The Impacts of Bonus and Royalty Fees on the Development of Chain Stores Organization

• Main Authors: Chao-Ei Chen, 陳昭宜
• Other Authors: Wei-Ming Wu
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/76891075770537997956

碩士 === 國立高雄第一科技大學 === 運輸倉儲營運所 === 90 === The extension of sale channel is still a key factor to create profit for enterprise under the modern business environments. Since 1980s’, the convenience store companies have eagerly engaged in expanding their scales of chain store in order to keep the leading place in the market by integrating the benefits of purchase, warehousing, delivery, distribution and innovation. The type of company-owned store has been intensively utilized to enlarge the scale of the chain store at the initial expansion stage. After accumulating more knowledge on managing the chain, the type of expansion will be shifted to franchised store system gradually. Due to the difference between principal and agent on the timing and surroundings of making decisions, the problems on the asymmetric information and the attitude on risk will be considered in the analysis. This study has focused on analyzing how the principal to manipulate the bonus and royalty fees to induce the agent’s effort on the company-owned and franchised store system, respectively. The findings in this study include: 1. With introducing the opportunity cost of agent to be the constraint equation, the optimal solution is found as no excessive profit earned by agent while the constraint being binding. 2. With the raising of the bonus and royalty fee, the principal is likely to utilize the franchising system to expand the scale of chain stores until no more excessive profit earned by the agent. Otherwise, the company-owned system will be favored to expand the system. 3. Due to no incentive factor, a fixed wage rate will be paid to agent under the symmetric information condition. 4. The bonus fee is an effective mean to encourage the agent’s efforts under the asymmetric information condition. 5. While the market condition falls down, to increase the bonus fee is the only way to keep the company-owned system to operate continuously.