Deck 4: Franchisor Management, Organization and Administrative Policy

Question 1

Often,strategic initiatives fail because:

A)They are seen as extra work to be accomplished in addition to existing work.
B)They are not announced at a party at the home office.
C)Being strategic,they are developed only the owner/franchisor
D)Competition finds out about them,and beats the firm "to the punch."

Answer 1

A
The firm's current resources,policies and reward mechanisms are not modified to include the strategic initiatives being implemented

Question 2

According to Jim Peterson,it is important to know how customers honestly perceive the quality of the product or service offered by the franchise system.The product quality is within the perception of the customer and is greatly influenced by the franchise system's server.The attitude of the customer is made up of three key factors.Which one of the options below is not one of these critical customer perception factors?

A)70%--the way the customer is looked at;
B)29%--based on the tone of the server's voice;
C)1%--exactly what the employee (server)says;or
D)the server's intent to win an argument.

Answer 2

D
Winning an argument is not one of the critical customer perception factors

Question 3

One who owns and operates more than one franchise unit is known as a

A)Area Developer
B)Master Franchisee
C)Multi-unit Franchisee
D)Franchise Broker

Answer 3

B
See descriptions and definitions in the chapter

Question 4

To be a successful leader,Jim Peterson,franchisor and former President of the IFA,believes it is necessary for four factors to exist for a person to be a successful leader.Which one of the following is not one of the required factors for successful leadership?

A)A sense of a strategic vision
B)Ability to articulate the vision,
C)Ability to develop agenda to accomplish a strategic vision
D)Ability to achieve a good golf score while making sales to prospective franchisees

Question 5

Considering the processes of management for a the franchise system,overall planning of the firm for today's operations and the future of the system itself is the primary responsibility of

A)the owner/management.
B)franchisees
C)franchisor field staff
D)prospective franchises being recruited into the system

Question 6

There are four types of growth opportunities for franchise systems to increase sales and share-of-market within their customer base.Which one below is not one of these tried-and-true approaches for growth?

A)Retain existing customers.
B)Stimulate more purchase within your existing customer base.
C)Offer new products/services in new territories to new customers
D)Cross-sell complementary products/services that meet new or a different combination of existing customer needs.

Question 7

Which one of the following statements is true?

A)Eighty percent of all new products introduced into the marketplace are not accepted and withdrawn.
B)About 75% of U.S.adults are unhappy with their work.
C)About fifteen percent of all marriages in North America fail.
D)A new business is started about every minute in North America

Question 8

There are six major organizational development tasks required of a franchisor to develop from a single unit firm into a growing franchise system.Which one of the following tasks is not one of these six major organizational development tasks?

A)Identify and define the market niche for the franchise firm
B)Develop products/services through the prototype unit
C)Acquire resources,solicit and train franchisees
D)Develop strategic plans for the franchise firm

Question 9

Entrepreneurs tend to work harder and take moderately greater risks than persons working as employees in someone else's firm.Traits that entrepreneurs tend to have include all but which one of the following?

A)High motivation to achieve
B)Apathy about life
C)Self-confidence
D)Being adventurous

Question 10

To properly develop a franchise system the franchisor must develop the franchise system at three different levels.Which one of the following is not one of the levels for development?

A)Operations/operational
B)Administrative
C)Home office interior design
D)Strategic