Preview

Student: Franchising and Teaching Notes

Powerful Essays
Open Document
Open Document
9755 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Student: Franchising and Teaching Notes
IM for Lovelock & Wirtz, Services Marketing 6/e

Teaching Notes for Cases - Section 5

45

CASE 6 AUSSIE POOCH MOBILE

OVERVIEW After creating a mobile service that washes dogs outside their owners’ homes, a young entrepreneur has successfully franchised the concept. Her firm now has more than 100 franchisees in many parts of Australia, as well as a few in other countries. In early 2002, she and her management team were debating how best to plan future expansion.

STUDY QUESTIONS How did Christine Taylor succeed in evolving the local dog-washing service she developed as a teenager into an international franchise business? ________________________________________________________________________
Note: All financial data are in Australian dollars (AUD), whose exchange value in 2003 at the time of the case was USD 0.57 = EUR 0.58 = GBP 0.41. [More recent exchange rates reflect a sharp drop in the value of the U.S. dollar against the Australian dollar, euro (EUR), and pound sterling (GBP). By late 2006, AUD 1.00 = USD 0.76 = EUR 0.60 = GBP 0.40). These changes in exchange rates would not affect decisions by APM on expansion within Australia but could have an impact on the relative attractiveness of future investments in, say, the UK versus the U.S.]

1.

© 2004, 2007 Christopher H. Lovelock

2.

Compare and contrast the tasks involved in recruiting new customers and recruiting new franchisees. From a franchisee’s perspective, what are the key benefits of belonging to the APM franchise in (a) the first year and (b) the third and subsequent years? In planning for future expansion, what strategy should Christine Taylor adopt for APM and why?

3.

4.

Analysis
1. How did Christine Taylor succeed in evolving the local dog-washing service she developed as a teenager into an international franchise business?

Taylor’s success springs, first, from her strong customer service ethic, developed as a child from working in her parents’ bait and tackle

You May Also Find These Documents Helpful

  • Satisfactory Essays

    1. What problems has Susan identified with the night shift operations of the Devil’s Den? How well does the management team perform such strategy execution processes as competency building, shaping the culture, instituting policies and procedures, establishing control systems, developing reward and discipline systems, and exhibiting ethical leadership?…

    • 533 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    A franchise is a legal agreement between franchisers and franchisees that consents use of the franchise’s trademark and trade name or marketing plan to sell products or services (Kubasek, Brennan, & Browne, 2012, p. 791). Through a franchising arrangement franchisee can profit from implementing another’s efficacious business model. One of the most attractive advantages is the high probability of success of 90 % as compared to 20 % for small businesses (Staring and Naming a Business Presentation, 2012, Slide 9). Other advantages include established franchise reputation, operational support and training, product research and development, and better access to financing. On the downside, business plan rigidity can deprive the quality of customer service and hinder a creative business owner. Thus, both the Clayton Act regulates business competition and price discrimination (15 USC §§ 12-27; 36 Am J1st Monop etc §§ 141, 142) and the Sherman Act is a federal antitrust act (15 USC §§ 1 et seq; 36 Am J1st Monop etc. § 141) protect the public and small business owners from monopolization and market power.…

    • 1470 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Chik-Fil-a

    • 2009 Words
    • 9 Pages

    Chick-fil-A is one of the most successful fast food restaurant establishments in the country. With over 1,300 locations in 37 states in the Southern U.S., they continue to grow the brand by expanding to new territories (Chick-fil-A Company, 2009, para 1). In 2008 Chick-fil-A has seen a 12.17 percent sales increase over the chain’s 2007 performance and a same store sale increase of 4.59 percent (Chick-fil-A Company, 2009, para1). Throughout the years Chick-fil-A has come up with many innovative ideas to continue expanding business and satisfying their loyal customers. One of the ideas was to offer different types of restaurant set-ups to cater to customer’s needs. The different restaurant set-ups include mall/in line, stand-alone, drive-thru only outlets, dwarf houses, Truett’s grills, licensed non-traditional outlets (franchises) and satellite/lunch-counter. After proper research of different geographical locations the writer has decided to buy into a chic-fil-A franchise zoned in the Columbia County, Grovetown area.…

    • 2009 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    The three elements that I would like to cover today would be the interactions that our customers of Airways interact with our service. Specifically the interactions a customer has when learning about our service offerings- from the initial purchase to the contacts that they have while flying with us, and lastly the after purchase experience.…

    • 681 Words
    • 3 Pages
    Good Essays
  • Better Essays

    One weakness Panera Bread has in relation to other companies in the same market is that Panera does not provide a faster pick-up and take-away option (a drive through) like most other quick-service restaurants have. Since most Panera Bread’s are found in strip shopping centers the locations can be difficult to find for travelers or those unfamiliar with the area. The case study also described the difficulties in obtaining a franchise with the company. There are many criteria one must meet before becoming eligible for a franchise. In addition to the expensive upstart costs, extensive experience in multi-unit restaurant management, and real estate knowledge, after obtaining a franchise and opening locations in line with…

    • 1505 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Aussie Pooch Case 9

    • 905 Words
    • 4 Pages

    In recruiting new franchisees there were newspaper advertisements, advertorials and word of mouth. She focused on four characteristics for her franchisees: self motivated, outgoing, dog lover and want to work for them. She also recruited patient, well mannered people/ customer service skills, and at least a high school education. From there once the purchasing fees were in place the franchisees had 20 weeks of local newspaper advertisements, yellow pages, 24/7 customer service line provided by the company. APM ran a tight ship when it came to advertising and marketing however, the franchisee to could develop their own strategies on reaching to new customers. For example one franchisee wrote stories and awareness articles in the newspaper to spread the…

    • 905 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Sh In Lou Research Paper

    • 683 Words
    • 3 Pages

    As Lulu was nearing college began to wonder what she could be doing while at Centre. She decided to open up her own Mexican restaurant in downtown Danville. With help from her supportive parents and the Danville business community, she was able to open her restaurant the summer before she entered her freshman year. Through this experience she learned the about the challenges and difficulties that are associated with being a young entrepreneur. Balancing all of her school work and the daily operations of the business taught her a kind of perseverance that not too many of her peers can say they have. She is also involved in the Bonner program at Centre where she plans to collect coats from all over Kentucky and give them to children in mountainous villages in Mexico. In her two and a half years at Centre thus far, Lulu has had a great impact through her restaurant, Bonner, and her large social network of…

    • 683 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Panera Bread

    • 402 Words
    • 2 Pages

    3. What does Panera Bread need to do to strengthen its competitive position and business prospects vis-à-vis other restaurant chain rivals?…

    • 402 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Buffalo Zoo

    • 677 Words
    • 3 Pages

    1. Explain how Donna illustrates the traits of successful leaders. What additional characteristics and achievement contribute to her success as president and CEO?…

    • 677 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Porcini Case

    • 535 Words
    • 3 Pages

    Tom Alessio, Marketing Vice President at Porcini’s Inc., of Boston, was pondering issues raised by a potential expansion of his company’s restaurant business. The domestic market for full-service chain restaurants was nearing its saturation point at both in-city and shopping mall locations. The big chains were looking overseas for growth, but as a small regional player, porcini’s had neither the resources nor the brand power to pursue that option. Food and service quality were only two aspects of the challenge. Porcini’s a slow growing, privately held enterprise would eed to roll out its new restaurants quickly in order to establish itself as a powerful brand. With limited capital and access to prime real estate sites, however, that seemed unlikely unless it adopted either a franchising or a syndication model of ownership. The first risked the company’s quality reputation; the second might produce a pace of growth that the company was ill-equipped to handle. These included an innovative process for selecting, appraising, and rewarding employees, and the use of wireless technology to eliminate time from consumer billing. In Alessio’s mind, all parts of the Pronto concept—service quality, food quality, pricing, branding, location, and ownership form had to be coordinated and mutually supportive. It had to meet or exceed the company’s 6% hurdle rate. That was a big order.…

    • 535 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Describe the business leader’s primary business or businesses, highlighting how the leader got started and analyze the leader’s three (3) major business challenges in establishing and/or running the company.…

    • 1704 Words
    • 7 Pages
    Best Essays
  • Good Essays

    1. What were the keys for success for Starbucks in building the brand? What were its brand values? What were their sources of equity?…

    • 1126 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Zeithaml V. A., Bitner M. J., Gremler D. D. (2006) Services marketing, 4th edition, McGraw-Hill. p. 106-107…

    • 3448 Words
    • 12 Pages
    Powerful Essays
  • Satisfactory Essays

    Discussion 2

    • 581 Words
    • 2 Pages

    From the scenarios, Lena explained to Chris and Erica that they need to determine how the surrounding restaurants in their selected location can impact their business. Suggest the key steps they should take to make this determination, and recommend at least three strategies they can use to differentiate their business from the other restaurants.…

    • 581 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Christine Taylor Succeed

    • 389 Words
    • 2 Pages

    Christine Taylor grew up as a child in a physical environment that allowed her to succeed. She worked in a bait and tackle business that was owned by her parents in which the only thing acceptable was hard work. This environment allowed her to study hard in school and create a drive within her to succeed. Through her studies and research, you decided that she wanted her business model to be a franchise with Aussie Pooch Mobile. Christine felt that this will be the best way to grow and expand her business. She also knew that there is a market for her mobile dog wash business but it required bringing on the right people (franchisees), with a good business model that was low in fees and the processes & training offered by APM. She also believed that focused in a niche business and a great promotional strategy will allow Aussie Pooch Mobile to attract customers as well as new franchisees. Her use of designing the trailers to be a moving billboard will give her great word of mouth advertising. The process and design of her business will enable franchisees to deliver both quality & efficient dog washing service.…

    • 389 Words
    • 2 Pages
    Satisfactory Essays