Franchising as a Catalyst for Conscious Capitalism in Retail: an exploratory study on the benefits in franchising chains


  • MPGI

Área de conhecimento: 

  • Estratégias de Marketing


  • Laís Ceni Lopes




Franchising is an internationally implemented business model characterized by a great partnership and responsibility between the parties, being compared in some studies to a marriage relationship, due to the high degree of commitment and dependence. In macro relations, franchising also performs an essential role in the social and economic development of countries, states, and cities. The model depends on and concentrates the ownership of franchises by entrepreneurs who substantially insert life savings in line with the dream of owning their own business in franchising. In this concern, it is the franchisor's responsibility to develop businesses that take into account that they are dealing with the dreams of thousands of people. Besides, the absolute number of people impacted by this business provides an opportunity to proclaim a more conscious business model that can more easily proliferate. The Conscious Capitalism (CC) model states that a more conscious business environment generates gains for all parties. Starting by defining a higher purpose for companies that goes beyond financial gain, conscious leaders as protagonists of transformations, a greater focus on stakeholders, so they are integrated and benefited by the business and influential culture that disseminates and makes possible these transformations in everyday activities in companies. One of the great impasses for the implementation of CC is how to apply practical and possible actions in small and medium retail businesses, in which professionalization is a problem, and there is often no knowledge on the subject. The study was structured in two phases. In the first, four in-depth interviews were conducted with experienced franchise professionals, and in the second, a case study was conducted with a company in the menswear sector called Casa Prado, which genuinely applies the CC principles. The case study was based on eleven in-depth interviews with the leadership, management and sales force of the stores and on observations from the stores. The management strategy allowed them to reach the third generation of management and start their expansion by franchises in the same way that the franchisor addresses the principles of Conscious Capitalism.

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