Recent orders
Comparison of starting up a non-franchise Ice Cream store or franchise company Dairy Queen
Dairy Queen
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Franchise holder rebellion issues facing Dairy Queen
There are many problems, which are affecting Dairy Queen, and this has created a rebellion towards it by its franchise holders. Dairy Queen is coming up with new regulations, which are making those, who have its franchise to suffer greatly. They are being forced to increase their table service and even the number of existing restaurants. If they do not comply with these new rules, they risk losing their franchise (Cohen, 2007). The result is that more than ten members of the Dairy Queen franchise are going to court to sue the company. This is an example of an organizational problem, which needs to be dealt with, as soon as possible if not, the repercussions will be expensive.
Some of the states that have complaints against Dairy Queen are Maryland, Missouri, Arizona, Kentucky, among others. They hope to stop the plans of Dairy Queen from pushing through. The law suit is causing a lot of problems to Dairy Queen, as well as to Berkshire Hathaway. The latter is owned by Warren Buffet an American billionaire. According to Chuck Mooty, the Chief Executive at Dairy Queen, the move is not meant to hurt any franchise holder. Dairy Queen has to find a way of ensuring that the rebellion does not exist (Mooty, 2011).
This problem is a concern for the management, because it will affect the companies’ outcome. The management should come up with ways to ensure that they solve the situation before it escalates further. Dairy Queen should ensure that it deals with its franchise holders on a personal basis, so that the situation is monitored (Macmillan, 2007). The management should come up with an effective marketing strategy to make sure that problems of a rebellious nature do not occur ever again. The problem exists because the franchise holders are being told to pay more than $275000 to improve their stores. This means that the franchise holders will incur more expenses, such as increasing the number of staff. Mooty believes that more advantages will come about due to the new rules, which are going to be implemented (Charleston, 2008). The management at Dairy Queen cannot understand why there is rebellion as the companies are not being forced into something new. This is because the franchise holders have to sign a contract. The contract specifies that they will have to add additional costs, which will expand their business (Schawnz, 2011).
Furthermore, the franchise holders are being influenced by associations of franchises. This is because they compete with Dairy Queen for supplying the franchise holder’s .The outcome is that Dairy Queen benefits more, thus the cause for their problems. The theory of marketing stipulates that businesses have to find a way of making sure that they are able to control different forces in the market (Kennon, 2010). Daisy Queen should make the franchise holders know that the additional costs will profit them in the long run. There is no need of taking the matter to court as it will only bring more problems. The lawsuit is expensive and Dairy Queen is sure to emerge the winner in this case. The contract at Dairy Queen for Franchise holders must be reviewed to ensure that they specify everything in detail (Niemela, 2009). This way, everything will be clear to those who intend to get into a contract with Dairy Queen. The Franchise situation at Dairy Queen will be solved through effective strategy implementation by management.
References
Charleston, W. (2008). Dairy Queen faces franchisee revolt. Food Inc. msnbc.com. Retrieved from HYPERLINK “http://www.msnbc.msn.com/id/23376156/ns/business-consumer_news/t/dairy-queen-faces-franchisee-revolt/” http://www.msnbc.msn.com/id/23376156/ns/business-consumer_news/t/dairy-queen-faces-franchisee-revolt/
Cohen, David. (2007). Doritos Queen – a dairy queen disaster. Idfive.com. Retrieved from HYPERLINK “http://www.attentionscan.com/2007/03/doritos-queen-dairy-queen-disaster.html” http://www.attentionscan.com/2007/03/doritos-queen-dairy-queen-disaster.html
Kennon, Joshua. (2010). The Dairy Queen Franchisee Revolt. Retrieved from HYPERLINK “http://www.joshuakennon.com/the-dairy-queen-franchisee-revolt/” http://www.joshuakennon.com/the-dairy-queen-franchisee-revolt/
Macmillan, Douglas. (2007). Franchise owners go to court. Bloomberg Business Week. Retrieved from HYPERLINK “http://www.businessweek.com/smallbiz/content/jan2007/sb20070129_887153_page_2.htm” http://www.businessweek.com/smallbiz/content/jan2007/sb20070129_887153_page_2.htm
Mooty. Chuck. Personal communication, August 16, 2011.
Niemela, Jennifer. (2009). DQ’s Q1 same-store sales up 5%”. Minneapolis/St. Paul Business Journal. Retrieved from HYPERLINK “http://www.bizjournals.com/twincities/stories/2009/04/13/daily18.html” http://www.bizjournals.com/twincities/stories/2009/04/13/daily18.html
Schawnz. Chris. personal communication, August 16, 2011
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Comparison of GDP and PPP of Several States
Comparison of GDP and PPP for Several Countries
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Comparison of GDP and PPP of Several States
GDP is defined as the aggregate measure of the production of a state when equated to the gross value of residents living in a particular country. The GDP combines the taxes and subsidies in the value of the outputs of a state. PPP (Purchasing Power Parity) is a constituent of economic theories (Reid, 2013). PPP is a technique used to govern the comparative value of varied currencies. GDP is often used to estimate the economic value and performance of any state. GDP can also be used to estimate the relative industrial contribution to the state economy.
This paper will examine a selected number of five countries and evaluate their GDP as a derivative from PPP calculations. According to the world bank estimates, the United States has a GDP of $ 16800 billion (PPP of $ 16.47 trillion) in 2013, China has an estimated $ 16158 billion($ 13.39 trillion) for the same period, India $ 6774 billion (PPP of $ 4.99 trillion), Japan $ 4624 billion ($ 4.73 trillion PPP) and Germany $ 3493 billion (PPP of $ 3.23 billion) (Chamberlin, 2014).
The American society has almost the PPP and GDP of 2013 almost equal (Reid, 2013). Often, it is almost impossible to find that a state can strike a balance between PPP and GDP. For this reason, it is vital to understand that the Americans embrace their domestically produced products. Most Americans embrace their domestically produced products hence they boost their economy through embracing their own products hence achieving an equilibrium between the GDP and PPP.
The uneven economic status of China and socialist setup of the Republic of China makes it easy for the GDP to surpass the PPP (Chamberlin, 2014). This therefore means that because not all the people in China are affluent, they would rather prefer buying their domestically products that are much cheaper than importing foreign products that may be expensive. Japan has a relatively higher PPP than the GDP for several reasons (Reid, 2013). The first major reason is the affluent level of the Japanese citizens surpasses those of many other countries who have a higher GDP than herself. For this reason, the Japanese citizens have extra cash to import products they demand from other states.
The Chinese problem also affects India. This is because of an almost unequal financial capacity of Indian citizens. There is a great gap between the rich and the poor in India (Xu, 2013). The extremely rich persons are fewer in number while the poor form a large proportion of the Indian society. The concept of the US having more GDP and PPP is the presence of available land for expansion and resources to meet the needs of the citizens (Chamberlin, 2014). This therefore makes it easy to determine the needs of the people thus making them unable to seek for goods or services elsewhere. Germany has a balanced PPP and GDP because of its stable economy and the capacity of its citizens to purchase their own good. This therefore makes it hard for them to import an excess of foreign products thus strengthen the American Dollar or Euro.
To achieve economic prosperity, it is essential for every state to extensively invest in provision of the needs of the citizens and ensuring that the citizens do not seek for economic services elsewhere. The relative value of states is essential in estimation of the purchasing power of a country.
References
Chamberlin, G. (2014). Gross domestic product, real income and economic welfare. Economic & Labor Market Review, 5-25.
Reid, D. (2013). Combining Three Estimates of Gross Domestic Product. Economical, 431-431.
Xu, X. (2013). China’s gross domestic product estimation. China Economic Review, 302-322.
Comparison between Downtown and suburban locations
Home Depot In New York City 1
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TOC o “1-3” h z u HYPERLINK l “_Toc381000628” Comparison between Downtown and suburban locations PAGEREF _Toc381000628 h 1
HYPERLINK l “_Toc381000629” Location and site selection of the Home Depot PAGEREF _Toc381000629 h 2
HYPERLINK l “_Toc381000630” Manhattan stores and the community PAGEREF _Toc381000630 h 2
HYPERLINK l “_Toc381000631” Effect of businesses in Manhattan PAGEREF _Toc381000631 h 3
Comparison between Downtown and suburban locationsThere are notable differences in trading area size and characteristics for a downtown and a suburban location for a Home Depot as depicted in the case study and these are;
When comparing a Home Depot located in suburban area to that located in downtown area it is evident that that which is located in downtown is smaller. This is so because from the study we can see that the Home Depot located in Manhattan which is a downtown area has no space for modifications of the stores exterior since its location is a landmark preservation area that can not be tampered with. There are also some departments lacking such as the lumber department this is due to the limited trading area in this downtown region, though it is obviously present in a Home Depot located in suburban area.
There are some products in the downtown Manhattan Home Depot that are only available on order while others are in store reason being the limited trading area in this downtown stores as compared to those in suburban areas. The products in the stores in suburban area are all in store and the client does not have to wait for the products since they are available in the store.
Home Depots in downtown area are characterized by a large number of clients for this reason there is a doorman who assists the customers in loading their luggage and also get taxis. a characteristic of this stores in downtown area is also the presence of a concierge who directs customers to the correct aisles this are not available in suburban areas.
Due to a diverse clientele the Home Depots in downtown areas are characterized by signs of different languages within the stores. This is different in the case of a suburban Home Depot since they only signs available are in languages understandable to the people that dominate the area.
Location and site selection of the Home DepotThere are quite a number of differences on selection of location and site selection of home depots located in downtown and suburban areas. Rent is a crucial matter when making a decision on where to locate a Home Depot in a downtown area. The area of choice should not be too high on rent. Rents in suburb areas are lower when compared to those in downtown areas. A large number of clientele in downtown area require a large parking space therefore when selecting the site for a store in downtown area ample space should be a factor to be put into consideration. In suburban area parking space is not such a big factor when selecting a site.
When putting up a depot in downtown area the population of the site to locate is a factor to be considered it would not be fiscal to select a site where there would be no clients to sell to or an area that is too populous to cause human traffic.
Manhattan stores and the communityThe Home Depot stores in Manhattan should be made in such a way that they can be taken in or be adapted by the community by various means. There should be numerous adverts that will make people aware of the products and the prices they will get them at. They should also stock high quality products that will attract the clients and also retain them. The pricing should also be done fairly when a client compares them to other stores in the area. For the products that are not stocked once ordered they should be delivered on time so that the clients can gain trust in them especially those whose are buying from them for the first time. The clients will build confidence and will not be hesitant to make another order. They can also organize for public events where they can interact with the members of the community on a personal level which will build on the relationship and also gain new clients
Effect of businesses in Manhattan
The Home Depot that will be located in Manhattan will stock all hardware products and lighting implements and systems that are required on a regular basis. Home Depot being a huge chain of stores with investments everywhere, they are bound to be cheaper than the hardware stores that were already established in Manhattan. This reduction in price coupled by the readily available quantities will have an adverse effect on the sales of the local hardware stores and lighting stores.