7. Master International Franchising in China: The Athlete’s Foot, Inc. (Part A)

Amber Xu, Ilan Alon

One day in late 2001, Rick Wang, the managing director of RetailCo, Inc., the master franchisee for The Athlete’s Foot in China, was reviewing the most recent sales report of his company. He found that the sales volume for the past six months had declined precipitously, down almost one-third from what it had been only one year ago. Inevitably, Wang was concerned.

RetailCo, Inc. had enjoyed a banner year in 2000; however, the company had experienced a cascade of problems beginning in 2001. At the start of that year, the company was forced to deal with pressure due to a supply shortage of major products, which could deal a deathblow to any small ...

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