TEST #2- HFT1000QUESTIONS ANSWERSCHAPTER 6:What is a brand?What is a franchise?What is a chain operation?What is considered a simple form business model?What is a mixed franchise?What is considered a management/franchise form? Advantages of multi-unit operations?A specific identity of a business intentionally created through a careful combination of: Design of its products, Services offered, and other forms (names, slogans, logo, and signage). Goal is to convey a personality for the business and consistent image in the minds of guestsMix of ownership between franchisor and franchiseeA business under one management or ownership offering similar goods and services found in different geographic locationsA chain that has a single owner/investor who has full equity stake in all units owned by the companyMix of ownership, some units are owned & operated by the parent-company (franchisor) and the rest are owned & operated by other owners/investors (franchisees)When the parent-company (franchisor) also offers professional management services for its non-company owned (franchised) unitsMarket Reach – Reaching many markets to increase sales and thereby increase profitsEconomies of Scale – Cost advantages a company can derive because of its large size; greater power to negotiate better (lower) rates for products and services needed from vendorsStreamlined Operations – Standardizing products and services simplifies operations; allows for standardized operating procedures (SOP’s)TEST #2- HFT1000Disadvantages of multi-unit operations?Enhanced Marketing Power – Increased visibility gained through greater market reachValue-Added Service Options – Additional services for both customers and unit chain operations alikeAccess to Finances – Company may have multiple options for raising money for growthProfessional Management – Enhanced legal requirements and complexity of operations has companies hiring professionals with a better understanding of a company’s operating needsOperational Constraints – Standardized operations can put restrictions on franchiseesFinancial Strain – Franchisees pay the parent-company through royalties, incentives, franchise fees, marketing fees and other fees. Franchisees also must comply if a new requirement is initiated across the chain, which often means a new capital investmentLegal Forces – Complex structure of chain operations along with owner-operator contracts and partnerships may create legal challengesWhen a mega-corporation owns multiple chain operations under a parent umbrella structure, it refers to each chain operation as a brand. (Stresses the importance of the brand, creates a distinctive brand image, and differentiates each brand in the portfolio).6Enhanced legal requirements and the complexity of operations in a chain Program that keeps track of the customers expenses and their likes and dislikesTEST #2- HFT1000Describe what is a brand management? How many units are needed before a business is considered a chain? Why is there a need to hire professional managers to run hospitality chain operations?What is “customer relationship management”?CHAPTER 8:How does an industry association best meet the needs of its members?What are the characteristics of industry associations when they are created?What are the reasons why industry associations are formed?Why do associations have by-laws?All industries will have governing documents that will include a mission statement, and/or vision, bylaws, and a board of directors that oversees the organization. Member training and education Opportunities for networkingMember recognition and supportPromotion of specific industries to the publicLegislative updates*Industry trends and updates “voice of the industry”Associations can be created to meet the needs of individuals businesses and organizations in a certain geographic areaBy-laws and other governing documents help associations run smoothly. By-laws are Rules that govern the association’s actions and are developed and adopted internally by the members (Can be amended to meet the needs of the association).Encyclopedia of AssociationsThe organization promotes the restaurant industry and related career paths, promotes dining out, and is committed to food safety in the industry. Statement of purposeGuide for the activities of the organizationDeveloped by the membership or governing boardTEST #2- HFT1000If you want information relevant to your interest you turn to a book called _________???What are the functions of the national restaurant association?What does a mission statement outline?What is networking about? What does it include?Why should students join an association??What do the following associations provide and promote:National restaurant associationMeeting someone, exchanging business cards, and getting to know them. Then follow up with email or phone call to talk more with them about company or them self. It is Gradual process. Some have student reduced fees and you can gain valuable experience in your given field. Sense of belonging. Meet professionals and gain a competitive advantageOffers memberships to restaurants, allied industries, educators and students, international companies, and non-profit organizations. Promotes the restaurant industry and related career paths, dining out, and committed to food safety.Promotes healthy lifestyles grounded in good nutrition and well being. Student membership categorySponsors competitions, awards, and educational events for chefs (and certification program). Student membership category Promotes the interest of hoteliers throughout the United States and internationally. Offers student memberships and extensive educational opportunities for members.Diamond: American Automobile Association (AAA)Star: Forbes Travel GuideWhere the association sees itself in the context of the industryTEST #2- HFT1000American dietetic association American culinary federation American hotel and lodging associationWhich association provides diamond status and which provide a star?What is a vision statement? *Broader than a mission statementTEST #2-
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