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Published byAugustus Holmes Modified over 9 years ago
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Teams of two or three One person to scribe Must give as many answers as possible to a question For any answers that match my answers your team gets 2 points (1 point for half answers) An additional answers that I deem as correct your team receives one point All answers must be written down!
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1. Franchises 2. Growth & stakeholders 3. Protecting stakeholders interests
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Franchisor gets a fee and % of profits Franchisee provides most of the finance to set up the new outlet so the business can grow much faster The franchisee will be motivated to succeed as they receive most of the profit Franchisees can learn from each other which helps the business improve As all franchises contribute to marketing, more can be spent to achieve brand awareness
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The original entrepreneurs no longer own the entire business If there is a quality or service problem with one franchise, the image of the entire business can be damaged
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Employees – job security and greater rewards Suppliers – receive additional orders Local community – more people employed by the business Government – more tax and less benefit claims
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Supplier – May be bullied by bigger firm Employees – May not feel part of the business The business – communication may suffer The community – the business may relocate (perhaps overseas) The government – will not receive tax and may have to deal with unemployment if business relocates abroad
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Lobby government – Employees, suppliers Boycott the products – Customers Strike – Employees Complain – Employees, suppliers, community, government Vote or sell shares - Shareholders
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What is organic growth? Why might a business take over a competitor? What are diseconomies of scale? What causes diseconomies of scale? Give me an example of backwards vertical integration Define conglomerate integration
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