Question: read case study and solve these 4 question Case Study 3: Franchising and Entrepreneurship McDonald's is an example of brand franchising. McDonald's, the franchisor, grants
read case study and solve these 4 question
Case Study 3: Franchising and Entrepreneurship McDonald's is an example of brand franchising. McDonald's, the franchisor, grants the right to sell McDonald's branded goods to someone wishing to set up their own business, the franchisee. The licence agreement allows McDonald's to insist on manufacturing or operating methods and the quality of the product. This is an arrangement that can suit both parties very well. Under a McDonald's franchise, McDonald's owns or leases the site and the restaurant building. The franchisee buys the fittings, the equipment and the right to operate the franchise for twenty years. To ensure uniformity throughout the world, all franchisees must use standardised McDonald's branding, menus, design layouts and administration systems. Every franchisee has to complete a full-time training programme, lasting about nine months, which they have to fund themselves. This training is absolutely essential. It begins with working in a restaurant, wearing the staff uniform and learning everything from cooking and preparing food to serving customers and cleaning. Further training at regional training centers focuses on areas such as business management, leadership skills, team building and handling customer enquiries. The franchisees will have to recruit, train and motivate their own workforce, so they must learn all the skills of human resource management. During the final period, the trainee learns about stock control and ordering, profit and loss accounts and the legal side of hiring and employing staff. Consequently, no McDonald's franchisee would have to ask a member of his or her staff to do something that they couldn't do themselves. Knowing this, can also be a powerful motivator for the staff. McDonald's commitment to its franchisees does not end with the training. It recognizes that the success and profitability of McDonald's is inextricably linked to the success of the franchises. A highly qualified team of professional consultants offer continuous support on everything from human resources to accounting and computers. The field consultant can become a valued business partner and a sounding board for ideas. The introduction of new products, which have already been researched and tested, considerably reduces the risk for the franchisee. Massive investment in sponsorship is also a central part of the image building process. E For ABUS 013-4-C Final Assessment Fundamentals of Entrepreneurship 1. Explain the term Franchising (2 Marks.) 2. Based on the case study, list and explain what are the FOUR standard uniform requirements that must be followed if one decides to take up a McDonalds franchising (8 Marks) 3. Based on the case study, List and explain FIVE different types of trainings that is being done by McDonalds to ensure the standards and quality of the brand is maintained (15 Marks) I 4. Sponsorship is one of McDonalds strategy in creating awareness in the market. Explain THREE ways how McDonalds does sponsorship and, in your opinion, do you think this will benefit McDonalds (10 Marks) (Total : 35 Marks)