•corporate alliances and acquisitions;

•franchising.

•alliances,•acquisitions,•franchising

?To stay competitive on the market

Joint venture

Merger

Acquisition

• companies acquire a bigger market share;

•companies increase their capital and budget on different purposes;

•companies use the best of each other’s management and labour force;

•companies use the best of each other premises, equipment, technologies, procedures;

•companies don’t spend extra money to acquire more customers – they receive another company’s customer base.

companies are afraid that a voluntary joint venture or merger will turn into a forced takeover;

companies don’t want to lose their identity and corporate style, as a result they may lose

their loyal customers;

when the negotiations about an alliance have started, companies learn more details about each other

and come to the conclusion that an alliance will be no good for their business and financial position;

there can arise difficulties to agree on costs and prices;

companies don’t agree to reduce their staff or change work conditions;

both the personnel and shareholders may feel lack of trust in management personalities;

companies can’t agree which company representative

will become the CEO.

Franchisor(franchiser)

Franchisee

•Franchise fee (front end fee);•Royalty (management service fee);•Advertising fee

•Operations manual;•Master franchisee

•corporate style and corporate culture;

•a code of practice where the franchisor sets the standards customer care;

•a list of preferred suppliers;

•the fixed range of goods and services that should be provided by the franchisee;

•dress code for employees;

•a list of documents that the franchisor demands to carry out the supervision.

FOR FRANCHISER

FOR FRANCHISEE

•selling a franchise allows them to expand their business and cover a bigger territory with their products or services without investing money.

•a franchisee doesn’t need to spend money on promoting a company and making it known to the public;

•investing in business that is already established on the market implies less risk;

• franchisee doesn’t need to think over business procedures, structures, schemes, rules;

•a franchisee can always get quick advice from the franchisor when facing some difficulties.

FOR FRANCHISER

FOR FRANCHISEE

•the franchisor risks the reputation of the company in case the franchisee does something incorrectly and breaks the established rules.

•a franchisee has almost no room for creativity, in order to follow established rules and procedures carefully;

•a franchisee is always under tight control.

acquisition (n) when one company buys another or part of another company; or the company or part of a company that is bought

приобретение

advertising fee (n)

an amount of money that you pay to contribute to the franchisor’s annual advertising отчисления на рекламу

alliance (n) an agreement between two or more ogranizations to work together альянс, союз

code of practice (n)

a set of rules that people in a particular business or profession agree to obey свод правил деятельности

competitive (adj) used to describe situations where companies, countries etc are competing конкурентный

franchise fee (n) an amount of money that you pay to enter a certain system вступительный взнос

franchisee (n) smb who is sold a franchise and operates it фрачайзи; предприятие, купившее франшизу

franchisor (n) a company that sells a franchise франчайзер; предприятие, продавшее франшизу

franchising (n) a system of business based on selling and buying a franchise - permission given by a company to smb who wants to sell its goods or services

франчайзинг

front end fee (n) an amount of money that you pay to enter a certain system вступительный взнос

joint venture (n) a business activity in which two or more companies have invested together совместное предприятие

management service fee (n)

a royalty paid for continuing advice and assistance from a franchisor to a franchisee, usually calculated as a percentage of annual turnover

отчисления на сервисную поддержку управления

master franchisee (n)

a supervisor of a franchisee контролер-наблюдатель за франчайзи

merger (n) an occasion when two or more companies, organizations etc join together to form a larger company etc

слияние

operations manual (n)

a book that gives instructions about how to do smth, for example to use a machine, to run a business

руководство по деятельности

royalty (n) a payment made to the writer of a book or piece of music depending on how many books etc are sold, or to smb whose idea, invention etc is used by smb else to make money

отчисление, авторский гонорар

takeover (n) the act of getting control of a company by buying more than half of its shares поглощение, захват