we already know the basis and history of the formation of the
business, and we have a role as the successor to the family business that has been inherited for 32
years. Vita agreed to the other opinions and added that the family business makes it easy because
there is no need to spend more capital and we already understand the knowledge about the
company or about the product. Thus, it can be concluded that family business is something
valuable if managed and continues to be developed well rather than choosing another business.

STEP 4: MIND MAP

Influenced by
other factors

Business

Franchisee Family Business

(Figure 1.1 Develop Business)

Business is selling goods or services carried out by individuals, groups of people or
organizations to consumers (society) with the main goal is to get profit / profit (profit). At this
time, business can be run in several ways, including the first is a business that has been carried out
since a long time ago or can be called a family business, and the second is a franchise business that
is a business entity or individual that gives rights to other parties and / or use intellectual property
rights or inventions, or the characteristics of the business they have. Both have advantages and
disadvantages due to several influencing factors, each of which depends on how an entrepreneur
can manage the business to achieve success.

STEP 5&6: LEARNING OBJECTIVE AND INFORMATION SEEKING

LEARNING OBJECTIVE SEEKER

Franchise That Starts From a Business Edwin Gumilar, Fenfen Nurulita
Family
Obstacles and The Possibility of a Family Vita Karima, Asep Rifky, Rana Maulana
Business
How to Expand Business to International Hilman Munawwar, Hasna Soraya F, Irvana
Amelia W

STEP 7: SYNTHESIS AND TEST NEW INFORMATION

Franchise That Starts From a Business Family

Franchise starts from a family business is one factor in the success of a business. But in
building a business it is not easy and requires a process in dealing with business challenges. So, a
business built by the family is one of the first lessons in facing challenges to build a business that
is created. One of the retail franchise companies that is growing rapidly in Indonesia at present,
PT. HM Sanpoerna, the company was founded in 1989 along with its development. At the end of
2009 there were 3,293 outlets spread throughout Java and Bali (Dewi, Indahyanti, & Hari, 2011).
The biggest cigarette company in Indonesia was pioneered by Liem Seeng Tee, a poor Chinese
who brought his father to migrate to Indonesia. From here, Liem decided to set up his own business
with his family. This cigarette business is officially the current business entity, Sampoerna is still
held by the Liem family from the third generation (Liputan6, 2018). Of course, this success
includes strategies made in retail franchise so that the company develops. In the process of
selecting strategic businesses that follow, finance, business knowledge, local knowledge, shared
understanding of business and brands this is built on the success of business partners (Doherty,
2009). So, the key factor in business success is planning, planning built by family partnerships is
the initial knowledge in developing a business.

In this case Icih always has a desire from a young age to make his father's business better,
making Argos Fire & Safety enter the global market. With the aim of making the company's
business grow and help others to become business people in a business that is owned to be
successful, both franchise and not franchise. All processes passed through Iih did not directly enter
the global market but made Argos Fire & Safety distribute fire and safety products to all regions
in Indonesia, and customers also felt comfortable and helped by Argos Fire & Safety. Love for a
family-owned company can motivate a child to develop a successful business.

Obstacles and The Possibility of a Family Business

According to Indonesian Institute for Corporate and Directorship (2010), more than 95
percent of businesses in Indonesia are owned and controlled by family. Family business is a
business that is owned or managed by a number of people who have family relationship, both
husband and wife and their offspring , also including brotherhood relations (Handoyo, 2010).This
statement supported by Donnelley (1988), that a company is considered as a family business when
it has been closely identified with at least two generations of a family and when this link has had
a mutual influence on company policy and on the interest and the objectives of the family. Based
on Kitab Undang-Undang Hukum Perdata or Burgerlijk Wetboek (BW), brotherhood in the family
divided into four groups. The first is straight down (children and their husbands/wifes). the second
is straight line up (parents and siblings, both men and women and their descendants). Next is
grandmother, grandfather and another subsequent ancestors up. And the last is group consists of
family members in the side line and other relatives (Simanjuntak, 2011). So, family business can
be incoporated into a business that involves family member.

In this case, Icih as the owner of Argos Fire & Safety may have some obstacles and
possibility in running her family business. Family business has several promising opportunities.
In fact, leadership inheritance is considered as one of the company's priorities. Usually, family
businesses start from a small scale and are professionally pioneered by other families for
generations so they are able to develop, succeed and have competitiveness. Not only that, running
a family business has its own emotional burden that arises because of blood ties between
generations, so that the responsibilities held to manage the business will be utilized as well as
possible. On the other hand, there are also several weaknesess to Avoid in family management,
such as: conflicts occuring between the interests of the family and those of the enterprise as a
whole, a lack of dicipline being exerted over profits and performance in all parts of the
organizations , a failure to rise quickly to meet new marketing challenges, situations where
nepotism rules unchecked by objective standards of meritorious managerial performance.

How to Expand Business to International

One critical resource for franchise international expansion is the brand name, because
franchises that build brand recognition faster and adopt superior monitoring and administrative
policies to protect their brand can expand faster and realize the benefits of scale and scope that
accompanies such expansion (Fladmoe-Lindquist, 1996). Moreover, Managerial expertise and
capital are also necessary for international franchise expansion (Doherty, 2009). While a strong
brand, managerial expertise, and capital may be available within the partnership, the impact of the
franchise partnership on franchise expansion also requires other critical resources, such as local
market knowledge, marketing capability, and relationship-specific assets (Grewal, Iyer, Javalgi, &
Radulovich, 2011). Therefore, it can be conclude that brand name, managerial expertise, capital,
local market knowledge, marketing capability, and relationship-specific assets is important to be
taking-care of when a franchise business is desired to do the international expansion.
So the way for Icih to do international expansion for her company is with expand it’s brand
name, so it will recognize by global world. Beside that, she have to develop the internal factors
such as she must be able to develop the managerial expertise, capital, have knowledge about local
market, capable to manage the marketing, and manage the relationship with others. Those factors
is really important for a company if they want to go international.

CONCLUSION

Business is an activity which can provide benefits for the owner who runs it. Businesses
can be run through family businesses that have been carried out for generations, through history
and long experiences. Over time, businesses always want to make progress, one of which is
expansion by expanding. Therefore, business expansion can be done by doing a franchise.
Franchise business can be done well depending on how we can plan, organize, and evaluate the
performance of a business to make a profit by providing a successful business.
 References

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