Franchising Business Essay Example | Topics and Well Written Essays - 750 words

Franchising Business - Essay Example It acts as a good source of income for the franchisor. It occurs through the regular payment of royalty fees, franchise fees, levies and funds from private labeling of products. Such funds form the capital backbone of the firm, hence an assured turnover of investments and profits. There is also a decrease in the operational, distribution and advertising costs. There is a surge in the money used for finance and development issues2. In addition to that, there is a massive reduction in the operational costs as one can simply have a small organization as compared to the absolute ownership of operational locations. There is a great uniformity of the work and services rendered a degree of consistency and an increase in productivity hence. There is a control system to facilitate and measure up the quality of services, otherwise known as quality assurance unit. Customer care and public relations are excellent leading to an increase in the overall sales. Furthermore, it ensures that the products are located in strategic places where consumers can easily access them. It increases the number of selling points through utilization of other people’s businesses. There is a faster expansion with an overall effect of reduced effect of competitors. From the utilization of the franchising system, the performance of a firm that has utilized the model in marketing the products is useful and better than the one having various branches. It is because people who have the motivation and the urge to increase the sales and the overall profits do the operations. It remains difficult to motivate managers to such extents.

Assignment Example | Topics and Well Written Essays - 500 words - 125

Assignment Example Therefore, the participation of these different groups makes procurement a cross-disciplinary process. Public beheading means killing a supplier in public when they do not meet the supply requirements. Such an action invokes efficiency in supply, given that non-performance leads to death. Consequently, most suppliers at this time ensured that they fulfilled the requirement of the king by all means, which promoted operations in the kingdom. However, the lack of power in the hands of the suppliers led to their oppression, given that the market at times faces uncertainties that could affect supply. Following the establishment of the law of contract, an organization can choose to sue a supplier who does not abide by the contract terms of delivery. In other cases, an organization can work with multiple suppliers, to, maintain continuity of operations when one supplier fails. I believe in the power of negotiations. Interacting with suppliers can enhance this skill as relations can be built between the organization and the suppliers. Consequently, an organization can bargain for better prices, thus leading to low cost of purchasing. The low cost translates into low product prices, thus increasing the competitive edge of the organization. Alternatively, the organization can negotiate for suitable credit terms that allow it to operate normally in cases of reduced cash flow. Technical skills also play a major role in procurement. They ensure the purchase of technologically viable products. This leads to the proper integration of technology with the existing business structures, thus promoting the ability of the organization to develop innovative strategies that lead to success. Computer proficiency continues to rank as one of the most important skills in an organization. The use of computers leads to the standardization of various processes in the organization, thus enhancing uniformity. Computer applications also make work easier, and allow the organization to