business Franchises

Disadvantages 

• If the franchisee is inefficient or unsuccessful, the business may receive a bad reputation.
• The franchisee cannot make their own decision without the franchisors authorisation.
• The franchisee does not automatically have their agreement renewed; they have to be reviewed regularly. This creates uncertainty for the franchisee.

Workers Co-operatives

Main Features

• A worker co-operative is owned and run by the whole work force so there will be no arguments between the owners and workers as they are the same people.
• People who own part of workers co-operative are called members.
• Membership of a workers co-operative is open to all workers
• A workers co-operative tries to ensure that everyone has a say in how the business is run.
• Any profit made is distributing to members in a fair way.
• Members are in control of the co-operative. 

Advantages

• Because members have a say in the running of the business they are usually happier workers as their views and opinions are heard.
• Because the workers co-operative is owned and run by the workforce it is likely that workers will work harder. This is because they are directly affected by the success of the business.
• Workers of workers co-operative may be more motivated as they know they will receive a share of any profit made.
• A worker co-operative is owned and run by the whole work force so there will be no arguments between the owners and workers as they are the same people.

Disadvantages 

• Because decision making in a workers-co-operative is made by the whole work force it can take a long time to make decisions.
• The business may suffer, as there are no specified leaders. This may result in the business failing to achieve aims and objectives.
• Few people have faith in co-operatives so they are not always well supported 

Retail Co-operative

Main Features

• Retail co-operative shares its profits amongst its members.
• People who own a share of the retail co-operative are called a member.
• The first retail co-operative was set up in Rochdale in 1844. It bought goods at wholesale prices and sold it to members at the market price.

Advantages

• Retail co-operative is owned and run by the whole work force so there will be no arguments between the owners and workers as they are the same people.
• Members have a greater sense of responsibility and will work harder to achieve success.

Disadvantages

• Few people have faith in co-operatives so they are not always well supported.
• Poor planning, management and financial control may be evident due to the lack of skills of the workers.