Developing and Managing an Enterprise Essay Example | Topics and Well Written Essays - 2500 words

Developing and Managing an Enterprise - Essay Example Majority of the operation of the company are operated by franchises in which separate franchisers buy the rights to operate their business under the name of McDonalds while providing the same quality and service in its products as is the product and service offering of the McDonalds Company. (Rensi, 1995) Standalone businesses as well as franchises can be launched by entrepreneurs who seek to establish unique and innovative business. The main difference between an entrepreneur and any other form of business man is that entrepreneurs are willing to take on risks. They do not take on excessive risk; instead they are "calculated risk takers, who define the risks inherent in any venture and attempt to minimize them" (Kathleen, 2006, p6) The advantages that are available to standalone businesses pertain to the fact that the proprietor can run the business, according to their own wishes and plan the product and service offering as per the plans of the proprietor (Lewis, 1994). They have almost complete control in the development of the business, its strategic expansion as well as the positioning of the company and the products in the market. "The advantage of buying an independent business over a franchi... "The advantage of buying an independent business over a franchise is that the business you buy is yours to do with what you will. You do not have to maintain any aspects of the business that do not increase profits, and you can implement new ideas as you see fit. In fact, some business buyers look for struggling businesses that are undervalued because they know they can improve their profitability. Once the transition has been made, as the new owner, you have the full decision-making power." ('Should You Purchase a Stand-Alone Business or a Franchise', 2008, p1) The disadvantage of a standalone business however pertain to the increased risk that the company has to bear and the limited resource for funding and support that are available to the business. "Of course, with greater flexibility and full control comes increased risk. After all, as an independent owner, the business is contingent on your decisions. For this reason it is not always easy to obtain the necessary financing without an established track record of running such a business." ('Should You Purchase a Stand-Alone Business or a Franchise', 2008, p2) Moreover the business is solely responsible for establishing new relationships with suppliers, clients as well as vendors, distribution agents, media contacts and developing the marketing campaign of the business. The advantages of operating a franchise include that the franchise business is formed with a basis of a proven idea supporting it. Moreover it is possible for business to assess the performance and the success of other franchises of the same company before committing one. (Peterson & Dant, 1990)Aside from this, in a franchise the business can use recognized brand names and trademarks. The franchisor also