Student Answer: Sonic being the tenth largest franchise in terms of revenue has a competitive advantage over other fast food franchises. When an entrepreneur seeks to establish a Sonic franchise he or she will be getting a great opportunity with a company that has national reputation and a national advertising campaign. Sonic offers a great deal of support and training; meanwhile, entrepreneurs that enter into that association know that it has been a proven franchise (Ferrell, Hirt, & Ferrell, 2009). There are organizations that offer aid to small businesses and entrepreneurs to improve owner’s ability to be competitive. Major changes in an industry ecosystem can dramatically reshape the industry’s structure, and define the context …show more content…
You are an executive involved with Sonic’s franchise operations. Sonic franchisees have become increasingly popular. On the other hand, you have heard about some notable cases of misconduct at a few franchisees. You think making the franchise requirements more stringent and/or increasing the initial investment will help the company maintain additional control over its franchise operations and increase profit. Develop a list of requirements for opening up a new Sonic franchise that will be distributed to new entrepreneurs wanting to open up their …show more content…
In the process of drawing up the plans is that there has to be a clear explanation of the company (Ferrell, Hirt, & Ferrell, 2009). Entrepreneurs should know what the drive is for the overall franchise so that they can project the same goals. There should be a business plan that deals with the step by step process of the vision of success for the franchise to operate inside the vision (Ferrell, Hirt, & Ferrell, 2009). The new entrepreneur would need to take full analysis of the competition so that you can be aware of the demand of customer needs. While entrepreneurs are eager to jump in and start they will have to know what is popular in the area, demographics, and income of the area (Ferrell, Hirt, & Ferrell, 2009). It is a necessity to know how that a new business owner will have the funding to operate a business and maintain its operations. Sonic is a franchise is innovative and successful there should be technological and economic staples that help business to advance in the latest forum of technology in order for the business to grow. Social media will aid how the company is marketed since that form of technology can help gain the attention of those who are in the market of buying Ferrell, Hirt, Ferrell, 2009). Most company’s generates revenue by advertising, movies, and