Game Truck Case Study

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Added on 2019-09-30

Game Truck Case Study

Added on 2019-09-30

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Game Truck Case Study2Franchising1.According to the case study Game Truck has become a franchisor. Provide a definition of franchising?Franchising is a term used to define a business relationship between an established business proprietor and a dealer. In franchisor-franchisee relationship, the franchisor provides the authority to other party, i.e. franchisee to conduct business under the trade name of an established franchisor. The franchisor charges a particular amount of annual payment along withsome percentage amount of the total revenue or profit as a royalty from the franchisee for the trade name Under franchisor-franchisee agreement, both the franchisor and franchisee is motivated by mutual gains; the franchisor is motivated to expand its overall business without investing further capital and franchisee is motivated to use the brand name of an established business based on the notion that starting from scratch involves lots of risks and is a time consuming affair.2.Business considering becoming franchisors must consider a number of possible benefits and challenges of this strategy. Explain two possible benefits and two possible challenges and provide an explanation for each benefit and challenge identified?Businesses considering becoming franchisors have to consider both challenges and possible benefits. Possible benefits and challenges and vary accordingly with different types of businesses.Following are the challenges:i)Products and services offered by the franchisors become a reputed trade and brand name by the time franchising is considered and franchisors have to make sure that the franchisee does justice to the brand name by adhering to the quality norms. Adhering to the quality requirement is an ongoing process and not limited to one time quality check generally done at the time of providing franchisee license. This becomes challenging at times as it is not possible to monitor every activities of franchisees on a daily basis.ii)Franchisors are required to make sure that internal competitions among franchisees are avoided to invite franchisee application. An individual considering franchisee business would not want to engage itself in a competition with any business holding the same franchise. This at times becomes challenging for franchisors since they must maintain a particular distance from one outlet to another and they also have to consider the businessprospect of an identified area involving lots of market analysis.Following are the possible benefitsi)Franchisors can expand their businesses without having the need to invest manpower and capital once their brand name are well established generating profits in the form of franchisee fee and monthly royalties.

Game Truck Case Study3ii)The franchise system allows the franchisors to access human capital of the franchisee and bring them under the purview of the brand that helps to foster innovation and further development of the business.3. What skills are needed by a small business team in order to become a successful franchisor?Becoming successful franchisors needs skills to identify sellable concepts, opportunities and threats to the prospective franchisors’ business. In the game truck business case it isclearly seen that Novis, the owner of game truck at first came up with idea that is consumable in the market with patented rights. Once that patented rights are secured and the business becomes initially successful, the next process of identification opportunities begin where Game Truck identifies accessible locations and interested participants in purchasing the trade mark and brand name of the business.Identification of threats involves probable deterrence to franchisees in initiating the dealand mitigates those threats. Game Truck headquarter base at Arizona constantly evolves to bring innovative cutting edge technology and make the gaming experiences cost effective for both franchisee and consumers. One must keep in mind that innovations are always vulnerable to upcoming radical innovations especially in the fieldof business that is technology dependent.4. Imagine that you are considering becoming a franchisee of game truck. Identify and critically appraise two arguments in favor of becoming a franchisee in Game Truck?Having imagined always as a businessman and in born technocrats in me, Game truck franchisee is a big opportunity for me to involve myself with the brand name that has redefined the gaming concepts in US. Starting a business from scratch with unique concept and identity can always be a challenging and motivating at the same time. This is the world where businesses are not only about radical innovations and requires their model to keep changing from time to time. I believe that a franchise agreement with Game Truck would give me an opportunity to showcase my talent as an equal beneficiary in the Game Truck family as they always work towards betterment for their business and I as a contributor can be an important part of it.E-commerce1.Using the knowledge that you have of Game Truck (gained from the website and the case study) outline ways in which you feel that the design of the website reflects the image of the firm?The design of the Game Truck Website reflects the gaming passion of the children and shows its concern for recreational activities of children. The website though starts with a zip code bar where users can access their nearest dealer for subscribing the game truck for weekend or holiday parties. The case study says that the Game arcades comes with game instructor and the website shows that the Game Truck is committed to providing game

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