Deck 12: Information Systems in Franchising

Question 1

What is the primary purpose of information systems in a large franchise?

A)to increase profits
B)to generate data which can be used to accumulate working knowledge
C)to leverage working knowledge
D)both a and c

Answer 1

D
The major goal of the information systems for a large franchise is to leverage the proven working knowledge and transform the business into a more profitable enterprise

Question 2

Which of the following is NOT an element of virtual relationship management in e-business strategy?

A)collaboration with suppliers through Internet
B)collaboration with suppliers through Extranet
C)collaboration with consumers through Internet
D)intra-enterprise collaboration through Intranet

Answer 2

A
Elements of virtual relationship management include: intra-enterprise collaboration through Intranet,collaboration with consumers through Internet,collaboration with suppliers through Extranet

Question 3

Which of the following activities at the franchisor's headquarters office should be the center of attention?

A)marketing and advertising to prospective franchisees for franchise development
B)managing people who perform franchise support and franchise development
C)helping and supporting business units
D)dealing with financial issues such as accounting and finances

Answer 3

C
Running the franchisor's headquarters office involves four major activities: (1)helping and supporting business units,(2)marketing and advertising to prospective franchisees for franchise development,(3)managing people who perform franchise support and.franchise development,and (4)dealing with financial issues such as accounting and finances.The center of attention for all these activities should be the business units.

Question 4

Why might it be a good idea for a franchisor to investigate several ASP vendors before choosing one?

A)some ASP vendors are riskier than others.
B)the franchisor is looking for the ASP with the highest value and the lowest cost.
C)the franchisor must be sure the data of the franchise is well-protected.
D)all of the above.

Question 5

Which of the following activities at the franchised unit should be the center of attention?

A)making sales to customers
B)managing people who make sales to customers
C)dealing with financial issues such as accounting and finances
D)marketing and advertising to customers

Question 6

Where does working knowledge come from?

A)financial reports
B)customers
C)franchisors
D)data analyses

Question 7

What is the primary purpose of information systems in a mid-size franchise?

A)to improve operations at franchisor's headquarters
B)to leverage working knowledge
C)to generate data which can be used to accumulate working knowledge
D)to increase profits

Question 8

Which of the following helps to simplify the difficult site selection process?

A)value-cost-risk procedures
B)working knowledge profiles
C)data analyses
D)all of the above

Question 9

What is the primary purpose of information systems in a start-up franchise?

A)to improve operations at franchised units
B)to improve operations at franchisor's headquarters
C)to generate data which can be used to accumulate working knowledge
D)to leverage working knowledge and increase profits

Question 10

The information contained in the daily business intelligence reports becomes the foundation upon which a franchise system builds what?

A)experience
B)working knowledge profiles
C)reliability
D)target markets