This paper summarizes prior research regarding franchising in the banking sector, the level of risk in the business approach of bank managers and the role of the agency theory in this sector. High-value-franchises tend to use a less risky business approach than low-value-franchises because franchisors prefer less risk when having a high-value-franchise. The incentives of franchisees and franchisors thereby need to be aligned to lead to higher company profits. Intro It is evident that the banking sector goes paired with risk-taking decisions and going through risk involving processes (Demsetz, Saidenberg and Strahan, 1996). Risk-taking, however, does not go paired with having a franchise that is considered as a franchise with high value.
FIVE FORCE ANALYSIS OF THE FOOD INDUSTRY Firstly, I will analyze the buying power of customers in the food industry. Customers can have a big influence on the suppliers in the food industry, not only directly but through retailers also. If customers reduce the amount of a product they buy due to its cost, it may have very little impact on the retailer, but should the retailer stop selling it or try to
For the business-level, Trader Joe’s adopted a differentiation focus strategy. According to our textbook with this strategy, Trader Joe’s seeks to differentiate in its target market. They rely on providing better service than broad-based competitors. Specifically, they focus on the special needs of the buyer in other segments (Dess, Page 159). Joe’s differentiates its self from other grocers by providing a unique shopping experience fortified with their private label goods and great service from their crew members.
Which type of plot makes more sense from a business point of view? The plot that used percentages for the concentration of fructose and sucrose makes more sense for a business point of view because someone working in the business sector might not understand molarity as easily as percentages. Percentages neatly explain the amount of sweetness in a way that is easy for everyone to understand so it would be much easier to present data to a conference or business meeting. c. Which plot makes more sense from a chemical/stoichiometric point of view? The plots that used molarity as for the concentration of fructose and sucrose make more sense from a chemical/stoichiometric point of view because with these plots we would be able to see exactly what measurable amount of fructose and sucrose would be
One the other hand, the way in which Domino’s management has structured their supply chain means there are less chances to be negatively affected by outside supplier incapability. Franchise stores have the option to find their own suppliers however chose to source from Domino’s own supply chain centers (dominos report). This strategy allows them to save time and capital as they do not need to search and experiment with new suppliers (Gage). However Domino’s have encountered stock management problems. It is difficult to manage the increasing types of ingredients, (dominos report) as consumers want more variety.
needs. Therefore, with lowered inventory level, the flexibility and reaction speed from the distributors have been enhanced and both the customer fill rate and stockout rate could be improved as well. With less hurry orders interruption, both distribution and manufacturing costs could be reduced: Barilla has long changeover time to setup another product as mentioned in the case. The less disturbance, the more cost-efficient in the whole supply chain process. But it is only applicable for the bottleneck machines and it is true for the distribution cost too.
This enables customers to relieve the pressure during decision making. Along with its product variety supported by its return policy, Blue Nile is able to secure a lower pricing model due to its low inventory and warehouse expense. One of the main reasons that Blue Nile was able to lower warehouse expense is due to its responsive and prompt delivery through FedEx. This kind of responsive shipping enables Blue Nile to centralize its inventory and discard any installation of expensive flagship stores. Unlike Tiffany and Co. where it holds multiple stores in high-priced areas, Blue Nile has a single warehouse in the United States where it stores all of its inventory.
Multi-divisional organizational form helps to avoid information asymmetries and opportunism which is inherent in man. As per Williamson (1985), multi-divisional form is an efficient internal capital market in which information asymmetries are reduced by effective monitoring and agents (divisional managers) have their goal structure altered in favour of enterprise-wide considerations (in Willman, 2014). Indeed, such form is a better system of control and management as each division has its own director who is responsible for its performance. Consequently, CEOs have more time for other strategic goals they should be focused
UAE, being relatively smaller than Japan, will have fewer distribution stores and facilities and thereby this also lowers the receiving cost. The facilities should be located close to the customers since this increases responsiveness. The information system is set up to allow store managers to place orders based on evaluation of consumption statistics. The key point to emphasize here is that most decisions made by 7-Eleven are structured to aggregate transportation and receiving to make both cheaper. As for inventory management, high levels of inventory are required for fast moving products.
The competitive edge is that Shrift satisfies a need that a normal retail store cannot give to their customer. The business offers a buy and sell platform, which other competitors do not have. This gives the business a competitive advantage in the market and opens more distribution channels for customers of different income groups. 2.4 SWOT Analysis – Internal environment A SWOT analysis is an easily understandable tool that can be used to identify the factors in both the internal and external environment that influence the business. In this section, an evaluation tool is needed to analyse the positives and negatives of the business concept, to develop a competitive advantage and make it easier for the business concept to succeed in entering the market.