...Introduction + Quiz Different business models Structure and organization decision making Local partners selection Partnership implementation Opening a subsidiary Next class : Distribution networks + E-commerce INTRODUCTION INTERNATIONAL DEVELOPMENT IS ESSENTIAL FOR LUXURY BRANDS BUT WHAT ? Case by case according to brand specificities WHY ? Gaining new customers and making them loyal WHERE ? Development strategy : Understanding local specificities HOW ? Different Business Models : The right choice at the right time QUIZ I want to launch and develop my brand and its products in one (or several) international market(s) What is your market strategy : your decisions on your project ? QUIZ : YOUR MARKET STRATEGY Project Sizing : Market critical size Brand/Product Positioning : volume estimation ? A- Access B- High end C- Niche D- Hyperlux Locations : Market Potential ? A- Large Area B- National C- Local D- Destination Customers target profile : number of customers ? A- CSP+ B- Specific categories C- Defined Profile D- Very affluent (HNWI) Sales Development : planification ? A- Quick breakthrough B- Step by step C- According to results D- Long term Resources : budget ? A- Consequent B- Annual C- Limited D- Weak A-B-C-D numbers ? QUIZ : YOUR MARKET STRATEGY Project Nature : Market added value Competitive Brand/Product position : Innovation vs market ? A- Traditional...
Words: 662 - Pages: 3
...Subway vs. Cousins BCOM/275 March 20, 2014 Albert L. Smith, MBA Subway vs. Cousins Understanding the company and the product they sell is just as important as going to the correct doctor for your ailment. We would not go to an ophthalmologist for a foot injury, so why would you go to a fast food restaurant for mediocre food when you can choose to have a better quality meal. Knowing the business side behind the restaurant will also show why people want to start their restaurant and why it is still here today. Today you will see why Team C, prefers Subway for its healthier option of food and why owning a Subway is more advantageous than owning Cousin Subs. Subway is one of the top sandwich shops to eat at. It is healthier than other sub shops and it is also cheaper to own a Subway franchise than other sub shops. There are many pros and cons for Subway. It has great tasting food and a great option for healthier subs. Another pro for Subway is that customers can make their own sub, and see how the employee is making it. Some cons for Subway are some sandwiches do not have enough meat. Since the meat and veggies are out in the open this is another con, people believe it is not as sanitary as other sub shops. There are also pros and cons with owning a Subway. It is cheaper to get into a franchise than other sub shops. To get a Subway franchise started the fee is 15,000 dollars. After that it can cost anywhere from 100,000 dollars to 250,000 dollars to get the franchise...
Words: 2477 - Pages: 10
...Legal Forms of Business Mike Robertson LAW531 May 7, 2012 Julie Benes Legal Forms of Business The well-informed businessperson understands choosing the correct business form is important. The type of business form determines what type of business organized, how money flows in and out of the business, how the business and owners are taxed, and the levels of risk to owners. There are several types of business forms. These types are sole proprietorship, partnership, Limited Liability Partnership (LLP), Limited Liability Company (LLC), S Corporation, franchise, and corporation. The businessperson needs to have an understanding of which business form is justified for their business startup. The beginning businessperson looks at the sole proprietorship a majority of times because of its simplicity (Anthony, 2011). A sole proprietorship is the simplest form of business organization. The owner of the business, the sole proprietor, is the business. There is no separate legal entity. Sole proprietorships are the most common form of business organization in the United States (Cheeseman, 2010). One example of a business that becomes a sole proprietorship is an independent contractor. The future business owner completes work for a business, but they are not an employee of these companies, they are considered self-employed and therefore a sole proprietor. Most person call this “moonlighting.” For example, if an electrical contractor with a full-time job also does home electrical...
Words: 2331 - Pages: 10
...more quantity produced. Price also decreases. Qn2 Personal Insurance. Liability automobile insurance bodily injury liability : held legally liable for damage caused by car or driving eg disability,death, breadwinner is handicapped and can no longer earn for the family. Property damage liability insurance damage to the other persons car or other property eg house that you drove into. COGS in a truck that's hit. Uninsured motorist. The person has no auto insurance. Bodily damages , breadwinner, medical bills. (first party insurance covers your own family and own party) Medical payments only medical bills. Group insurance also included. Possibly not first party liability but if it was your fault. Personal injury protection (no fault states only. Only two no fault states) take care of major injuries. Time off work(breadwinner situation) , medical bills. Physical damage protection collision damage coverage.eg If your car overturns by a certain number of times. This insurance is v expensive if you are a maleand under 25 yrs old. Comprehensive damage eg windshield broken , hit a deer, paint damage maybe due to the government spraying something GAP coverage when you lease a car and a car is on loan, this covers the damage that occurs in the car. → when a car is on...
Words: 2229 - Pages: 9
...Franchising is an important part of American business and this powerful distribution and marketing system is also influencing the global economy. Franchising can be traced to Civil War times, when Isaac M. Singer devised a more efficient, less expensive way to sell his Singer sewing machines through franchised outlets. Retail outlets dominate franchising, but increasing demand for consumer and business services is producing a boom among service-oriented franchises. The Franchising Boom! Franchising has experienced exponential growth rates in the United States and abroad and its growth in recent years is phenomenal. Franchising is a major reason for U.S. business growth and dominates industries such as lodging, real estate brokerage, quick-serve restaurants and convenience stores and is become increasing poplar in other industries Global Franchising Franchises account for more than 50 percent of all retail sales, totaling more than $1.4 trillion. More than half of U.S.-based franchise companies support international operations and 30 percent of their franchise units are located on foreign countries. The markets to watch include Europe and Pacific Rim countries. WHAT IS A FRANCHISE? Franchising - Defined Franchising describes a semi-independent business owners that pay fees and royalties to a parent company in exchange for the right to sell its product and services under the franchiseer’s trade name and often to use its business formant and system. Franchisees buy a “success...
Words: 3988 - Pages: 16
...centers. Roadster diner is an ISO 22000 certified company since 2004. This diner chain offers a choice of dishes like salads, burgers, fajitas, platters, etc. The service is generally correct, but you have to be used to call the waiters when you’re ready to order or need something, because it’s a busy place and you may not be noticed easily. The ambiance is retro, with Elvis portraits and old photos of US diners and old American music. Notice that Roadster diner can be particularly appreciated by some for its non-smoking zone and by others for its low calories menu. Ashrafieh’s branch has a nice terrace. Rd is the first authentic American diner in Lebanon.We continuously strive to delight our guests & look forward to hear about your experiences.Together Forever The most traditional of Lebanon's Roadster diners opened in Ashrafiyeh, in 1998. With its delicious food, beverages, unique setting, atmosphere with much hard work and commitment Roadster Diner Lebanon has become an authentic diner experience with many branches all over Lebanon. Each of Roadster Diners branches has its unique setting and atmosphere. Roadster Diner Lebanon offers breakfast, lunch and dinner, a comfy bar area, and an exclusive selection of original music. Recently, Roadster Diner Lebanon changed their slogan from “there goes my heart” to “ together forever”. A fter 15 years of constant success and growth, Roadster diner has become a familiar name to customers around Lebanon and the Arab world...
Words: 2094 - Pages: 9
...Iowa Tax Case Could Cost Nation’s Franchises September 2010 Franchising World Franchisors should also expect the impact of the decision in KFC Corp. to extend beyond Iowa. The Iowa Supreme Court in late May heard oral arguments in KFC Corp. vs. Iowa Department of Revenue, a case that could have a substantial financial impact on franchisors across the nation. Iowa asserted that KFC is subject to the state’s corporate income tax based solely on the fact that it received royalties from franchisees in Iowa. The state cited Geoffrey v. South Carolina Tax Commission and related cases in support of its position. However, a victory by the state would represent an extension of those cases because KFC involves licensing agreements between unrelated parties. The KFC case could result in a landmark decision for states attempting to impose income tax on out-of-state franchisors and other similarly situated taxpayers. Background on State Tax Nexus Historically, many franchisors have reported and paid income taxes only in states in which they have a physical presence. This practice is based on a 1992 U.S. Supreme Court case, Quill Corp. v. North Dakota, which held that the Commerce Clause of the United States Constitution barred states from imposing a use-tax collection obligation on out-of-state corporations that had no physical presence in the taxing state. The court held that such corporations did not have the “substantial nexus” with the state that was required under the Commerce...
Words: 2836 - Pages: 12
...Association (1999), an estimated 844,000 establishments offered prepared food in the United States in 2001 and the number of restaurants in the U.S. is forecasted to increase to 1,001,305 by the year 2010 (Figure 1.1). 1200 1000 1000 831 800 577 600 400 376 200 0 Sales (billions) Locations (thousands) 2000 2010 Source: National Restaurant Association (1999) Figure 1.1 Restaurant Industry Sales and Locations 1 There are a variety of possible locations for restaurants including a freestanding unit, located in shopping mall outlet, food court, or a multiple concept unit within an existing facility designed for another business such as a gas station and convenience store. It may be leased space, a building the retailer purchases, or a new structure built to specification. Each has its own advantages and disadvantages for specific types of restaurants (James, Walker, and Etzel, 1975; McGuire, 1993; Powers, 1997; Hsu and Powers, 2002). The cost of land, lease expenses, and building varies with the location of the restaurant. Metropolitan areas are more expensive than nonmetropolitan areas. Also, these costs vary considerably with the design and type of restaurant. Freestanding restaurants are more expensive than smaller kiosks or drive-through restaurants (Khan, 1992; Khan, 1999). Restaurateurs are struggling with and thinking hard about where and how to expand (Steintrager, 2001). For today’s restaurateur, few things are...
Words: 22634 - Pages: 91
... 3. Note to the Student: How to Study and Discuss Cases 4. “The Case Method” - Jeff Sandefer 5. “Classroom Discussion” - Jeff Sandefer 6. “Note on Study Groups” - Jeff Sandefer ASSIGNMENT: 1. PURCHASE THE COURSE PACKET 2. BRING YOUR RESUME TO THE NEXT CLASS 3. BROWSE THE CLASS BLACKBOARD SITE: (HTTP://COURSES.UTEXAS.EDU/) AND LOOK AT THE EXTERNAL LINKS AND COURSE DOCUMENTS POSTED. a. Case Exhibits b. Case Solutions c. Valuation Templates d. Valuation External Links e. Project Information ASSIGNMENT SHEET THURSDAY, JANUARY 19, 2012 CLASS 2 – WORK FOR MONEY OR MONEY WORK FOR YOU? A. Turn in Resume B. Form study groups (self-select 4-6 people with different education, concentration, work experience and cultural background). Send e-mail to the professor with team member’s names. Study teams members must be in same section of the class. C. If you plan to do a consulting project, then start forming a team of four (4) members and looking for a privately held company to analyze. Members can be different than your study team and can be in the other section of the class. D. CLASS LECTURE 1. Definition of Small...
Words: 4007 - Pages: 17
...Wall’s 1.0 Introduction Source: Www.pycomall.com Source: Www.pycomall.com Wall’s is an ice cream brand operating under the food and beverage section of Unilever and it the world’s biggest ice cream manufacturer, operating under the heart brand since 1995. Furthermore, the heart brand has grown into world most recognize ice creams brand. Wall’s sell millions of ice cream everyday consistently in more than 40 countries such as Singapore, Thailand and United States of America with 50 percent market penetration and 80 percent brand awareness. (Adding vitality to ,2014) Wall’s has fabricated a brand name that implies quality ingredients, satisfaction and services. They make and offer their products as indicated by the geological setting, local preference and standard of living. They generally take after the client's need, and interest to make their products more compelling and dependable in the client's psyche. Wall’s include product includes Cornetto, Paddle Pop and Magnum and a price range from low to high take in the context of premium ice cream. (Adding vitality to ,2014) Wall’s is currently under maturity product life cycle. In order to stay as a strong competitor in the market, Wall’s continue to launch new products to compete with their competitors. Therefore Wall’s is consistently the star brand, conveying the picture of premium ice creams that have been secured over many years. With solid on-ground initiation and fruitful purchaser advancements the brand had...
Words: 2874 - Pages: 12
...Report Macdonald’s 1.What are the chief economic and business characteristics of the fast-food industry? First, fast food restaurants represent one of the largest segments of the food industry. In 2003 sales for US consumer food-service market totaled approximately $408 billion. The sandwich sales represented $64 billion and the future growth in this segment was expected to be only around 2% annually. McDonalds and Burger King were the earliest and most aggressive hamburger chains to begin to expand around the world. Lasr few years , there was an explosive growth in foreign markets offset slowing growth in the United States and with the economic downturn, more people are cutting back on how much they spend when eating out, and therefore, are turning to fast food restaurants. 2.What does your 5-forces analysis of the fast-food industry tell you about the competition facing McDonald’s? With the Porter 5 forces model we identify that in general MacDonald and its competitors (Burger King, Wendy’s, Hardee’s, Jack in the Box, Sonic) are active in making fresh moves to improve their market standing and business performance by introducing innovation in their product and launching a lot of outlets. With those substitute products competitors need to compete on price and convenience Secondly, buyers are more focusing on value and healthy foods = it can force McDonald and its competitors to offer product innovation to attract buyers and match with buyers requirements...
Words: 2511 - Pages: 11
...analyzed to evaluate its strengths, weaknesses, opportunities and the threats. Let’s analyze the outlet using swot analysis. Weakness * The weakness that hits the list is the employee turnover rate. Every year many of their employees are fired out of the restaurant * McDonalds mostly advertises products and food items that targets children. You will notice that bill boards always display the advertisements of Happy Meal and any other deal that is ordered for the kids mainly * Health conscious people seldom complain that they do not provide us with the organic and healthy food. This becomes their weakness when they get in the complaints * They also face quality issue at times. This affects the business as they are running the outlet worldwide, if one franchise gets affected others also get a bad name Strength * McDonalds holds a very strong brand name worldwide * They have large partnerships with other companies that provides them with their desired products, this increases the goodwill of the company * Socially responsible firms earn a good name in the market due to their projects they do to help people, McDonalds is one the most reputed firms who are socially responsible * It is said that McDonalds was the first food outlet to provide its customers with nutritional facts * Loyal employees and management and customers is their biggest strength * McDonalds makes sure that cultural and regional barriers are kept in mind while providing food...
Words: 7132 - Pages: 29
...A study on the franchising opportunities and the barriers to it in Pakistan A Proposal Submitted by: Faizan mujtaba malik TP027822 BA (hons).International Business Management In Partial fulfilment of requirements of the programme Bachelors of Arts in International Business Management Asia Pacific University of Technology and Innovation 06-11-2013 Abstract Recently countries over the world have been in a very fast economic development race with the most modern and appropriate strategies and technologies. However, franchising has been of the most successful and useful strategies that helped in the development and improvement of countries. On the other hand Pakistan is one of the developing countries that suffer from the lack of such strategies and technologies that would play the role in the economic development of the country. This report provides an overview of franchising strategy with its advantages and drawbacks. Moreover the report is about the market in Pakistan and provides a much clear image of the environmental factors and current situation in the country. The aim of research is to study the opportunities of franchising in Pakistan as well as the challenges that organizations face in the market of Pakistan specially in franchising. The research focuses on the environmental factors, political and social and cultural factors and its impact on the franchising market in Pakistan. The report also focuses on how technology and infrastructure can...
Words: 12302 - Pages: 50
...Geographical Pressures To Deviate From Franchise Formats: Some Evidence From The UK JULIET COX* and COLIN MASON** Abstract. There is a tension in business format franchising between, on the one hand, standardisation and uniformity and, on the other hand, geographical variations in market conditions and resource availability. Previous research has demonstrated in the case of independent small firms that local geographical conditions influence business strategy. This paper examines whether variations in the local geographical environment, notably in terms of demand and supply side conditions, affect format implementation and whether franchisors permit franchisees to make local adaptations of the format in response to local environmental conditions. The study is based on interviews with 40 UK-based franchisors, all of whom were at the later stages of roll-out or in the consolidation stage of network development. Local variations in the business environment do create a conflict with the need to maintain the uniformity of the franchise format. Adaptation was restricted to peripheral format components. No changes were made to the core format components. Most franchisors recognise that their franchisees are an important source of new innovation. However, implementation of franchisee ideas across the system is found in only a minority of cases. Key words: franchising, geography, adaptation, standardisation Please direct correspondence about this paper to Colin...
Words: 8828 - Pages: 36
...company, operating 1,438 stores and franchising 5,177 store in the U.S. and 27 countries world-wide. This highly competitive segment of the restaurant industry forces Wendy’s to compete not only in terms of food quality, price, convenience and value; but also for customers, employees and real estate. In 2011 and 2012, Wendy’s sales were $2,431 million and $2,505 million respectively. Despite this increase in sales, Wendy’s profit margin was only .2%. The major areas of concern for Wendy’s are its high cost of goods sold, high costs related to the owner ship of stores, its failure to communicate its brand and customer service. To combat these problems, ABC Consulting proposes that Wendy’s cut 100 underperforming store, and sell off franchise stores. Additionally, Wendy’s should reevaluate its employee training and retrain all employees on customer service standards. Create standardized procedures for preparing food, and retrain employees on customer service and finally increase product offerings consistent with Wendy’s goal of offering quality food - fast. Background Wendy’s was started in 1969 when Dave Thomas opened his first restaurant in Columbus Ohio. While other companies were selling frozen...
Words: 7615 - Pages: 31