...Franchise Management “Franchising is utilized by a wide variety of companies in numerous industries to sell goods and services through retail outlets” (Birkeland, 16). Franchising is the ability to sell goods to the consumers of the world. Franchising branches off into many categories such as retail and food. Becoming a franchiser is quickly becoming one of the quickest and most effective ways in today’s society to make money (17). Becoming a franchiser means that you become the head of the franchise that you run. You are your own boss. Becoming a franchiser can also be a very risky investment, as no one knows what may or may not happen (17). Will your franchise be a bust or will it be a huge success? As a franchiser, before you get started investing large sums of money into something, you need to know how to run a franchise, what kind of franchise you want to buy and how to become successful. Knowing how to run a franchise before starting one will help your chances of success. Going to college is the best and most direct way to know exactly what is needed. While at college, you are able to earn many different levels of education related to franchise management. You are able to earn a graduate diploma in franchise management, a master’s degree in franchise management and a master of science in franchise management (Mauricio). Attaining these college diploma levels enables you to learn very valuable knowledge and gain experience. These valuable experiences include...
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...the Forbes named it as the company to look out for. But now it is just a firm with a market capitalization over 300 million. So what did Krispy Kreme did wrong to be in a situation like this. The decline of Krispy Kreme Donoughts Inc. with a market capitalization of over 3 billion to just over 300 million was due to the use of synthetic leases, repurchased franchises, disappointing joint venture results and due to the problems of earnings management. This paper argues that there were numerous warning signals in the doughnut franchisor’s accounting and managerial decisions that investors refused to take seriously as they bid the stock from its IPO price of $6 to its eventual peak of $50 on NYSE. There are lots of lessons that can be learned from this autopsy of the Krispy Kreme and might well make investors and auditors more wary about jumping on the next IPO bandwagon. They bought out a struggling Michigan franchisee and agreed to raise the purchase price from $26 million to $32 million so that the franchisee could afford to close two stores and to settle its overdue debts owed to Krispy Kreme, thus avoiding a bad debt loss. Why would so many large franchisees of a supposedly-successful chain want to get out of their investment when operations seemed to be going so well? As we see in the exhibit the earnings per share increased every year, what investors apparently did not realize was how little additional earnings it took to beat the estimates by a penny. In the first...
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...support • Advertising and purchasing is taken care of • Easier to obtain finance • Leverage • Risks associated with product acceptance, management expertise, meeting capital requirements, knowledge of the market and operating and structural controls are minimized • Probably require less capital than setting up independently • Independence is retained • Franchisor strives to improve business with ongoing R&D programmes Limitations of franchising • Increased set up cost • Rigid operating procedure • No control over marketing and operations • Bad decisions by the franchisor • Restrictions on freedom to act • Limited control and flexibility • Reliability of franchisor • Cost • Erosion of name and reputation and brand image of franchise Five typical paths an entrepreneur may take • Habitual entrepreneurs – are owner for a life time, sometimes in one business, sometimes across several businesses. The goal is personal satisfaction first, income second. Usually there is no succession plan. • Growth entrepreneurs- also life time owners whose goal is major success • Harvest entrepreneurs- are owners with an exit plan • Spiral and helical entrepreneurs - alternate periods of growth and stability, which are determined by personal or family needs • Occasional entrepreneurs – people who have another job and pursue entrepreneurship periodically ...
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...McDonalds Enterprise skills McDonalds restaurants are run by franchisees and business managers. In order to generate revenue and profit they need to have the ability to coordinate resources to ensure the business is successful. In addition to this, many skills are required which include taking risks when needed and exploiting opportunities. These enterprise skills contribute to the business achieving their aims and objective, which is critically important for them as a business. Self confidence and motivated management is key to Business managers and franchisees. As a business, McDonalds require highly motivated managers to achieve success. The McDonalds website also states they need to have good communication skills, and be a brilliant multi-tasker. http://www.mcdonalds.co.uk/content/dam/McDonaldsUK/People/Meet-our-people/mcd_prospectus.pdf A business manager works with a team of 80 and a business with an average turnover of £2 million. This indicates their significance of their role and highlights how good communication should be. McDonalds has a flat hierarchy which enables business managers to communicate well with their staff. They can offer efficient training to their staff which therefore helps the business run more smoothly. They also have to maintain motivation which will help their team work more efficiently which will maintain their customer base and generate profit. This will consequently contribute towards their aims and shareholder return. High levels of confidence...
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...straightforward model that assesses what an organization can and cannot do as well as its potential opportunities and threats. The method of SWOT analysis is to take the information from an environmental analysis and separate it into internal (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines what may assist the firm in accomplishing its objectives, and what obstacles must be overcome or minimized to achieve desired results. According to Investopedia, when using SWOT analysis, be realistic about the strengths and weaknesses of your organization. Distinguish between where your organization is today, and where it could be in the future. Also remember to be specific by avoiding gray areas and always analyze whether the company is better or worse than competition. Finally, keep your SWOT analysis short and simple, and avoid complexity and over-analysis since much of the information is subjective. Thus, use it as a guide and not a prescription. This paper seeks to evaluate the strategic implications of the SWOT analysis model of the Driver and Vehicle Licensing Authority (DVLA). The paper will give a brief background of the organisation, then proceed to talk about the strengths, weaknesses, opportunities and finally its Threats. BACKGROUND The Driver and Vehicle Licensing Authority (DVLA) of Ghana is the government agency responsible for the licensing and evaluation of drivers and cars. DVLA was established...
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...Case Studies – April 2008 Volume 4, Number 4 Lessons From Krispy Kreme J. Richard Anderson, Stonehill College ABSTRACT The recent decline of Krispy Kreme Doughnuts, Inc. raises a natural question: shouldn’t investors (and auditors) have been more wary of this Wall Street darling? Weren’t there tipoffs that would have allowed investors to avoid another franchisor “crash and burn” situtation like Boston Chicken or TCBY frozen yogurt? This paper traces the meteoric rise and fall of Krispy Kreme and discusses a number of advance indicators of future problems: insider share-dumping, conflicts of interest within the Board of Directors and senior management, turnover in the CFO position, the use of synthetic leases, repurchased franchises, disappointing join venture results, and the problems of earnings management in the quarterly reports of a fairly small publicly-owned business. Keywords: Corporate Financial Reporting, Investor Awareness, Reading Financial Reports INTRODUCTION S hould we be surprised when a Wall Street darling like Krispy Kreme Doughnuts crashes and burns? Shouldn’t there be warning signals when a company ranked as the best IPO of the 2000-02 period with a 711% stock price runup in three years loses all of that appreciation over the next 18 months? What causes a company to go from a market capitalization of just under $3 billion to little more than $300 million in such a short period? This paper argues that there were numerous warning...
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...Business Case Studies – April 2008 Volume 4, Number 4 Lessons From Krispy Kreme J. Richard Anderson, Stonehill College ABSTRACT The recent decline of Krispy Kreme Doughnuts, Inc. raises a natural question: shouldn’t investors (and auditors) have been more wary of this Wall Street darling? Weren’t there tipoffs that would have allowed investors to avoid another franchisor “crash and burn” situtation like Boston Chicken or TCBY frozen yogurt? This paper traces the meteoric rise and fall of Krispy Kreme and discusses a number of advance indicators of future problems: insider share-dumping, conflicts of interest within the Board of Directors and senior management, turnover in the CFO position, the use of synthetic leases, repurchased franchises, disappointing join venture results, and the problems of earnings management in the quarterly reports of a fairly small publicly-owned business. Keywords: Corporate Financial Reporting, Investor Awareness, Reading Financial Reports INTRODUCTION S hould we be surprised when a Wall Street darling like Krispy Kreme Doughnuts crashes and burns? Shouldn’t there be warning signals when a company ranked as the best IPO of the 2000-02 period with a 711% stock price runup in three years loses all of that appreciation over the next 18 months? What causes a company to go from a market capitalization of just under $3 billion to little more than $300 million in such a short period? This paper argues that there were numerous warning signals...
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...INDIRECT TAXATION, IS IT GOOD OR BAD? Imposing Taxation is not bad after all because this is one way how government raises income or revenues to be used for the expenses of the government. Thus; a good taxation process is a foundation of the country’s economic status. Indirect taxation, levied on articles of consumption, has this great advantage,—that the consumer has the power of taxing himself or avoiding taxation as he pleases, and government has the satisfaction of knowing that he generally pleases to tax himself to the full extent of his means. Any man may regulate his expenditure as he thinks proper, and he has only to pay indirect taxes in proportion to his expenditure. This privilege of self-taxation is so highly prized, that the proposal to do it away by the imposition of an income tax, constitutes to many minds a valid and insurmountable objection to a tax which would press in an equal ratio on all, without regard to those just and rational motives by which men regulate their expenditure, and, as a consequence, the amount of their indirect taxation. We have seen that the advantages of indirect taxation are, that it is voluntarily imposed by each individual on himself; that he can increase or diminish it as his private circumstances require; that government rather gains, than loses, by allowing this liberty of self-taxation, as, in general, men tax themselves to the full extent of their means. Indirect tax collected by manufacturer from distributor and distributor...
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...Aakash Shah 10/15/12 Effects of Obesity While I am not obese, and I do not ever plan on it, I have a personal connection to obesity and the nature of the epidemic. I am an EMT for the Middlesex Area and I see many different things while on the job. Something that really hit home to me was how obesity was so widespread yet no one cared to turn his or her cheeks toward the issue. I have personally seen many different cases of obese people that struggle with the simplest tasks, including going to the bathroom, driving, walking their dogs. Essentially this epidemic lets people eat themselves into oblivion and depression leads to overeating and pleasure eating. My personal connection to this subject drives me to exemplify to society that this is a pressing issue and everything should be done to cap it and stop its progression. The United States of America today follows many different trends and patterns within its society. Societal trends have been evident through the history of the nation. A pattern that has revolutionized society today is the health craze. The sport of being fit is a priority and people are getting in shape better than ever. Commercials from athletic conglomerate corporations such as Nike, Reebok, and Adidas are marketing being fit with new gear, sneakers, and apparel to attract people to such products. But, there is an issue at large. A rising issue in the United States is obesity, which is cited to be a major health issue in recent decades but had grown to...
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..."Double taxation" refers to the fact that the corporation itself must pay taxes on its net profits, and the stockholders must also pay taxes on the portion of those same profits distributed to them as dividends.Answer T "Knocking on the doors" of businesses an entrepreneur would like to buy—although they are not advertised "for sale"—is a waste time. Answer F ____ percent of small businesses sell on credit.Seventy-seven ____ recognizes any improvement in quality may improve a company’s competitive ability.Return on quality _____ are those things that a business owns which have value.Assets _____ is simply the money owed the firm by customers because they’ve purchased goods or services on credit. Accounts receivable ______ gives owners the security of a sales contract but permits them to stay at the “helm” for several years.The two-step sale ______ is a small number of customers to give you feedback on specific issues in your business—quality, convenience, hours of operation, service, and so on.Focus Group ______ is not a primary goal of a competitive intelligence program: All these are primary goals of a competitive intelligence program ______ is the process of creating and delivering desired goods and services to customers, and involves all of the activities associated with winning and retaining loyal customers. Marketing ______ publishes Annual Statement Studies, showing ratios and other financial data for over 650 different industrial, retail, and wholesale...
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...Chart 19 Bibliography 20 EXECUTIVE SUMMARY The purpose of this report is to evaluate the current situation of Krispy Kreme Doughnuts, Inc. and to discuss the reasons for such status. We will also look at current strategies the company is taking to better the situation, and finally, submit some of our own recommendations for ways to maximize potential at Krispy Kreme. Currently, Krispy Kreme faces many obstacles in operations and capital structure. Recent SEC filing discrepancies have added to the existing lack of optimism among stockholders. In addition, it appears that the money from loans made by the company to franchises has not been repaid at any type of acceptable rate. One major reason for the decline in franchise sales is that Krispy Kreme has oversaturated the market. This is made evident by nearly a 20% decrease in same store sales for the last quarter of fiscal 2004. Also, the company has doubled its number of stores to nearly 150 from the 70 of three years ago. They have also made large investments in off premise sales in convenient stores, supermarkets, etc. Krispy Kreme has begun to take positive action in recovering from recent hardships. Starting at the top, the company hired Stephen F. Cooper to take over as CEO in hopes of energizing recovery efforts. Specifically, Krispy...
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...Task 1 An organization is an entity that exists to achieve a purpose through collective efforts of the people who work in for it. Organizations can be described as systems which are affected by their environment, have a structure that has both formal and informal elements. (Armstrong, 2012) An organization is formally defined as a collection of people working together in a division of labour to achieve a common purpose. This describes a variety of clubs, voluntary, organizations and religions besides as well as entities such as small and large businesses, labour unions, schools, hospitals and government agencies. (G.Hunt et al, 2003) An organization is an arrangement of people pursuing common goals and achieving results following the standard and rules of the business. There are various levels of management and division of responsibility inside an organization each working through their own tasks. Private Limited Company- This is a company which is owned and controlled by shareholders who know each other, they can be friends and relatives. There is no minimum capital required to start up this type of business and their shares are not sold on the stock exchange market. Benefits of being a Private Limited Company (PVT LTD) * In this type of organization the shares are sold to large number of individuals. This leads to large sum of capital which will result in expansion. * All shareholders have limited liability- It means if there is a loss in the business the owners...
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...------------------------------------------------- AGREEMENT IN RESTRAINT OF TRADE CONTRACTS TABLE OF CONTENT * INTRODUCTION * TYPICAL RESTRICTIVE CLAUSE * KINDS OF RESTRAINT * RESTRAINT OF TRADE UNDER THE COMMON LAW * EMPLOYER MUST HAVE A VALID INTEREST * RESTRAINT MUST BE REASONABLE * EXCEPTION * CONTRACTS OF EXCLUSIVE DEALING * RESTRAINTS ON SONGWRITERS AND OTHER ENTERTAINERS * IS RESTRAINT GOOD OR BAD FOR HEALTHY BUSINESS? * CONCLUSION ABSTRACT Agreement in restraint of trade is defined as the one in which a party agrees with any other party to restrict his liberty in the present or the future to carry on a specified trade or profession with other persons not parties to the contract without the express permission of the latter party in such a manner as he chooses. In other words “one in which a party agrees with any other party to restrict his liberty in the future to carry on trade with other persons who are not parties to the contract in such a manner as he chooses”. INTRODUCTION This research work deals with an area of law which under classical contract theory brought two principles into direct conflict. On the one hand, classical theory endeavoured to promote ‘freedom of contract’ – it is the parties who determine their obligations...
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...the Gulf oilfields. BP (formerly British Petroleum) is one of the world’s largest oil and energy companies, which provides fuel, energy and petrochemical products. They have been in existence since the early 1900’s and have gone through a number of changes. In July, 2003 after merging with Amoco they rebranded as a ‘beyond petroleum’ company. Their logo, a sunburst of green, yellow and white, symbolizes dynamic energy in all its forms. (BP, 2010). Their ‘beyond petroleum’ tagline featured BP as a company that was concerned with the environment and its corporate social responsibility (CSR). BP’s Director of Business ethics outlined their commitment to ‘being ethical’, which included respect for human rights, avoiding harm to people and the environment , avoiding conflicts of loyalty and interest. (Broome 2003). However, as a result of the oil spill in the Gulf of Mexico in 2010, BP’s ethics policy have been placed under extreme scrutiny, exposing them as a company whose marketing strategies is misaligned to their actions. This article looks at BP’s global ethical position with regards to their exploration in the gulf oilfields. It takes a further look at the implication that it caused to their branding and marketing strategies and suggests what marketing strategies they should adopt in order to move forward and regain sustainable competitive advantage. One of BP’s strategies is to create value for shareholders by producing energy in a way that is affordable and doesn’t damage...
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...Kansas City Southern Analysis Report Prepared for Vice President of Acquisitions Prepared by October 27, 2015 October 27, 2015 Kansas City Southern Analysis Report Prepared for Vice President of Acquisitions Prepared by October 27, 2015 October 27, 2015 To: From: Subject: Kansas City Southern Analysis Report Date: 10/27/2015 Kansas City Southern Introduction Kansas City Southern, founded in 1887, is a railway transportation company that covers the southern part of the US, Mexico, and Panama. It serves both commercial and industrial sectors (Kansas City Southern, 2014). The following report will cover the company’s growth potential, the competitive ratio analysis, the competitive edge it has over the other companies and the key aspects of the industry and how KCS fits in. The summary of the overall position of the company helps in guiding the purchasing decision. Ratio Analysis Looking at key ratios between Kansas City Southern and the rail industry, you will notice some positive and negatives points of interest between the two. The first key figure you will notice is the annual sales is significantly lower than the industry at 2.58B vs. an industry average of 10.5B. This is expected though because KCS is one of the smallest companies in the industry. Looking at profit margins, KCS does not perform up to the industry averages with gross profit margin, net profit margin, as well as pretax profit margin. The reason for this...
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