1. Should Tensek and Pacek consider franchising over organic growing?
Tensek and Pacek build their concern theoretical account for the San Francisco Coffee House as by the book. They analyze about all facet of the market before get downing to development of the concern. This was based on their cognition and the concern know-how which they have acquired throughout the six old ages they spent analyzing and working in the United States. The construct theoretical account for their java house was surely really much different of what the local. Croatian market was used to. They have spent clip and resources in each facet of their concern as that of happening the good location. non merely the metropolis. but besides the place within the metropolis was.
Besides another good attack in their concern theoretical account was the procedure of larning how the java house were designed. run and operated in the United States in order to construct a similar perceptual experience in Croatia. Additionally they applied non merely the concern consciousness but besides the cognition on human resources. The choice of staff and moreover their preparation. wage and fillips or wages increase for public presentation accomplishment was really carefully assessed and put in topographic point in order to prolong the concern through the authorization of their employees besides.
Another of import facet was debut of a broad assortment of picks for the merchandises they offered every bit good as the atmosphere created through the offered design and extra services ( like the handiness of wireless cyberspace ) .
All together these of import facts which were considered and put in topographic point by Tensek and Pacek made their concern a successful 1 with a really high potency for growing. The concern enlargement was surely the undermentioned measure in their desire to turn the concern and to seek new chances in other markets ( locally or regional ) . At the minute they started to see spread outing the concern and leveraging their know-how the environment was non a really competitory 1. at least non in the local market. in Croatia. They could establish their enlargement besides on the fact that they achieved a certain trade name consciousness in the local market. They became known particularly to the immature people section every bit good as to the concern people who could assist to boot in “spreading the word” about their concern theoretical account and their merchandises. Additionally. besides the manner they managed the human resources field was another item that strengthen their place in the market. as people could look up to be hired but such an employer.
In footings of how and what would be the appropriate manner of concern enlargement. Tensek and Pacek should run a thoroughly appraisal of all factors that could take to such a determination. Of class spread outing the concern could potentially convey addition of grosss but could besides convey the antonym. Before doing such a pick. there are certain inquiries to which they should reply like: what makes their concern a successful one? what merchandises are appreciated more and which are non? what merchandises and services would be appreciated in other markets? What existent markets should they aim. Furthermore an appraisal of the factors of the mark markets should be run. They should understand what is the competition in other markets. are they able to defy a large rival.
Adoption of a franchising manner of spread outing the concern could be adopted even in a market like Croatia where there is no big consciousness on this type of concern and no existent sustenance from the Bankss and from the establishments. As a manner of entry in a market. the franchising has advantages as the low fiscal hazards and the control over the concern theoretical account. On the other manus a company that uses the franchising theoretical account has for certain a lower control over markets and grosss. doesn’t have whole control over the operations and on top there could originate issues between the franchisor company and the franchisee. Another of import facet in the franchising theoretical account that has to be considered is the fact that taking on a franchise its strongly connected with the trade name consciousness in a market.
Hence to be able to franchise they would necessitate to be certain that they have created a genuinely strong trade name with a strong exposure that would do franchisee interested in and willing to put. This would besides connote that the franchisor company will hold to learn the franchisee their concern theoretical account. Choosing alternatively to develop the company farther through an organic growing would be likely more advisable in the franchising context of Croatian market. However the company has achieved is growing based on their ain strengths. hence the following logical measure to farther increase the concern is that of incursion in other markets. Therefore franchising should be a theoretical account of concern growing that Tensek and Pacek should follow. but they should somehow happen the significances to set the franchise theoretical account to the worlds of the Croatian market.
2. What accommodations would they need to do for franchising in the Croatian context?
The franchising as a theoretical account of entry in other markets was used a mode of making concern in developed states and its accomplishing an increased growing of usage in emerging markets. We can province that the franchising theoretical account is best suited for either companies that want to use through low fiscal hazards but still keeping a certain control over the concern theoretical account or companies that want to come in a certain concern but they want to accomplish this under the “umbrella” of a well known and established trade name.
The Croatian market it is a immature market with small experience in the franchising theoretical account. The first pattern was made in the early 1990’s when McDonald opened their first concern in Croatia. However this theoretical account has gained more awareness and by 2007 it is reported that in Croatia there are about 125 franchise nowadays in the market. which in relation to other emerging states puts them someplace in the centre of the ranking done by the European Franchise Federation.
Yet the construct of franchising is new to Croatia and merely in the recent old ages at that place have been adopted Torahs and ordinances that allowed the state entryway in different trade organisations. Consequently there were established 2 centres for franchising whose aims were to educate. promote. inform and assist local companies to go franchisors. Still the environment for franchising is non yet a favourable one as there are no legal ordinances adopted. there is a deficiency of advisers in franchising ( there is no educational theoretical account in topographic point to assist learn such professionals ) . Bankss are loath to the thought of prolonging franchising concerns ( there is no bank merchandise suited for franchising and the bank forces is non trained to back up and assist this sector ) . the market is little which is seen as a drawback in pulling possible franchisor companies and besides the franchising manner of making concern is instead unknown to people in Croatia.
However the position of EU rank will decidedly assist to develop the franchising as a theoretical account of making concern. but Croatia will hold to besides do some attempts to alter the legal model and to prolong more this type of concern theoretical account.
In footings of what would Tensek and Pacek need to be making in order to set the franchising theoretical account to the Croatian context I believe that as a first measure they would necessitate to be the 1s happening the proper franchisee companies and publicizing intensively their successful concern theoretical account. Besides another facet they should hold in head is that of instruction and
3. How could they protect their rational belongings and concern format know – how?
4. What should be the following stairss should they make up one’s mind to franchise in Croatia?