DB SC bus139 Assignment Example | Topics and Well Written Essays - 750 words

DB SC bus139 - Assignment Example On the contrary this form of business method helps to achieve economies of scale where funds can be allocated as per requirements. I feel that every business has the desire to expand across wide areas and in order to meet such an objective franchising is the best possible solution. The major advantage of this method is to have control on capital and operate across the globe without much of intervention. It can be stated that franchisees are able to provide a large customer base along with some exceptional talent which cannot be accessed by a business that has its wholly owned subsidiary. High level of consistency and quality are maintained by franchisees as they are bound within an agreement. This in turn increases the scope for success of the new business. On the contrary the major disadvantage of the method is that expertise and skills of a firm needs to be shared by all the franchisees. There can even be an issue with timely payment of fees and royalties by franchisees which would disrupt the relationship between franchisor and franchisee and ultimately have an impact on the business (Longenecker, Palich & Hoy 94-99). In order to avoid such a situation the best possible measure is to set forth an agreement with all possible terms and conditions and then I would prefer to have limited number of franchisees who can be easily controlled. I was working as an employee with a renowned organization located in United States known as Kraft Foods. The industry in which the company operates is highly competitive with large number of players. However Kraft Foods has been able to establish its unique position in the market due to high product quality and innovative food items which it brings forth for its customers. Food and Beverage industrial sector is a segment that needs constant monitoring as any new move made by competitor can result into loss of market share. While I was working in this organization, I observed a good management situation in which top