Viability Report for Cocoa Delights: Franchise vs Joint Venture

Angad Australian Institute of Technology
ASSESSMENT
STUDENT DETAILS
Student Name
Student ID No.
Group No.
Date of submission
ASSESSMENT DETAILS
Unit Code BSBMKG608
Unit Name/Title Develop organizational marketing
objectives
Assessment Task No Task 2
Assessment Name/Title Viability report
Qualification Advanced Diploma of Marketing
ASSESSOR DETAILS
Assessor Name

Assessment – BSBMKG60A Develop organisational marketing objectives
Table of Contents
Assessment Task 2..................................................................................................................................
Viability report........................................................................................................................................
Business Opportunity Considerations...................................................................................................
Identifying the best choice for Cocoa Delights:.....................................................................................A
Macro environmental factors................................................................................................................A
Comments.............................................................................................................................................C
References.............................................................................................................................................1
Student Name SID S Page A of H

Assessment – BSBMKG608A Develop organisational marketing objectives
Assessment Task 2
Viability report
Business Opportunity Considerations
Business
Opportunity
1: Franchise 2: Joint venture
Cost and
benefits:
 Franchising can help Cocoa Delights in achieving its
target of 100 stores within just three years
 Prone to greater legal issues as many of stores would
be operating in a separate legal agreement
 Franchising provides an organisational system where
managers in each of stores are given rewards for their
hard-works
 Possibility of significant conflicts between the
employer and its franchise stores as they will carry
separate work mentalities. Franchising will be a union
of different minds with local mind clashing with that of
the nationals
 A collaboration with Haigh’s can also be very beneficial
 Haigh’s has only a few stores in three capital cities Adelaide,
Melbourne and Sydney
 Haigh’s enjoys extensive advertising
 Looking for more new stores in Brisbane
 A conflict of interest can happen between Cocoa and Haigh’s
 Haigh’s is expected to roll out a close to 100 stores within next 5-
7 years
 Advertising would be cheaper as Haigh’s already has access to
extensive advertising
 Joint brand advertising would be required once the deal between
Cocoa and Haigh’s gets completed