Cooperation and Dissension in Franchise Network:The Case of Yoplait1

The purpose of this case study is to provide an in-depth look into cooperation and dissension in franchise network, with a particular focus on Yoplait Companies and how they enter into cooperative arrangements such as franchise systems, network partnerships and constellations of firms to gain a competitive advantage over rivals. They expect to reduce production and inventory costs, speed product development, expand markets or secure technology, while enjoying congenial business relations with partners. They may not reap advantages attributed tocooperative arrangements, however, if dissension arises concerning the means of competition or desired ends. Strategic management researchers associate competitive advantage in part with consensus on themeans of competition, whereas other researchers’ entrepreneurship or negotiation, accentuate the importance of common ends (e.g., goals and values) in cooperative arrangements. Competitive advantage refers to the superior capabilities of the firm over rivals and means of competition involve resource allocations. Desired ends include business goals, as well as standards of fairness and trustworthiness. Strategy researchers report that consensus among managers on methods of competing relates to higher firm performance.