Introduction It often comes a time when a company must decide if they want to expand their business or not. This is a critical choice to make for the future of the company. This is a time where a management of a company must evaluate their pros or cons when it comes to expanding the company. There are many ways to expand a company but it’s difficult to choose the right one. The term franchising is derived from the French, meaning “to be free from servitude”. Franchise activity was almost unknown in Europe until the beginning of the 1970s. The concept was popularized in the United State, where one-third of retail sales are derived from franchising, in comparison with about 11 per cent in Europe (Young et al.1989, p 111). Franchising is basically …show more content…
This mode of entry is very exciting for me. It has various of methods to export and manage a company from another angle. As marketers we talk about making decisions an organizations entry mode. When an organization goes like McDonald’s, Burger king or Rema 1000 goes from marketing their products only in their home market to also target one or several foreign markets in different countries or regions we talk about an organization internationalization process. Organizations go through different stages before they go international. They first go through a market selection process and then come to a choice of a global market. The marketing mix organizations use on foreign markets may vary to the one they use on the home market. They would have to address issues regarding standardization or adaption of foreign market. Choosing the right entry mode. Lets us use Norwegian cake firm Millba located in Skien as an example. The firm produces muffins, cakes and desserts. In a modern production facility in Skien where well educated confections develop recipes and create delicious cakes and desserts ready to be sold and distributed. The cake and dessert are immediately frozen after production and are the distributed to a variety companies, restaurants and cafés around …show more content…
- Tested system of operations. - Brand standard and services. - Site selection and development assistance. - Initial and continual training. - Headquarters and field support. - Support of other franchisees. - With established, well managed, well-structured and capitalized franchisors. But not all franchisors are equal. This last one is important because you’re getting support from other franchisees not only on general things, but you can pick up to phone and call other franchisees who has been in the business five or ten years and say, “I have a problem” and the response are likely that they been through the same problem when they were on the same stage as you. Because you both have the same brand and the exact same system, and they are more likely to give you a specific answer. They are basically you’re franchisees consultant advisors. Other key advantages for franchisees - Knowledge of range initial investment and working capital. - Leverage initial and continuing costs. - Professional marketing and assistance. - System accounts. - Better able to compete with established competition. - May improve exit value for
The company could expand even more to increase their market share. They must keep communications open through their relationships to avoid miscommunication and confusion. References Karniel. A and Reich.
The first time I have heard of the Chick-fil-A Franchise Opportunity was in the discussion about good opportunities of starting business in the Facebook community. My interest in different business opportunities to bring a change to my life prompted me to check what Chick-fil-A Franchise could offer to a motivated individual committed to developing one’s own business and making it successful entrepreneurships experience. I have studied a list of the top-ranking global franchises, their profiles and the industries they operate in. The American Franchisee Association was also a helpful resource for learning more about franchise opportunities. Out of the one hundred companies and corporations listed, eight represent franchises that are
NOT for resale purposes ©HSC DIPLOMA HELP Continuing professional development - to ensure relevant knowledge and skills, to develop new skills and to assist career progression. Your organisations aim will be to deliver a high quality service to those using it and to always be looking for ways to improve the services provided and it’s delivery. Improvements will be measured against performance targets. Targets will be met with a good management system/team and with a workforce with good morale and training and an organisation with good staff retention.
Another reason why I love Qdoba Mexican Grill is because of the free extras. In the last year Qdoba has made any additional ingredients you want on a burrito free. Qdoba changed their price structure to all-inclusive in which the price only depended on the type of meat you wanted, but included all of the extras that previously required an additional charge, such as guacamole and queso sauce. Being able to have extra queso on your burrito with no extra cost is something that may people enjoy due to the fact that Qdobas queso is so good.
In this regard, the use of computers is crucial when it comes to matters pertaining to accounting. Besides, the introduction of credit cards and other electronic payment methods would be another good idea since it will promote efficiency since they are safer than carrying cash around. With reference to these recommendations, it is evident that most of the U.S. chain restaurants employ the franchising approach to run their businesses. A good case in point is the McDonald’s outlets; almost 80 percent of them are owned by franchisees. When it comes to full-service chain restaurants, all Denny’s full-chain restaurants were operated by franchisees too.
Market All countries have a very different lifestyle. Having a global strategy does not mean that a company should serve the entire globe. Critical choices include deciding where to spend resources and where to hang back. The usual approach is to start by picking regions and then countries within them. Market data might be more readily available in situations where the firm is grouping markets according to existing structures and frameworks.
The authors study a restaurant for this purpose. The restaurants have an inherent advantage that a licensed and franchisee restaurant might share the same menu ideas, outlook strategies, and production pedagogy which necessarily makes them more comparable while the management forms, observing systems, hiring methodologies etc make the two different enough to study and identify the underlying causal relationship (if any). The authors in the end then comment on the vital points of differences between franchising and licensing. These differences are microscopically studied under both operational as well as business thought process aspect. The authors comment that franchising might lead to a higher customer satisfaction level irrespective of the metric and the reason being that franchisor usually has better control of the day to day operations in a franchisee.
nternational marketing in export and franchising Objectives International marketing is the export, franchising, joint venture or full direct entry of a marketing organization into another country. • To bring countries closer for trading purpose and to encourage large scale free trade among the countries of the world. • To bring integration of economies of different countries and there by to facilitate the process of globalization of trade. • To establish trade relations among the nations and thereby to maintain cordial relations among nations for maintaining world peace. • To facilitates and encourage social and cultural exchange among different countries of the world.
Competitive strategy is a suit of methods and action sequence deliberately planned and put into place by companies in the face of market competition. This seems to be a clear way of keeping their market shares, expanding sales and managing the product lines to deliver desired results. The corporate world often needs some sorts of solid strategies considering the trends of the market competition. Beyond the issues of quality and distribution, companies often need to plan ahead and protect their market share in the sale.
Higher Quality of Service or Product 3. Monetary Savings 4. Better Employee Retention Rates 5. Pleasant Work Environment Maslow`s Hierarchy
It would aim at establishing a strong customer lifetime value. It would also search for new markets in other
This would attract a pool of workers of the highest caliber, thus leading to more value induced into the company. # Successful communication of perceived strengths of the product: Integrated marketing strategy- This has
Table of Contents 1.0) Executive Summary 3 1.1) Objectives 3 1.2) Mission 3 1.3) Keys to success 3 2.0) Product and Services 4 2.1) Sourcing 5 2.2) Technology 5 3.0) Market Analysis Summary 5 3.1) Market Segmentation 6 3.2) Target Market Segment Strategy 7 3.2.1) Market Trends 7 3.2.2) Market Needs 8 3.2.4) Market growth 8 4.0)
What would you recommend the company do to maintain its competitive advantage over the next five
My understanding of business model is a description what a company does to make values for customers and to get money from customers. 2. Analyze the business model of Cacao Show: • Complete an Osterwalder (www.businessmodelgeneration.com) business model canvas of Cacao Show • Complete an Ash Maurya (www.leanstack.com) business model canvas • Describe the concept The concept of Cacao Show is to deliver high-quality products with affordable price. They have created a new position in the market.