Answer 1
Franchising is a tool to get introduced into the new markets and penetrate with a greater pace into the existing markets. This is possible when the franchisee being licensed has displayed a potential of operating in the particular industry or in a selected region. The franchisee, having earned a well reputed name, can sufficiently help in gaining substantial share of the market and add value to his own business with a resultant addition to the business of the franchisor.
This has a proven capacity of success for new ventures seeking to capture a greater portion of the target audience without putting in further capital to the business. The lesser addition of capital and a relatively faster pace of growth are two vital reasons appealing to business owners seeking to franchise.
Answer 2
The two business opportunities that are presented in the case for Martin Blair are the two different types of Pizza parlors or restaurants. One is Pizzetta and the other one is Viva Italia. The two pizza restaurants although being a part of similar industry have been quite different. Pizzetta has considered offering low priced products where it aims to penetrate in the market.
On the other hand, Viva is basically a high end restaurant that aims to target the upper end or the niche gentry. The different menus and the different audience have been the main business opportunity for Martin Blair. The growth strategy for Martin Blair with respect to his two restaurants has been the high quality of products or the ingredients that are being used by the two restaurants irrespective of the prices.
An opening of a franchise can help Blair in many ways since the concept of franchise allows greater revenues due to the increase in the amount of royalty achieved through franchising. It seems to be the easiest way for Blair to make rapid expansion and grow quickly than the expectations of its competitors. Moreover, the easiest way is not make the company itself successful in the particular scenario of franchising, but to help others to succeed for customers.
Answer 3
The two businesses that have been discussed or selected by Martin Blair are quite appealing where the sales figures for Pizzetta in the initial phase have been able to generate a sales figure of $27,000 which reached to $60,000 the next month. The neighbors located near the location have all been excited to see the launch of Pizzetta. However, Viva Italia has also been successful initially where the sales or the revenues have reached to a total of $196,000. Viva Italia is all about variety and skilled cooking.
Supply Chain for Viva Italia
Location
Since Viva Italia is a high-end restaurant and produces highest revenues amongst the restaurant business, therefore, a concept of vertical integration should be implemented. There should be a warehouse nearby the restaurant in order to store the supplies so that the required material should be available because the particular restaurant requires huge variety.
Inventory
The concept of vertical integration should be implemented in which in-house manufacturing shall remain focused. However, the vertical integration should only be available for the particular setup in which the company has its expertise, while the remaining material should be outsourced.
Production
Vegetable plantation should be preferred in which the company thinks is feasible; however, the remaining materials should be outsourced in which the company thinks it does not have the expertise to produce. Managing cost should remain an important concept in the particular business because the company can only make huge profits if their costs are under control.
Transportation
Since it is recommended that the warehouse should remain close to the restaurant, therefore, the transportation cost would not have huge impact on the overall cost of the product. Moreover, simple mode of transportation should be used in a way that the required material for a day is delivered to the warehouse.
Supply Chain for Pizzetta
Location
The restaurant should implement the outsourcing technique in which the suppliers would provide the raw materials. It is not imperative to develop a separate warehouse for the restaurant; however, the back-end operation should come in place in which the materials should be stored for a day since Just-in-time concept should be implemented.......................
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