Developing and Managing an Enterprise Essay Example | Topics and Well Written Essays - 2500 words

growth and Managing an Enterprise - Essay ExampleMajority of the operation of the company are operated by franchises in which give franchisers buy the rights to operate their business under the name of McDonalds while providing the same quality and service in its products as is the product and service offering of the McDonalds Company. (Rensi, 1995) Standalone businesses as well as franchises potful be launched by entrepreneurs who seek to establish unique and innovative business. The main difference between an entrepreneur and any opposite form of business man is that entrepreneurs are willing to result on risks. They do not take on excessive risk instead they are calculated risk takers, who define the risks inherent in any venture and attempt to minimize them (Kathleen, 2006, p6)The payoffs that are available to standalone businesses pertain to the fact that the proprietor can run the business, according to their own wishes and plan the product and service offering as per the plans of the proprietor (Lewis, 1994). They contain almost complete control in the development of the business, its strategic expansion as well as the positioning of the company and the products in the market.The advantage of buying an independent business over a franchi... The advantage of buying an independent business over a franchise is that the business you buy is yours to do with what you will. You do not have to maintain any aspects of the business that do not increase profits, and you can execute new ideas as you see fit. In fact, some business buyers look for struggling businesses that are undervalued beca hire they admit they can improve their profitability. Once the transition has been made, as the new owner, you have the full decision-making power. (Should You Purchase a Stand-Alone Business or a Franchise, 2008, p1)The disadvantage of a standalone business however pertain to the change magnitude risk that the company has to bear and the limited resource for funding and support that are available to the business. Of course, with greater flexibility and full control comes increased risk. After all, as an independent owner, the business is contingent on your decisions. For this reason it is not always easy to obtain the necessary financing without an established track show of running such a business. (Should You Purchase a Stand-Alone Business or a Franchise, 2008, p2) barely the business is solely responsible for establishing new relationships with suppliers, clients as well as vendors, distribution agents, media contacts and developing the merchandising campaign of the business.The advantages of operating a franchise include that the franchise business is formed with a tooshie of a proven idea supporting it. Moreover it is possible for business to assess the performance and the success of other franchises of the same company before committing one. (Peterson & Dant, 1990)Aside from this, in a franchise the business can use recognized brand names and trademarks. The franchisor also