• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Private sector businesses 2.

Extracts from this document...

Introduction

Private Sector Businesses 2 Franchises A franchise is a way of owning a business without taking the normal risks of starting out on your own. It is little wonder, then, that it is so popular! Benetton, Prontoprint, Wimpy, Kentucky Fried Chicken, BSM and Body Shop are all examples of franchises. These are enterprises where a small shop or outlet is run by a franchisee, who has been given permission to operate the business by a franchisor the organization which owns the product or service being sold. The franchisee gets the benefit of the franchisor's expertise in marketing and operations. The franchisor will often supply the raw materials or stock for sale, provide shop displays and give help and advice to the franchisee, who usually has the exclusive right to operate in a certain geographic area. The franchisee has the responsibility of running the business on a day-to-day basis and can keep most of the profits. However, he or she must raise most of the capital and pay an initial licensing fee to the franchisor. ...read more.

Middle

* Most of the profit is retained by the business owner. Disadvantages: * Some of the profit has to be paid to the franchisor. * The owner is not free to make all of his/her own decisions, particularly as to the product range or the prices at which to sell their goods or service. * Only the franchisor's good(s) or service(s) can be sold. * The franchisee is largely dependant on the popularity of the franchisor's product or service and the amount of advertising undertaken by the franchisor. * There is a danger that the franchisee will 'sign up' with a disreputable organization which takes his/her initial payments for little or no return. * Long hours and few holidays. * Business success is dependant on the skill of the franchisee and the strength and dependability of the franchisor. If either are lacking, the business may fail. Cooperatives What is the difference between Pulp and Oasis? You may give many different answers but it is unlikely that you would know that Oasis' songwriting royalties are split unequally (no prizes for guessing that Noel Gallagher has the biggest share!) ...read more.

Conclusion

* Jobs can be rotated so that everyone can have a turn at the pleasant jobs as well as the not so pleasant. * The workers themselves are not forced to be owners - each worker can decide for him or herself. Disadvantages: * Although special forms of finance are available for cooperatives, some organizations (banks, insurance companies etc.) may hesitate about dealing with cooperatives because there is no recognized leader who takes responsibility. * Suppliers may be reluctant to sell goods on credit for the same reason. * Job rotation means that some people will do jobs they are not trained, or ill-equipped, to do. * Decision making can take a long time if there are a lot of people to consult. * Disciplining or sacking may be difficult to do if everyone is 'friends together'. * Good leaders may be stifled and feel they cannot develop their full potential. * Decisions which are made for the good of the workforce may not be the best for the firm, e.g. a new machine which will produce better quality goods but ill make three workers redundant may be rejected. By Laurence Osborne ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Structures, Objectives & External Influences section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Structures, Objectives & External Influences essays

  1. Unit 1 Investigating Business of Coca-Cola and Nike

    Nike has many stores so they would have more customers by being in more places there is a chance to sell more products. They as well have different aim and objectives because of Activities. Fro example they make different product.

  2. Different sources of Finance for Businesses

    Other whole sale banks include the foreign banks. They offer the same service, but as the currency is different a business could end up making extra or loosing revenue made through the currency changes. Building Societies A building society is a form of financial institution that is similar to a bank.

  1. The Business Environment Coursework. Describe the type of business, purpose and ownership of ...

    Many companies organise themselves by the type of customers they have, for example they may have one department for dealing with the general public and one for business to business customers. Companies may use a mix of these organisational structures.

  2. For my portfolio, I was asked to do an assignment on two businesses. I ...

    Describe the activities of the two businesses you are investigating for this unit. Tesco Tesco's core business activity is to sell food and drink but they sell clothes, household items, gifts, flowers, kids items, and food items. Tesco have coffee shop, optician, pharmacy, photo processing, automatic car wash and jet wash.

  1. Business unit 2

    Thorpe Park A trip to Thorpe Park was not chosen as the final decision on as after carful consideration it would not be possible in the time frame and financial situation of many of the student able to come. The main reason for this is the fact that the day

  2. Investigating Businesses

    Values The values of my business will be that all the customers and staff are treated with respect and kindness. Staff will be hard working, polite, kind and cheerful when dealing with customers and fellow co-workers. My values to guide me in making decisions and running my business are as

  1. Subway Franchise

    a brand that consumers trust and identify will lead the sandwich bar gaining a stable market share, and loyal customers in a short space of time, and also some of the risk will be reduced. Overall, buying into a franchise enables entrepreneurs like me to have an opportunity to provide

  2. Applied Business. Investigating a business Preston Manor High School

    School wants to aim higher than the national curriculum level, in order to become an outstanding school and the best in the Brent borough. New strategies are introduced to improve the teaching quality of Preston Manor. It is important the school focuses on the KS3 and improve the teaching quality the KS3 students receive.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work