TEST 2 HFT1000 QUESTIONS CHAPTER 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 ANSWERS 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 guests Mix of ownership between franchisor and franchisee A business under one management or ownership offering similar goods and services found in different geographic locations A chain that has a single owner investor who has full equity stake in all units owned by the company Mix 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 units Market Reach Reaching many markets to increase sales and thereby increase profits Economies 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 vendors Streamlined Operations Standardizing products and services simplifies operations allows for standardized operating procedures SOP s TEST 2 HFT1000 Disadvantages of multi unit operations Enhanced Marketing Power Increased visibility gained through greater market reach Value Added Service Options Additional services for both customers and unit chain operations alike Access to Finances Company may have multiple options for raising money for growth Professional Management Enhanced legal requirements and complexity of operations has companies hiring professionals with a better understanding of a company s operating needs Operational Constraints Standardized operations can put restrictions on franchisees Financial 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 investment Legal Forces Complex structure of chain operations along with owner operator contracts and partnerships may create legal challenges When 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 6 Enhanced legal requirements and the complexity of operations in a chain Program that keeps track of the customers expenses and their likes and dislikes TEST 2 HFT1000 Describe what is a brand management 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 How many units are needed before a business is considered a chain Member training and education Opportunities for networking Member recognition and support Why is there a need to hire professional managers to run hospitality chain operations Legislative updates Promotion of specific industries to the public What is customer relationship management CHAPTER 8 How does an industry association best meet the needs of its members 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 area By 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 What are the characteristics of industry associations when they are created Encyclopedia of Associations The organization promotes the restaurant industry and related career paths promotes dining out and is committed to food safety in the industry What are the reasons why industry associations are formed Guide for the activities of the organization Statement of purpose Developed by the membership or governing board Why do associations have by laws TEST 2 HFT1000 Meeting 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 If you want information relevant to your interest you turn to a book called Some have student reduced fees and you can gain valuable experience in your given field Sense of belonging Meet professionals and gain a competitive advantage What are the functions of the national restaurant association What does a mission statement outline Offers 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 What is networking about What does it include Promotes healthy lifestyles grounded in good nutrition and well being Student membership category Why should students join an association Sponsors 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 What do the following associations provide and promote National restaurant association Star Forbes Travel Guide Diamond American Automobile Association AAA Where the association sees itself in the context of the industry TEST 2 HFT1000 Broader than a mission statement American dietetic association American culinary federation American hotel and lodging association Which association provides diamond status and which provide a star What is a vision statement TEST 2 HFT1000
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