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Disadvantage of franchising – Subway Apart from the many benefits derived from the cooperation between Subway and the franchisee, which have been considered in the previous sections, there are also some disadvantages that need to be assessed. Firstly, any bad news about Subway might have direct impact on the franchisee as the brand/trademark could be affected in the process. If the value of the brand decreases, the franchisee loses some of his/her competitiveness (Liutu, R, 2010). For example,…

Pestel analysis on Cadbury: It’s an analysis in which evaluate a firm or a nation or anything else under following domains: political, economical, social, technological, environmental and legal. This is done to chart long term plans. Cadbury is synonymous with chocolate consumption worldwide. Opening shop in the early 19th century, Cadbury has emerged as a global brand with factories and offices the United Kingdom and North America, and a notable presence in Asia and Africa as well. In 2008,…

1. Marketing Strategy Pricing strategy Field&Garden should choose high pricing strategy, because target customers give the preference quality over price. As a result the customer’s sensitivity to changes in price would be low. It follows that high price means for clients an excellent quality of products. For instance customers could go there not to have some meal, but also to chill and relax. Field&Garden more than a food shop and restaurant, it is a lifestyle. For this purpose company will…

“State failure” means “the implosion of the state” according to Bates’ article State Failure. State failure is characterized by two major processes: First, “governmental predation” which means that those in power in the state abuse their position to exploit resources from others, who lake power rather then to provide security for them. Second, the state loses its monopoly of the means of force, which leads to a militarization of society. The author then addresses three contributing factors…

sector as trade barriers kept food prices artificially high. Ricardo mirrors Adam Smith’s stance that, the market, although imperfect, is best left untouched. A glut, arguably cannot occur if all resources optimally utilized (Say’s Law,“supply creates demand”), however, inherently the law does not account for hoarding, accumulation of money without purpose or intention to save, spend or…

1. What is the difference between micro and macroeconomics? Give an example of a microeconomic phenomenon and an example of a macroeconomic one. A) The difference between micro and macroeconomics is that microeconomics deals with how individuals and firms make decision in the face of scarcity and the impacts of the decision on the market. Hence, microeconomic focus on a part of the economy of a country. While macroeconomics deals with how a nation makes a decision in the face of scarcity and…

No! I don’t think that is a good idea! If steps are taken to reduce the movement of people, food and manufactured goods around the world, the global market will be extremely affected and there will be reduced in free flow of business transactions. Travel is a continuous process that often required travellers to partake in global activities of moving goods and services to every corner of the world. It is understandable that travelling activities can easily spread diseases around the world but…

Isocost curve is that curve represents the combination of inputs that will cost the producer the same amout of money. We get the slope of the isocost line. The isocost line shows the various combinations of labor and capital a firm can buy with a given price. The slope of isocost line = PL/Pk. In the given equation, the price of labour is indicated by PL and the price of capital is given by PK. The isocost line may change if the amount of money spent to buy factors changes but the slope…

Transfer price has been defined as an amount charged on a product or service when supplying division transfers the good or service to receiving division. In this situation, Electrical Division is the supplying division, while Brake Division is the receiving division. During the process of setting transfer price, W Industries should ensure the goal congruence between Electrical Division and Brake Division. In other words, both divisions should not strive to maximize their own divisions’ profits…

3. Exhaustion of the sugar agro-export model The sugar industry was for many years the key player of the national economy, where most of the investment and credit were concentrated and where most foreign exchange and tax revenues were generated. If production and sugar prices raised much, there were enough foreign exchange to import consumer goods for the population and inputs and techniques for businesses. In turn, the bank recovered loans and the government raised its revenue. In other words,…