Writing Up Controlled Assessment Investigation One

Page number your document. Make sure you use the same font of the same size throughout. The exception is headings which can be larger. Only include the actual headings suggested (which are in bold and underlined) and not Task 2, 3 etc. There are marks for punctuation, spelling, grammar and the use of business language.

Headings:
Investigation 1
Recommend whether or not a franchise is the best way for Deb to market her business. Introduction
a) Explain the main features of franchising. Include a definition, the meaning of the terms franchisor and franchisee and explain Deb would be the franchisee. Give some examples related to a café and use these examples to explain how Deb could become a franchisee. b) Explain briefly the features of marketing. Include a definition (in your own words or source a definition) and explain each of the 4 Ps of marketing. c) Show on a map the café/coffee shops in the area. Identify where the major Franchise businesses are and any vacant premises (if possible) and show any potential gap in the market where competition seems weak. Write a couple of sentences explaining your findings. In your answer describe: how competitive or not the local area appears to be ie are there many cafes or a few? the consequences for Deb of this competitiveness ie how will this impact on her pricing and promotion decisions?

Heading:
Analysis of entering a franchise agreement
a) Explain the advantages to Deb of entering a franchise agreement ie becoming a franchisee. In your answer you must refer to:
The case study information about Deb.
The Information in Fig 2
How the franchisor will help Deb with:
The price of her products (link to economies of scale/bulk buying; experience of the franchisor; famous brand name so can charge a premium price) The promotion of her café (link to greater funds; national advertising campaign, often on TV – something Deb could not afford on her own; leaflet distribution in local area professionally done by franchisor with famous brand name and logo; signage will be provided) The products (these will be supplied by the franchisor…saving time and cost of transport; franchisor knows what sells well and how to package the products; materials/ingredients will also be provided; she will receive training on how to make up the sandwiches etc and how to present the food in the cafe) The place/distribution of the products (how the franchisor will help Deb with the supplies and choice of location – if there is a choice) Any other advantages of becoming a franchisee

b) Explain the disadvantages to Deb of entering a franchise agreement ie becoming a franchisee. In your answer you must refer to:
The case study information about Deb.
The Information in Fig 2
How the franchisor will possibly make it more difficult for Deb with: The price of her products (no control over price as franchisor determines the price; the price set might be too high for local area) The promotion of her café (Deb will have to pay towards the cost of the franchisor’s promotion which may be more than she would want to, this adds to the cost of running her café; she is effectively contributing to national TV campaigns, ie promoting to people all over the country many of whom will never go near her café)

The products (no say in what she sells so any imaginative ideas for new sandwich fillings eg…. may not be accepted by the franchisor; she is limited in the range of products she can sell; the franchisor may not know the local area as well as Deb; Deb might be able to make the products more cheaply or of better quality herself) The place/distribution of the products (Deb has to pay for her supplies the amount set by the franchisor, which could rise in the future as the franchisor makes a profit on these too; Deb might be able to find cheaper supplies or products) Any other disadvantages of becoming a franchisee

Heading
Analysis of becoming an independent cafe
a) Explain the advantages to Deb of becoming an independent café. In your answer you must refer to:
The case study information about Deb.
The Information in Fig 2
The price of her products (control over price as she determines the price; the price set might be right for local area and her target market which she knows well) The promotion of her café (Deb can decide how to promote and how much to spend on promotion; although this will be lower than a franchisor she could still distribute leaflets at a low cost and earn good publicity by word of mouth; she could advertise the fact she is not a multinational chain but a small local cafe)

The products (has complete say in what she sells so imaginative ideas for new sandwich fillings eg…. can be used; Deb might be able to make the products more cheaply or of better quality herself; Deb is more likely to have local knowledge so can make her business appeal to the customers in the area; she can cater for special requests) The place/distribution of the products (Deb has more freedom about the choice of location; she might be able to find cheaper supplies or products and therefore sell more at lower prices or have a larger profit margin) Any other advantages of becoming an independent café.

b) Explain the disadvantages to Deb of becoming an independent café. In your answer you must refer to:
The case study information about Deb.
The Information in Fig 2
The price of her products (she has no experience of setting prices so may set a price that is too high which …. Or a price too low which …; she can’t buy in bulk to the same extent as the franchisor so her supplies may be more expensive to but which means her prices …) The promotion of her café (as a small business with limited personal savings she can’t afford expensive promotion such as TV campaigns; does she have the skills to make her own advertisements such as posters and leaflets or will; she have to rely on sales promotions such as discounts which eats into her profits!…pun intended) The products (can she make products to the same standard or better than the franchisor? … she may lack the skills) The place/distribution of the products (she has to find her own ingredients/supplies; she has to find and furnish her own cafe) Any other disadvantages of becoming an independent café.

TASK 5
Recommendation
Based on all your research and analysis above decide what Deb should do. Then explain why. Some suggestions on how to evaluate your decision are given below. Deb should ….
The most significant reasons are…
because…
and…
However, she will have to overcome the disadvantages of …
She could do this by …
If she is successful at overcoming this then…
My decision depends on …
My decision also depends on …
My decision depends on whether profit is her main objective or if it is the satisfaction of running her own café in the way she wants. If it is profit then she should choose…however, if it is … In the short run ? may be the best choice because … however, in the long run it might be better to ?