Franchising

Franchising is defined as a business model wherein the owner of the business (franchisor) gives the independent operator (franchisee) the right to distribute his product, apply his business techniques and use his brand and/or trademark in the conduct of the business. With such a business model, the business owner can maximize their business’ profit potential in a shorter time compared to other more traditional business models. In franchise business, it is not only the products or service that the franchisee can avail; it is more of the system-the business plan of the chosen franchise. It is fact that before franchise companies offer their business packages, they already conducted strenuous researches and studies to test the capability of the franchise to withstand the various factors that might affect the operation of the business. Simply put, franchise business offers a time-tested business plan. When entrepreneurs think of franchising, food is often the first thing that comes to mind. Most of the world’s biggest restaurant concepts are all franchised businesses. This chapter focuses on study and literature readings of franchising business specially food franchising. Different report related to this research will help researcher educate themselves to the different aspect of purchasing a food franchise. Since 1950s, food establishments have quickly become the most popular sector in franchising. In U. S. as the nation’s economic environment hold steady, franchising continues to exhibit its positive influence. According to William Rosenberg International Center of Franchising at the University of New Hampshire Whittemore School of Business and Economics, â€Å"Franchised Businesses create more value and perform better financially than their non-franchised competitors†. The study found that over the 10 year period, U. S. public restaurant franchisor have created more value than their non-franchising competitors. â€Å"Franchising firms minimize agency problems, and have access to cheaper capital, motivated managerial expertise, and better local market knowledge,† according to the report. Franchising has grown so fast since the 1950s that it is now pervasive in different economy around the world. In study commissioned by the International Franchise Association, PriceWaterhouseCoopers estimated that in 2001 there were more than 767,000 business establishment in the United States engaged in franchising, providing directly or indirectly more than 18 million jobs, over $506 billion in payroll, and over $1. 5 trillion of output. Franchising now dominates certain sectors of the U. S. economy, over 56 percent of quick-sevice restaurants are franchises. Franchising is also one of the fastest-growing U. S. xports, and it is now estimated that franchising will grow 12 to 14 percent per year in the future. The restaurant industry has earned a reputation for high risk and high rewards. Some industry analysts claim a dubious 90 percent failure in the first year. Franchise restaurants based on proven systems have a high success rate—about 62 percent over four years—than independent operators. In U. S. the average full-service restaurant in 2006 grossed $867,000. The restaurant industry is the U. S. largest employer after the government. The profitability of a food franchise always depends in their ability to provide satisfaction in their customers. Research indicates that consumers have strong preference about choosing where to eat—with 62 percent saying they look for â€Å"environmentally friendly† establishments, 70 percent want offerings not easily duplicated in their home kitchen; and 83 percent express approval of healthier eating options at quick service eateries. The Success of food franchise can be put down to strong customer focus; franchisees are selected and entrusted with a loved brand and the quality of product and service is never compromised. It is necessary that the franchisor offers its franchisees a comprehensive franchise system, with maximum support and training. Entrepreneurial Failure: The Case of Franchises†, by Steve Michael, a professor of business administration at the University of Illinois at Urbana-Campaign, concluded that â€Å"Franchisees are less likely to fail if they have been trained effectively by the franchisor†. Franchises with the best, most robust training programs have the most successful franchisees. The length of the training program was significantly tied to the chance of failure. Those franchises with the shortest franchisee training programs were more likely to fail. Those with longer programs were more likely to succeed. Michael Newman, president and founder of ABC, based in Citrus Heights, California, agrees and says training of franchisees was paramount from the word â€Å"go†. â€Å"We realized very early on that everything is about training† says Newman. â€Å"Franchisees need good training in order to be successful out in the field. There are as many varieties of food franchises as there are types of foods. Investments can range from the very high end of hundreds of thousands of pesos for full-service restaurants, to a moderate capital outlay for vending machine. There are franchises that specialize in sandwiches, barbeque, burgers, pizza, ethnic foods, candy, ice cream, smoothies and many other types of foods. Food franchising is most often associated with restaurants and it is the best franchise because food and eating remain constant. In Maslow’s Hierarchy of needs, survival needs is the first factor that man should satisfy. In here, nourishment of one’s body is essential, not just because man wants to eat but rather man needs to eat in order to survive. Aside from being a need for human survival, food is the best franchise to engage in because people spend much for food. Plus, human choices of what kind of food or menu to offer are almost endless. Another good thing about food franchise is that, there are a lot of affordable franchise packages that will fit your capital. Entrepreneurs can select from food carts, which is a good start-up, or by kiosks and cafes. This type of food franchise do not require investors to dole out millions or hundreds of thousands pesos. Franchising has recently been named as one of the most outstanding and most successful business models in the country today. It has become so popular that we now have more than a thousand franchise Philippines brands (from just about 50 franchising brands during the 1980s). No wonder, the Philippines is now being dubbed as the â€Å"Franchising Hub of Asia†. Food franchise here in the Philippines is a good earning potential since the products are usually affordable and the taste suits the Filipino taste buds. The very simple explanation for this is that Filipinos love to eat good food. Investors can put their franchise near the schools and universities, transport terminals and even within shopping malls. They can place their franchise anywhere, provided there is traffic or consumers who willing to pay for good tasting meals. There is no doubt, that food business or franchise is a stable industry despite the greet hit of economic recession. Entrepreneurs likely to think that competition in food franchise is stiff. Yes, of course. But their edge depends on the quality and taste of the food. They have to make sure that they deal with the best franchise company who offer good food at good price. Food products should be clean, properly processed, and served in an appetizing way. Naturally, man will spend good money for a great meal. So, it is a confirmation that food franchise can stay sturdy and growing even if other business entities face bankruptcy. Everyone can afford to skip buying latest gadget, but it is a sure bet that, they cannot afford to skip food. As long as there are people around, then food industry stays. Today, even if the economy is down, is still the best time to buy a food franchise. Food business in the Philippines is one of the best investments but it does not promise a 100 percent success. Successful business often start with an idea an entrepreneur hatches, slowly builds up and takes to market. Planning and controlling often occupy the top of every aspiring businessman’s to-do-list before they even starts leasing space and producing products. As it turns out, there are always exceptions to the rule, even in business. Take for instance Edgar Injap Sia. For him, taking advantage of a great opportunity outweighs all the planning known to man, which why he took up a vacant mall in his hometown of Iloilo City without a plan on what to do with. After a few weeks of conceptualizing, Sia decided to put up a restaurant offering an Illonggo staple called inasal in a ciy that was already teeming with versions of the same product. But due to his relentless work ethic, Sia’s Mang Inasal Restaurant became a critical and dominant success in the Visayas region in no time. After establishing a good foothold in that region, he then set his sights on conquering the holy grail of every Filipino businessman: taking his concept to Luzon, specifically the make-or-break capital city, Metro Manila. I was not very familiar with Manila, because I was born and raised in Visayas. I only visited once a year, and it was usually for very short stays. So I knew I was in for a quite a challenge taking Mang Inasal to Luzon,† he said. Out of nowhere, Mang Inasal branches in Metro Manila had sprouted like mushrooms. Mang Inasal’s Founder Edgar Injap Sia shares the secret on making up in the big league. First, be brave and be hold. Second, innovate and start something new. Third, be ready for backbreaking work. Fourth, refuse to give up. Fifth, go slow and steady. Sixth, join reputable organizations. Seventh, stand out. Eight, continue to look for opportunities. â€Å"Nothing is impossible with right attitude. Do not be intimidated by problems look at them as an opportunities for growth. That’s the entrepreneurial spirit of Mang Inasal’ Chairman and CEO, Edgar J. Sia II. In food franchise business commitment with the right attitude is one of the most important recipe. It is impossible to survive and succeed being a franchisee if you are not committed in your business. Source http://www.bison.com/press_ABCSeniors_06092008

Political Significance of the News Media Essay Example | Topics and Well Written Essays - 1000 words

Political Significance of the News Media - Essay Example The central point in our paper will try to close upon the actual significance of news media in registering and reflecting the socio-political transitions against a global mirror. By comparing and contrasting the viewpoints of the libertarian socialist Noam Chomsky, who concentrates on the aspect of totalitarianism practised by the radio stations, television, newspapers and cables in the name of global voice and that of the Glasgow Media Group, which adapts a somewhat open approach to critically define the nature of media coverage by the developed part of the world. There is an astonishing disparity between the news and the story featured by most of the popular media groups for public presentation, thereby manipulating the political discourse in an unprecedented manner. Keeping this in mind, we will take the discussion ahead with the similar and contrasting views on News Media of Noam Chomsky and the Glasgow Media Group. Noam Chomsky has been one of the leading authorities on linguistics, political thought and philosophy of the 20th century. Always known for his unique thoughts, Chomsky has written a great deal about the role of mass media in a democratic state. Asserting that the world of the News Media was dominated by the rich and the wealthy, Chomsky highlighted the narrowness of perspective of this medium (Stark, 1998). In discussing about the media, Chomsky further pointed out that newspapers which reached the masses at large, have witnessed a dwindling of their significance with the sudden surge of the television. With televised news and advertisements being controlled by the wealthy corporate, newspapers have become costlier to the regular reader. Chomsky raised his voice against this very 'corporatisation' of the media. Instead of serving as a strong vehicle of providing real news, the media has almost become a money making machine. Depriving the common man of stirring social and political problems and belittling other important issues, (Scannell, et al, 279), the media has simply become a marketing tool, catering to the needs of the so-called buyers and sellers. Press conferences have attained an unprecedented significance, supplying news continuously, in turn publicizing the role of the government and other business groups. Talking about world politics, Chomsky mentioned that the media championed the U.S government policies, underlining the benevolence of the country. Moving away from these sycophantic assumptions, Chomsky described the role of the News media in analyzing US foreign policy. The news media was strongly influenced by government policy making (Institute of Communication Studies, 2001). In Chomsky's words, the U.S. foreign policy was marked by unique patterns. Adding on to the four freedoms, which Roosevelt propagated during the World War II, of speech, worship, want and freedom from fear, Chomsky spoke of a fifth freedom in U.S. foreign policy. He called this freedom, the right to rob and exploit. Chomsky and co-author Hermann affirmed that the U.S. encroached upon the human rights of a few dependant economies,

Forecasting Alliances Essay Example | Topics and Well Written Essays - 1250 words

Forecasting Alliances - Essay Example The two powers have managed to form strong alliances that exist until today. In fact, the two exercise their mutual influences under the frameworks of Western powers across greater part of the world. The influence of the two powers have probably been due to their held ideology of democracy that intends to promote liberalization and thwart communism seen as derailing global economic, political and social integration. Much resistance against the Western powers has been coming from Russia and China, and their allies like Cuba and some Middle East countries. Despite the resistances, Western powers seem to have made significant successes bearing the spontaneous transformation of Russia and China to adopt capitalist ideologies that have seen rise in the number of billionaires found in the two countries. However, there exists consistent strategies and conspiracy by some countries to alliance with intention to challenge the Western powers. The possibility of success of the likely alliances i n challenging Western powers requires careful examination and study. Russia, Cuba and Venezuela share similar history of perpetuating communist ideologies characterized with no democracy. In fact, the three countries were once under the unity of the Soviet Union, which diminished due to unbearable influence of capitalism of the Western powers. Among the three, Russia is the only strongest in the global arena with stronger military, economic and political influence. Russia boasts of endowment of massive natural resources including natural gas, oil and metal among others. Venezuela on the other hand boasts of rich oil reserves that mark the backbone of its economy (Keck). Cuba on the other end boasts of highly trained professionals and unexploited oil reserves. Located just below the southern part of North America, Cuba and Venezuela have been depending on each other in various aspects. For instance, since 2000, Cuba has been exporting

Reasons for a Softening Insurance Market Assignment - 1

Reasons for a Softening Insurance Market - Assignment Example It is evidently clear from the discussion that soft market conditions are likely to develop during periods of relatively low claim severity and frequency following hard market periods with opposite claim circumstances and re-insurers can command higher premium rates. During a soft market, a primary insurer such as Margin has more negotiating power in dealing with re-insurers than in a hard market. They can take advantage of this power by !) negotiating a premium reduction. 2) reduce their retention without an increase in cost or 3) obtain an increase in reinsurance covers at the same cost. Of the 3 alternatives, unless Margin feels they are already very well protected from catastrophic loss, option 1 should be the least favored one. Option 2 which I assume means keeping the same type of reinsurance but reducing their retention, I submit would be preferable because it would protect them better in case claims are more frequent and/or severe than anticipated. Option 3 I assume means con sidering also different types of reinsurance providing greater protection for the same cost. If so I think Margin should investigate this option. If they don’t already have stop-loss coverage for example perhaps this should be considered. As it protects their premium income if this can be obtained without additional cost. The bottom line for Margin is first of all for them to asses in a relatively worst-case scenario the number of claim costs it can safely bear without possibly going bankrupt, and then to consider the best type of reinsurance available for their portfolio, and cede beyond their retention to re-insurers at the lowest possible cost consistent with re-insurers’ good claim payment reputation and viability.

Thunder ego boutique Manchester UK Essay Example | Topics and Well Written Essays - 1000 words

Thunder ego boutique Manchester UK - Essay Example 2.0 Key functions of merchandising The merchandising responsibilities for the sales retailer focus on the persons who are in a position of executing special promotional campaigns that are created through the manufacturer in boosting sales volume. The retail environment also introduces the gain agreement, promotion and securing preferred product placement, re-merchandising, place signage, and generating awareness with the customers prior launching the promotion (Carter & Evans, 2006). 2.1 Specific market level and retailer merchandising functions At the traffic building level for the marketing processes. There is frequently purchased items, high volume share and high sales percentage for Thunder Egg. This level focuses on having to draw more consumer traffic to the store and into target categories (Burke, 2008). This leads to higher ring and transaction size and well as impulse purchases. The merchandising strategy in this case involves focus on the increment of the ultimate size of a verage level transaction. Profit generation involves embracing higher gross margin as well as higher turns. The strategy takes the focus of the ability for the category in terms of generating more profits. The margins are also higher within this market level as a result of the value added and higher-quality products demanded by the market. 3.0 Retail channels For the supply chain, issues of merchandising channels in Thunder Egg will involve a practice of ensuring that products across the retail outlets that are available to consumers are primarily stocked in shelves and displays. Even though this was initially done through the exclusive consideration of the stores' employees where the Thunder Egg retailer appreciates that there is substantial savings that require it done through the manufacturer, wholesaler, or vendor through the provision of the products for the retail store (Lambing & Kuehl, 2007). According to Appendix 2, Thunder Egg will undertake promotional activities towards ensuring constant supply of merchandising services for purposes of supporting retail outlets based in general stock replenishment as well as merchandising support for its new stores. 3.1 Product allocation for variety of retail channels In retail commerce and Thunder Egg’s product allocation involve the attraction of diverse visual display merchandising approaches through the use of merchandising sales on the basis of product packaging, design, pricing, selection, and displaying all the aspects that stimulate consumers into spending more. The approach also covers the inclusion of disciplines and discounting as well as physical presentation for products and displays coupled with the decisions for which products are presented to customers at similar time periods (Jeffrey & Evans, 2011). The aim of developing retail sales in Thunder Egg is aimed at helping both the manufacturer and the retailer in maximizing the sales while still increasing the sales volume. The goal can be acco mplished through education, promotion, and execution. 4.0

Legal Strategies to Protect the Civilians in Syria Research Paper

Legal Strategies to Protect the Civilians in Syria - Research Paper Example The crisis in Syria has become a humanitarian crisis. The Syrian regime has committed mass atrocities against the population, most used one being the crimes against humanity. Some legal analysts argue that Syrian regime is on the verge of committing genocide, as the Alawi minority dominates the country and is currently fighting the Sunni majority. Moreover, a humanitarian disaster is present, as thousands have fled Syria and burdened neighboring countries such as Turkey. With only few solutions available under the international law to the Syrian conflict, even the ones at hand are either not politically feasible, or need UNSC authorization. Under the international law, military intervention in another country of any kind must be authorized by the UNSC, and it must be done in cases where human rights are in some way violated on a massive scale. The international community has a duty to protect Syrian civilians. There are many prerogatives that demand protection of civilians, two of wh ich are crucial for Syria. The first is the Responsibility to Protect (R2P), aiming to protect civilians from mass atrocities, and the second is elements of the Protection of Civilians in Armed Conflicts (POC). Under elements of POC referring to a conflict, the international community is again obliged to assist civilians and address their most basic needs. The proposed solutions so far have been mostly focused on either intervention or diplomacy. Military intervention conducted in the same style as in Libya has been proposed by some legal analysts. However, others claim that Russia and China would never vote in favor of such an intervention in UNSC. Moreover, factors present in Libya are absent in Syria, and thus an intervention of any type cannot take place. Instead, others propose the use of diplomacy through sanctions and referral of the regime members to the International Criminal Court (ICC) under the Statute of Rome. Since Syria signed the Statute, even in the absence of its r atification, ICC is authorized to prosecute Syrian regime members. However, again, UNSC referral to ICC is needed. Russia and China will never interfere with Syrian sovereignty. A third solution, also based on diplomacy, would be more feasible. It would be to ignore the Statute of Rome and simply allow the Syrian regime to save face and find a common dialogue with the opposition through an organized ceasefire agreement and peacekeeping mission. This option would be based on diplomacy. Sanctions on Syria are crucial in this option, but so is the option offered to the Syrian regime to leave and let the opposition take over the country. Ceasefire agreement would be arranged through sanctions. Once it would take place, peacekeepers would enter the country. The latter would need to be authorized by UNSC, but chances are higher that the resolution would pass, as it is non – interventionist and it does not involve ICC. Kofi Annan or another high profile figure in the Middle East cou ld be used to mediate the negotiations. This option could include a gradual transition to a consolidated democratic system through retention of the former regime members who

Information Technology in India Essay Example for Free

Information Technology in India Essay India is one of the great standup country in the field of science and technology. every year india produces more than 500 thousands engineers. No doubt it is a bulk producers of scientists and technologists. Information Technology remain the backbone of the economical growth of India. and you can see it from the observed facts of exports. The share of IT in exports has increased by 17% from 1990 to 2001. IT based sectors such as Backoffice, remote maintainence, accounting, public service, medical, insurence and other bulk processiong fields are rapidly expending. Indian companies such as HCL, WIPRO, INFOSYS, TCS are todays tough competitors for the other IT organizations. History of Information Technology in India The setup of IT in India was done by the Tata group in association with the Burroughs at Mumbai in 1967. The first software export zone SEEPZ was setup in 1973 this was what we can call the old avatar of the IT parks. at that time 80% of indias software were exported from there. The indian government baughtEVSEM computers from soviat unions in 1968 which was used in big organizations only for the technological and scientific researchs. After the freedom of india in aug 1947 it was an economically beleaguered country. but due to the efforts of PM late. sir Jawaharlal Nehru india very repidly become a wide scientific work-field, such big that it was ranked 3rd after the USA and Soviat Unions. But due to the production of more engineers then country can consume the number of emigrants increased and this supported forigen countries to get a large step ahead from india. The most of the helping hands in the USs scientific and technological improvement was Indian, in association with the californias silicon valley. During this time the creation of new organization was in progress. with enhancement of IT in india some well known groups stood-up some of the names are, National Informatic Center, Tata infotech, Patni Computers, Wipro, Infosys etc. In 1991 Department of electronic created a corporation called Software Technology Parks of India which are owned by govt. of India. They provide VSAT communication. and after 1993 Govt. allowed pvt. companies to own dedicated links. VSNL was first to introduce Gateway E-Mail service with the 64kbps leased line service. It was the ministry of Atal Bihari Vajpai who significantly improved the IT in india by placing development of IT in the five major priorities and form National Task Force on IT and software development. and within 90 days of the creation of NTF the suggested 108 recommendation for IT sector. And new telecommunication policy IT Act 2000 was created for legal procedures of electronic transaction and e-commerce. Present Day Situation The present day situation of IT is a bit down due to the recession occurred in the market some year back but India is recovering very soon and IT sector id again on its running speed toward the progress. In the 2010 the economical revenue from the outsourcing operation of IT industry was US$ 54.33 billion which is greater then the other Asian country. and this revenue is expected to be raised up-to US$ 255billion in this decade. the major hub in IT in India is Bangalore which is also called silicon valley of India. beside this other emergind hubs are Delhi(NCR), Hydrabad, Chenni, Pune, Mumbai etc. The IT services has grown by 2.4 % in 2010 and is expected to grown at the rate of 4.2 % in 2011. according to the report of IDC in march 2010 indias data center services had a revenue estimated upto US$1.39 billion. TRAI reported that country has more than 10 million broadband subscriber and these numbers will change into 100 millions by the 2014. and the market of PC in india has grown at the rate of 27% in the past year and of Notebook computers has grown with a rate of 52 % which is surprisingly a huge ratio as compared to other countries. India is seen as a business environment and is growing like pollution in the environment(i didnt got other example of rapid growth rate). IT services and solution providers Patni computers has signed a deal of 32 million US$ with the a UK- based IT service provider. Firstsource solution has a deal with Barclaycard. vertex (CMO) has announced a joint venture with shell transource to address the domestic BPO. The market of the networking equipment in india is estimated to grow at a rate of 15 % till 2012as per reported in dec.2010. the net investment in the software and hardware market is of US$ 10,406 million according to department of industrial policy and promotion. An IT company EMC corp. will touch the investment of US$ 2 billion by 2014. A russian IT security company plans to invest 2 billion us$ in hydrabad in coming financial year. Still the Indian IT industry has no dead end in its way ahead. I wish for the continuous progress of IT in India. Note : the above discussed article is written on the basis of research on the various web resuorces. though I had tried to provide best, still there is no lack of knowledge on Internet for the subject of the same.