Game Truck Case Study
Added on - 30 Sep 2019
Game Truck Case Study1Game Truck Case StudyNameSchool
Game Truck Case Study2Franchising1.According to the case study Game Truck has become a franchisor. Provide a definition offranchising?Franchising is a term used to define a business relationship between an establishedbusiness proprietor and a dealer. In franchisor-franchisee relationship, the franchisor providesthe authority to other party, i.e. franchisee to conduct business under the trade name of anestablished 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 thetrade nameUnder franchisor-franchisee agreement, both the franchisor and franchisee ismotivated by mutual gains; the franchisor is motivated to expand its overall business withoutinvesting further capital and franchisee is motivated to use the brand name of an establishedbusiness based on the notion that starting from scratch involves lots of risks and is a timeconsuming affair.2.Business considering becoming franchisors must consider a number of possible benefits andchallenges of this strategy. Explain two possible benefits and two possible challenges andprovide an explanation for each benefit and challenge identified?Businesses considering becoming franchisors have to consider both challenges andpossible benefits. Possible benefits and challenges and vary accordingly with different types ofbusinesses.Following are the challenges:i)Products and services offered by the franchisors become a reputed trade andbrand name by the time franchising is considered and franchisors have to makesure that the franchisee does justice to the brand name by adhering to thequality norms. Adhering to the quality requirement is an ongoing process andnot limited to one time quality check generally done at the time of providingfranchisee license. This becomes challenging at times as it is not possible tomonitor every activities of franchisees on a daily basis.ii)Franchisors are required to make sure that internal competitions amongfranchisees are avoided to invite franchisee application. An individualconsidering franchisee business would not want to engage itself in acompetition with any business holding the same franchise. This at timesbecomes challenging for franchisors since they must maintain a particulardistance 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 investmanpower and capital once their brand name are well established generatingprofits in the form of franchisee fee and monthly royalties.
Game Truck Case Study3ii)The franchise system allows the franchisors to access human capital of thefranchisee and bring them under the purview of the brand that helps to fosterinnovation 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, opportunitiesand 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 isconsumable in the market with patented rights. Once that patented rights are securedand the business becomes initially successful, the next process of identificationopportunities begin where Game Truck identifies accessible locations and interestedparticipants 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 constantlyevolves to bring innovative cutting edge technology and make the gaming experiencescost effective for both franchisee and consumers. One must keep in mind thatinnovations 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 criticallyappraise two arguments in favor of becoming a franchisee in Game Truck?Having imagined always as a businessman and in born technocrats in me, Game truckfranchisee is a big opportunity for me to involve myself with the brand name that hasredefined the gaming concepts in US. Starting a business from scratch with uniqueconcept and identity can always be a challenging and motivating at the same time. Thisis the world where businesses are not only about radical innovations and requires theirmodel to keep changing from time to time. I believe that a franchise agreement withGame Truck would give me an opportunity to showcase my talent as an equalbeneficiary in the Game Truck family as they always work towards betterment for theirbusiness 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 casestudy) outline ways in which you feel that the design of the website reflects the image of thefirm?The design of the Game Truck Website reflects the gaming passion of the children andshows its concern for recreational activities of children. The website though starts with a zipcode bar where users can access their nearest dealer for subscribing the game truck forweekend or holiday parties. The case study says that the Game arcades comes with gameinstructor and the website shows that the Game Truck is committed to providing game