HFT 1000 Test 2Chapter 6Six units are needed to be considered a franchiseChain operations- business under one management or ownershipOwned by the same companyFound in different geographical locationsBrand specific identity- identity of a business that is intentionally created through a careful combo of design of its products, service offered, name, logo, slogan and signsThe goal of a brand is to display a consistent image in the minds of guestsSimple Form-chain that has a single owner/ investor who has full equity stake in all units owned by companyMixed franchise form- mix of ownership and privately owned, aka some parent company owned and some franchised ownedManagement Franchise Form- When the parent company also offers professional management service for the non-company ownedBrand Management Form: mega-corporations owned multiple chains and operations under a parent umbrella structure, refer to each chain operation and brandADVANTAGES: Market reach: Reaching many markets in increase salesEconomies of scale: cost advantage a company can derive because of its large sizeStreamline operation: standardizing products and services making it all simplifiedSOP-standard operation procedureEnhanced market power- increased visibility gainedValue added service operation:-customer loyalty program-consulting services-employee training program-architecture and construct designAccess to finances: company may have multiple options for raising money for growth Pro Management: enhances legal requirements and complexity of operations, hiring pro’s nowDISADVANTAGES: Operational constraints: no changes, restrict franchise optionsFranchise Strains: pay parent company thru royalties, incentives, franchise fee, marketing feeLegal forces: complex structure of chain operation along with owner-operation contracts Globalization=big chainsChains offer strength in numbersREVIEW: - How many units must be owned before its considered a chaino 6- What is a brand?o Specific identity of business- What’s the goal of a brand?o Consistency of image- What is a franchise?o Investment in a successful business with similar goods and services- What is chain operations? o Unit owned by same company - What is simple form chain?o One single investor- What is a mixed franchise? o Owned by parent company and independent investor- What are the top 3 hotel chains?o Intercontinental o Marrioto Windom- What are the top 3 food service chains?o McDonaldso Subwayo Wendy’s - What is management franchise form?o Parent company provides management services, which a fee is charged for the service- Why is there a need for hiring production managers?o There are new higher legal barriers and it’s much more complex- What are disadvantages of owning multiple unit operations?o Operation constraints (can’t change anything)o Franchise constraints (fee’s)o Legal forces constraints- Advantages of a chain?o Market researcho Economies of scaleo Stream lining - What is brand management?o Mega corporation owns multiple chains under parent company (run a ton of brands)- What is customer relationship management?o Knows what the people want so the next time they come back their requests are metChapter 8-Legislative issues- associations serve a critical need as they keep their members informed on pending legislative decisions that may impact their industry NRA: national restaurant association, which exists to promote restaurant industry, trade in MAY In CHICAGO AH&LA: American hotel and lodging association, holds a huge trade show in NYC during NOVThere are smaller groups that cater to smaller associations Industry Associations: Governing documentsMISSION STATEMENT: derives a purpose, developed by members, a guideBY-LAWS: includes number of members, guidelines, written by members and can changeit upVISION STATEMENT: what you foresee to happen for company, umbrella statementNetworking:Joining associations is important because you can network, get opportunities, join student chapters, etc.Food Associations:NRA: ADA: American dietetic association for a healthy lifestyleACA- American culinary associationLodging AssociationsAmerican Hotel and lodging: domestic national work for educationInternational Hotel Associations- hotels opportunity at international levelTravel and Tourism:Tourism industry association of America: promotes travelWorld Tourism Organization: connected with United Nations Also many research groupsSpecial SegmentsClub managerMeetings professionals international Council of hotel Rating systemsDIAMOND rating by AAA (American auto association)STARS system by Forbes Travel Guide, also used to be Mobile Travel GuideREVIEW: - 3 Documents that help associations run smooth? o Bylawso Mission statement o Vision statement - Benefits of joining associations?o Networking, newsletters, internship opportunities, legislation, - What are the two rating systems?o American auto associationo Forbes travel guide - What are Bylaws?o Written by members, guidelines and can be amended- To find associations to attend go where?o The library- NRA does what?o Promote restaurant industry, has largest tradeshow in May - Reason why associations are formed? o Networko Promote industryo Legislative decisions- Characteristics of how associations are formed?o Many different geographical locations- Best way to meet the needs of members?o Lobbying to convince politicians of different laws- Mission Statements are for what?o State the purpose of the group- Networking is important because?o More people you know the more opportunities you have- NRA: promote restaurant industry - ACF: learn how to prepare and handle food- ADA: promote healthy lifestyle- AH&LA: promote hotel industry- Why are restaurants having more diamonds?o More people eating out demanding higher quality- Where does the World Tourism Association operate from o United Nations Chapter 9What is management?As a noun it is used to identify those in charge of directing business affairs,Oversee whole operation Management becomes a service also because you’re providing a task Operations ManagementManagement: getting tasks completed through peopleManagers: responsible for the work of others Managing operations of company requires diplomacy, working knowledge of human motivation and good problem solving skillsRole:Responsible for othersDeciding what tasks go to which peopleDeciding how to match jobs with personality to achieve goalsAssign Work Effective:Consider individuals free timeUse assign as way to
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