FRANCHISING - PREFINAL

• Franchising


  Is considered as one of the famous business models adapted by many business minded across countries.
• Franchising


  One of the biggest existing business endeavors that gives a higher impact on the economy.
• Entrepreneurship


  Is a way of life and being an entrepreneur includes as kind of behavior and mindset that includes initiative taking, organizing and reorganizing of social and economic mechanisms to bundle resources in innovative ways and the acceptance of risk, uncertainty and potential failure (Shapero, 1975).
• Entrepreneurship


  The capacity and willingness to develop, organize and manage a business venture along with any of its risks to make a profit. The most obvious example of entrepreneurship is the starting of new businesses.
• Entrepreneur


  An individual who takes initiative to bundle resources in innovative ways

  and is willing to bear the risk and/or uncertainty to act.
• Being an Entrepreneur today:

  • Involves creation process

  • Requires devotion of time and effort

  • Involves rewards of being an entrepreneur

  • Requires assumption of necessary risks
• FOUR DISTINCT PHASES OF ENTREPRENEURIAL PROCESS

  1. Opportunity Identification
  2. Develop a business plan
  3. Determine the required resource
  4. Manage the enterprise
• Opportunity Identification


  The process by which an entrepreneur comes up with the opportunity for a new venture.
• Develop a business plan


  The description of the future direction of the business.
• Determine the required resource


  Appraising the entrepreneur’s present

  resources needed for addressing the opportunity.
• Manage the enterprise

  A control system that must be established to quickly identify and resolve organizational problems.
• Entrepreneurs in particular situations may think differently when faced with a different task or decision environment.
• Given the nature of their decision-making environment, entrepreneurs need to sometimes:

  • Effectuate (the casual and effectuation process)

  • Be cognitively adaptable

  • Learn from failure
• Effectuation


  • The casual process

  • The effectuation process
• Comprehension questions


  Aids understanding of the nature of the environment before addressing an entrepreneurial challenge.
• Comprehension questions

  • Connection tasks

  • Strategic tasks

  • Reflection tasks
• Achieving Cognitive Adaptability

  Comprehension questions – aids understanding of the nature of the environment before addressing an entrepreneurial challenge.

  • Connection tasks

  • Strategic tasks

  • Reflection tasks
• Learning from business failure

  An entrepreneur’s motivation is not simply from personal profit but from:

  • Loyalty to a product

  • Loyalty to a market and customers

  • Personal growth

  • The need to prove oneself.
• Ownership and Control


  Entrepreneurs typically start their own businesses from scratch, giving them full ownership and control over the

  venture.
• Brand Recognition 


  Entrepreneurs must build brand recognition which can be a time-consuming and challenging process.
• Business Concept


  Entrepreneurs create their own business concept, which may involve introducing a new product, service, or business idea to the market.
• Risk and Innovation


  Entrepreneurs often bear a higher level risk, as they are pioneering a newv enture with uncertain outcomes. They need to be innovative and adaptable to market changes.
• Support and Training


  Entrepreneurs are responsible for developing their own systems and procedures. They may seek external support, but the level of assistance varies.
• Investment and Initial Costs


  Entrepreneurs must secure funding for every aspect of their business, from product development to marketing and infrastracture.
• Flexibility


  The Entrepreneurs' flexibility to make decisions and pivot their business

  startegies based on market feedback and changing circumstances.
• Ownership and Control


  Franchisees buy the rights to operate a business using an established brand and business model owner owned by a franchisor. While they open and operate their individual unit, they must adhere to the franchisor's guidelines and standards.
• Business Concept


  Franchisees adopt an existing and proven business concept developed by the franchisor. The Franchisee's role is to replicate the successful model in a new location.
• Support and Training


  Franchisors typically provide extensive training, Ongoing support, and a range of resources to help franchisees succeed. This support can include marketing assistance, operational guidance, and access to established supplier networks.
• Risk and Innovation


  Franchisees benefit from a proven business model, reducing some of the risks associated with starting a business. However, they may have limited flexibility to innovate or make significant changes to established

  system.
• Brand Recognition


  Franchisees leverage the brand recognition and reputation established by the franchisor. This can provide a competitive advantage and attract

  customers more easily.
• Investment and Initial Costs


  Franchisees pay fees to the franchisor for the right to operate under their

  brand, they often benefit from lower initial costs compared to starting a business from scratch. However, there are still significant upfront and ongoing fees associated with franchising.
• Flexibility


  Franchisees have less flexibility in making major decisions, as they must adhere to the franchisor's guidelines and standards. This lack of autonomy

  can be a trade-off for the support and established brand.
• Innovation


  The process of translating an idea or invention into a good or service that creates value or for which customers will pay.
• Invention


  A new scientific or technical idea and the means of its embodiment or accomplishment.
• Production evolution process


  It is the process for developing and commercializing an innovation.
• The three types of innovation:

  1. Ordinary
  2. Technological
  3. Breakthrough
• Ordinary


  New products with little technological change.
• Technological


  New products with significant technological advancement.
• Breakthrough


  New products with some technological change.
• The 7 Sources of Innovative Opportunities

  1. The unexpected
  2. The incongruities
  3. Innovation Based on process need
  4. ndustry and Market Structure
  5. Demographics
  6. Changes in Perception
  7. New Knowledge