Intro to Business Essay Example for Free

Intro to Business Essay FRANCHISE Case Study Questions: 1) Discuss the benefits and drawbacks of opening a franchise. (6 marks) The benefits of opening a franchise is that the franchisor would provide support, assistance and training; they would have a recognized name and products and; opening the franchise would be a reduced risk to the franchisee. The drawbacks of opening a franchise is that there would be restrictions on operations as the franchisee would have to follow the franchisor’s rules and regulations; must pay franchise fees and the percentage of sales to the franchisor and; there would be a loss of management control, prices, wages or even innovation. 2) Evaluate the benefits and drawbacks of running this franchise with a partner rather than doing it on your own. The benefits/advantages of running this franchise with a partner would be; It would be fairly easy to start the partnership with an agreement between two people; It would be easier to raise more capital than a sole proprietorship; We would have greater skills and expertise with two of us as partners and; flexibility to support and help each other. The drawbacks/disadvantages of running this franchise with a partner would be; there could be conflicts or disagreements with a partner; we would be sharing the profits and; there could be difficulty in leaving or ending the partnership. 3) List 6 key characteristics that you and your partner will have to display in order to be successful in this entrepreneur endeavor. The key characteristics that my partner and I would have to display to be successful in our entrepreneur endeavor would be, to be: Ambitious, committed, self-confident, energetic, passionate, creative, passionate, determined and risk takers. 4) List 6 stakeholders and discuss how they are impacted by your business. 1.Employees – my business would create jobs Customers – my business would be a convenience of another franchise available Suppliers – my business would give suppliers more business Government – my business would pay taxes (business and employee, etc) to help the economy Local Community – to create a better local economy of having a business Environment – to be environmentally responsible by using reduce, reuse and recycle FRANCHISE Case Study 1: Intro to Business 5) Using your knowledge of demand and supply theory. Draw a market for Dominos Pizza with demand (BLUE Line) and supply (RED Line) equilibrium assuming the average price customer pays for a Domino’s pizza is $9 and sells an average 500 units a week. (2 marks) Dominos Pizza – Supply and Demand in One (1) Week UNITS The pizza market is highly competitive and competitors prices impact and demand. On your diagram, draw the shift in demand that will result from new low price $5 hot and ready pizza offer by its competitor Little Caesar’s. Discuss the impact on Domino’s (in terms of its price and profits) . (2 marks) Due to the low price of the competition (Little Caesars) means Dominos pizza’s Demand Curve will DECREASE (GREEN Line) which means the profits will decrease along with the demand for Domino’s higher priced pizza. 6) As a local franchise, using your knowledge of the promotional mix, describe 4 tactics/strategies from the promotional mix that you could use to promote your local store. Be sure to explain how it will increase sales. (4 marks) 1. Personal Selling – to use a sales person to assist customers in making a purchase 2. Advertising – using different media channels to build awareness of the product 3. Public Relations – to create a good image of the company product through publicity and sponsorship 4. Sales Promotion – to stimulate sales through coupons, discounts, contests special offers 7) Make 2 recommendations to Domino’s Pizza Corporate on how the marketing mix could be changed in order to meet customer needs and continue to grow the company. (4 marks) The Marketing Mix is a blend of product offering, pricing, promotional methods and distribution system that brings a specific group of consumers superior value. My two recommendations to Dominos Pizza Corporate would be concerning the ‘Product’ to make smaller personal sized pizzas and my second recommendation would concern ‘Pricing’ to have a special introductory low price to attract customers, to the new personal sized pizza. My recommendations would meet the more ‘healthy = smaller sized portions’ of food to the healthy minded customer – and this would help with the growth of the company.