Franchising Starbucks - 3137 Words

We have been required to do a research on franchising of Starbucks Coffee in Malaysia. Below is our report on it. The term franchise originated from a French word, meaning â€Å"free from servitude.† A franchise can be defined as a legal agreement in which an owner (franchisor), agree to grant rights or privileges (license) to someone else (franchisee) to sell the products or services under set specific conditions. Speaking of franchises, it is usually referring to business format franchises. Such a franchise is essentially a business clone. But there are many varieties of business arrangements within a franchise system. According to a publication by IFA (International Franchise Association) Educational Foundation, all of those†¦show more content†¦To date, the company has 88 outlets in Malaysia (58 in Klang Valley, 11 in Penang, 4 in Johor Bahru, 1 in Pahang, 2 in Malacca, 2 in Negeri Sembilan, 1 in Perak, 2 in Kedah, 3 in Sabah, 1 in Sarawak and 3 in Genting Highlands). Table 1.1 Growth of Starbucks Coffee worldwide Year Starbucks Store Total at Fiscal Year End Growth (%) 1971 1 - 1987 17 94.1 1988 33 48.5 1989 55 40 1990 86 36 1991 116 25.9 1992 165 19.6 1993 272 39.3 2994 425 39.8 1995 677 37.2 1996 1015 33.3 1997 1412 28.1 1998 1886 25.1 1999 2498 24.5 2000 3501 28.6 2001 4709 25.7 2002 5886 20 2003 7225 18.5 2004 8569 15.7 2005 10241 16.3 2006 12440 17.6 2007 15756 21 *source: Starbucks Historical Summary of Store Counts, http://starbucks.com.my/en-US/ Franchising provides the means for expansion of a business by providing opportunities to franchisees, primarily by territory expansion agreement. Franchise provides rapid expansion with limited capital to a company. The franchisors doesn’t need to have a lot of capital to expand their business world wide, they provide the image and all the methods of doing the business while the Franchisees provide the bulk of capital by buying the ideas from the Franchisor. Franchise is also a sophisticated form of capital raising method. No other form of capital rising allows a business to expand without giving up equity, paying interest making lease payments. The franchisor may choose to incest excess capital for the benefit of theShow MoreRelatedFranchising Benefits And Strategies Of Franchising1410 Words   |  6 PagesFranchising It is said that today there is a total of 750,000 franchise establishments within the U.S. itself. Franchising is a long-term agreement between two parties, and is when the franchisor grants the franchisee the right to use a trademark or trade name in a business process. In a franchise agreement the franchisee would in most cases purchase or lease the trademark or logo from the franchisor. 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Before purchasing Starbucks, Schultz was an employee there before deciding to leave the company to open his own coffee bar, Il Giornale in 1985. After purchasing Starbucks, Schultz continued to expand the business rapidly by attracting more investors to gain financing. The company relied on positive word of mouth to attract customers

Traumatic Effects And Responses Of The United States

Traumatic Effects and Responses Abstract There have been growing cases of traumatic effects and responses in the United States. While most agree that this increasing incident deserves concrete attention, consensus dissolves around how to handle the difficulties of handling traumatic effects and responses. This research paper will discuss the traumatic effects and responses with its related difficulties and treatment options with the inclusion of biblical concepts and principles. From a medical perspective, trauma has affected the lives of millions of people from across the world whereby they suffer silently without the hope of getting effective treatment. However, spirituality and religion has changed the medical landscape in regards to trauma because traumatic patients can finally experience a fulfilling life without any fear of traumatic reminders crippling the quality of their lives. To explore the outcome of spirituality and religion, this research paper will explain in detail the benefits of patients engaging in relig ious teachings and spiritual rituals in boosting their inner being. Trauma Its termed as an emotional aftermath because of major events such as war, rape, kidnapping, abuse or surviving a natural calamity that an individual directly experienced. Traumatic reactions are usually normal but in some instances, it can be severe whereby the individual experiences flashbacks, memory lapse, headaches or nausea (Levers, 2012). Medical professionals termShow MoreRelated Sexual Assault Among Women In the United States Essay1239 Words   |  5 PagesWomen In the United States Sexual Assault described in technical terms is defined as any sort of sexual activity between two or more people in which one of the people involved is involved against his or her will. 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Baritone Essay Example For Students

Baritone Essay The baritone has a long history. It all started in the early 18th century with an instrument called the serpent. This snake-like tube was made of either wood, brass or silver, and its tuning wasnt good. It had six finger holes (valves wernt ivented yet) in the beginning, but later more were added. It was used in military bands as a marching bass, but it could also be found supporting the bass part in church choirs. Players of the serpent needed to be extraordinary musicians, because when put in less talented hands it sounded horrible. The serpent had an undistinguished life, although some people still play it today, and was replaced in 1821 by a brass instrument, produced by a French company called Halary, that was a combination of the modern bassoon and baritone saxophone called the ophicleide. The ophicleide used keys (instead of the finger holes of the serpent). It became popular and was made in several sizes and keys, but by the end of the century, it had almost disappeared. Around 1815, valves were invented by Heinrick Stolzel and Friedrick Blushmel. Valves improved intonation and pitch, and made almost all modern brass instruments possible. At that time, the technology was new, and it was not until 1823 that a horn similar to the euphonium was used.The 1860s and 1870s were a major time of improvement for the euphonium, beginning when Professor Phasey of Kneller Hall, England, enlarged the bore of the instrument. Soon after that, over the shoulder euphoniums began to appear, and in 1874, the compensating valve system, invented by David Blaikley, made pitch better. The 1880s brought even more variety to the baritone/euphonium scene with the addition of the large bore Kaiserbariton, and the famous double-belled euphonium of Meredith Wilsons The Music Man. Not much happened in the development of the modern euphonium between 1888 and 1921, because people had decided that there was enough variety and there was no longer a need for new instruments. Baritones were taken out of wind bands and essentially limited to brass bands. Euphoniums however, became standard equipment for any military, marching, or concert band. Bibliography:jfdlksa;jkl;cjkopawrdjkld

Case Analysis Hawkesbury Cabinets Pty Ltd

Question: Discuss about the Case Analysis for Hawkesbury Cabinets Pty Ltd. Answer: Introduction The Case describes a situation where high industry demand of a particular product lead to problematic operational and supply chain issues for a manufacturing company. Hawkesbury Cabinets is a manufacturing company that provides kitchen solutions. Currently the industry has demand for two types of kitchen solutions; custom made solutions and standard solutions. Fung Chen, who founded Hawkesbury Cabinets had foreseen this demand and thus started the manufacturing company with an objective to reap the profits of the high industry growth. The focus of their strategy was to make quick profit that was possible through custom made cabinets as the profit margins were high in that segment. But since the industry demand for standard cabinets was high too, they manufactured standard solutions also (Gilmour, 2013). Since the company had only a single manufacturing facility and a sole strategy to make quick profits, the manufacturing facility was bound to find itself under supply demand pressure soon. On top of that, there were a third segment of cabinets solutions was catching up in the industry known as the builders kitchen. This case analysis covers the aspects as to what Hawkesbury Cabinets need to consider while making this decision. Case Analysis Whenever a manufacturing company starts in a high demand industry, it faces a huge dilemma in terms of what approach to choose (Meredith, 2015). Whether to follow a quick profit through high margins approach or a sustainable growth with normal or low profit margins. The latter seems to be sustainable but the risk of a competitor getting into the industry and taking the market share is high. Hawkesbury Cabinets took the former approach where they tried to make profits through manufacturing of higher profit margins segment i.e. the custom cabinets solutions. They also manufactured the standard cabinets solutions but raw material, manufacturing, lead-time priorities were given to custom solutions. This resulted in a higher lead-time for standard cabinets. Since the demand was ever growing, soon the facility found itself under deadlock where lead time for both the segments increased since the operations and supply chain were not optimized and were just prioritized (Aghazadeh, Hafeznezami ,Najjar Huq, 2011). The manufacturing facility had a very simple design with flexible machines that could produce both custom cabinets and standard cabinets. Also the facility layout of the Mulgrave manufacturing facility was designed in such a way that all the frequently used machines such as saws, cutting tables, routers etc. were kept separate from lesser-used machines such as lathes. Human resources were also capable of building both the product types. The problem lied in the tasks scheduling. Instead of scheduling tasks based on the nature of work, the scheduling was done on the basis of priority. Custom made cabinets always got a higher priority than the standard cabinets. Thus, all the tasks were done for the custom made cabinets and then they were done for standard cabinets. This eventually led to an increased lead time for the standard solutions and also a higher WIP inventory and unnecessarily held on the resources. Since the manufacturing facility was already under pressure due to increase i n raw material WIP, costs and eventually leading to lower margins, the addition of this third product line could prove dangerous for the companys financials and operations if a proper strategy was not undertaken (Sabharwal,Syal Hastak, 2009). Hence, Fung and Chen did not understand the fact that in order to accommodate in ever increasing industry demand and to include additional product line, the manufacturing facility needs a lot of changes (Williams, 2011). At this point if Fung and Chen start the additional product line, the company would run into bigger problems such as increased lead time, lack of resources in terms of space, craftsman etc. Thus before adding the third product line, the manufacturing facility needs a lot of changes and optimization efforts. Following are some of the factors that Fung and Chen need to consider Financial Investment Adding a 3rd product line will definitely require additional investment in terms of expanding the facility with more machines, craftsman and raw materials. This investment would reduce the profit margins but will be beneficial in the long run (Pagell Shevchenko, 2014). Also the breakeven point would arrive a lot later than before. But this approach will be beneficial to sustain and grow in the industry Skilled Craftsmen In order to be a successful manufacturing company producing multiple product lines, the craftsmen must be highly skilled and experienced. Also, human resource management will have to be considered as when the company grows, human resources issues such as employee satisfaction, organizational behavior comes into picture (Nachiappan Anantharaman, 2006). Thus, skilled craftsman and a proper human resource management systems would be required Facility layout and process scheduling The tasks scheduling and facility layout needs a complete transformations and it should not be priority based. It should be tasks based irrespective of the profit margins (Seuring, 2013). Also since the demand is likely to increase in future, maintaining the quality along with producing quantity would be crucial Raw material procurement Since the scheduling should be based on the tasks, the raw material procurement is also a major point of concern (Vokurka Davis, 2004). Since the priority is not longer on higher profit margin product lines, a proper proportion of all the three product line orders must be there in order to maintain profitability and also maintain the share in the industry Conclusion All the above changes are required to in order to be sustainable in the industry that is ever growing and is likely to see huge competition in the coming future. Thus, a strategy change is required and the approach from quick profit making to a sustainable manufacturing facility is required (Beamon, 1999). This is not an easy approach because the profit margins for the company will reduce drastically and it will be difficult to maintain the same organizational strength and courage with a reduction in profit margins. But Fung and Chen should be focused more on the future of this industry rather than the present. For both to be successful in this strategy, it will be highly helpful if they could separate the manufacturing facility with custom cabinets being manufactured in one facility and the standard and the builders kitchen manufacturing in another facility. This would increase the investment substantially but will maintain the profitability in the custom cabinets and also help in gathering market share in the other two product lines. Since, there is enough demand in the market, the facility should not worry about the order and should soon find itself on the right path of sustainable growth. Based on the above discussion it can be said that the organization should have a plan to increase the scale of its operations. With the use of Information Technology in its Supply Chain, the organization can actually obtain a balance between the efficiency and responsiveness of its supply chain. In the end, the important thing is that the scalability of operations should not compromise the profitabilit y of the business. References Aghazadeh,S., Hafeznezami,S., Najjar,L., Huq, Z. (2011). The influence of work cells and facility layout on the manufacturing efficiency.Journal of Facilities Management, 9(3), 213 224. Beamon, B. (1999). Measuring supply chain performance.International Journal of Operations Production Management, 19(3), 275 292. Gilmour, P., 2013. Benchmarking supply chain operations.International Journal of Physical Distribution Logistics Management. H., Williams, T. (2011). Now, let's make it really complex (complicated) A systematic review of the complexities of projects.International Journal of Operations Production Management,31(9), 966-990. Nachiappan,R., Anantharaman, N. (2006). Evaluation of overall line effectiveness (OLE) in a continuous product line manufacturing system. Journal of Manufacturing Technology Management, 17(7), 987 1008. Pagell, M. and Shevchenko, A., 2014. Why research in sustainable supply chain management should have no future.Journal of Supply Chain Management,50(1), pp.44-55. Simpson, D., Meredith, J., Boyer, K., Dilts, D., Ellram, L.M. and Leong, G.K., 2015. Professional, research, and publishing trends in operations and supply chain management.Journal of Supply Chain Management,51(3), pp.87-100. Sabharwal,A., Syal,M., Hastak, M. (2009). Impact of manufactured housing component assembly redesign on facility layout and production process.Construction Innovation, 9(1), 58 - 71. Seuring, S., 2013. A review of modeling approaches for sustainable supply chain management.Decision support systems,54(4), pp.1513-1520. Vokurka,R., Davis, R., (2004). Manufacturing strategic facility types.Industrial Management Data Systems, 104(6), 490 504.