Franchisee: set prices and wages, pay royalty on sales, advertise locally, sell only the products of the franchisor.
the product is usually well known
set-up costs reduced
has a secure supply of stock
has no control of what to sell or over the supplies
has to pay royalties to the franchisor
unlimited liability for the franchise
quick access to wider markets
makes use of local knowledge and expertise
gains more profit and the sign-up fees
loses control of day-to-day operations
can suffer if the franchise fails or does not perform properly
Impact of globalization (business growth and evolution)
globalization: process by which the worlds regional economies are becoming one integrated global unit.
marketing: it is the hole process since you create the product until you sell it. It is about Knowing how to identify the right customers, and targeting them as unique human beings by satisfying their needs profitably
mark. And other businnes funtions:
Finance and marketing: they find an appropriate budget. There may be a departmental conflict in the amount of money decided to spend for the marketing sector.
Human resources and marketing: Marketing can influence the demand and supply of labor in an organization.
Operations and marketing: while operations dedicated to the creation of the product, marketing decides how the product would be. This can bring conflicts in the business since operations may not agree in the output because the time it takes and the price.
Goods: tangible, can be returned or consumed later, there is ownership of the product