Bento Sushi
Bento Sushi is the franchise. It sells food and is found in shopping malls, colleges and hospitals throughout Canada. The fee for the franchise is $25k while the startup is $50k or more. The investment expected is $150k or more
The benefits of starting a franchise of your choices include the following:
Higher growth rates relative to start-ups
Presence of portrait, credibility and proven work ethics
Training delivered by the franchisor, thus, no need for experience.
Running a franchise has a number of drawbacks. This includes the following:
Franchise deals govern how you manage a franchise, so there is no space for creativity. The franchisee has to share profits with the franchisor
Poor performance by other franchisees impacts negatively the franchise
Question 4
SWOT analysis for a franchise
Strengths
Established customer portfolio
Easy access to financial support
Low risk of failure
Easy to set up and maintain
Weaknesses
Dependency on the franchisor
Strict operating rules
The initial and ongoing costs may be high
Opportunities
Entrepreneurs learn from the franchisor and have the opportunity to become their own bosses in future
Threats
The high rate of growth of the existing franchised competitors
The introduction of new models of conducting business
The high entrance of other franchise competitors into the market
The decline in brand after some time or due to the competitors
Question 5
Flexibility and Adaptability
As an entrepreneur, adaptability and flexibility has to exist. Entrepreneurs have to be flexible to the market and client needs because they are dynamic.
Motivation
As an entrepreneur, I have to be future oriented and optimistic. Hence, I have to believe that I will be successful and also willing to take risks (Pride 164). My energy levels will also be high and my thinking will always have to be on the business and how to grow it.
Risk taking
As a successful entrepreneur, I will have to take risks that are calculated. Before taking any risk, I will first evaluate it and ask myself whether it is worth taking or not (Pride 164).
Question 6
The leadership style I would employ is democratic leadership. It can be defined as a type of leadership where authority and power are redistributed between managers and employers to provide for involvement of decision making among employees. The characteristics of democratic leadership include:
The distribution of responsibility the leader to facilitate decision making
Deliberation is present where the leader acts as a mediator between group members.
The leaders empower their followers to help them accomplish tasks
Democratic leadership creates job satisfaction because it creates a sense of autonomy, control and participation (Pride 196). Furthermore, participation of employees in decision making leads to creative solutions and innovations that help the franchise.
Question 7
The X theory is a motivational theory where control and supervision over subordinates is high. Subordinates dislike work, have little or not ambition and authority is centralized. On the other hand, Y theory is where subordinates are self-motivated, highly ambitious, democratic and like work naturally (Pride 190). The Y theory is effective for the franchise because the workers are well-educated and have a purpose. Furthermore, they are well-trained to do their jobs and do not need constant supervision.
Question 8
The equilibrium price and quantity are where the demand and the supply curve meet (Prusty 13).
Question 9
The demand curve shift when there is an increase of decrease of any determinant of demand except price. The shifts are caused by factors such as consumer tastes and preferences, the price of other related commodities and income of buyers among others (Prusty 13). Graphically, it can be shown as:
An increase in income led to the shift of the demand curve from left to right.
Works Cited
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Pride, William M, Robert J. Hughes, and Jack R. Kapoor. Business. S.l.: South-Western Cengage Learning, 2014. Print.
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Prusty, Sadananda. Managerial Economics. , 2010. Print.
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