MGT211 GDB 1 Solution and Discussion

[Atiya Rabani]

Total Marks 4
Starting Date Thursday, May 21, 2020
Closing Date Wednesday, June 03, 2020
Status Open
Question Title Business Organizations
Question Description

Topic to be tested:

Business organizations

Learning objectives:

To understanding the basics of a business.

Question:

Why it is important to meet the pre-requisites of a business?
How credit sales could be helpful for a businessman to boost his business?

INSTRUCTION:

Write a brief answer in bulleted form only.
For each question only two reasons are required.

Note: Strictly follow the Instructions, student will be graded zero if not found to follow the instruction.

[Hadii Hadia]

GDB
MGT211:
Question:
How franchising could be disadvantageous for a franchisee? On which grounds it is beneficial for the franchisee?
Solution:
How franchising could be disadvantageous for a franchisee? How franchising could be beneficial for a franchisee?

1. Restricting regulations
   The franchisor can exert a degree of control over the majority of the franchise business and decisions made by the franchisee.
   The franchise agreement usually includes restrictions on how you can run the business.
   The franchisor might go out of business.
   • High initial investment
   • Limited creativity
   • Lack of privacy
   • Business of location
   • Hours of operation
   • Decor
   • Products 1. Business assistance:

Franchiser provides guidance to franchisee in all affairs of the business. This assistance can be essential to running a successful business and makes it much easier than starting a business from scratch.

• Capital Motivated and Effective Management
• Fewer Employees
• Speed of Growth
• Limited Risks and Liability
2. Initial cost
Even if you opt for a low cost franchises you’ll likely still have to front a few thousand dollars. While this can be seen as a disadvantage of franchises, it’s important to weigh the opportunity against the initial investment and find the right balance for your business.
Initial investment of the franchise fee buys a lot of the benefits for the franchisee, it can also be costly-especially if you’re joining a very well –know and profitable franchisee. 2. Lower failure rate:

Franchises have a lower failure rate then solo business. When a franchisee buys into a franchise, they’re joining a successful brand, as well as a network that will offer them support and advice, making it less likely they’ll go out of business.

[zaasmi]

@zaasmi said in MGT211 GDB 1 Solution and Discussion:

How credit sales could be helpful for a businessman to boost his business?

Offering credit often encourages customers to speed up or increase the amount of their spending. Some businesses offer credit to gain a competitive advantage in their market. Balancing the potential for increased sales with the risk of reduced cash flow is an important part of managing risk in your business.

[zaasmi]

@zaasmi said in MGT211 GDB 1 Solution and Discussion:

Why it is important to meet the pre-requisites of a business?

A business has to co-ordinate various factors of production for achieving a given objective. All factors are equally important for making the business a success. Various departments should work in co-ordination with each other and organisational and financial planning should by properly determined.