Managerial Economics - Questions Essay Example | Topics and Well Written Essays - 750 words

Managerial Economics - Questions - Essay Example 2. Advertising – advertising your own business requires a lot of money since it is expensive. However, franchisees do not need to worry about advertising their business because advertisement campaigns are already included in the fee that was paid by the franchisee and when the mother company advertises its products it normally carries all franchise outlets. 3. Name Recognition – most consumers nowadays buy products with brand names since it gives an assurance of quality. Most franchise outlets carry the name of well known companies with branded products that are trusted by consumers, and so they often patronize franchises. 4. Reputation – a franchisee also enjoys the protected reputation of the franchisor because lawsuits and other legalities, which may occur, would be taken care of the franchisor’s legal department. Franchisors will always look after their franchises in order to maintain their good status. 5. Support – when an individual invests in a franchise he is given the full support by the franchisor by providing technical know-how, skill, training in accounting and equipment. Support is always given to attain elevated success ratios in order to be able to sell more franchises. Corporate culture is the organization’s way of life and is an important factor in the success of an organizational architecture. Organizational architecture mainly survives in a corporate culture which possesses the following qualities (Blumenthal, n.d.): a) A team that functions as one; b) Has information sharing policy; c) Values the growth and success of its personnel; d) Puts more importance to consistency rather than hi-tech demarcation; e) Observes and respects authority; f) Measures performance output through hands-on management and is more on result-oriented people. By properly analyzing the corporate way of life, the organization architecture would be able to appraise the essential factors that