Starter Say what type of business is shown in each picture = 5mins

TOPIC:Topic 1: Business Organization and Environment LESSON TITLE:Franchises COMPETENCY FOCUS: Entrepreneurship (S4): To develop your entrepreneurial skills in preparing a realistic proposal for a new business start-up. You will understand the process a business will have to go through when starting up, including the underlying principles of starting a business. [IB Learner Profile Development: Inquirer] Learning Objectives By the end of the lesson, you should be able to… LO1) To define the term ‘franchise’ LO2) To describe the features of a franchise using examples LO3) To evaluate the use of franchising as a growth strategy. SMSC: You will assess the organisational culture of businesses in terms of fundamental structure, purpose and strategy development. CRITICAL THINKING KEY: Knowledge Application Analysis Evaluation

Franchise “An already established business (Franchisor) offers for sale to other businesses or individuals (Franchisee) the right to use its products, services, logos” Expensive initial payment % money made goes to Franchisor Form of marketing arrangement

Let’s Re-cap! Advantages of operating as a franchise Disadvantages of operating as a franchise

Business Growth Internal GrowthExternal Growth MergersTakeover

Other types of growth… -Joint Venture -Strategic Alliance -Merger -Takeover -Franchising

Franchising A business that uses the name, logo and trading systems of an existing successful business i.e. Subway, McDonalds. Involves a ‘Franchisee’ and a ‘Franchisor’.

Case Study/Exam Question Case study pg.77 Harry goes it alone

Keyword Comprehension Test