The Profit Creating Mechanism of a CVS Chain and Management System: Analysis using a simulation model

Abstract

The purpose of this paper is to consider the feature of the profit creating mechanism of franchise business and the state of a management control systems on the topic of a CVS chain. The feature of franchise business is sharing the management function for the common purpose, though franchiser and franchisee are independent business proprietors. This paper explains the value chain of headquarters and a member's store using a simulation model first. Next, the success factor of Seven-Eleven is specified. And finally, the state of a management system for a franchise organization to grow is discussed.