Optimization of the mechanisms of the modern franchise system based on the modification of methods of economic development

Pavel D. Milovanov

doi:10.46502/issn.2711-2454/2020.2.3

Pavel D. Milovanov Moscow Aviation Institute (National Research University), Moscow, Russia.

DOI: https://doi.org/10.46502/issn.2711-2454/2020.2.3

Keywords: economic balance, franchise system, linear programming, model optimization, system modeling.

Abstract

The article is devoted to optimizing the working mechanisms of a modern franchise system based on the modification of multicomponent methods of economic equilibrium. In the theoretical part, the formation of an enterprise strategy in the field of franchising is considered, indicating a sequential set of steps necessary for the effective and successful implementation of the ideas included in the franchising project. The development of franchising in Russia is showed and it is noted that it is accompanied by the presence in the new economy of a number of negative factors, in terms of the work of economic mechanisms, as well as legal and social processes. In the research part of the article, the author set the task of modifying the franchise system to establish a certain level of economic equilibrium in it, based on the introduction of certain fines and incentives. In the course of the study, it was found that the franchisor in the franchise system is required to select the amount of fines and incentives in this way that optimal balance is achieved. To solve the problem of optimal equilibrium in a franchise system, it is necessary to bring it to problems that can be solved using linear programming methods. In conclusion, the article discusses the possibility of using franchising tools based on the use of rewards and fines for the successful development and conduct of business.

Downloads

Download data is not yet available.

Author Biography

Pavel D. Milovanov, Moscow Aviation Institute (National Research University), Moscow, Russia.

PhD in Economics, Docent of Department of Economic Theory, Moscow Aviation Institute (National Research University), Moscow, Russia.

References

Abdullaev, A. R., Mylnikov, L. A., & Vasilieva, E. E. (2012). Risks in innovative projects: causes of emergence, integrated risks, risk appraisal of projects. Economic analysis: theory and practice, 40, 41-49.

Akulova, A. Sh., Zykova, A. V., & Golchenko, E. I. (2016). The essence and role of franchising in the modern economy of Russia. Regional Development, 2(14).

Ananyin, V. I., Zimin, K. V., Lugachev, M. I, Gimranov, R. D., & Skriprin, K. G. (2018). Digital organization: Transformation into the new reality. Business Informatics, 2(44), 45-54.

Astapov, K. L. (2005). Features of the development of economic systems in modern conditions. Bulletin of Moscow University. Series: Economics, 4, 65-85.

Babkin, A. V. (2018). Digital economy and Industry 4.0. New challenges. Scientific works of the scientific and practical conference with international participation. St. Petersburg: Polytechnic University Press.

Chinazirova, S. K. (2017). Franchising as an effective form of doing business. Bulletin of the Adygea State University. Series 5: Economics, 4(210), 86-91.

Dmitriev, O. N., & Novikov, S. V. (2019). Concept of state management doctrine. Amazonia Investiga, 8(22), 238-246.

Dmitriev, O. N., & Novikov, S. V. (2019). Verification of Feasibility Studies at High-Technology Enterprises. Russian Engineering Research, 39(9), 780-781.

Drogobytsky, L. N. (2018). Behavioral economics: the essence and stages of formation. Strategic decisions and risk management, 1, 26-31.

Grisko, E. S. (2018). Trends and problems in the development of franchising in Russia. Bulletin of the Siberian Institute of Business and Information Technology, 2(26), 16-21.

Kholin, E. S. (2015). Franchising: the concept of system formation, development trends in a crisis. Russian Entrepreneurship, 16(11), 1657-1670.

Lyudmila, A. M. (2017). Prospects for the development of new franchising models in Russia. Modernization. Innovation Development, 4(32), 585-591.

Novikov, S. V., & Veas Iniesta, D. S. (2019). Analysis of development trends in the innovation industry of the Russian Federation. Amazonia Investiga, 8(19), 298-307.

Pinkovetskaia, I. S., Balynin, I. V., & Berezina, N. V. (2019). Assessment of specialization of early stage entrepreneurs in different countries in 2018. Amazonia Investiga, 8(22), 69-75.

Rasskazova, N. V. (2016). Franchising as a form of realization of the economic interests of small businesses. News of higher educational institutions. Volga region. Economic sciences, 1(4), 85-94.

Sazonov, A. A., Mikhailova, L. V., & Kolosova, V. V. (2017). The market value of the capital of an enterprise as the basis for the implementation of its competitive strategy in the conditions of innovative development. Bulletin of Moscow Regional State University. Series: Economics, 4, 118-125.

Sembieva, L. M., & Nurtazina, K. B. (2016). Franchising as one of the ways of development of small and medium-sized businesses. Finance and Credit, 30(702), 50-60.

Semicheva, V. O. (2016). Franchising as a promising type of business. Symbol of science, 3(1), 153-158.

Skripkin, K. G. (2017). How environment influences on organizational design of educational institution: analytical instruments. Modern Information Technologies and IT Education, 12(3), 225-236.

Zemlyanskaya, N. B., Mikhailova, L. V., & Sazonov, A. A. (2019). Research of search engine optimization technology as one of the main components of a marketing tool. Bulletin of Moscow State Regional University. Series: Economics, 1, 25-34.