The main critique of this article, is to analyze small business development strategy by using marketing, finance, and production factors. These factors are pertinent when developing a franchise. Growth and success in a franchise business is determine by the market analysis and financial planning. However, with proper distribution the production factors will occur once the customers are aware of the business. The franchising of business is started by several different aspects, the business models as a small business growth strategy. However, marketing, production, and financial are important in the formulation and development strategies to expand the success rate and market share of the company. Around the world, factors to accomplish successful growth through predefined strategic plans are talked about. The role of Marketing takes place in the initial phase, establishment of the franchises business. A firm and focused market research would allow the development of strategic plans to talk about the needs and perspectives of the individual customers in the future or existing market conditions. Companies trust in deploying market tested business models to develop strategies that would benefit the franchise business. Marketing factors are important in the franchising business as it involves the use of the name, technical and managerial know-how of a well-established brand for a new set of customers in a different business
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
Develop an action plan of strategies and tactics to be implemented. Finalize the marketing plan.
Starting a business from scratch gives you the opportunity to have the freedom of making your business decisions.
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.
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.
The marketing plan bonds with the overall financial and business plan. This plan contents a strategy for success, and breaks it down into coherent, actionable components that will aid The Sub Shop to implement marketing activities to obtain a return on investment. The following areas will help explain, how the company organise differentiation from the competition, and define the strategy that will drive its business forward.
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
Franchising: it is a relationship in which the owner of the business allocates to independent individuals the right to market and distribute the goods or service, and by using the business’s name for a fixed period of time. The International Franchise Association defines franchising as a "continuing relationship in which the franchisor provides a licensed privilege to do business, plus assistance in organising training, merchandising and management in return for a consideration from the
The purpose of this research study is to review how small businesses are affected by economic crisis, to assess the effects of marketing strategies on business performance and to identify strategies that can help small businesses grow in troubled times. The following 5 literature reviews attempt to demonstrate and support the hypothesis.
3. Market Entry: Will the timing of the restaurant development be optimal, creating value and growth
The objectives of this feasibility study is to analyse and evaluate a proposed franchise opportunity as a start-up business to determine whether it would be
The franchisor markets a unique business system under a trade name and franchising adopt the standardise procedures to run their own business.
Commercialization-A good budget plan to manufacture, advertise and promote the product in the market for sale was developed.
Franchising has become one of the most popular business strategies of expanding and growing a business,
Franchising is a broad and a great business tool to deliver goods and services, and to flesh out a line of work. It can have a great effect on investment, but it is also one of the most likely to be misunderstood aspects of a specific project.