Marketing Channels

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

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

Develop product lines by introducing vegetable sandwiches (Appendix 4) shows an increase in cash inflow from 155% in 2013 to 319% in 2015

The Bargaining Power of Suppliers (Moderate): Most of the industry’s products are sourced and manufactured by a network of third parties. The supplier group is diluted compared to the industry; KMD alone has over 45 suppliers. There is credible threat of suppliers adopting forward integration resulting in loss of major suppliers and emergence of new competitors for the industry. Highly effective and specialised products will pose high supplier switching costs for industry firms.

First, we will evaluate what we thought were pro’s for opening up a franchise. One concept that we liked the most was that a franchise operates very similarly to

One of the most important aspects of the business is the franchise component. When starting a business that is going to be a franchise, there are unique elements that must be taken into consideration. These include standardization, and the capability of franchisers to adapt within a standardized format (Kaufman & Eroglu, 1999). An example would be McDonalds, where franchise owners have come up with some of the company's most lucrative products, while simultaneously operating within a strict franchise format.

The suppliers get the advantages of making their products be showcased for the consumers thru these retailing outlets. A wider scope of retail outlets could mean wider scope for the brand recognition of the seller’s products, that is why these retailing giants has more power than suppliers. But when it comes to distribution, having a strong supplier is important, the company be better over competitors when it comes to qualitative factors such as on time deliveries on their branches and wider network of

Today’s generation is filled with people who want to own their own businesses and be their own boss, however, crossing an individual who intends on building their ideas from the ground up is rare because the process absorbs time and finances. For this reason, franchises are becoming more popular in the business world. In this system, an established business sells a portion of temporary ownership to a franchisee, in which the franchisee must incorporate the franchisor’s existing framework and practices in exchange for a managerial role. The franchisor Findings Popeyes Louisiana Kitchen Franchise Popeyes Louisiana Kitchen creates, runs, and franchises restaurants that specialize in the quick servicing of spicy chicken, buttery biscuits, red

Data that is found from the research will be analyzed in different food franchise around the South Dakota area, focusing on smaller towns. Based on what we find, we will provide recommendations dealing with the financial and legal process, and other obstacles, along with suggestions where the food franchise should be established.

A buyer should be ultimately striving to maintain a dominant power leverage position over their supply base. It is never wise to allow a supplier to have more power or the dominance position. It is possible to maintain a buyer dominant power position and simultaneously build a collaborative alliance with a supplier. This is shown in the end of the case when VW builds the factory in Brazil. VW is still in the dominant power position and they are working side-by-side with suppliers in the factory building alliances and stronger relationships. By working together, on the same factory floor, VW is able to learn a great deal about how the suppliers do their work and give VW a chance to meet and know the actual employees of the supplier.

The suppliers: Suppliers can be in charge of the accomplishment of the industry when they cling to the supremacy. The supplier embraces the influence when they are the no more than or the biggest supplier of their supplies as like BHA did.

Opening a franchise requires extensive financial planning through the evaluation of personal finances compared to vital start-up costs. No two franchises incur the same start-up costs, so having a substantial amount of capital available from the beginning is crucial. Franchise costs stem from the desire to open a franchise and the associated target industry. Franchises within the fast food segmentation require food inventory while franchises in the pet care segmentation require pet supply inventory. As a result, franchise entry fees range anywhere from $5,000 to over $5 million. Besides entry fees, franchise owners are required to pay administrative fees for legal and accounting services to

Managing supplier relationships is a big issue for Elly’s international business since it directly affects the costs that her business incurs and is caused by many things. First of all, some suppliers are not willing to sell to smaller business owners. Many suppliers prefer to sell machinery parts in bulk to larger customers, so even having access to a consistent supply is difficult for Elly. Secondly, many of the parts that her clients

1: What recommendations would you make to John Wolf with respect to structuring the supplier relationship process for the Wolf Motors dealership network?

However, this is also an industry where the threat of forward integration is very high, as brand manufacturers can easily set up their own online retail stores. Furthermore, with technology reducing information gaps, suppliers can easily find out retailers’ mark-ups on their products and bargain higher prices. These factors point to high supplier power.