Strategic change refers to alterations in a company’s corporate, business-level, and/or functional strategies. Mergers and acquisitions, outsourcing, and entering strategic alliances (franchising, equity alliance, joint venture, etc.) are the most common corporate change attempts. Product and/or process innovation, engaging to achieve economies of scale or scope, and offering new complementary products are some attempts at changing the business-level strategies. Investing in new equipment, changing price policy, and designing new education and training programs are some examples of changes in functional strategies.

The example given in the question is about franchising.