How can Marketing mix model help Manchester United build its global brand?

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

1b) What advantages are there to not franchise the restaurants? Do you think they ought to franchise restaurants down the road? What advantage would that be for the company?

Advertising money is spent more efficiently (the franchiser teams up with local franchisees to advertise only in the local area).

Buying a franchise may reduce your investment risk by enabling you to associate with an established company. But the franchise fee can be substantial. You also will have other costs: for example, you may be required to give up significant control over your business while you take on contractual obligations with the franchisor.

The significance of strengthening and developing each individual store is huge, because this is crucial for the company as a whole and it derive its future.

Franchising is a business model that allows companies to rapidly expand their market share. According to Franchise.com (2015), there are three types of franchises: distributorships, trademark licensing, and business format franchises. When two organizations enter into a distributorship, the originating company provides the rights another company to sell their products. An example of a distributorship is when an auto manufacturing company grants rights to a dealership to sell their vehicles (Franchise.com, 2015). Trademark licensing is when one company allows another company to use their trademark (Franchise.com, 2015). The business format franchise authorizes franchisees to sell the parent company’s products and/or services as well as utilize their business model. This type of franchising is the most common and is the type needed to obtain to open a new Cold Stone Creamery.

...................................................10 Alternative 3 – Review Existing Locations..........................................................................................11 Alternative 4 – Expansion through Franchise Operations.....................................................................11 Alternative 5 – Expand Catering Segment ...........................................................................................12 Recommendations and Action Plans .......................................................................................................12 Recommendations ..............................................................................................................................12 Action Plans .......................................................................................................................................13 Contingency Plan ...................................................................................................................................14 Attachments ...........................................................................................................................................15 Exhibit 1.............................................................................................................................................15 Exhibit 2.............................................................................................................................................16

Another point the article puts an emphasis on is that franchise can save costs for advertising. The speaker contends that this argument

In North America alone, new franchise opportunities are popping up daily, giving these interested individuals a variety of tools designed to grow both their businesses and the studies of their customers. Just like any other venture, though, there are both advantages and disadvantages to purchasing a franchise of a larger parent company.

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.

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

Benefits that would get by the both parties which is franchisor and franchise through different useful Franchise Development Programme from different organization such as lower their business risks, get the maximum profit and so on. In the case study that our group chosen is Ayamas, franchisee would get the lower business risks that means the business risk will decrease to minimum and the franchisee no need to worry about their business will make them bankrupt because the risk is low. Next, opportunity to market goods or services that are acceptable in the market which means the goods or service must have acceptable by the public and follow the rules of the country. For example, in Malaysia, foods that are halal must have registered the certificate of halal and stamp the logo of halal on the foods to show that it is safe for muslin. It would get the market to sell halal foods in Malaysia. Economic benefits of scale is one of the benefits for franchisee. It means franchisee can enjoy the benefits of economies of scale that are bring high profit and money return to their business.

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

‘As a result, expansion can proceed at a much faster pace than would otherwise be possible, enabling the franchisor to achieve increased market share whilst benefiting from economies of scale.’ (http://www.butterfield.co.za) Finally, franchisors can benefit from the cultural knowledge and know-how of local managers. This can be helpful in lowering the risk of business failure in unfamiliar markets, as well as creating a competitive advantage. Franchising offers franchisees the advantage of starting up a new business quickly based on a proven trademark and way of doing business, as opposed to building a new business from scratch. The franchised business is based on a proven idea and has an existing customer base, therefore making it much easier to sell your product than it would if you were to start up your own business.

According to the literature examined franchisees, it is tend to be represented by larger local firms that are offering a wider range of services and usually are able to generate more revenue than their competitors. Thus, franchisors are enhancing revenue generation process by adding additional value through standartised systems of marketing, training, learning branding knowledge and technology sharing (Benjamin, Chinloy & Winkler, 2007; add more ref). There were a lot of studies conducted in order to justify reasons of franchise business model existence and its success (Anderson & Fok, 1998; add more ref).