Describe the two types of franchising systems.
What will be an ideal response?
There are two types of franchising systems: product and trademark franchising; and business format franchising.
Product and trademark franchising is an arrangement under which the franchisee is granted the right to sell a widely recognized product or brand. Most such franchisees concentrate on handling one franchiser's product line and identify their business with that firm. Familiar examples include automobile and truck dealerships, gasoline service stations, and soft-drink bottlers. The franchiser exercises very little control over the franchisee's operations; what control there is has to do with maintaining the integrity of the product, not with the franchisee's business operations.
Business format franchising is a relationship in which the franchisee is granted the right to use an entire marketing system, along with ongoing assistance and guidance from the franchiser. The industry groups with the largest volume of sales in this type of franchising are restaurants, retailing (nonfood), hotels and motels, business aids and services, automotive products and services, and convenience stores.
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Bernhard Stroh is the Master Brewer at the Lion's Head Brewery. Bernhard has the approval to brew a new beer, but can't decide which: (1 ) a wheat beer; or (2 ) a pale ale. Both beers require an initial investment of $1,000,000
The operating cash flows for each project are shown in the table. Lion's Head shareholders required a rate of return of 10%. The Wheat project has an IRR of 15.36% and the Ale project has an IRR of 15.89%. Which project should Bernhard choose (and why)? Year Wheat Ale 0 -1,000,000 -1,000,000 1 200,000 900,000 2 1,100,000 300,000 A) Choose the Ale project because its IRR is greater. B) Choose the Ale because its NPV is higher. C) Choose the Wheat because its NPV is higher. D) Choose the Wheat because it generates more operating cash flows. E) Choose either because they both have the same NPV.
The ________ is the information that a sender wants to share during the transmission phase of the communication process.
A. message B. encryption C. noise D. medium E. code
An integrative approach to management that supports the attainment of customer satisfaction through a wide variety of tools and techniques, resulting in high-quality goods and services is
A. customer relationship management. B. mass customization methodology. C. total quality management. D. value-added manufacturing. E. computer-integrated manufacturing.
Which of the following is not an active listening word that will let your caller know you are listening?
a. "What?" b. "Yes." c. "I see." d. "Great."