Expanding as a business V

GCSE Business studiesUnit 2

Topic 6

Mr G’s bumper business game show

Game show rules

Teams of two or three One person to scribe Must give as many answers as possible to

a question For any answers that match my answers

your team gets 2 points (1 point for half answers)

An additional answers that I deem as correct your team receives one point

All answers must be written down!

Team name?

Your specialist subjects

1. Franchises

2. Growth & stakeholders

3. Protecting stakeholders interests

Round 1: Franchises

What are the advantages of selling a franchise?

Franchisor gets a fee and % of profits Franchisee provides most of the finance to set

up the new outlet so the business can grow much faster

The franchisee will be motivated to succeed as they receive most of the profit

Franchisees can learn from each other which helps the business improve

As all franchises contribute to marketing, more can be spent to achieve brand awareness

What are the disadvantages of selling a franchise?

The original entrepreneurs no longer own the entire business

If there is a quality or service problem with one franchise, the image of the entire business can be damaged

Round 2: Growth & stakeholders

What are the advantages of growth to stakeholders? (please identify stakeholder)

Employees – job security and greater rewards

Suppliers – receive additional orders Local community – more people

employed by the business Government – more tax and less

benefit claims

What are the disadvantages of growth to stakeholders? (please identify stakeholder)

Supplier – May be bullied by bigger firm Employees – May not feel part of the

business The business – communication may suffer The community – the business may

relocate (perhaps overseas) The government – will not receive tax and

may have to deal with unemployment if business relocates abroad

Round 3: Protecting stakeholder interests

How can stakeholders protect their interests? (please identify stakeholder)

Lobby government – Employees, suppliers

Boycott the products – Customers Strike – Employees Complain – Employees, suppliers,

community, government Vote or sell shares - Shareholders

Round 4: Bonus points

Bonus questions

What is organic growth? Why might a business take over a

competitor? What are diseconomies of scale? What causes diseconomies of scale? Give me an example of backwards

vertical integration Define conglomerate integration