Case Study Of Step 1 Environment Scanning

THE BUSINESS DILEMMA - TO FRANCHISE OR NOT

Introduction

The ever evolving challenges being posed by the rampantly changing consumerism patterns have virtually fired marketers with endless quest and zeal for customer acquisition and retention thereby keeping the corporate revenue clock ticking. In order to approach the consumer over a large geographic area and satiate their economic wants and desires, an institution is faced with a horrendous task of choosing between the deep sea and the devil. The scorching race for attaining brand reach and its satisfactory conversion to revenues has caused the evolution of certain intermediaries in the distribution chain management module – one of the several such intermediaries is termed as the “franchisee”.

This will involve carefully assessing the prevailing macro and micro economic parameters of the economy. The activities of the competitors and the outcome of their strategic market deployments. An incognito meeting should preferably transpire with competitors franchisee’s to get a feel of the business conditions and their comfort level with their principals.

• Step – 2 Looking Beyond Time – Be a visionary. It is essential to perceive the market situation ten years down the line to access how the business is going to be placed at that juncture of time. This is to be attempted under controllable market variables with allowances for unforeseen and unavoidable contingencies. Political and economic trending parameters will provide a basis for this consideration.

• Step – 3 Introspection – Apply the emerging and emergent inputs to your business and attempt a deep introspection. Brainstorm, debate or call for a strategic meeting. Let the group strongly express themselves while you act as a moderator. At the end review the pros and cons, further if you require peer guidance seek your mentor’s advice. Mentally churn the issue. Always remember you are the greatest well wisher of your invisible and mute

Keeping in view the circumstances, situations and the inherent variables try to evaluate as to whether franchising will benefit you as a product. Will franchise help attain financial prosperity? Will it help you to attain a heightened recognition (brand identity)? If these basic questions have affirmative answers one should ponder deeper into the subject.

• Step – 5 Engage a consultant to conduct a feasibility study and market survey – In order to rule out any chances of emotional tilt in your consideration it becomes essential to have a factual certification of your intent. Engage the services of a consultant to conduct a feasibility study besides a ghost consumer and outlet survey of your intended plan. On the emergence of a unanimous result plough on to the next step.

• Step – 6 Evaluate operational and financial adequacy – It might be that your resolve has a market sanction but the same is to have back end operational support wherever necessary besides it should contribute positively to the bottom-line and to the overall financial health of the institution. The operational and financial aspects need to be thoroughly vetted. Ongoing business situations should in all cases be protected and given priority as the case may