PRESENTATION

ON

INTERNATIONAL BUSINESS

Guided By:DR. RESHMA NIKHATAssistant Professor

Presented By:Mahboob Alam150301-03-33

INDEX

Introduction

What is a Franchise?

Types of Franchising

Advantages of Franchise

Disadvantages of Franchise

Conclusion

INTRODUCTION

FRANCHISE SYSTEM=

FRANCHISE

=FRANCHISOR

=FRANCHISEE

INTRODUCTION

oA franchise is a license granted by a business to anther business to make and sell good/services.

oA franchisor is the owner of the business who grants the license.

oA franchisee is the person who purchases the business name.

What is a Franchise?

• Franchise is the right to sell a well-known product Within a geographical boundary.

• Franchise is a contract in which a franchisor sells to another business the right to use its name and sell its product.

What are the different types of franchising?

1. Product franchising

2. Business format franchising

Product Franchising•Also known as trade name franchising.

•Types of franchising where in a manufacturer grants a franchisee the right to sell its products, but with no method of doing business.

• Examples of this type of franchising are car dealerships and service station.

Business Format Franchising

• Also identified as a name and process franchise.• The franchisee is also provide a complete plan for managing and operating the business•This plan often includes a full range of services, including site selection, training, product supply, marketing plans and even assistance in obtaining financing.• Modern day franchising is primarily in the business format mode, accounting for around 90 of franchise businesses worldwide.

What should I consider before buying a franchise?

1. Ask yourself why you want to own a franchise.

2. Begin the search.

3. Do your own research.

4. Concept.

5. Location.

TRAPS AND TIPS

TRAP # 1 - Franchising is easy.TIP : Do a self-assessment.

TRAP # 2 - Franchising means instant success.TIP : Study the concept.

TRAP # 3 – I can operate my franchise anywhere.TIP : Do a market study.

TRAP # 4 - I have to sing up right away.TIP : Take your time and review, review, review..

Top 3 most successful fastFood Franchises

•Restaurants: 27,000 in 85 countries.• Employing: 1,90,000 people.•World Wide Sales: $9 billion.• Subway serves nearly 3,800 sandwiches and salads in the United state every 60 seconds.•If all the sandwiches made by subway in year were placed end to end, they would warp around the world an estimated 10 times.

SUBWAY

: $9

•Restaurants: 31,000

•Employing: The corporation trains more new workers annually than the U.S. Army.

•World Wide Sales: $25 billion.

• Known for its signature French fries.

•Originally founded by Dick and Mac McDonald as a BBQ drive in in the 1940’s.

McDonald’s

PizzaHut

•Restaurants: 12,500 stores in 100 countries.

•Employing: 1,80,000 people.

•U.S. Sales: $ 5.7 billion.

•Worlds largest pizza chain.

•Founded by Dan and Frank Carney in 1958.

Case Study

History

oPizza hut prototype version restaurant at Wichita state university.

oPizza hut was founded in 1958 by brother Dan and frank Carney in Wichita Kanas.

oThey started pizza hut with only Rs 600 dollars with a partner jhon bender, by renting a small building and purchasing secondhand equipments for making pizza.

oTo create good image architect Richard d burke designed distinctive mansard roof shape and standardized layout.

Product

Salads

Soups

Starters

Pizzas

Pastas

Deserts

Beverage

PlaceOutlets are Located in highly crowded places. 34,000 Outlets in 100 countries. It calls itself a family restaurant rather than young generation eating point.Nice music is played at the back.Usually seen in airports & shopping malls.

PricePizza hut has successfully used the high/low pricing strategy when setting retail price of its products. Pan pizzas start at just Rs 44/-

Pizza hut is using low price for meal and expensive for high end.

PromotionAdvertising through Bill boardsTV ads Pamphlets Social media Sales promotion RadioNews papers Internet

Franchising in India

•India with its huge market and growing in all sectors of the economy is extremely attractive proposition for entry of foreign brands through franchising route.• In the 1990 the market opened foreign franchise.•The key attractions for this franchising is.a) Lower capital requirement.b) Lawsc) Languaged) Huge Market.• As a result the Franchising Association of India was set up

Mumbai in the year 2000.

Advantages of Franchise

•Increase number of outlet with minimum capital.

•Name recognition.

•Running small business under Franchise name is very beneficial.

•Big Business help in corporate marketing.

•Training & Management facilities.

Disadvantages of Franchise

• It has to control and co-ordinate a network of semi independent businessmen.

•Safe guarding the interest of both the parties are complex.

•Much time required while selecting a Franchise.

•Complex procedure.

•Whether we have to buy the franchise or not?

•Whether franchise business is always beneficial?

Need to understand the tool4 A’S concept

Affordability, Acceptability, Awareness, Availability.

Conclusion

THANK YOU

REFRENCE BY:-

http://www.slideshare.net/rohitkukku/franchise-systemhttp://www.slideshare.net/rakeshsamin/pizzahut-ppt