Section 1: Country Analysis The task at hand is to take an honest look as to the likelihood that our Jiffy Lube franchise would be able to become established and grow once established in the countries France and the United Kingdom. Given the following evidence and details about the current situations in each of these countries along with a few tidbits of information about their economies and general markets, one should be able to better understand the possibilities that lie within each country. First we will take a look at France. Over the past few years in France, "franchise" has evolved from a concept into a truly viable economic model. For the tenth straight year, the number of franchises in France has increased steadily by 3-5 percent in 2003. That same year, 55,880 stores opened in France, 34,745 of them as franchises an increase from a 57.8 percent share in 2002 to 61.2 percent in 2003. The number of companies in France using franchises rose from 719 to 765 over the course of 2003, an increase of about 6.4 percent. French franchises are also exported with 179 networks located outside of France. This shows that the opportunity for a reputable franchise to become established in France is continuing to grow. The overall acceptance of American franchises is beneficial when contemplating how the community will take to a business opening shop. The automobile sector is a prime example of the increase in franchises in France, representing 11.2 percent of franchises in France in 2003, an increase of 10.2% over 2002. Out of the 34 automotive companies in France with franchises, seven of them (or 20.6 percent) have an international presence. French franchises have not only survived the repeated economic crises of recent years, but have even become economic models in their performance and success. It is apparent that everybody needs transportation, and that transportation needs to be maintained. The growing market in the automobile sector demonstrates positive signs that a facility like Jiffy Lube would be able to acquire business. There are three main business activities in the automotive sector: rental, repair, and other services. Of the three, automotive rental franchises have increased the most. Given this, a potential idea would be to team up with some of the rental facilities, and offer them special discounts or service options. We could offer pick up and delivery, customized service, or a number of different amenities to gain continued business.
The strengths for AutoZone are the revenues created from the 5,000 plus stores in the US, Mexico and Brazil, which gives management the chance to build on the past success that has given AutoZone the ability to create expansive revenues. AutoZone has had success in the past with their ability to keep orders filled and inventory well stocked, but with the purposed expansion of super hubs that would allow the drivers to fulfill orders three times daily as opposed to the current method that typically occurs daily as opposed to the potential of three times daily order fulfillment. Another of AutoZone’s strengths is the loan a tool program and free diagnostics reading performed by a knowledgeable AutoZone employee that will not only allow great
With product and service initiatives (Hertz Gold Plus Rewards, and NeverLost) as well as unique cars and SUVs offerings through Adrenaline, Prestige, Green Traveler and Dream Car Collections. These initiatives are what set Hertz apart from its competitors. Advantage Rent A Car is the low cost provider and they differentiate through offerings such as high level customer service through technological innovations such as the streamlined rental stations that bring the rental agent closer to the customer making the service experience more individualized. Hertz introduced more than 750 video kiosks featuring a live rental representative that allows customers to talk face-to-face and complete their rentals without waiting in line (Hertz Annual Report, 2013). Furthermore, Hertz set up “Road Trip” retail stores that provide customers with road trip supplies such as food and mobile device accessories. The best-cost strategy aids Hertz in establishing itself as a top competitor while providing its customers quality services and products at relatively low prices in comparison to its
First of all, franchising allows the company to achieve success in Turkey with minimal economic and political risks. Since opening of own outlet in Turkey requires an agreement with the government and careful research on local market conditions, it is to the advantage of M&S to have a local partner working under company’s brand name. And about 700 outlets in 34 countries is the best show of efficiency of franchising.
For any business to grow and survive in the current tough world market, its management body must come up with sound strategic plans. In other words, plans should be made and implemented for such an organization to outsmart its business rivals in one way or the other. In this case, Midas is considered to be doing quite well in automotive repairs though it offers narrow range of services. However, the management is planning to launch a new program that is aimed to boost the business. In relation, this paper will state and critically discuss the impacts that this new service will have to the existing operations.
The car rental industry is a multi-billion sector of the UK industry. In the industry made had averages about €2.6billion in revenue in 2008. In 2008 there were approximately over 11 million individual rental contracts. In additional, there are many rental companies besides the industry leaders. The car rental industry is high consolidated which mean that new entries have cost advantage as they have high input costs with reduce possibility of economies of scale. Most of the profit is generated by a few firms including Enterprise, Hertz and Avis.
- Adjust the franchise according to regional preferences/ should start with a partner who live in the local area/ nation to help instruct about favorable ingredients and taste
The franchising system is one of the most successful and profitable business method in the world.This system entired Turkish market 15 years ago and it continues to grow.This system has also led to increasing working people rate in Turkey.According to National Franchise Associotion's report (1999) ''there were nearly 200 franchisors and more than 4000 franchisees in 1998 and it will continue to increase'' (p22)
Ford’s production plants rely on very high-tech computers and automated assembly. It takes a significant financial investment and time to reconfigure a production plant after a vehicle model is setup for assembly. Ford has made this mistake in the past and surprisingly hasn’t learned the valuable lesson as evidence from the hybrid revolution their missing out on today. Between 1927 and 1928, Ford set in motion their “1928 Plan” of establishing worldwide operations. Unfortunately, the strategic plan didn’t account for economic factors in Europe driving the demand for smaller vehicles. Henry Ford established plants in Europe for the larger North American model A. Their market share in 1929 was 5.7% in England and 7.2% in France (Dassbach, 1988). Economic changes can wreak havoc on a corporation’s bottom line and profitability as well as their brand.
Steve Kafka, an American of Czech origin and a franchiser of Chicago Style Pizza, has decided to expand his business and open a franchise in Prague, Czech Republic. Before venturing into the global business sector, Steve needs to conduct an in-depth analysis in order to become familiar with the Czech culture. This analysis will present opportunities and risks that Steve will need to achieve and overcome so his end-state goal of expanding his Chicago Style Pizza business can be realized. This paper will investigate and discuss the major cultural differences and incompatibilities between the United States and the Czech Republic defining the apparent risks, and how to mitigate those risks that may develop from these differences. Discussion will then turn to the comparative advantages within the Czech culture, how using Hofstede’s four primary business decisions will help Steve evaluate the business environment, how trade barriers may impact business, and analyze the demand for pizza and how to assess its cost structure.
The CSD (carbonated soft drink) industry is one that is very competitive. A few firms dominate this industry, most notably Coca Cola and Pepsi Cola. This is due to substantial barriers to entry. Cadbury-Schweppes, producer of products such as 7up and Dr. Pepper is the third leading company in this industry. Due to the dominance of Coca Cola and Pepsi, Cadbury-Schweppes faces the daunting task of having to fight for market share and survive in this fiercely competitive industry. Using economic analysis for support, Cadbury-Schweppes will need to use its strengths in the non-cola categories to compete in this CSD industry.
The global soft drink industry is currently expanding quite rapidly. This is due to two major factors. First, markets are expanding rapidly in developing countries and second people are turning toward natural, healthy, and low-calorie drinks. This so called “new-age” beverages, such as tea-based beverages, is considerably stimulating the development of the soft drink industry and also creating a major challenge to the carbonated beverage market. In part to address this trend, big soft drink companies, like Pepsi and Coke, are striving to become a “total beverage company” (Seet and Yoffie 95), in which they will serve the comprehensive soft drink market.
The business idea for opening a multi-cultural restaurant catering clients across the community is turned into an opportunity for establishing an entrepreneurial venture. The extensive research and development process as well as market research is conducted to address the issue of providing a localized taste for international cuisine in fine dining restaurant settings (Long, 2013). The food, ambiance, service, and authentic of taste are major elements of focus while developing the plan for seizing business opportunity adhering to a unique restaurant idea. The below sections provide a detailed overview, management, marketing, and financial segments of the proposed project.
Franchising is a system of marketing goods or services. This structured business started in the United States in the 50's, then expanded throughout Europe. Franchising involves the owner of the business (known as the franchisor), who agrees to grant rights to the other party, (known as the franchisee), to operate a business using the name and business format developed and supported by the franchisor. This type of business involves a team effort that operates as a chain with less risk and investment required. Each store is very similar and they provide the same product and services. According to Pipes, "As the American economy staggered in the last few years of the 21st century's first decade, many U.S.-based franchisors began to search for growth opportunities overseas, casting a serious eye at international expansion." Part of the reason why American franchisors are considering oversees is because of the difficulty in current U.S. market, and over consumption. The other part is because of the growth in European markets and favorable exchange rates. In the last 50 years
In order to familiarize franchising, its history must be known. (The History of Franchising, 2007) the word franchise came from the old French meaning privilege. In the middle ages, franchise is a privilege wherein the local sovereign words will grant to hold markets to hunt on hid land. It is shown in the phrase that franchise started as early as the middle ages. The king was like the franchisor which allows his business commercial activities to be used by the other businessmen or franchisees. It is also included that franchising changes over time.
The first step in any business is to think of or create a business idea. Without an idea, one cannot launch their business off the ground. A right direction is needed to create a business with a unique idea. However, other options include franchising or buying an existing business (1). Franchising allows an individual to run stores such as Burger King or McDonalds under the corporate name. It involves taking training classes and a heap of money in order to start a franchise. A Franchisee will have to buy products and services from the corporate entity they are franchising from, which is often required. Buying a franchise is like taking a piece of the pie from the company that is franchising and sharing that pie with everybody else. In addition having a franchise allows one to communicate and in essence become a big part of an added business opportunity (4). Franchising is far from easy to start and maintain for that matter. Starting a franchise involves a l...