Case Study : The Body Shop Franchise Essay

To ensure that Glenn can build a respectable reputation as a car detailing business, Glenn must be able to grab a segment of the market in his area where a few competitors already exist. Glenn can penetrate the market by employing different marketing and promotional strategies to ensure that he’ll see success and profits with his limited resources. Glenn’s main objective for his business strategy is to provide cleaning and maintenance to both the interior and exterior of vehicles to preserve their condition by using quality name brand products and precise, hand-done work. Glenn has already identified the different segments of car owners: owners of older cars that are in poor condition, but served the purpose of transportation; owners of newer, mid-priced cars; and owners of expensive cars costing more than $35,000.

Although the restaurant industry is perceived to have high risk of failure, the risk of a restaurant failing is not too different from other small businesses. Parsa et al. quantified the risk of failure at 26% in the first year and 57% by year 3. He also described several factors that can influence the risk of failure. Those include physical location, firm size, speed of growth, differentiation from other restaurants in the market, adapting to external trends, and management experience. In terms of location and differentiation, Paul’s bar will be located in a new development designed to attract affluent customers and with very few competitors. Paul’s small firm size increases risk because of barriers to attract partners (i.e. suppliers and bankers are prejudiced against smaller firms) and growth that may be too rapid to manage. On the other hand, Robert already has experience in the restaurant business and should know how to run the bar and subsequent restaurant. Their choice of a piano bar may be in response to local trends that favor success.

c. A franchise wouldn’t affect Armentrout’s overage and underage cost. Therefore it does not change his fraction and does not change his decisions. However in extreme cases the nature of problem changes. If Sheen charges a very high franchise price she would have no incentive to sell any paper (since her main profit is from franchise and not the sale) but then Armentrout may not buy because he can not make any profit.

In the 2010 census, the United States population of seniors, or those over the age of 65 was 35 million. This number is expected to grow to 70 million by the year 2030. With children moving far away from their parents, providing assistance may be difficult, which is why senior care franchises are one of the best business investment opportunities right now.

Penny Thomas, an Ivey graduate with the help of her daughter, who also is an Ivey graduate, decides to purchase a license to open a Marble Slab franchise in the Great Toronto Area. After paying her fees of $25,000 to the company, she starts thinking of her marketing plan for her grand opening that she has two weeks to hand to the Marble Slab head-quarters in Calgary . So she hired a marketing consultant (me) to help her. First, the corporate capabilities of the company had to be defined, financial capabilities, Marketing capabilities, Operational capabilities and the available human resources. After comprehensively studying the internal capabilities of the company, the external forces affecting the business are analyzed. The two external

In order to create a Dip n Dip franchise in the country of Panama, we will need a total capital of $650,000.00. This amount needed is to cover the franchise cost, beginning franchise merchandise, location, furniture and decoration for the restaurant advertising and keep a remaining capital for utility and other kinds of cost.

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

Because of a recent economic downturn, there may be an opportunity to negotiate new lease opportunities at even better rates. Also,franchising the Sandwich Blitz shops seems like a great opportunity for expansion beyond Dalman and Lei’s current large metropolitan area. This would require training upfront on Dalman’s part to insure the same quality and consistency in the food preparation. However, once the franchisees’ shops were established, there would be less time Dalman and Lei for any specific issues, as the franchisee would be responsible.Dalman and Lei can participate in the profitability of these franchises without the same level of management that is currently required. This opportunity would also potentially be less risk for the company as a large amount of capital would not be required in the expansion.

Richard Paul is about to graduate from his M.B.A program and planning to start running his own store. While scanning through job advertisement, he comes across of The Body Shop Canada. The notice stated that the company has number of operating stores available for franchise. Knowing the enormous success of the company, Mr.

As the franchise owner and Area Representative, I have gathered you, my business partners and franchisees to discuss how we are going to increase our profits at our Leesville Road, Raleigh location. As you are aware, I am Area Representative to a total of nine locations (four in Fayetteville, four in Raleigh, and one in Wake Forest), and the owner of the four locations in Fayetteville and Leesville Road in Raleigh. After looking into our numbers from the last three quarters, I am seeing a consistent loss of money each month for this one store. Each of the other eight stores is, on the other hand, consistently making us a profit. It is because of this that I have decided that we needed to sit down together and talk about how we are going to amend this problem. I have several different options that I have considered implementing that I will outline for you here. After careful consideration, one of these options I have decided will have the most positive impact on our incoming revenue, and I will be sharing with you why and how that is the best option. These options include changing the advertising plan for this store, cutting back on the number of employees working in this store, investigating labor costs, and analyzing our business costs and making any changes where appropriate.

The first point made by reading is that a franchise makes it easier to find reliable suppliers to cooperate. The lecturer, however, challenges this particular viewpoint by arguing that designated suppliers are actually harmful to owners. To be specific, she points out that specific goods and services provided by franchise suppliers are priced much higher than equivalents sold by other suppliers.

Our arrangement with independent fitment companies is to provide access to our bordereaux and claims processing facility only.

The Body Shop was one of the fastest growing manufacturer- retailers in the late 1990s. However, throughout the years, they failed to maintain its brand image by becoming something of a mass-market line. Anita Roddick, the shops founder and Patrick Gournay, CEO are looking for assistance in short and long-term planning for The Body Shop. The goal is to yield practical insights while being straightforward. To get started, we assumed the growth rate for sales is 13%; the cost of goods sold percent change is 38% changes, and a 50% change for operating expenses. The amount of external financing, the variables affecting the estimates, what the best way to raise the financing, along with important ratios, the internal growth rate, the

What makes a franchise successful? According to Rob Bennett who is a franchise broker and consultant, there are many factors involved to create a successful franchise. To create a successful franchise one must make sure that they have a stable ground to expand, meaning that they CEO of the franchise needs to make sure that they aren’t just receiving rapid growth because they are simply a “fad” they want to keep their customers for the long run.

Franchisors are increasingly having to be more and more selective in the adoption of franchisees with factors such as economic climate and the potential difficulty with growth playing key factors in the decision making process. It is not simply an ability to grow which creates a successful Franchise and nor is it the desire of any franchisor to adopt every potential franchisee. Franchisors are becoming more and more scrutinising as the global economy declines. There is a general understanding within any franchised