lecture 8

Question 1

Franchising

Answer 1

1. product/trade franchising

a) manufacturer-distributor
b)manufacturer-wholesales
c) wholesaler-distributor

2) business format (consistent in operation)

3) conversion franchising

Question 2

Existence of franchising

Answer 2

Resource scarcity: large amounts of capital are needed to grow

Agency theory
Principal = franchisor
Agent = franchisee

Goal divergence is lower than for hired managers as frinchisees have incentive to maximize (his) profits

Question 3

motivation for franchisor

Answer 3

1) capital advantage
2) possibility to decrease distribution costs

3) Higher motivation of management

Question 4

Motivations of franchisee

Answer 4

1) reduction of insecurity

2) Higher customer acceptance

3) lot of assistance

4) low financial barriers

Question 5

Perceived problem areas franchisor

Answer 5

Capital/general eco clim

shortage of suitable application

Shortage of suitable location

Problems maintaining standards

Acceptance of fee

Question 6

Perceived problem areas franchisee

Answer 6

Lack of franchisor support

Royalty fee

Advertising

Purchasing

Rules and guidelines

Question 7

outsourcing

Answer 7

an agreement in which the outsourcing firm delegates (part of) the activities that the firm uses to perform internally to another company, which is the outsourcing provider

Question 8

why do companies outsource

Answer 8

reduce and control operating costs

Improve company focus

gain access to world-class capabilities

Free internal resources for other purposes

Resources are not available internally

Accelerate reengineering benefits

Function difficult to manage/out of control

Make capital funds available

share risks

Cash infusion

Question 9

success of outsourcing: enormous growth of outsourcing but

Answer 9

25% arrangemets fail within 2 years

50% fail within 5

80% of customer support arrangements that focus on cutting costs fail

Question 10

outsourcing near shore vs off shore outsourcing of customer contact

Answer 10

call center

Email contact

acquisition

ALl customer ontact

Question 11

Consumer prefers services from… (outsourcing)

Answer 11

Their own country

More economically developed countries

Countries with closer cultural distance

Question 12

Outsourcing works better for companies/countries with

Answer 12

A good reputation

Ski resort example

Outsourcing influences expectations and anticipated satisfaction

Question 13

Outsourcing cc

Answer 13

Outsourced services are part of PSQ

Off shor and near shore outsourcing has negative impact on PSQ, satisfaction and loyalty

loss of expertise (customer info)

Question 14

crowd sourcing

Answer 14

Is the act of outsourcing tasks, traditionally performed by an employee to a large group of people or community (a crowd) through an open call

Question 15

Physical evidence

Answer 15

the environment in which the service is delivered and where the firm and the customers interact and

any tangible commoditites that facilitate performance or communication of the service

Question 16

gap 3 and 4 roles of the serviccescape

Answer 16

gap 3 = service delivery
Facilitate service delivery by aiding (hindering) customers and employees to carry out their activities

Gap 4 = communication
package: communicate content to customer and employees

Socialize: socialize customers and employees about roles and hierarchies

Differentiate: differentiate service from the competition