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Yogita Ingle 4 years, 9 months ago
“PESTEL model involves the collection and portrayal of information about external factors which have, or may have, an impact on business.” It is an analysis of the political, economic, social and technological factors in the external environment of an organization, which can affect its activities and performance.
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Yogita Ingle 4 years, 11 months ago
Advantages to Franchisors
- Firstly, franchising is a great way to expand a business without incurring additional costs on expansion. This is because all expenses of selling are borne by the franchise.
- This further also helps in building a brand name, increasing goodwill and reaching more customers.
Advantages to Franchisees
- A franchise can use franchising to start a business on a pre-established brand name of the franchisor. As a result, the franchise can predict his success and reduce risks of failure.
- Furthermore, the franchise also does not need to spend money on training and assistance because the franchisor provides this.
- Another advantage is that sometimes a franchisee may get exclusive rights to sell the franchisor’s products within an area.
- Franchisees will get to know business techniques and trade secrets of brands.
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Yogita Ingle 5 years, 1 month ago
Internal Expansion | External expansion |
(i) It is the gradual increase in the activities of the concern. | (i) It is a business combination where two or more firms combine and expand their business activities. |
(ii) Firm may expand its present production capacity by adding more machines or by replacing old machines with the new machinew | (ii) Here two or more units engage in similar business or related process or stages |
(iii) it results in the increase in business activities and broadening the present capital structure. | (iii) After combination the constituted firm pursues some common objectives or goals. |
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Nimmi Soni 4 years, 3 months ago
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