GOOD BYE TO MY VIEWERS

Hi everyone! This is going to be my farewell post on my blog. I wish you had little understanding on the topics I discussed on my blog and also wish you will all apply the knowledge you have gotten to the environment you found yourselves in where ever in. I thereby thank you all for visiting my blog and dropping your comments as well. GOOD BYE AND MAY GOD BLESS YOU

FRANCHISING

 Hi viewers today we are going to look on a new chapter which is FRANCHISE. This chapter defines franchise, gives examples and finally the advantages.

Definition of Franchise

According to Kuratko (147-148), a franchise could be defined as an arrangement in which the owner of trademark, trade name, or copyright has licensed others to use it in selling goods and services.

Franchise: It can be defined as ”a form of business operation in which a franchisee pays a franchisor to acquire rights to utilize their expertise, knowledge, trade name, and logo as part of a business enterprise” (Graham Harper, 2011).

Who are franchisees and franchisors?

A franchisee is a person or company who purchases a franchise from the franchisor while a franchisor is a person or a company who sells a franchise to a franchisee.

Advantages of franchising

The following are the advantages of franchising:

Training and guidance: A franchisee is not just left by a franchisor to be on his own. A franchisor guides and trains a franchisee on how to manage the purchased franchise. Guide lines and ideas are given to the franchisee by the franchisor which can help the franchisee to build a successful business.

Brand-name appeal:  A franchisee who buys a well-known franchise has a big chance of succeeding. Customers happen to be more interested in products and services from a well-known and popular franchise than a franchise they don’t know of. Therefore, the name and brand of a franchise matters when owning a franchise.

A proven track record: A franchisee can easily determine the possibility of managing a successful business before buying a franchise. The franchisor has to present business records to the franchisee indicating success so that the franchisee can put into analysis before deciding to buy the franchise. A franchise with good record over some years of existence is likely to be more successful.

Financial assistance: Financial aid can be given to a franchisee by the franchisor in case there is limited capital to manage the business either as loan or even personally lending money to the franchisee.

Examples of franchises

As Kuratko indicated in his book, some examples include: RE/MAX, Domino’s Pizza LLC  Inter Continental Hotels, KFC Corp, Pizza Hut, Dunkin’s Donuts and subway.

CREATIVITY AND INNOVATION

 Hi everyone! today i am going to give an explanation on creativity and innovation.
Creativity: is the generation of ideas that results in the improved efficiency and effectiveness of a system.
Innovation: is the process by which entrepreneurs convert opportunities into marketable ideas.

                  SOURCES OF INNOVATIVE IDEAS

TRENDS: This include consideration of societal trends, economic trends and governmental trends and technological trends.
UNEXPECTED OCCURRENCES: This include usage of unexpected incidents such as natural disasters, disease out break and even bombing. e.g bomb detectors can be sold in bomb areas and such idea would be profitable.
INCONGRUITIES: these occur when the gap or difference exists between the expectation and realty. Example is when Fred smith propose the overnight mail delivery he create FedEx.
PROCESS NEED: This involve solving peoples problems and needs in a marketable idea. e.g.Example involve the health food(sugar free drinks), pharmaceutical, medical devices e.t.c.
INDUSTRY AND MARKET CHANGES:These are regular changes caused by consumers behaviours in industries and market. Example is changing of health care industries to home health care.
DEMOGRAPHIC CHANGES: These include example such as Retirement centres for old people.
PERCEPTUAL CHANGES:These include changes that occur in people,to perceive need to be healthy and physically fit. There are need for both healthy food and facilities. Example invention of exercising tools.
KNOWLEDGE BASE CONCEPT:  These involves the use of knowledge  to produce marketable ideas. Example cell phone technology today has advance to include not only phone services but Internet access, music, camera, and some other applications.

                         TYPES OF INNOVATION

 

• INVENTION: Totally new products, service or process. Example Wright Brothers - Airplane
• EXTENSION: Different application of already existing product, service or process.Example Markzuckerberg - Facebook. 
• DUPLICATION: Creative replication of an existing Product. Example Wal-mart= department store and Getway= personal computer. 
• SYNTHESIS: Concepts and factors into a new formulation or use. Example Fred Smith - FedEX.