Description Of A Business Model

The business that I want to open would be a franchise of a McDonald’s restaurant. McDonald’s is a fast-food restaurant that serves a variety of products, but is mostly known for its

I am currently in a position in my life where I am working diligently to prepare for my future. While I have a Master’s degree in Clinical Psychology, I have always been entrepreneurial in nature and remain open to any opportunity to better myself personally and professionally. I believe that operating a franchised restaurant business would be an incredible way for personal and professional growth, in addition to helping my

This step involves short and long term debt equity analysis. The proportion of equity capital depends on the possessing and additional funds will be raised. The choice of the source of funds the company has are the issue of shares and debentures, loans to be taken from banks and financial institutions and public deposits to be drawn in form of bonds. The choice will depend on relative merits and demerits of each source and period of financing. The management of the investment funds is key in allocating that the funds are going in the correct place. The profits that are made can be down in two ways dividend declaration which includes identifying the rate of dividends and retained profits in which the volume has to be decided which will depend upon expansion and diversification of the company. The management of cash is another important function. Cash is needed for all different aspects of the company such as payment of salaries, overhead and bills. All of these are important in a company and how successful the financial aspect is going to be.The financial management practices include capital structure decision, investment appraisal techniques, dividend policy, working capital management and financial performance assessment. A company needs to have well financial in order to be successful. “A company that sells well but has poor financial management can fail.” (Johnston)

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

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.

One of the key similarities between these two types of ownership is liability. The franchise and public limited company have limited liability. This means protections of their shareholder from losing their personal finances if the company goes bankrupt. If the company fail they only lose their invested money in the business. If business wants to become a limited liability can it be complicated and expensive to set the business, decisions can take longer and it takes a lot of legal requirements.

A good example is a children?s clothing store. They must be able to understand what has made their competitors like Carter?s and

My business will have limited liability. This means that all of us will have limited liability for the business, this is good because if our business bust we don’t need to pay them off.

It has its advantages and disadvantages to franchise the business. It is a careful decision to make for anyone to invest a lot of money into a franchise and everyone should be comparing pros and cons.

INDIVIDUAL APPROACH OF THREE MODELS OF BUSINESS ANALYSIS IN INTERNATIONAL BUSINESS THROUGH THE STRTEGIC ANALYSIS OF STARBUCKS, UNITED PARCEL SERVICE Inc. (UPS), FEDERAL EXPRESS (FedEx)

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

Not having to answer to a corporate boss is the dream of many and the flexibility that owning a business franchise creates provides this option. Success is not reached by simply creating a business, however. The level of success is measured by the size and efficiency of the business. Business growth is the driving force of the economy. The additional jobs and revenues created when a business expands allow the economy to grow at exponential rates. One of the fastest and most popular ways to increase the size of a business is to turn it into a franchise, which can then be purchased by individuals. Franchising provides opportunities that are beneficial to both the parent company and the purchaser. The company that owns the business can expand

For a company to achieve maximum impact on their strategies whether marketing, financial or expansion the company must understand their business activities. Efficiency in managing business activities ensures smooth operation for maximum profit (Brinkman, 2). The business model strategy enhances the management of the enterprise and operational design to conform to profit-making goals by implementing the segmentation of business activities. The research report will employ the business model canvas to study and perform data analysis on the quickly growing taxi company Uber Company. Data analysis is the deliberate activity of collecting and presenting data in a form that highlights useful information that is helpful in decision-making (Boyd, 18). Data analysis can be described as the implied process of taking the whole of the collected data and identifying trends to determine direction, meaning and implications, in addition to asking questions about the received data and making comparisons within it to expand concepts from it (Warner, 13). Travis Kalanick and Garrett Camp founded Uber Company back in 2009. The company’s objective was to come up with a mobile app that was to dominate in the transportation sector (Reilly & Williams 32). The Uber app is known to allow users to make their trip request over the app, which is also where taxi drivers get routed. By March 2015, this service was accessible in over 55 nations and over 200 cities all over the world (Hirschey, 19). One of

In the business world, strategy is probably the most often used and the most often confused term. The article ‘Why Business Models Matter’ clarifies and elaborates on crucial element of any organization. The Author, who also wrote, ‘What Management is’ asserts that the business model and strategy is the basis of any organization whether it be profit or non-profit. Magretta shows the outlines of business model and strategy. To make a big success in business, the first step is making a business model, when making a new business model, managers must think about all possible outcomes. She goes on further in the article to give examples successful organizations and their use of strategies to compete within the industry.

Michael Lewis (2000: pages 256-257) scoffed at the whole attempt to formalize the definition of business models when he wrote that “ “Business Model” is one of those terms of art that were central to the Internet boom: it glorifies all manner of half baked plans. All it really meant was how you planned to make money.”