Q. Analyze the case including identifying issues, situation analysis and conclusion?

CASE 4 Two Men and a Truck/ International, Inc. Exceeding Customers' Expectations BACKGROUND panelist suggested she franchise her little company, Sheets decided to consult with an attorney. n 2007, TWO MEN AND A TRUCK/INTERNA- In 1989, Sheets awarded the first location TIONAL, Inc., was recognized on Entrepreneur outside of Michigan to her daughter, Melanie magazine's list of Top 500 (it was ranked at Bergeron. The office was in Atlanta, Georgia. number 171), named as one of America's top global When the company reached 39 franchises, Sheets franchises, listed on Franchise Business Review's asked Bergeron to assume the role of company Franchise 50," and selected as one of the top president while she pursued a seat in the Michigan 25 franchises for Hispanics by the National Minority State Senate. Bergeron is now chair of the board. Franchising Initiative. According to the company's TWO MEN AND A TRUCK's long track record website (www.twomenandatruck.com), it is the first of aggressive growth continues under Bergeron's and largest local moving franchise system in the progressive leadership and keen business strate- United States and offers a full range of home and gies. Her accomplishments have been showcased business moving services. on the cover of Franchising World magazine and in numerous other publications, including Franchise Times. Brig and Jon Sorber returned to their Lan- HISTORY sing roots in the mid-1990s to team up with their TWO MEN AND A TRUCK started in the early and chief executive officer, while Jon serves as mom and older sister. Brig is now the president 1980s as a way for two brothers to make extra executive vice president. The first truck that Sheets money while they were in high school. Now, over OLD DOLL money while they were in high school. Now, over executive vice president. The first truck that Sheets 20 years later, the company has grown to more than bought in 1985 has now multiplied into a fleet of 200 locations worldwide. more than 1,200 trucks. Brothers Brig Sorber and Jon Sorber started Customers benefit from having trained, uni- moving people in the Lansing, Michigan, area formed movers who are insured and bonded to using an old pickup truck. They had their mom, handle any home move and business moving tasks. Mary Ellen Sheets, develop a logo to put in a The company has come a long wayand logged a weekly community newspaper. That stick men logo lot of miles-since Sheets sketched the first "stick still rests on every truck, sign, and advertisement men." TWO MEN AND A TRUCK continues to for the company. After the brothers left for college, pave the way for future growth and innovation, Sheets continued to field calls for moving services while remaining focused on exceeding customers' while she also worked a full-time data-processing expectations. job with the state of Michigan. In 1985, she decided The firm now has more than 200 locations oper- to make things official by purchasing a 14-footating worldwide, including 32 U.S. states, Canada, truck for $350 and hiring a pair of movers. That and Ireland. In 2010 alone, with 1,300 trucks cur- $350 is the only capital Sheets has ever invested in rently on the road, the system completed 317,841 the company. Her experience with data analysis, moves. The company reached the milestone of combined with her commitment to customer ser- 2,000,000 moves in 2005. vice, carned her a spot on a 1988 graduate business panel at Michigan State University. When a fellow FRANCHISING Source From Longenecker/Petty/Palich/Hoy, Small Business Manage Franchise territories are based on population, gen- ment, 17. 2014 Cengage Learning. erally between 250,000 and 420,000 people per 458 NEL File | c/Users/Dharminder%20Johal/Desktop/Book.pdf 13 a AN f i e S 1 P G - + E D Page view marketing area. The initial franchise fee is $45,000, or $85,000 if the franchisee has previously oper- ated in the area. Total start-up costs (including facility, trucks, equipment, and other expenses) range from $158,000 to $460,910. Franchisees pay a royalty of 6 percent of gross revenue, plus 1 percent for advertising. TWO MEN AND A TRUCK has always focused on training its employees with the latest techniques and the best equipment availableand on treating everyone as they would want their grandmother treated, otherwise known as THE GRANDMA RULE. Before a new franchisee can open a location, he or she must attend a two-week training course in Lansing, Michigan, conducted by home office staff at STICK MEN UNIVERSITY. There, franchisees are taught by subject-matter experts about the computer systems, how to market their new business, and how to hire, manage, and lead their teams. (Throughout the year, STICK MEN UNIVERSITY offers online classes that cover everything from marketing tactics to leadership to making accurate estimates. Several instructor-led courses are also available online.) Franchisees also work in a two-story home built inside the TWO MEN AND A TRUCK headquar- ters. During this portion of the training, students are taught how to maneuver, wrap, pack, and load facility. Students must be able to fully pack the back of the truck with the items from the home. Many other tools are available to franchisees, including detailed monthly reports, newsletters, extranet, a system-wide annual meeting, a toll-free support line, a tradeshow booth, a complete line of TWO MEN AND A TRUCK branded clothing and professional marketing materials, and a system- wide purchasing system