Australian IMC: TMGT604 Case Study on Alison's Franchise Expansion

This case study examines Alison, a 20-year-old entrepreneur in Australia who started a successful ready-made women's clothing business. The assignment analyzes Alison's decision to expand her business through franchising, exploring the potential benefits and challenges. The report addresses recommendations for franchise expansion, considering market demand, operational credibility, and the unique concept of her business. It also identifies potential personal and business issues Alison might face, such as capital shortages, partnership challenges, and the transition from a home-based to a shop-based operation. The analysis considers the advantages and disadvantages of operating from a shop, highlighting the importance of experienced entrepreneurship and understanding market dynamics. The report emphasizes the need for proper planning and training for franchisees to ensure the success of the business expansion, referencing relevant literature on entrepreneurship, innovation, and franchise management to support the analysis and recommendations.

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Entrepreneurship Skills
Case-study
12/20/2019

Introduction
This report aims to answer the discussed question in the end of the case study of Alison a 20-
year young entrepreneur, he started dealing in a ready-made women cloth tailoring and
selling in Australia, where this idea was a new concept. Hence, this idea became popular
among the women of all class and standards, many changes were made by Alison and her
partner to increase the production and profit. This report will suggest some suitable steps for
Alison to increase her business and to deal the potential challenges she will face in the
business operating after some changes (Allen and Truman, 2016).
Question 1
Question first from the case study asks for the recommendations and suggestions for Alison
to sell her franchisee or not to take this step to make profit and business expansion. Based on
the case study Alison has a great planning and creativity talent; she is experienced in doing
business in partnership and has experience of working as employee in an insurance company.
Hence Alison has enough understanding about the market challenges, material cost, labour
price and customers demand (Bygrave and Zacharakis, 2013). Demand about the products
and cloth made by Alison are increasing and she really needs to take a step to manage the
demand fulfilment with on-time delivery to her customer. Basically there are many reasons
for operating and selling the business in franchisee, like entrepreneurs and businessman need
to expand and make popular their business adapt franchisee, businessman facing lack of
employees to handle delivery of product to the targeted customers operate franchisee and
many more (Goffin, 2016). In this case study Alison has a business successfully running in
the country but she needs to expand it more to meet the major markets in the country. Hence
this can be said that Alison has enough talent and experience to deal the franchisee she should
invest in this because in a market talent has value but many competitors are there to grab a

successful business following are the reason for recommending her to open and invest in a
franchisee (Lohr, 2016).
 Credible operations in the business plan are essential and bespoke cloths have trustful
management and financial system operated by Alison herself and managed on the
basis of plan made by her partner. Hence this have a credible management and
operation system and same is easily applicable to the new venture or franchisee in
the market (Lee, Khan and Ko, 2010).
 Unique concept was adopted by Alison and her partner and this become famous very
soon, and in the present global environment of trade and business. Unique concepts
behind the business get fame and success in the international environment as well and
franchisee is the brand extension (Longchar, 2016).
 Teachable concept is invested in the bespoke clothing and this can be very profitable
to teach and train the employees for the business to expand it.
 Adequate return on investment is possible in selling the franchisee of the own venture
or business in the industry. A business with unique concept need better access on the
market and for this franchisee is the nest secure option for Alison.
Question 2
Generally investing in the opening of a franchisee of a business is seen as a simple way to run
the business but with the issues potential to occur in the industry as well as in the personal
life are very high, in case of Alison this can be said that she has faced some partnership issues
in the past and she decided to invest in the home operations business, this all made her to
invest and operate the business from home (Peters, Shepherd and Hisrich, 2013). Following
are the issues faced by Alison are potential to occur in the business growth in personal
scenario of a business;

Capital shortage in the near future is high when one is investing in the totally new business as
the franchisee, Alison was dealing the business her own, managing the financial statements
and investments her own hence she was her own boss, but after investing in the franchise she
will need to make decision with involvement of others interest hence she will need to expand
in hiring the financial and franchisee advisor experts and this will affect the capital
management of business (Scarborough and Cornwall, 2016).
Investing on credible partnership is very essential in the selling of business, in the past
scenario of Alison’s business her partner had sold her shares and this affected the entire
operation of the business this made her to deal and invest very carefully because a business
need to be built on the foundation of credibility and she already had a bad experience with
her business (Sener and Hacioglu, 2017).
Alison is an inexperienced franchisor that is a big personal issue with her, she need effective
leadership and planning strategies to deal the selling of her business franchisee in the positive
market hence she need effective guidance form the franchisee experts to deal in the manner
of a good and experienced franchisor.
Fear of losing same frequency and management is very high in the expansion because entry
of new person in the business also made changes in the management and operating system,
hence she will face issues in dealing the different mind-set in the same business and this will
affect the entire management this issue can be solved by effective training and teaching the
employees about the management activities and operation in the industry (Timmons, 2011).
Working from the home in the family business is very lenient but this also need proper time
and skills management but Alison after her marriage become more responsible towards her
family and child this affected the operations and management of business.

These are the major personal issues potential to face by Alison while taking the step to extend
the business but these issues are easily manageable if she invests in the proper planning and
training to the franchisors in the industry.
Question 3
Operating business outside of the shop is very challenging in the present scenario, because
every entrepreneurs in the present time want fame and great extension of the business, before
taking the decision of business from home Alison was also operating the bespoke cloth
selling from a shop in CBD, but after many challenges from the credible partners and many
issues faced by her in the management of shop during financial crisis she took decision to
operate the business form home only, and this decision was very profitable for her as in the
situation of financial emergency in the business and entrepreneurship environment she
changes the decision of operating the business form the shop and this was a great step at that
time (Weiping, 2011). Operating a business from shop for Alison is not likely to fail majorly
but it had a very little chance to fail due to the following reason;
 Alison is an experienced entrepreneur and she understand the demand and supply
management in the bespoke industry, she enjoyed a profitable business in the past and
also had great skills to manage the business in the crisis hence operating from the
shop could be very beneficial for her (Timmons, 2011).
 Bespoke clothing in CBD has a credible image of brand in the women hence moving
towards the shop operation is very profitable expect this she need to manage the
personal life as well. Because many changes Alison has faced in her personal life and
these are enough to affect the operations.
 Expanding the business in the shop require capital investment in the challenging
environment and this also can give profitable return on investment in the employees

and other facilities as well because her business is very unique and very popular
among the industry .
On the basis of above discusses question expanding the business is very profitable for Alison
in the proper management and training to the franchisees about the real concept.

References
Allen, S. and Truman, C. (2016). Women in business. 1st ed. Abingdon: Routledge.
Bygrave, W. and Zacharakis, A. (2013). Entrepreneurship, 3rd Edition. 3rd ed. John Wiley
and Co.
Goffin, K. (2016). Innovation management. [Place of publication not identified]: Palgrave
Macmillan.
Lee, K., Khan, M. and Ko, J. (2010). Critical Issues and Challenges in the Management of
International Restaurant Franchises: Franchisee Perspective. Journal of Foodservice Business
Research, 13(2), pp.85-97.
Lohr, K. (2016). The Science of Innovation. Berlin/Boston, GERMANY: De Gruyter
Oldenbourg.
Longchar, M. (2016). Women Entreprenuership among the AO Women In Nagaland:
Challenges And Struggles. International Journal of scientific research and management.
Peters, M., Shepherd, D. and Hisrich, R. (2013). Entrepreneurship. Boston: McGraw-Hill.
Scarborough, N. and Cornwall, J. (2016). Essentials of entrepreneurship and small business
management. 8th ed. Harlow: Pearson Education Limited.
Sener, S. and Hacioglu, V. (2017). Innovative entreprenuership under
uncertainty. Pressacademia, 6(2), pp.168-176.
Timmons, J. (2011). New venture creation. 1st ed. North Ryde, N.S.W.: McGraw-Hill.
Weiping, C. (2011). Franchisee perceived relationship value and loyalty in a franchising
context: assessing the mediating role of franchisee satisfaction and the moderating role of
franchisee characteristics. AFRICAN JOURNAL OF BUSINESS MANAGEMENT, 5(28).