Report on Graeter's Ice Cream Business: Franchising and Strategy

This report provides a comprehensive analysis of Graeter's Ice Cream, addressing key aspects of its business strategy and operations. The report begins with an executive summary and table of contents, followed by an introduction to management principles and their application to the case study. It answers questions about Graeter's business plan components, the roles of franchisors and franchisees, and the company's franchising decisions. The report also explores different franchising arrangements, recommending the most suitable one for Graeter's, and offers perspectives on the company as a small business, including its marketing mix and potential brand extensions. The conclusion summarizes the key findings and emphasizes the importance of the relationship between the franchise and the franchisor in the franchising agreement and the importance of business plan.

Running head: STUDY ON GRATER’S ICECREAM
STUDY ON GRATER’S ICECREAM
Name of the Student
Name of the University
Authors note

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Executive summary
The purpose of this report is to study on the Greater’s ice-cream business and its franchise
relationships. The Graeter’s business ids producing a product of good quality they are using
the fresh quality ingredients in the product and with their different marketing mix the brand
extensions can be done and can be explored to a larger extent.

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Table of Contents
Executive summary....................................................................................................................1
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Answer to question 1..............................................................................................................3
Answer to question 2..............................................................................................................4
Answer to question 3..............................................................................................................4
Answer to question 4..............................................................................................................5
Answer to question 5..............................................................................................................6
Conclusion..................................................................................................................................6
References..................................................................................................................................7

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Introduction
The term management is defined as the process of dealing and controlling with the
things and the people. Management is very much important for the organization because it
helps in doing the work in an efficient and effective way (Jauncey, Mitchell and Slamet,
1995) .There are different levels that is taken place in the management process such as
planning, organizing, directing, controlling and staffing. The report will discuss about the
case study on the Grater’s ice-cream that has competition with the multinational corporations.
Discussion
Answer to question 1
As it is given Grater’s ice-cream has a huge competition with the small business as
well as the multinational corporations. The major components of the business plan are the
market analysis and the government laws neede4d for the business and the pricing strategy of
the business. They should develop the business plan because the so that the company does not
face the problems in any aspects of the business and also the start up cost for starting the
business is also the part of the business plan. They company should develop the business plan
organization of business plan helps in increasing the profit of the business and also the
business runs in an efficient and effective way. The business plan also includes the making
the list of the competitors in the market so that according the competitors the business can be
explored and according to that the profit can be earned (Blackburn, Hart, and Wainwright,
2013)
Answer to question 2
The franchiser receive in a franchising agreement is the area needed for the
exploration of the business, the visibility of the product because when the visibility of the
product is good in the market it us having a good reputation in the market. In a franchising

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agreement the sale the product sale increased and the revenue increased from the sale of the
product these all is needed in the franchising agreement. The franchise of the company
receives the good brand name for the exploration of the business, there is no need of
advertisement of the product in the company because the product is under the good brand
name if there is need of the advertisement the company will bear the cost. Both the franchisee
and the franchisor are interrelated with each other and both of them help each other in a better
way. The franchisee helps in increasing the franchisors growth of the business and the
franchisee gets the name of good brand for exploration of then business (Hoy and Stanworth,
2014)
Answer to question 3
The Grater’s no longer maintain the franchise operations, the management has
understood the importance of long term survival even if the company is keeping less profit.
The Grater’s decided that the members of the family will operate the business with an every
big decision that is being made on a consensus basis. Its franchise includes the people from
the outside into the corporate management team which has helped in exploring the business
to as great level by applying different marketing strategies in the business. The Grater’s
decided to buy the last franchise company who is operating the Grater’s retail stores. They
decided to operate one plant into a three plant for getting more franchise. The relationship
between the franchise, the franchisor and the franchisee in the case study is that the
management team at the Grater’s repurchased the franchised stores.
Answer to question 4
The three general categories of the franchising arrangement are as follows area
development franchise agreement, master development franchise agreement and the multi-
unit franchise agreement.

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 Area development franchise agreement: The area development franchise agreement
the franchisee has the right and permission to open and open the different units in a
same time frame. Because of these franchising arrangements the franchisor also grants
the franchisee for the exclusive rights for the purpose of development in that
particular territory and no other franchises will be allowed to open in that particular
territory(Dada, and Watson, 2013.
 Master development franchise agreement: In the master development franchise
agreement it give more rights as compared to area development agreement, along with
the right to open different units of franchises in the territory in master development
franchise it has given right to sell the franchises within their geographical location to
the other people.
 Multi-unit franchise agreement: In a multi-unit franchise arrangement the franchises
are not bound to a particular territory. The franchises may have different units in areas
or towns(Argyres, Bercovitz, and Zanarone, 2016)
According to the Grater’s the most appropriate franchise arrangement is the master of
the franchise who is having the ability to approve the franchise from the geographical
areas because as in the case it is given that the company was not able to control the
quality of the product in nearby franchised locations which is responsible for creating risk
in the organization which is one of the weakness of the organization because by
appointing the master of the franchise it will easier for the Grater’s ice cream to maintain
the quality of the product and it has the ability to affect the company’s growth.
Answer to question 5
The perspective of the Grater’s small business is that the Graters should keep their
original product in the current time because the brand extensions with yoghurt, low fat ice-
creams, coffee drinks or any other related products. The Grater’s marketing mix is under the

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4P’S such as the price, product, place and the promotion. It can develop its brand extension
with different product the quality of the product is good and the same quality can be applied
for the other products also. The products are distributed through various regions and different
supermarkets which has helped in gaining the popularity of the product in those same area the
product can be explored. Although the company is launching promotions of the products
various promotion methods has been applied and the advertising of the products is used
through social media these all promotion and advertising methods can be applied for the
different products under the same brand names.
Conclusion
Lastly, the report concludes about the relationship between the franchise and
franchises in the Grater’s ice cream in a franchising agreement the facts that needs to be
included. Both franchise and franchisor are interlinked with each other and helping to each
other they are having their own importance. The report also tells about the through the
Grater’s marketing mix the brand extension can be done and the business can be explored to a
great level and the business plan is important for the development of the business.

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References
Jauncey, S., Mitchell, I. and Slamet, P., 1995. The meaning and management of yield in
hotels. International Journal of Contemporary Hospitality Management, 7(4), pp.23-26.
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development, 20(1), pp.8-27.
Hoy, F. and Stanworth, J., 2014. Franchising: an international perspective. Routledge.
Argyres, N., Bercovitz, J. and Zanarone, G., 2016. The role of relational contracts in inter-
firm relationships: theory and evidence on multiunit franchising. Available at SSRN 2816591.
Dada, O. and Watson, A., 2013. Entrepreneurial orientation and the franchise system:
Organisational antecedents and performance outcomes. European Journal of
Marketing, 47(5/6), pp.790-812.

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