COMBINING BOOTSTRAPPING AND GENETIC ALGORITHM BASED ON FEATURE SELECTION FOR FRANCHISE LOCATION PROSPECTS PREDICTION

Location selection is crucial in the franchise fast-food industry. A thorough location selection model paired with a proper analytical technique can considerably improve the performance of placement decisions, attract more customers, and raise market share and profitability. Franchise location data sets have an imbalanced class nature. The franchise location prospect prediction performance decreased as a result of the dataset's noisy characteristics. We developed a hybrid approach to improve franchise location prospect prediction performance in this study. It combines Bootstrapping to address class imbalance problems and Genetic Algorithm (GA) to select relevant features in the franchise location prospect prediction. We experimented with four different classification methods (Naive Bayes, C4.5, Random Forest, ID3, Gradient Boosted Trees). The results show that almost all classifiers that use Bootstrapping and GA outperform the original technique. We employ the Confusion Matrix and Root Mean Squared Error (RMSE) to examine the proposed method's performance. The test results demonstrate that the proposed method considerably enhances the franchise location prospect's classification performance.

REGIONAL DEVELOPMENT AND INSTITUTIONAL ENVIRONMENT: REGIONAL EXPANSION OF FRANCHISE CHAINS IN BRAZIL

ABSTRACT Purpose: This paper aims to analyze the attractiveness of the markets in the inland of Brazil to franchise chains based on the characteristics of institutional environment, referring to the socioeconomic, geographical, and human resources dimensions. Originality/value: Interiorization is a theme that has been hardly explored in franchise chains’ growth strategies. This paper contributes to this debate through the institutional theoretical perspective, contributing to the clarification and ordering of the decision-making factors for the regional expansion of franchises. For regional development, it calls for municipal management to direct actions aimed at socioeconomic development and human resources. Design/methodology/approach: The quantitative method using secondary data - from Brazilian Association of Franchising (Associação Brasileira de Franchising [ABF]), Brazilian Association of Shopping Centers (Associação Brasileira de Shopping Centers [Abrasce]), Brazilian Institute of Geography and Statistics (Instituto Brasileiro de Geografia e Estatística [IBGE]) and Google Maps - was employed in this study for the analysis of franchise location and for municipalities. The sample comprised 458 municipalities with a populaion of above 50 thousand inhabitants. The statistical techniques used were factor analysis and multiple regression analysis. Findings: The results show that the socioeconomic and human resources factors of the municipalities are essential for the attractiveness of franchises chains to the inland of the country. In turn, the geographical distance of the inland municipality in relation to the state capital did not present adherence to the model as an explanation for the attraction of franchises.

SISTEM PENDUKUNG KEPUTUSAN PENENTUAN KELAYAKAN LOKASI FRANCHISE PADA PT. SEMANGAT PAGI INDONESIA MENGGU

ABSTRACT <br /><br />PT. Semangat Pagi Indonesia is a company engaged in the field of services and sales. One<br />example of the service offered is opening a gym. PT. Semangat Pagi Indonesia already has several<br />fitness centers in some areas, especially on the island of Bali. In the vision and mission of the<br />company, PT. Semangat Pagi Indonesia has annually achievements target to open 100 new<br />branches in Indonesia by the year 2015 and by 2025 can open 1000 new branches in Southeast<br />Asia. This research aims to build a decision support system to determine the feasibility of<br />franchise location using Scoring System method, which will be used as a tool for the company in<br />making a decision. Event List, Data Flow Diagram (DFD), and Entity Relationship Diagram<br />(ERD) are used in designing this decision support system. The output of the system is in the form<br />of eligibility information for each location submitted by the Franchisee. The type of eligibility<br />given is a description whether the proposed location is feasible, very feasible, or less feasible. The<br />testing of this system is using Black-Box method that will check the running of the system, whether<br />the system is appropriate or not. Test results that have been done as expected. The end result from<br />the system of this research, can help companies in taking a decision. <br /><br />Keywords: decision support system, franchise, scoring system <br /> <br />ABSTRAK <br />PT. Semangat Pagi Indonesia merupakan perusahaan yang bergerak di bidang jasa dan<br />penjualan. Salah satu contoh pada bidang jasa adalah membuka tempat kebugaran. PT. Semangat<br />Pagi Indonesia sudah memiliki beberapa tempat kebugaran di beberapa wilayah terutama di pulau<br />bali. Dalam visi dan misi perusahaan, PT. Semangat Pagi Indonesia menargetkan dalam capaian<br />perusahaan tahunan pada tahun 2015 dapat membuka 100 cabang baru di Indonesia dan pada<br />tahun 2025 dapat membuka 1000 cabang baru Se-Asia Tenggara. Penelitian ini bertujuan untuk <br />membangun sebuah sistem pendukung keputusan penentuan kelayakan lokasi franchise<br />menggunakan Metode Scoring System, yang nantinya akan digunakan sebagai alat bantu<br />perusahaan dalam mengambil sebuah keputusan. Hasil keluaran dari sistem adalah berupa<br />informasi kelayakan bagi setiap lokasi yang diajukan oleh Franchises. Jenis kelayakan yang<br />diberikan adalah keterangan apakah lokasi yang diajukan kurang layak, layak dan sangat layak.<br />Pengujian sistem ini menggunakan metode Black-Box yang akan memeriksa jalannya sistem,<br />apakah sistem telah sesuai atau tidak. Hasil pengujian yang telah dilakukan sesuai dengan yang<br />diharapkan. Hasil akhir penelitian sistem ini, bisa membantu perusahaan dalam mengambil<br />sebuah keputusan. <br />Kata Kunci: Sistem pendukung keputusan, Franchise, Scoring System<br /><br />