Marketing Management : Integrated Business Operations Essay

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

The franchiser can attain rapid growth for the chain by sign- ing up many franchisees in many different locations.

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

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.

Top managers develop long-range plans, called strategic plans that define the company's overall mission and goals. Strategic planning focuses more on issues that affect the company's future survival and growth. To develop strategic plan, top managers also need information from outside the company, such as economic forecasts, technology trends, competitive threats, governmental issues and shareholder concerns.

ASK 1 a.) Primark Menswear has sold 120 franchises. Explain what a franchise is. 1. Franchise Franchise is a type of business that involves the relationship between a franchisor and franchisee. The franchisor is the owner of the business, while the franchisee is the one who buys the rights of the company from the franchisor to be able to sell the same products using the same company name and logo with the same components.

| According to a concept called ________ theory, it is more effective for the units of a growing chain to be run by franchises than by managers, because managers are usually paid a salary, and may not be as committed to the success of their individual units as

Small businesses are essential to the fabric of the American economy. Specifically the franchise model offers an easy way for an entrepreneur to attain success in the increasingly difficult and murky economical landscape. The U.S. Census Bureau estimates that over 13% of the total American workforce is compromised of franchisee employees. That equates to roughly 7.9 million workers. And while many have found unbound success within the realms of franchising, there are risks specific to undertaking such an expenditure.

Franchising: it is a relationship in which the owner of the business allocates to independent individuals the right to market and deal out the goods or service, and by using the business’s name for a fixed period of time. ".

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

‘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.

Before discussing what would make a just franchise opportunity, franchising itself must be defined. There are a variety of definitions as to what franchising is. Most of these definitions come from formal bodies such as the European Franchise Federation or the British Franchise Association (Webber, 2012). The issue with all the definitions provided by such bodies, even if they are fit for purpose, is the fact that each one of them misses out on main elements that combine to define franchising (Webber, 2012). The main concept of franchising is where a franchisor grants an individual with rights to their company to do business over a certain period, to which the individual (the franchisee), must pay on going fees to retain the rights to the business (Elango and Fried, 1997). However, there is much more to a franchise than simply

A franchise contract is a form of organization involving two independent firms with the aim of selling goods and services in a specific area ( “How to influence franchise contracts: the Spanish case”Alicia Garci’a- Herrera, Rafael Llorca-Vivero, 2009). Another resource- Business dictionary describes franchise agreement as a contract in which well-established business provide its brand, operational model and required support to another party in order to set up and run similar business. This costs a fee and/or a part of generated income. This distribution technique increases competition between companies producing similar products or services by high efficiency and transaction costs reduction. By this distribution technique the franchisor gains access to more new markets, can raise profits, decrease costs and share risks while still controlling the new franchisee. This collaboration is very important for small and medium businesses. In 2009, a third of retailing networks in US were by franchise contract, in EU impact is smaller but is also growing (Garci’a- Herrera, Llorca-Vivero, 2009).

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