Aida Lim

Chapter 15 Franchising The word franchise comes from an old dialect of French and means “privilege” or “freedom”. Franchising is a form of business organization in which a firm that already has a successful product or service (franchisor) licenses its trademark and method of doing business to other businesses (franchisees) in exchange for an initial franchise fee and an ongoing royalty. Comfort keepers is a timely idea that addresses a need for a particular target market. 2 types of franchise systems: 1.       A product and trademark franchise is an arrangement under which the franchisor grants to the franchisee the right to buy its products and use its trade name. This approach typically connects a single manufacturer with a network of dealers or distributions. Three types of product and trademark franchise: a.        Individual franchise agreement : involves the sale of a single franchise for a specific locati...

Chapter 14 Strategies for Firm Growth Internal Growth St r ategies è Involve efforts taken within the firm itself, such as new product development, other product-related strategies, and international expansion, for the purpose of increasing sales revenue and profitability. Internal growth strategies also called organic growth because it does not rely on outside intervention. Here are the advantage and the disadvantage of internal growth strategies. Advantages Disadvantages Incremental, even-paced growth. A firm that grows at an even pace can continually adjust to changing environmental conditions to fine tune its strategies over time. In contrast, a firm that doubles its size overnight through a much larger commitment at a single point in time. Slow form of growth. In some industries, an incremental, even paced approach toward growth does not permit a firm to develop competitive economies of scale fast enough. In addit...

Chapter 13 Preparing for and Evaluating the Challenges of Growth Sustained growth is growth in both revenues and profits over a sustained and outstanding. Growth in sales revenue is an important indicator of an entrepreneurial venture’s potential to survive today and be successful tomorrow. Preparing for Growth 1.       Appreciating the Nature of Business Growth a.        Not all business have the potential to be aggressive growth firms b.       A business can grow too fast c.        Business success doesn’t always scale 2.       Staying Committed to a Core Strategy 3.       Planning for Growth : involves a firm thinking ahead and anticipating the type and amount of growth it wants to achieve Reasons for Growth A firm’s pace of growth is the rate at which it is growing on an annual basis. Sometimes...