Franchise Business Research Paper Example | Topics and Well Written Essays - 1250 words

Franchise Business - Research Paper Example This research will begin with the origin of franchising. The history of franchising dates back to 1850’s when an American entrepreneur Isaac Singer the inventor of the sewing machine chose to sell licenses to other entrepreneurs in different parts of the country. This idea was prompted by the fact that his company staff could not provide sufficient training to the customers who bought his product. In 1960, Ray Kroc, an American fast food businessman after taking over small chains of food companies laid strong foundations for one of the most successful food franchises in the world. Due to globalization and reduction of barriers to international trade like tariffs, many firms driven by the need to increase production of goods and services have used franchising as a perfect tool to market their products in other countries outside the place of incorporation. Multinational companies like Coca-Cola, a producer of drinks and leading firms in automobile industry like Toyota are operat ing in almost every part of the world through franchising. In the 20th century, most of the world’s economies followed expansionary paths, with many firms finding a solution to increase their customer base in operating businesses in foreign countries. During this period, most countries had an exponential increase in population growth rates that necessitated accommodating foreign firms in an economy for this would spur employment opportunities. (Hammond, 2011). Businesses that are run of franchising rails stand a chance of excelling because the products as well as services brought in the market place have been established by the franchisor and the setbacks in launching a new product were dealt with originally. Again, a proven business formula has been put in place for marketing the product, and the franchisee’s business will not need extra time to pick momentum in the new market place. For businessmen and women, trading with already tested products offers income (Hiam, 2007). Nature of the business This franchising business is global, whereby the multinational has a registered head office in the country of incorporation. Coca-Cola Limited is an example of a franchise which has its head office in New York, U.S.A. being, spread to almost each country in almost every continent, each country has a registered head office where the major policies and administrative functions are carried out from. At country level, Coca-Cola Limited after assessing the market potential of its products and analyzing the annual demand of its drinks will enter into an agreement with potential business firms to aid in the production and distribution of its products to the entire nation. Other business operations like carrying out market research, mobilizing the locally available raw materials will thus be made easy through this arrangement. In return, the business firm turned franchise will generate income from the sale of the drinks to the local customers. The business turns them to their ‘own boss ’ since they now operate their own firms. On the same note, Coca-Cola Limited will lay down the procedures and rules that are to be followed by the successful franchises to carry out the business (Nash, 2000). This will make the franchises from violating Coca-Cola’s policy which may damage the reputation of their products. Coordination between the franchisor an

The high cost of a breast cancer drug Essay Example | Topics and Well Written Essays - 500 words

The high cost of a breast cancer drug - Essay Example (3). Evidence from studies show that the essential benefit derived from Tykerb is that it doubles the time required for the progression of the disease. What this means is that women pay a high price for delaying the progress of the disease by a few months, with no hope of a cure. (4). This high cost of drug therapy for women with breast cancer repeats itself as we examine another recent drug introduction for the treatment of breast cancer. The drug Avastin has been in use in the treatment of some other forms of cancer, and has recently received FDA approval for its use in the treatment of breast cancer. Through this approval it is estimated that its use would increase involving about 43,000 women found suitable for its use. These women are however going to pay a high cost for this treatment. The annual cost involved in the use of Avastin would be to the tune of $ 92,000. Women with an annual family income would have to pay $ 55,000 for the Avastin drug regimen for a year. The pharmaceutical company involved Genentech makes the oft repeated claim in support of high cost of drugs and that is the recovery of investment in research for the drug. If drug treatment of breast cancer is to be so expensive, then many women are going to be denied the benefits of drug development for the treatment of breast cancer. (5). The use of Avastin in the treatment of breast cancer virtually means an escalation in cost by as much as four times the other adjuvant drug treatments. This is an example of the enhanced costs of the newer drugs that are coming into the market for the treatment of breast cancer. Limited finances available for spending on the treatment of breast cancer in women, which means that with the high costs of drugs in the treatment of breast cancer many women are going to be denied the benefits of drug therapy in the treatment of cancer. Patients denied the treatment will simply have to be told they cannot be given the better drugs, useful in