EXAMINATION PAPER: ACADEMIC SESSION 2010/2011 Campus School Department Course Code Course Title Level Duration Date Greenwich Maritime & International Collaborations Business Systems Management & Strategy BUSI1151/BUSI1494 Small Business Development 6 THREE HOURS May 2011
Course co-ordinator: Dr Lin Yan INSTRUCTIONS TO CANDIDATES
Answer ALL questions. A copy of the case study has been supplied in advance of the exam. The case study is also attached to this examination paper. This is a CLOSED book examination.
May 2011 Course Title Small Business Development Course Code BUSI 1151/1494
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Question One – Franchise (40 marks) a) Franchising is central to POD's success. Explain the concept of franchise in your own words. (5 marks) The franchise model brings both benefits and limitations to a small but fastgrowing business like POD. What were the key benefits and limitations to the franchisor? (15 marks) (This question refers to franchisors in general, rather than POD in particular) POD was growing successfully, but it required a large investment from each franchisee and charged a high up-front fee. If you were a potential franchisee, what factors would you consider in order to make a decision as to whether to approach POD for franchising? Explain your reasons. (20 marks)
Question Two – Industry Analysis (40 marks) a) POD is a good example of how a small business may leverage the benefits of being a first-mover. Analyse why 'first mover advantage' worked in this case, and identify possible reasons why first mover advantage is not always an effective strategy. (15 marks) Using Porter’s Five Forces Model, analyse POD's competitive position. (25 marks)
Question Three – Growth (20 marks) POD has seen rapid growth, both within the US and internationally. If you were to plan for its future expansion, what internal and external growth strategies would you consider? Explain your reasons.