Business Management Principles Research Articles

Peran Kepemimpinan Dalam Meningkatkan Kualitas Manajemen Bisnis Sekolah Di SMAN 2 Mandailing Natal

The Service Learning approach has been adopted as a method to improve the quality of school business management at SMAN 2 Mandailing Natal. Through Service Learning, steps to identify community needs, project planning, implementation, evaluation and reflective learning have been carried out. With effective collaboration between school stakeholders and the local community, Service Learning projects succeed in providing real benefits to the surrounding community and strengthen students' skills and understanding of business management. As a result, SMAN 2 Mandailing Natal has been able to integrate business management principles into its school operations, including resource management, marketing and business strategy development. Thus, the Service Learning approach has brought positive changes in improving the quality of school business management, while producing a significant impact on local communities and student learning. This means that this article emphasizes that the role of leadership in encouraging Service Learning has been the key to success in developing quality and sustainable school business management.

The influence of public administration science paradigm shift in its realization good governance

The emergence of the New Public Service is an approach in public administration that addresses the shortcomings of both the Old Public Administration (OPA) and New Public Management (NPM), particularly in the context of cultural change and good governance. Old Public Administration (OPA) focuses more on bureaucracy oriented towards rules and procedures but is less responsive to cultural changes and societal needs. On the other hand, New Public Management (NPM) emphasizes the use of business management principles in public administration but pays less attention to cultural changes and good governance aspects. In the context of cultural change, the New Public Service offers a more adaptive and responsive approach. This approach recognizes the importance of understanding and adapting to cultural changes within society to provide relevant and effective public services. Additionally, the New Public Service is closely related to good governance. This approach emphasizes values such as fairness, rule of law, public participation, and transparency. By incorporating the principles of good governance, the New Public Service strives to build a sound, efficient, and accountable governance system. In summary, the emergence of the New Public Service is a response to the shortcomings of OPA and NPM in addressing cultural changes and in the context of good governance. This approach combines adaptability to cultural changes with the application of good governance principles to ensure that public services provided by the government are responsive, fair, and transparent.

What is the business value of your data? A multi-perspective empirical study on monetary valuation factors and methods for data governance

Digitalization has greatly increased the importance of data in recent years, making data an indispensable resource for value creation in our time. There is currently still a lack of theories as well as practicable methods and techniques for the monetary valuation of data, and data is therefore not yet sufficiently managed in terms of business management principles. In this context, this research is intended to design theory ingrained principles for a multidimensional conceptual approach to the monetary valuation of data as assets. We draw on the theory of dynamic capabilities as a further development of resource theory as well as value theory. To this end, the research conducts a qualitative field study followed by a quantitative survey study. Literature analysis is used to explain different dimensions in the qualitative field study. Structural equation modeling is used to analyze empirical data collected in the quantitative study. The results show that data value determination is a multidimensional and hierarchical construct consisting of three primary dimensions. These are the benefit-oriented, cost-oriented, and quality-oriented dimensions. The results also confirm that institutional pressures (coercive, normative, mimetic) that influence organizational behaviors lead to a greater intention for organizations to adapt a monetary data value determination.

Harmonizing Science and Society: A Change Management Approach to Align Scientific Endeavors with Societal Needs

The pursuit of scientific knowledge has long been humanity’s most potent tool for comprehending the natural world and driving technological advancements. However, a persistent paradox exists within the scientific enterprise: the occasional disconnect, be it slight or complete, between scientific inquiry and tangible societal impact. This misalignment can occur from differences between what may be esoteric scientific priorities and the immediate practical needs of society. Misalignment can be problematic because many global challenges, such as climate change, infectious diseases, and resource scarcity, demand research that informs actionable strategies that more immediately benefit society. The gap between scientific outcomes and societal needs is sometimes broadened via ineffective communication, sensationalized media portrayal of research, and a lack of collaboration. This article is written to (a) articulate a method to ensure that scientific outcomes align with societal needs (in cases where alignment is important) and (b) inspire discussion about the purposefulness of scientific research. An organizational change leadership approach, rooted in business management principles, is presented that can be applied to scientific research to bridge this gap and unlock science’s transformative and tangible potential. This novel approach involves crafting a clear vision, practicing effective communication, empowering researchers, shifting success metrics, and cultivating a research enterprise culture that values societal engagement. An example application is provided to catalyze transformative change in the mining industry. By adopting a change management method, researchers can ensure their work addresses real-world needs, garners stakeholder buy-in, and enhances societal acceptance of scientific endeavors.

Organizational value and participatory leadership for sustaining the competitive advantages of hospitality and tourism companies

In light of the market uncertainty for hospitality and tourism companies caused by COVID-19, which even led to the legal closure of borders, a study model is proposed. Our model considers market uncertainty as a moderator of the principles of business management. This moderator leads to a sustainable competitive advantage through organizational values, participative leadership, market orientation and innovative intensity. The viability of the proposed model has been analyzed with a mixed methodology using the Smart-PLS tool, on the one hand, and two fsQCA-based samples of hospitality and tourism companies located in Spain and South Korea, on the other hand. The results show the relevance of participative leadership supported by organizational values in obtaining a sustainable competitive advantage. This will help the tourism sector to adapt to future health pandemics. Market uncertainty has not affected participative leadership in achieving this sustainable competitive advantage.

DIGITAL TRANSFORMATION OF BUSINESS

In the conditions of the digital economy, managers face new tasks, and their roles and principles of business management are changing. In particular, they face the question: what technologies and principles of the digital economy must be implemented? The article outlines the main problems of the management organization of the company that arise in the conditions of business digitalization. The paper analyzes international standards and research that are directly related to the organization of the management process in companies.In the course of the study, the main shortcomings associated with the implementation of digital technologies were identified, which include, in addition to possible risks of data security violations, and social issues associated with a possible reduction in the number of personnel. The article notes that all these problems can contribute to the loss of the company's reputation and trust in it.In today's conditions, the digitization of the organization's management processes requires the restructuring of its entire management system and the development of standards necessary for effective management, therefore, the use of existing own experience and knowledge necessary for the profitable operation of the company in the conditions of digitalization of the economy is relevant.

The Urgency of Implementing Islamic Business Ethics and Islamic Business Management Post-Pandemic on MSMEs

The covid-19 pandemic has reprimanded man with various complex phenomena that have never happened before, both in the fields of health, social, cultural, and economical. In the field of economics, especially the micro, small, and medium sector business actors are mostly paralyzed and on the verge of bankruptcy. This study considers it necessary to examine several aspects of business management, especially MSMEs’ ways of maintaining their business during and after the pandemic. This study aims to examine and analyze the urgency of implementing Islamic business management which can be used as an illustration and guide for business actors. This study uses a descriptive-qualitative approach. The data used is secondary data, referred to as a literature study. The data analysis technique in this study uses three paths, reduction, presentation, and drawing conclusions. The results show that Islamic Business Ethics and Islamic business management are mandatory for business actors so that businesses can run even in the midst of difficult situations. The principles in Islamic business ethics are balance (fairness), free will, responsibility, and truth, while Islamic business management is marketing management, human resource management, and financial management. The results of the study imply that businesses that are run based on Islamic business management principles have the ability to survive and can maintain business continuity. The implementation of ethics and business management within the Islamic framework is very important to be realized by MSMEs actors through their business activities or operations.

METHODOLOGICAL PRINCIPLES AND SPECIFICS OF MANAGEMENT OF SYSTEMIC DEVELOPMENT OF HEALTHCARE INSTITUTIONS

The purpose of the article is to substantiate the theoretical and methodological foundations of the study, to determine the specifics, as well as to build a system of management elements for the systemic development of health care facilities. The urgency of the problem of development of theoretical and methodological bases of research of management of system development of health care institutions is revealed. Scientific approaches to the essential interpretation of development management at the micro level are generalized. The specifics and features of the management of systemic development of health care enterprises are identified. The system of principles of management of systemic development of health care institutions is identified and their essential and content characteristics are revealed. The structural elements and the algorithm of management of system development of the enterprise which specialize in rendering of services in the field of public health services are defined. The semantic characteristics of such elements as economic interests of business management entities (owners, investors, founders, managers, personnel, external contractors, consumers), principles, functions, methods, strategy and tactics, management mechanisms and tools, management objects, implemented measures, and their results. The applied significance of the research results is to build a system (and its structure) of elements that together provide management of systemic development of health care facilities. The scientific novelty of the research results is the identification of such specific features of the management of systemic development of health care enterprises as principles (emphasis on the formation of a management culture focused on quality satisfaction of medical and diagnostic needs of clients (human-centeredness), focus of management actions on increasing quantitative and improving the structural and qualitative results of medical and diagnostic services (synergy), parity attention to the implementation of the policy of external social responsibility, including the education of a healthy society (external social responsibility), methods (traditionally, administrative management methods are preferred, while as the health care system is reformed, the role of economic and socio-psychological) and tools (mechanisms and tools for management and decision-making should be based on modern information technologies through the automation of medical records and medical information management; transformation of classical management mechanisms towards market on the basis of development of contractual relations (health care institution – client; state – health care institution)) for development.

Основы деловой этики в России: история и современность

The article “Basics of Business Ethics in Russia: Past and Present” examines the first manifestations of the norms of business ethics, using the example of a large class, the merchants. Some aspects of merchant life are touched upon, which show how and how the first business contacts are held, what the merchants adhere to and what principles the merchants adhere to in conducting business. Examples are given that indicate the moral component of business and examples that go beyond the framework of this component. The author of the article considers the coexistence of ethical principles and norms with the sphere of entrepreneurship. The business ethics of Russia in the historical context is most probably seen in the example of merchants. Merchant life consisted of many aspects, each of which, in one way or another, influenced the formation of the ethics of entrepreneurship in this environment. Russia of that time was characterized by deep religiosity, which influenced business relations, and the backlog from Western countries, which gave impetus to the comprehension of the new and the search for ways of international cooperation. The views of foreign and domestic businessmen often differ, largely due to different cultural traditions, mentality, and attitude to business. The author also points to an interesting example of business ethics in the Old Believers business environment. Ethical principles form the core of entrepreneurial activity. Their significant significance is evidenced by the fact that in 1912, the Russian business community adopted its first ethical code, entitled “The Seven Principles of Business Management in Russia”, which PN places in its book. Shikhirev. Modern business ethics, of course, differs from the previous one. New types of cooperation appeared at a distance - network technologies, a modern deal can no longer be imagined without various kinds of contracts and agreements, and the business itself consists of many business plans, tenders, meetings, meetings, etc. But, of course, echoes of history can be found today. The picture of modern Russian business ethics, today, is viewed from different angles, in particular, an interesting example is the comparison of views from foreigners and from our compatriots. In conclusion, the author makes the following conclusions: The development of Russian entrepreneurship has gone a long and difficult path. Many traditions and ways of doing business have been formed, patronage and charity are the brightest traditions. Religious principles defined many aspects of entrepreneurship and helped to find moral guidelines. Historical examples vividly reflected on the current state of Russian entrepreneurship, as many businessmen still do not conduct their business contrary to religious considerations, a high percentage of philanthropy is noteworthy. Modern entrepreneurship is closely related to the concept of responsibility, social and corporate. So that this responsibility can be clearly understood by all business participants, various corporate codes and declarations are introduced and adopted, also at the global level. The development of business ethics has many perspectives, the achievement of many goals will allow our country to achieve a high level of development not only in the international arena, but within the country.

Case Study on Developing a Comprehensive Voluntary Environmental Performance and Process Standard for Alpine Resorts Using Four Business Management Principles

In 2018, Jackson Hole Mountain Resort (JHMR) in Teton Village, WY, USA, discontinued its International Standards Organization 14001 environmental management system. JHMR needed a replacement voluntary environmental program (VEP) that would empower resort employees to directly mitigate climate change, reduce waste and pollution, minimize water use, and restore biodiversity, along with improving building, education, and purchasing. I developed the Model for Alpine Resort Sustainability (MARS) based on 2 research objectives of improving existing industry-specific VEPs and empowering employees to directly mitigate resort environmental impacts through their work. MARS involves 4 business management principles: (1) use ski industry-specific criteria to drive accountability comprehensively across 25 resort departments; (2) quantify greenhouse gas emissions, using both absolute and intensity or normalized bases, and apply quantification to solid waste production and water consumption; (3) employ modern management techniques and software to focus on action over documentation; and (4) strategically align with the core business objective of alpine resorts to provide profitable outdoor recreation by decreasing costs and increasing revenues. MARS provides the most comprehensive, research-based accounting to date of alpine resort environmental impacts and mitigation indicators. MARS could be applied to larger resorts receptive to change.

PRODUKSI BERAS KEMASAN PERSPEKTIF MANAJEMEN BISNIS ISLAM

Production is a human activity to produce goods and services which is then used by consumers. While Islamic business management is idea about how to regulate, manage, and run a business or convenient business with Islamic sharia.The Production process of packed rice that happened to UD Albas Jaya through several processes, start from the search for raw materials to packaging.In passing all these stages should be done properly and correctly as taught by the Islamic religion. This study intends to determine (1) the production process of packed rice at UD Albas Jaya Putih Village, Gampengrejo District, Kediri Regency, (2) knowing the process of packed rice production at UD Albas Jaya Putih Village, Gampengrejo District, Kediri Regency, in terms of Islamic business management. This study used qualitative approach to the type of case study research in the field and descriptive research design. The informants in this study arePacked rice producers, employees and surrounding communities and agents. The method of data collection in collecting data used observation and interview. As for data analysis using data reduction, data presentation, and drawing conclusions. The results of this study indicate that there are several production processes at UD Albas Jaya, including; First, preparation of raw materials (grain) that prioritizes good quality rice, by way of business owners going down to the field to make the selection of raw materials, then if the price of raw materials rises the producers do not increase the prices of their products. Second, the process of breaking the skin, does not cause environmental pollution because the waste can be resold. Third, the process of polishing rice, in addition to polishing rice which is still new, UD Albas Jaya also polishes rice that has not been sold for a long time to appear white again. Fourth, the packaging process, mixing old rice with new rice, as well as imperfect in weighing.fifth, the storage process.See from the production process, the production process of UD Albas Jaya is not in accordance with Islamic business management, because there are still production behaviors that are not in accordance with Islamic business management principles such as; polish old rice to make it look white again, mix new rice with old rice, and less to perfect the scales.

NEW QUALITY OF FINANCIAL INSTITUTIONS AND BUSINESS MANAGEMENT

Economic processes in the world are characterized by a high level of dynamism, change and innovative approaches to addressing key issues in nowadays. In a context of globalization and European integration of Ukraine into a high-tech competitive environment in order to financing innovative projects, it is necessary to use Blockchain technology as an effective tool for digital economy. Purpose of scientific research is to find out key priorities and functionalities of Blockchain’s application for solving business and government tasks. The object of scientific research is the latest financial technology Blockchain and a system of cult-technologies: crowdsourcing, crowdfunding, crowdinvesting. Methodology. In the process of research, the following methods are used: generalization is used in studying the nature, preconditions and principles of Blockchain technologies; formalization is used when comparing characteristics of the latest forms of financing, such as crowdsourcing, crowdfunding, crowdinvesting. In the course of scientific research, key qualitative characteristics of digital economy are described and the dominant components of its development are investigated. The result of the article. The priorities, new principles of business management and possibilities of Blockchain technology as an effective digital economy tool for solving business and government tasks are revealed. Future prospects from the implementation of crowd-technologies as an effective management tool in progress for solving the problems of innovative business are substantiated. Interconnection in the latest financial institution of creative initiatives realization is presented. The comparative analysis of management of new institutes of innovative development for Ukrainian economy in the course of doing business is carried out. The result of the research is presentation of the relationship in the latest financial institution implementing creative initiatives and a comparative analysis of new institutes of innovative development in the sphere of finance for the Ukrainian economy. Practical implications. The components of digital economy identified by the authors in the article are accelerators of the socio-economic life of Ukrainian society in the modern world and are capable of rapidly increasing Ukraine’s GDP. The described new forms of financing of Ukrainian startups (crowdsourcing, crowdfunding, crowdinvesting) are today quite interesting and effective tool for solving business problems in the financial, economic, innovative and marketing spheres. Value/originality. Blockchain technology, as an effective tool for Ukraine’s digital economy, is able to address the challenges of business and government, uncover the relationship between crowdsourcing, crowdfunding, crowdinvesting, and explain the content of innovative financial institutions for Ukraine’s economy.

Relevance of Vedic Management in Contemporary Times

Vedic management refers to the usage of the knowledge and the invaluable insights as one finds in the ancient Indian scriptures popularly known as Vedas. The knowledge which is to be found in the Vedas is of supreme authority despite being ancient. In fact the veracity of such knowledge has never been more than in the present ages when everything is in the state of constant change. Vedic management precisely deals with such ever-changing scenario in much better manner than many of the so-called modern methods of management. The inscriptions of the Vedas are a school of thought in themselves and when one delves into them much deeper then they leave no doubt in the mind of the seeker that they have answers to all their questions, explicit as well as implicit. The knowledge one gets in the Vedas is esoteric in nature, nevertheless it helps in grasping the significance of the circumstances which one faces in the changing scenario of today’s world and more than readies one to face them. The Vedas recognize the importance of the dynamism of the world and its dynamic environment. This paper tries to put into perspective various Vedic concepts which have proven their worth over the course of time as to how one can successfully adjust to and even anticipate change in one’s life, both professional and personal (Londhe, 2018). The Vedic literature propagates emancipation of the mankind, both physical as well as spiritual. The paper tries to relate the Vedas with the modern business management principles and practices. This paper goes on to highlight how one can benefit immensely be practicing the various Vedic concepts to come out of the changing paradigms in a never-before way. This is made possible because of the veracity of the Vedas, because of the simple fact that Vedas have been an incessant source of wisdom and sagacity which has withstood every test of time and which has proven, time and again, that no matter how old the knowledge is, what matters is how good a person is in interpreting and utilizing it. Thus, the Vedas encourage one to face the unknown facets of life, howsoever difficult they are, with much ease and assuredness and that is the theme of this paper which would put together the significance of Vedic Management and its subsequent impact of managing change in today’s world of clutter, confusion, chaos and competition.

PEMANFAATAN LIMBAH KOTORAN SAPI MENJADI PUPUK ORGANIK BERKUALITAS TINGGI SEBAGAI SALAH SATU USAHA INOVASI KAMPUS YANG BERNILAI EKONOMI

Decrease in land productivity is due to land fertility degradation caused by the excessive use of chemical fertilizer. Besides that, scarcity of necessary fertilizer at the farmer’s level causes farmers to have difficulties in finding fertilizer, and the price of chemical fertilizer tends to continuously increase along with the decrease of subsidized fertilizer from the government. The solution offered by PPUPIK is to provide complete organic fertilizer product that can help to increase plants growth and to improve the health and quality of production yields. The activity aims to instil the entrepreneurship spirit around campus as the manifestation of technology application, to provide people with quality solid and liquid organic fertilizers, and to increase innovations of organic waste utilization technology. The activities take place for eight months in the area of Plantation Agriculture Department of Pangkep State Agriculture Polytechnic Campus. The method used is the application of business management principles including production management, marketing, finance and development, besides the method of market research and comparative study method. The results of the activity show an increase in the entrepreneurship spirit among lecturers and students, an increase in the student’s interest of entrepreneurship from a number of zero to three students through an apprenticeship at PPUPIK location. Innovations increase, so the availability of quality organic fertilizer becomes possible. There is an increase in business income totalling Rp 32,000,000 at the end of June 2018, with a total of solid organic fertilizer production of 25 tons and liquid organic fertilizer 500 liters.

ОСНОВИ УПРАВЛІННЯ БІЗНЕСОМ ВІТЧИЗНЯНИХ СУБ’ЄКТІВ ГОСПОДАРЮВАННЯ

Modern business mainly uses outdated methods of command-administrative business management, and in some cases there is a combined management model (a combination of several methods). As for home-based businesses and start-ups, lack of a clear understanding of management activities or management is the nature of chaotic attempts to “set something up”. Therefore, analyzing the theoretical and practical developments of scholars in the field of economics, we can say that today there is no clear understanding of which management method is the most effective for managing the business of small businesses. In today's economy, the key to effective business management of business entities is the construction of high-quality flexible and mobile business processes, both in terms of internal interaction between entities and management entities, as well as in cooperation with the external market. Therefore, it is important to properly understand the essence of business management principles and methods. The purpose of the study is to substantiate the theoretical and methodological foundations of managing the entrepreneurial activity of domestic economic entities in the modern economy. The essence and the pyramid of groups of key principles of modern business management are investigated in accordance with the conditions of the modern economy and depending on their influence on business development: effective development group, sustainable development group and latent development group. The essence of administrative, economic, social and psychological methods of business management is substantiated. The identified positive and negative features of the application of these management methods for business. It is proposed to distinguish a separate category of innovative development methods, which should include foreign experience of agile business management Agile, Scrum, Kanban, XP and the concept of Lean management. It is concluded that the methods of flexible business management are effective both in managing enterprises and entrepreneurial activity of an individual entrepreneur with employees, sole proprietor, self-employed person, as well as home-based household business. It is advisable for business entities to choose one basic method of business management, but with the permissible combination of managing individual areas of activity by using another related method, approach, concept.

Влияние цифровой экономики на бизнес

<span>В статье представлена авторская позиция относительно направлений влияния цифровой экономики на деятельность компаний, основанная на анализе зарубежных исследований и российской практике цифровой трансформации. Акцент сделан на новые инструменты и принципы управления бизнесом, которые определяют конкурентоспособность компаний в цифровой экономике и ведут к формированию новой производственной философии. На примерах российских компаний показано, что цифровая трансформация пока охватывает лишь отдельные процессы и объекты бизнеса.</span>

Flexible Activities of the Organization in Implementation of the Sustainable Development Principles in Selected Areas of the Organizations

Flexible activities of the organization result from changes in the market environment. However, the multidimensionality of the concept of flexibility of actions leads to considerations in the field of organizational behavior from the perspective of business management. The aim of the paper is to compare flexible activities of companies in the implementation of sustainable development principles in selected areas of ongoing activities. The research in the form of case study was conducted at the turn of 2017 and 2018 on the basis of the interview questionnaire. The inference is based on the results of own research on selected organizations: profit and nonprofit, which declared the implementation of sustainable development principles in their current operations. The conducted research allowed to compare the activities aimed at introducing the above-mentioned principles in the selected areas of organiations' activities. Since the main objectives of the organizations' activities are assumed to be different, the desire to implement the principles of sustainable development may result not only from the main goals of the company, but also from changes in the business environment, customer expectations and from sustainable development-oriented leadership. Keywords: Flexibility activities, principles of sustainable development, business management, profit and nonprofit organizations

Court backlogs: balancing efficiency and justice in Singapore

ABSTRACTIn attempting to eradicate a backlog, can a jurisdiction prioritise court efficiency without affecting substantive justice? This article engages with this question by considering the experiences of Singapore, a common law country in Southeast Asia that overcame a large backlog in the 1990s. The article investigates how efficiency and justice were conceptualised in relevant court reforms. In the beginning of backlog eradication, efficiency took centre stage, but it does not appear to have been considered in isolation. The introduction of business management principles, which could have boded ill for justice, in fact introduced a theme of consumer satisfaction that ultimately developed into a more robust approach to access to justice. Singapore’s experience suggests that the connection between efficiency and justice is not a logically linear landscape, but rather an intertwined relationship in which efficiency and justice find a context-specific understanding.

La dimensión social de la responsabilidad social de la empresa

Los principios de igualdad y de gestión empresarial responsable se reconocen en la mayoría de las normas y estándares internacionales de RSE. No obstante, a pesar de que la RSE engloba una dimensión social sin la cual no podríamos hablar de empresas responsables, y a pesar de que la igualdad de género es parte de esa dimensión social, todavía hoy cuesta abordar este aspecto, y lo más grave aún, en ocasiones su falta de puesta en práctica refuerza la idea de que estamos ante algo accesorio, y por tanto prescindible.

IMPLEMENTATION OF FRANCHISE AGREEMENT PERSPECTIVE IN CONTRACT LAW

Franchise is one form of growing business activity in Indonesia, where the agreement based on principle of freedom of contract. This study aims to analyze of the franchise agreement implementation in contract law perspective, and factors inhibiting and supporting the franchise agreement in the contract law perspective. 
 This research is a qualitative study using a non-doctrinal approach to socio-legal research, in order to get an overview of study subjects to find an ideal reconstruction of the franchise in the contract law perspective. An approach that is non-doctrinal with presumption that the object of the law is interpreted as part of a social sub-system among other social sub-systems. The study also includes three stages, namely the study of philosophy which focuses on literature, study of normative to see how legislation to regulate legal relationships in the franchise business and was associated with the values of philosophy and conducted cross-checking through interviews with actors then do a sociological study to find in-put of justice sought.
 It concluded that the franchise is a document legal agreement between the franchisor and franchisee (about the rights and obligations). Achievement in the agreement that gives something include the obligations of Franchisor to provide flexibility to run the business without interruption to franchisee for a certain period, the principles of business management following intellectual property rights such as trademarks, logos, patents, and other, which is part of the business concept franchise, for the franchise fee as agreed in the agreed amount. If the agreement between the parties is not carried out for example franchisee does not pay a franchise fee to the franchisor, it may be requested compensation. In an agreement is possible non-performance of the agreement, although the terms of validity of the agreement have been fulfilled. It caused by uncommitment (breach of contract) and coercion or force majeure. Therefore in the agreement, must have a balance between the rights and obligations between both parties that the franchisor and franchisee.