Sample Essay

The opportunities that are available to Paul’s franchise business pertain to the expansion of the business in a short period of time in the region through the leverage attained from the use of the franchisors name. IN the long run the business has the opportunity to attain a major share of franchising in the region.

The threats that are apparent for Paul’s franchise business are related to the performance of the other franchisers and the success and failure of the franchisor business. This failure can be a result of overestimating and forecasting of profit, revenue as well as the demand for the products being provided by the franchise business of Paul. Aside from this the changing environmental elements of the political, socio economic, technological as well as legal environment surrounding the business can also affect the success of the franchise venture. In case of failure of the franchisor business, the franchise will be drastically effected, resulting in the franchise agreement being dissolved making Paul continue his business as an independent operation without the support that was previously attained by the franchisor.

The bad service standards of other franchisers sharing the same name as Paul’s franchise can also negatively effect the business by reducing the sales and revenue, as the customer’s perceptions will be changed for all outlets and franchises operating under the specific name. franchising requires time, initiative and industry for success, and while franchising in the food and restaurant industry as well as retailing is very successful, the extent of the success for the industry in which Paul seeks to operate in needs to be identified by Paul in order to reduce the threats of changes in the environment and customer demands affecting the profitability of the business.

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