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What exactly is a chain
Chain is a form of business organization and management system, refers to the operation of the same type of goods or services of a number of enterprises, in a certain form to form a consortium, in the overall planning of the professional division of labor, and in the division of labor on the basis of the implementation of the centralization of management, the independent business activities into a combination of the overall scale of operation, so as to achieve economies of scale. It is a business model.

The mode of chain operation is derived from the basis of capital operation and chain sales! Its essence is the development of layers of downline, the traditional real economy and the virtual economy have used this model of chain management!

I, direct chain (or regular chain, referred to as RC), is the basic form of chain management. This is the headquarters of the chain of enterprises through wholly-owned, holding or mergers and other ways to open stores, develop and grow their own strength and scale of a chain form. Chain of all stores in the headquarters under the direct leadership of the unified management of the headquarters of the implementation of the stores, people, money, materials and business flow, logistics, information flow, capital flow and other aspects of unified management. That is, all the stores (store) are owned by the same business entity - the head office (company owned). [1]

Features of the direct chain: 1, must be the same capital to open stores, which is the biggest difference between the direct chain and the franchise chain and free chain.

2, management is highly centralized and unified.

3, a unified accounting system.

The advantages and disadvantages of direct chain: highly centralized management can be unified scheduling of funds, unified business strategy, unified management of personnel, unified development and use of corporate resources as a whole, with a strong strength, easy to deal with financial institutions, manufacturers, can be fully planned for the development of the scale and speed of enterprises, in the development of new products and the promotion of modernization of information management can also give play to the overall advantage. But the direct chain also has its own shortcomings that are difficult to overcome, because the direct chain to a single capital to the market radiation, the stores by the headquarters of the investment in the construction of a family, and therefore susceptible to the impact of funds, manpower, time and other aspects of the development scale and speed is limited. In addition, the small autonomy of the stores, the interests of the relationship is not close, its initiative, enthusiasm, creativity is difficult to play out.

Two, voluntary chain (or free chain management industry, referred to as VC), free chain is between enterprises in order to *** with the interests of the combination of business cooperatives, members of the store is an independent legal person, with a high degree of autonomy, only in part of the business scope of the cooperative business, has been to achieve the purpose of *** enjoy the benefits of scale. That is, the store capital ownership independence, the use of *** with the purchase of goods, the agreement on pricing of a business horizontal alliance.

Features of free chain: 1, member stores have independent ownership, operation and accounting rights.

2, the relationship between headquarters and member stores is the relationship between consultation and service.

3, the economic relationship ties that sustain the free chain is the contract developed through consultation.

The advantages and disadvantages of free chain: the advantage is that its stores strong independence, autonomy, direct interests, is conducive to mobilize enthusiasm and creativity; chain system centralized management and guidance, is conducive to improve the level of management of the stores; unified purchase, unified promotions, is conducive to the stores to reduce costs, to enjoy the benefits of economies of scale. Therefore, the free chain has better flexibility, conversion and development potential, it has the advantages of scale of chain management, but also to maintain some of the operating characteristics of independent small stores. However, its linkage ties are not tight, cohesion is relatively weak; the independence of each store is large, the role of the headquarters to centralize and unify the operation of the role of the limitations, and thus the organization is not stable enough, the development of the scale and geographic limitations; due to the over-democratic, slow decision-making, the relative competitiveness is affected.

Three, franchise chain (or contract chain, contract chain, franchise chain, referred to as FC), which is the headquarters and the franchise rely on the contract between the combination of a form, that is, the authorization of the right to operate a single store as the core of the chain. The world's popular KFC, McDonald's, 7-11 are typical representatives of the franchise chain organization.

Franchise chain features: 1, the core of the franchise chain is the transfer of the franchise.

2, the relationship between the headquarters and the franchise is a vertical relationship through the signing of the franchise contract.

3, the ownership of the franchise chain is decentralized, but the right to operate highly centralized, to form a consistent image externally.

4, the franchise headquarters to provide franchise license and business guidance, the franchise to pay a fee for this.

The advantages and disadvantages of franchising: franchising can break through financial and time constraints, rapid expansion of scale. Stimulate the franchise owner to be more active and willing to work, which will help the development of the business. Can reduce operating costs, focus on improving business management. But the shortcomings are also very obvious, the franchise is sometimes farcical independent, difficult to control. Individual business failure of the franchise will involve the headquarters reputation and make the headquarters image damage. When the headquarters found that the franchisee is not competent, can not replace the franchisee.

From the current domestic chain management form, mainly divided into the following aspects:

Standard chain management form

that is, by the distribution center unified delivery of the way to operate, the chain of departments without independent access to goods. Some to the chain business form summarized a few uniform, namely: uniform plaque, uniform clothing, uniform purchase, uniform store form, uniform settlement, uniform corporate culture. This unified business thinking breaks the traditional "a store", "each for their own" business ideas, can be said to be with a revolution in the nature of the performance of business ideas.

Non-standard chain business form

That is, in addition to the unified plaque form, the rest of the business form all by a single store to complete independently, can also be called "quasi-chain" enterprises. Its purpose is to quickly occupy the market, shorten the time to compete with rivals.

Join the chain

That is, as long as you are willing to use their own business name of other retail outlets, as long as you pay a certain amount of franchise fees, you will become a member of the chain. Some also low-priced distribution as a means to achieve the purpose of pulling together to join. The above three types of chain, is China's major and medium-sized cities in the chain of business operations, but also the Chinese-style chain of enterprises composed of forms.