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Famous Brands Business Report

1686 Words7 Pages

Introduction
Famous Brands is the largest food services franchisor in Africa, therefore factors such as its earnings per share will not only affect the shareholders but it will also infiltrate to all the franchises affiliated with the fast- food franchisor. McDonald’s franchisees are being deceived and thus have involved a trade union to assist them in obtaining information related to the calculation of rent. Finally also discussed will be how bad publicity at one KFC franchise can affect the whole brand that is KFC. This business report aims to analyse how the aforementioned challenges are all linked to marketing related issues within well-known franchises.

Summaries
Article 1: “Snail surprise” in KFC Colonel Burger Meal
A couple recently …show more content…

The article does however require the reader to possess knowledge of business studies terminology in order to get a full understanding of the article. With the required knowledge taken into consideration, the article does provide a full explanation of the movements in Famous Brands’ shares, how these affected stakeholders such as shareholders as well as the franchisees associated with the popular franchisor. The article also discusses how Famous Brands’ plans to rectify the events described in the …show more content…

During the analysis I was able to discuss the value of shares and investments on its various stakeholders i.e. the shareholders and the franchisees. I was also able to evaluate the high degree of credibility that publicity has on prominent franchises like McDonald’s, KFC and Famous Brands. The articles allowed me to study how the respective businesses took control of the bad publicity that they had received. The issue that was discussed in article 1 regarding the snail found in the KFC colonel burger, emphasised the power of social media and bad publicity. It highlighted that errors made by one franchise of KFC will have an effect on the brand as a whole, because of that incident the whole KFC brand lost loyal customers and risk losing more business. Article 2 discussed how the large acquisition of Gourmet Burger Kitchen infiltrated to other aspects of Famous Brands like the shareholders not receiving a final dividend. Other franchises within Famous Brands could potentially also be affected because the franchisor will now have to re-evaluate their budget and cut down on costs like the funding that goes towards the maintenance of their franchises. The third article deals with accusations made to McDonald’s regarding the unreasonable rent. The article discussed how the Services Employees International Union got involved to try and negotiate an agreement whereby McDonald’s is

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