Sonic’s Growth First, let us take a look at some business terms. A sole proprietorship is a business that is owned and operated by one person. A partnership is a legal form of business with two or more owners. A corporation is a legal entity with authority to act and have liability apart from its owners. A franchisor is a company that develops a product concept and sells others the rights to make and sell the products. (Nickels) A man named Troy Smith began the sonic drive-in restaurant in 1954, as a sole proprietorship. Two years later, he took on a partner, and watched the business grow. As partners, they shared profits and liabilities. After the death of Smith’s partner, he found many people wanted to franchise the business. The Sonic drive-in restaurant began to grow even quicker. A man named Cody Barnett took over his father’s seven franchises. He added fifteen more to those. Understanding the different types of business is vital in getting it started and adjusting to the growth of the business. (Nickels) The Sonic Company would not have been able to grow as large as it is now if it had remained a sole proprietorship. As it grew, it would have been too much for one person to manage. The liability would have been too great for one person to handle. With sole proprietorship, the personal assets of the sole proprietor can be used to pay off business debt. The sole proprietor is held personally liable. With sole proprietorship, the advantages are that they are easy to start up, they have tax benefits, and they don’t have to share the profit. The disadvantages are unlimited liability, less opportunity for earnings, decreased chance of others investing in the business, and a limited access to resources. The advantages of a partnership are more available resources, tax benefits, and personal appeal. The other advantage is that the liability is shared among the partners, instead of one person being completely liable as with sole proprietorship. The
MAN 1030 Introduction to Business
February 2, 2013
Sonic is a large chain of fast food restaurants with over 3,200 drive-ins all over the country and in Mexico. (http://sonicboomsc.com/sonichistory.html) I would have never thought that it all began as a sole proprietorship, a business owned and managed by one person. There is no way that Sonic would have grown as large as it has today if it had stayed that way. Today Sonic is now a successful corporation….
smartphone app with an integrated loya
lty program could help Sonic better
serve the digital lifestyle demands of many of its loy
More than 73 percent of
smartphone users indicated that they are interested in
interacting with loyalty programs through
their mobile device, according to a recent report from M
aritz Loyalty Marketing (
Launches Mobile-Optimized Rewards Program).
Along with the loyalty program, Sonic can also introduce
a “surprise rewards” program. Each
In 1953, Tyro Smith founded the prototype of the first Sonic drive-In in Shawnee, Oklahoma. Before 1953, he had already tried opening two other restaurants. Smith eventually bought a steak house that had a root beer stand on the lot. He intended to tear the stand down to add more parking for the steak house, but the root beer stand, called Top Hat Drive-In, proved to be more profitable and even outlasted the steak house. While traveling in Louisiana, Smith saw homemade….
* Do you think Sonic would have grown as large as it did today if it had remained a sole proprietorship? Why or why not?
* What were the advantages and disadvantages to sonic of each form of business ownership?
* There have been lots of drive-in and fast food restaurants over time. In your opinion, what makes Sonic and other major franchises more successful than others?
I personally do not think that Sonic wouldn’t have grown as large as they are now if they would have remained a proprietorship….
In the thought of Sonic remaining a sole proprietorship I do not think that it would have grown as big as it is today because if there was not a chain of Sonic’s there would be only the one that Troy Smith started in 1954(Sonic Video Case: Sonic is Booming.)Troy Smith started Sonic as a sole proprietorship and gradually evolved to a partnership, then to a corporation, and finally to franchisor. If he had not have took the step that he did to start as a sole proprietorship and slowly evolved it to….
Do you think that Sonic would have grown as large as it did today if it had remained a sole proprietorship? No they wouldn’t have lasted if they stayed as a Sole Proprietorship why or why not? The way Sonic has expanded it would have too much for a single owner to open up 3000 sonic stores to date.
What were the advantages and disadvantages to Sonic of each form of business ownership? The advantage of the owner of Sonic been a Sole Proprietor would have been, being your own boss, having the creativity….
The case set up in 2003 is about BOEING, the world
pioneer and leader in aerospace industry and their just
one product stumble that cost them to run 2nd for the
1st time in a two horse race. They wanted to develop a
high speed jet liner called SONIC CRUISER which could
carry 225 passengers at close to the speed of sound
and was referred to as “the next great….
Sonic: America’s Drive-In - Case Analysis
Table of Contents
i. General Background / Key Issues
a. Internal Analysis
b. External Analysis
c. Business-level Strategy
d. Corporate-level Strategy
e. Structure and Controls
f. Strategic leadership/ Entrepreneurship
iii. Case Recommendations
i. General Background / Key Issues
Sonic was created over 50 years ago, the enterprise started as a small drive in….
SONIC America’s Drive-In is a fast food joint where customers drive into a car slot and order from a menu at the driver's side. Orders are placed through an intercom system, and then you can swipe your plastic card near the intercom to pay. The novelty is that servers roller skate out to your car for a true drive-in experience. There are two options either you can take your order to go, or stay and eat in the car. “SONIC has over 3,500 locations in more than 40 states, serving….
Sonic SWOT Analysis
October 11, 2011
The use of an SWOT analysis helps obtain information to understand the position of a company. The company chosen is Sonics Corp. This analysis will help determined whether to invest in this company. This discussion will include the company’s strengths, weaknesses, opportunities, threats, and trends. The information that follows should allow me to determine if this is a good company to invest in or not. Next I will determine….