Instructions: For response 1-2, respond thoughtfully. Just saying “I agree” or “I disagree” does not constitute a thoughtful response. They need to be substantive to promote further discussion, new ideas, or questions and are at least 150-350 words and meaningful sentences that are also professionally written. State your opinion. Do you agree with them? If so why or why not?
RESPONSE 1
Based on Ch 3
1a. Franchise- an arrangement between the buyer of the franchise purchases the rights to sell the goods or service of the seller
Some examples of popular franchises in the restaurant industry are McDonald’s, Subway, Wendy’s, Domino’s, Pizza Hut, Taco Bell… etc.
1b. Some popular Company Owned Chains that do not Franchise in the restaurant industry are Starbucks, Chipotle, IN-N-OUT, and Panda Express just to name a few.
2a. The advantages for franchising are proven business opportunity and access to management expertise.
2b. The disadvantages of a franchise are having to pay a startup cost, ongoing payments, and management rules and restrictions.
2c. For a restaurant I would prefer to build my own brand name to be able to create and gain money if the restaurant is successful but if I’m looking for quick money I would invest in a franchise. Creating my own restaurant would be a lot more work compared to investing in a franchise.
Based on Ch 4
3. The country’s imports exceed its exports creating a negative balance of trade. What could be done to increase manufacturing in the USA is to increase the country’s exports and decrease our imports. The USA needs to increase the supply and not the demand if we had more product and were manufacturing more stuff made in the USA, we would be able to increase the products made in the USA.
4. With robots and automation becoming more and more a part of our daily lives what will happen to people that work in low skilled jobs that are replaced with automation.
People will begin to lose their jobs because if the company doesn’t have to pay the machines that do the same amount of work if not better than humans, they will prefer the machines taking over jobs. This will cause the unemployment rate to go even higher than it already is.
RESPONSE 2
1a. Define Franchise
A franchise is an agreement between a franchiser (a person who owes a company that sells either a good or a service) and a franchisee (a person who is willing to purchase the right to sell that good or service from the franchiser). Franchises are usually experienced in their market which gives them expertise. This means that the franchisee not only invests on its already-made business, but also counts with an expert (the franchiser) which will help run the business.
List some popular Franchises in the restaurant industry:
McDonald’s
Subway
Pinkberry
Pizza Hut
Taco Bell
1b. List some popular Company Owned Chains that do not Franchise in the restaurant industry.
PF Chang’s China Bistro
Buffalo Wild Wings
Olive Garden
Texas Roadhouse
2a. What are the advantages of a franchise?
There are several advantages from purchasing a franchise. For both franchisor and franchisee. First of all, we know that a franchise is an already working business which is also successful, with that being said, it counts as an advantage because the franchisee will start to see profits faster and will have the security that the business will keep growing, which is a big contrast with a new business which success is uncertain. Another advantage is that the franchisee does not have to build up the business step-by-step. The franchiser benefits from the franchisees investment because that is when the franchise starts growing faster.
2b. What are the disadvantages of a franchise?
The main disadvantage of owning a franchise would be the start-of cost of it. Some franchises might be really expensive even though price vary, and, it is not just the franchise license that could be a lot of money, but also they would need more funds for the construction and outfit of the business which could easily double the price of the license being this a very hard possibility for intrapreneurs that do not have enough funds to invest in a franchise.
2c. For a restaurant, would you prefer to buy a Franchise, or build your own brand name?
Personally, if I had the funds, I would definitely purchase a franchise. I have several reasons for it, first of all, I know I will have way more chances of growth and success than with a start-up business, also, I know I will see profits faster, which means I would worry less. I also like the idea of not having to start my business from the beginning because it is a very difficult work that I am not sure will grow, and I would need to hire more people and employees to start building a business plan.
- Why are so few products made in the USA and what can be done to increase manufacturing in the USA?
I believe the principle reason of so few products being made in the U.S.A. is due to globalization. Although globalization can be very good for the world, it also allows U.S. businesses to exploit workers in less-developed countries, and also bypass domestic environmental and tax regulations. With this, businesses and manufacturers from the U.S. rather manufacture in less-developed countries because it allows them to pay way more less for employees, resources etc. And also avoid certain regulations they might have in the U.S. So, if people make their products in the U.S they would probably spend more money on expenses and salaries, and they would significantly reduce their profits. I would say it can be hard to increase manufacturing in the U.S, but it is possible. I would encourage young entrepreneurs to think on the U.S. economy and get educated on what is fair. People shouldn’t be going to another country to pay employees less than 1/2 salary for the same time and effort that they should be paying a U.S citizen worker.
- With robots and automation becoming more and more a part of our daily lives what will happen to people that work in low skilled jobs that are replaced with automation.
I think there will be a lot of unemployment for those who work at low skilled jobs because employers are currently investing on technology that will eventually save them the monthly payroll. This should not be done, but I do not think it’s stopping anytime soon. Low skilled people will face the necessity to learn something or specialize on something to be able to not just adjust, but to grow new ways of making a living. It will be hard but society will eventually adapt and evolve.
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