Franchising and decision variables The article in Franchising versus company-run operations: Modal choice in the global hotel sector discusses the various aspects considered by well-established hotels when they face the dilemma of whether to franchise a new hotel in a new geography or actually own the hotel themselves. The article is helpful in drawing the parallels for franchising decisions in service industry and especially pretty apt for the services which include high initial capital investment. The authors (F J Contractor & S K Kundu) borrow the definition of franchising from Caves & Murphy 1976 at the onset of the article and visualize the prospective franchisee as the sales agent or distributor of the brand owner. The authors are of …show more content…
Licensing and Franchising. The authors (Y Cao, K Townsend, P Daniel) initially draw out that there is still a lot of grey area and a lot of disagreements amongst the community of scholars as to what should be correct measure of customer satisfaction. Some researchers seem to favor SERVPERF (Service Performance) as a viable metric for measurement of service quality while some seem to lean more towards SERVQUAL (Service Quality). Though none of the groups seem to disagree on the fact that in the end the common denominator for customer satisfaction would customer perception of the service; his expectations and his perception of the service actually …show more content…
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. Any deviance from the normal and accepted service level is dutifully noted and corrective actions are taken. The business psyche sees a franchise owner as a vital part of the organization and rather an extension of the organization. On the other hand, licensing of IPRs usually makes for a not so up to the mark customer experience. The reason is that licensors and licensees lack interaction to improvise and augment the customer experience. The
Every individual's goal in life is to accumulate wealth and live a life of fortitude and happiness. Everyone has their own path to success, some individuals may accumulate wealth by working a nine to five shift, becoming an entrepreneur, or most commonly opening a successful business. It all depends on the resources that the individual has to his availability. In this case we’re going to assume we have the resources to open an international franchise. Choosing a specific international franchise can be difficult since there are many successful restaurants throughout the world.
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
They always keep themselves up to date with new tools that help them make business faster and more convenient for customers. For example, Pizza Hut- the brand owned by Yum! Brands- have created automatic ordering systems that customers can order pizza, pay and come to pick it up when it is ready. Besides ordering online, technology also helps consumers locate their favorite fast food restaurants in their nearest area and show them how to get there. From the restaurateurs' perspective, digital menu boards, flat screens and in-store signage will be critical marketing tools.
" Academic Search Elite [EBSCO]. ABA Journal, 16 Nov. 2015. Web. 2 Feb. 1988. Linder, Douglas. "
(Emanuel and Fuchs, 2005). References Emanuel, E. & Fuchs, V. (2005). Solved! Washington Monthly, Vol.
In fact, the hospitality sector is always affected by various economic tendencies, both negative and positive. The strategic plan will outline the major actions required for conducting the business. The strategic capabilities can be identified by means of VRIO criteria, where V stands for value, R for rarity, I for imitation opportunities, and O for the company’s competitive advantage (Evans, 2015).
Publication Title. Date Published. Source. Date accessed.
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.
1 What is Outrigger Hotels and Resorts’ strategic position? What are the firm’s Critical Success Factors (CSF)? Outrigger Hotels and Resorts are currently using geographical and product diversification strategy. The firm expend their firm around Pacific Ocean and diversify its product portfolio by adding condominiums resorts and OHANA hotels.
TellTheBell Tellthebell.com is a survey website where customers can take part in the Customer Survey Sweepstakes. Here customers of Taco Bell give their valuable feedback; it is basically a Taco Bell’s customer satisfaction survey. In this survey they offer the opportunity to enter the sweepstakes and a chance to win $500 each month. Taco Bell gives such a great service for customers to share their feedback; through survey they determine how to make improvements in their services. What is Taco Bell?
5) Successful franchisees are risk averse. We are willing to take some risk but want that risk to be as small and controlled as possible. Any business start-up involves some risk of failure, but a strong franchise with a proven track record of success will minimize this risk. Successful franchisees do their homework, so we know what we are getting into. A good franchisee, will need to lead others on the team to excel.
A variety of their journal articles have been around for many many years. As I began to look more in depth I did come to recognize that this exact article can also be found on sage journals. (SAGE) Sage has been around for about fifty years with hundreds of published articles. (SAGE) Although, I did find this article through another publisher I did not find this article through worldcat.
Every industry to include the hospitality industry is impacted by external factors which directly influence organizational behavior and decision making. There are numerous factors to be considered, but political, economic, and social are three of the most influential. These outside factors sway managerial operational decisions daily regarding personnel, spending, policy, and short-term and long-term strategic planning concerning both core and exterior operations. As within every industry, the hospitality industry has unmanageable elements that affect management or ownership of hospitality establishments (Lewis 2017). Understanding these factors is important because it provides an opportunity for contingency planning (Lewis, 2017).
STRATEGIC MANAGEMENT CASE STUDY: MCDONALD’S CORPORATION 1. INTRODUCTION McDonald’s Corporation is the world’s leading fast food restaurant chain with more than 34,000 local restaurants serving approximately 69 million people in 119 countries each day. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local franchisees. Its revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants (McDonald’s, n.d.).
1.0 INTRODUCTION In an economy, there exists different market structures to accommodate different industries and firms. This study will be made to understand in further depth the market power of different market structures, and in particular an example of using case studies of agricultural sector of the French markets to explain how an ideal perfectly competitive market works. This will then be further strengthened with several references linked to the case study. 1.1 Monopoly market