Case 1

Franchising (Cooperative Chain & Voluntary Chain) – GenKi Family noodle and rice restaurant (‘’somewhere’’ branch)

A chain diet of restaurant in Taiwan, it is more popular now due to save the time and learns business management experience quickly, especially in a poor economic environment.

However, there are some risks to launch a store by franchising. Normally, threaten usually come after starting the business. Why usually appreciate threaten after launching a business? As you are be protected well in the beginning.

A number of defined clear reasons as below:
There is one clear element to influence this restaurant-place. According to Kotler (1999) ‘’every sellers must decide how to make its goods available to the target market’’. However, we still can see a good place, but no customers.
For this case, its place is not good enough because their place is near industrial estate. Although there are some school and new building, there are still not very much people and have similar style restaurants.

Another key issue is its ‘’finance’’. Their income had NT$ 40K, but cost achieved NT$45K every month. A net amount is definitely going to down. Why they could not control the cost? As commodities have increased and have poor human resources cost management. So, the situation was worse.

Hence businesses have to reduce its cost, in order to avoid the directly risk.
Companies also have to help customers to their other cost, in order to achieve win-win deals.

Questions to consider:Is a good location (place) working for a business?How would customers like to use your products and services?Dose your company prepare a strategic goal analysis? If you haven’t achieved the aim, what does your business do about it? Lower the goal? Set up strategic breakthrough ways?