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Martin Blair Case Study

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by

Angelina Galac

on 5 February 2015

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Transcript of Martin Blair Case Study

Martin Blair Case Study
Background
- Communication and accessibility
- Unmotivated employees
- Importance of franchisee selection
- Triangulation
- Cost/Feasibility
Systems to Support and Control Remote Locations/ Factors to Consider
Return on capital for each concept
PROS
Established brand and customer base
Marketing support
Reputable suppliers
Available training
Reduced risks
Pros and Cons of Franchising

CONS
High risk
More time consuming
Restricted resources
Pros and Cons of Organic Growth
Management Experience
Marketing Capability
Manage the logistical support of Franchisor
Characteristics of products/services
Management Competence of Franchisor
Service quality of the franchise
Location of Franchise

Key Factors for Success
Brand name
Product line
Standardization
Management and training
Administration
Build a Central Organization
To adopt two strategies: franchising and organic growth
First to franchise Pizzetta
Next to organically grow Viva Italia
Strategy
Martin Blair, first-time entrepreneur
Develops two different restaurant concepts
Pizzetta: quick-serve, pizza and sandwiches
Viva Italia: Italian themed trattoria
Wishes to expand both concepts
CONS
Innovation challenges
Loss of control of day-to-day operations
Increased competition from other franchised locations
High franchise fees and start up costs
Limited flexibility
PROS
Cheaper form of expansion
Allows for creativity
Balanced growth
Return on Capital= Net Income-Dividends/Total Capital
Angelina Galac
Alexandra Joly
Brent Maidens
Lin Qian
Full transcript