Essay on Business Studies - Case Study What a Spectacle

A franchise is a legal agreement between franchisers and franchisees that consents use of the franchise’s trademark and trade name or marketing plan

An athletic shoe company can also diversify its company through concentric diversification. This type of diversification can help companies conquer instance two of leverage existing competencies and capabilities by expanding into businesses where these same resource strengths are key success factors and valuable competitive assets. The company can increase its production portfolio by adding new products, which will allow them to fully utilize the potential of the existing technologies and marketing system. This method will allow them to also become more financially efficient because they are using the resources that are already available to them.

1. Franchisees gain numerous advantage when they purchase a franchise. First, while a franchisee may be opening a new store, it is part of an already established business and system. This means a franchisee has access to turnkey operations, allowing an increased speed to establishing and growing the business. Franchisees also get support for management and training activities, as well as financial assistance. Going hand in hand with this, a franchise already has an established brand name, quality of goods and service which have been standardized across the franchisor’s larger company, and national advertising programs from franchisors. Franchises also have large-volume, centralized buying power. A franchise has proven products, and

In the Sneaker selling industry there are 3 major problems that need to be addressed before you can run a truly successful sneaker empire. Distribution Outlets, Authentication, and Variety are the three major categories of success when it comes to the selling and distribution of sneakers. The first key factor for distributing sneakers is having a reliable Distribution outlet. A Distribution outlet is extremely important when selling and distributing shoes because without a reliable distribution of shoes there is no way to get more inventory and there is no way to make sure that your customers stay interested in the products you have if you are not receiving new ones. The second key factor in selling and distributing shoes is authentication.

Boots is a pharmacy chain operating in the United Kingdom, Ireland, Norway and Thailand mainly. Its headquarters are in Nottingham and it is part of the Walgreens Boots Alliance. Boots aims to be the leading healthcare and wellbeing products provider in the markets it covers. In the UK alone it operates 2500 stores enabling it to be the market leader. The company is founded in 1849 and went several downturns before attaining the stage of market leader it occupies today. The alliance that owns both Boots is public and traded in NASDAQ, employs 400,000 people and had a revenue of USD 117B in 2016. Boots goal is to assert itself in the healthcare products market and ensure quality services for its clients.This report will cover the operational aspect of Boots and its potential areas of its growth. This report will also cover the organizational construction of the company, the strength of its business model and what sets it aside from other companies operating in the same sector.

While doing some research I found that a franchise agreement is a binding legal contract that is signed between a franchisor and franchisee. A franchisor is the company owning the rights to grant franchises to franchisees, while a franchisee is a person or entity who is given the right to conduct business by a franchisor or licensor. The most important definition however is that of a franchise which is an authorization granted by the government or company to an individual or group allowing them to carry out certain commercial activities.

1. Discussion: What factors drive Nike’s decision to stick with some form of network organizational structure rather than own its manufacturing operations?

The first choice of business is the franchise. In a franchise, legal binding agreement is entered into between two firms, the franchisor (the product or service owner) and the franchisee (the firm to market the product or service in a particular location). The franchisee pays a certain sum of money for the right to market this product” (Rubin, 1978, p.224). The franchising is more prevalent in the restaurant industry (Hoffman & Preble, 2003). The two distinct features of this business type include; first, in order to notable service components should

The sources of new business ideas come from a variety of places. It could be from a problem that needs to be solved from a consumer, existing knowledge in a business and a vision to improve, or recognizing an alternative use for a new technology. While ideas are plentiful, the ability to bring that idea to fruition, and create a profitable business from it, is much more difficult.

Pros. There are many pros associated with buying a new business format franchise. First, since the franchisee obtains the parent company’s business model, individuals who are interested in starting a new business but are not confident in their abilities or lack experience in business, will receive a successful model to emulate (Williams, 2011). In addition, the franchise may also help the franchisee determine the best location for the business, help with the acquisition of equipment, and may help finance the endeavor. Next, most

Our company in terms of market share, is dominating every other company in the Private Label segment with the exception of Latin America. Our competencies or advantages in the internet segment are as follows: maintaining strong S/Q ratings, offering free shipping, and targeting our customers with advertising. In the wholesale segment, advertising and our S/Q ratings continue to be our competencies, moreover, we also utilize more retailer outlets. Our advertising strategy is to improve our visibility for our shoes, and it is our distinctive competence. In our wholesale segment, by maintaining strong advertising, we are supporting the retailer’s efforts to create brand awareness for our shoes. We use more retailer outlets which aid the advertising, as there is more exposure for our shoes. Our advertising expenditures across the board are higher than that of our competitors in both the internet and wholesale segments. Dream Athletic takes a cost leadership approach as its business strategy, which allows us to drive our costs down while maintaining our production of stylish and quality footwear. The S/Q rating is currently a core competence as our managers seek to increase the S/Q rating in years to come. The lowest S/Q rating in each region and segment is 4, and our highest S/Q rating across our segments and regions is 5. In the last year, we have increased our spending on TQM/sigma six programs to increase our plants efficiency. Our customers per our success in the industry, demand a stylish and quality shoe; therefore, we will continue to improve this core competence and turn it into a distinctive

The paper will examine the business as if it were being purchased and provide reasoning for the purchase by evaluating the company’s business model and assessing the need for training from the seller. The paper will also provide reasons for the purchase by identifying the issues the buyer should investigate when performing a feasibility analysis and due diligence. The additional reasoning for the purchase will be provided by identifying the areas to negotiate with the seller and the advantages and disadvantages of purchasing the existing business instead of starting a new business in the industry. This week the business choices to conduct research on were Mel’s Country Café, Hope Blooms Flowers and Things, and Gentlemen’s Top Option. The business that I chose to conduct research on is Gentlemen’s Top Option.

West Coast Fashions, Inc. a large business of men’s and women’s apparel decided to dispose of one of their segments; Mercury Athletic. John Liedtke, head of the business development for Active Gear, Inc. saw it has a possible opportunity for them to acquire it. The footwear industry is very competitive, with low growth and stable profit margins. AGI is very profitable but it is smaller than its competitors, which is becoming a disadvantage. Therefore, Liedtke believes that if they takeover Mercury will double AGI’s revenue, increase its leverage with contract manufactures and expand its presence with key retailers and distributions. Liedtke is evaluating the company in order to find out whether the future benefits justify or surpass the present value of the investment in Mercury.

Companies can have a strategy aimed at being the clear market leader in (a) selling branded footwear to retailers or (b) selling directly to online buyers or (c) both.

By buying into a franchise you are gaining the benefit of the franchisors experience as well as the name and reputation that has already been built up by the franchisor. Therefore it is no wonder that ‘according to the U.S. Commerce Department, an estimated 95% of franchises succeed, whereas only 25-35% of independent businesses succeed.’ (http://money.howstuffworks.com) It is also not surprising that franchising makes up for about 3.2 percent of all businesses and 35 percent of all retail and service revenue in the United States, proving that it is big business. Franchising is very often a wise choice because consumers like