Name of the Organization for Project
The organization whose worker agreed to provide me with some data is Classic Rock Coffee Company. It is a public sector organization located in Dubai. Classic Rock Coffee is a small-scale franchise imported from the US.
Summary
The purpose of this research is to find out how business communication is applied to franchising and what problems can worsen the parties’ relationships. For this purpose, I have analyzed modern literature on the subject. I have found the basics of business communication and the definition of franchise. Furthermore, I have searched for information on business communication as an aspect of franchising and provided a relevant resource stating possible problems. Then I have asked for the opinion of the authority: I have conducted a small e-mail interview asking the franchisee of Classic Rock Coffee to answer some questions about the subject. I have also asked him to give his personal opinion and share his experience. On account of literature analysis and the authority’s opinion, I have made conclusions about the problems of business communication if Dubai franchising.
Business communication basics
It is known that no business is possible without communication. Broadly, the word “communication” means the process of sharing information or feelings (Kaul 2). In fact, communication is often compared with human circulatory system, because in business it performs the same functions. It is a process that helps workers cooperate, introduce changes, and achieve goals. Communication is also used to control the business process and prevent possible dysfunctions (Sehgal and Khetarpal 2-4).
External business communication is the process of cooperation with business partners. It helps to make good contacts and maintain professional relationships, make deals and raise funds. Thus, the people who communicate are, most commonly, investors and suppliers (Brounstein et al. 2).
To master the art of business communication, one certainly needs to have a wide range of skills. To begin with, it is necessary that communication managers are fluent speakers of the language of communication so that they could do business correspondence. During business interviews and appointments, it is important that they watch their body language because it is a form of communication as well. Listening is also very useful if they want to build trustful relationships (Kumar 135-279). Thus, it goes without saying that communication is the essential element of any business and the cornerstone of organization as a whole.
Franchising basics
In short, international franchise law defines franchise as a permission from the state to perform as a dealer of a foreign trademark or services (Loewinger and Lindsey 5). The trademarks and services can be globally popular or small-scale. Franchisees buy the right to sell some production under the logo of the franchisor. They also pay for the staff training and the lay-out. In their turn, franchisors provide business plans instructing the franchisees what exactly they should do. Franchisors should take care of their immaterial goods and logotype. They should also consider the place where the franchisees plan to locate their stores: if the infrastructure is poor, such store will cause losses (“Franchise in Dubai” 4).
Business communication in franchising
Franchising is deeply intertwined with business communication. It is noted that in the course of business interaction, communication can either enhance or weaken the trust (“Talk to Me: Good Communication as a Business Strategy” par. 5). Indeed, it was noted above that, communication is supposed to build trust, and the actors of communication should be well-trained. If the communication is poor, the relationships can be seriously affected.
In franchising, communication should flow freely. Today, the ways of communication are plentiful. It can be carried out by phone, fax, electronic mail, and even the most popular social networks and smartphone applications. The main idea is that both the franchisors and the franchisees should always be accessible to each other. It is also important that the parties be frank and listen to each other. If a problem arises, the parties who have developed cooperation based on mutual trust can sort it out very quickly (“Talk to Me: Good Communication as a Business Strategy” par. 5-7).
Franchise communication problems
Franchising, just as any other business communication, does not ensure that there will be no difficulties. Usually, it is the poor communication that makes the business less effective. It can slow down the process and even result in a conflict between the parties. The franchisees can be sometimes (or even regularly) left ignorant of the franchisors’ decisions, or the franchisors are too evasive and hide something from the franchisees. For example, if the franchisor has decided to change the logotype, and the franchisee does not know about it on time, it is the result of ineffective communication. It is necessary that the franchisees take an active hand in communication too. If the franchisees are left wondering about their next step without first consulting the franchisors, it is also the result of bad communication (“Talk to Me: Good Communication as a Business Strategy” par. 8). Besides, it is worth returning to the problem of trust. If the professional relationships of the parties are not supported by loyalty and trust, it may also lead to a conflict.
Research: Interview with a franchisee
In order to test the general ideas about main barriers to successful franchising, we have conducted an interview with a franchisee of one of the small-scale organizations of Dubai. The respondent works at Classic Rock Coffee. His name is Irfan Izhar, and he was interviewed by e-mail. He was asked to look through a list of possible reasons for conflict between the franchising parties and rank them in order of importance. He was also asked to give his opinion on the subject and share his experience.
The list of reasons and the respondent’s rating can be demonstrated in the form of a chart:
As it can be seen from the chart, the three most important reasons for franchise business failure, to the respondent’s mind, are the lack of trust, the franchisors’ evasiveness, and indifference. The respondent also emphasizes the critical effects of listening, or rather, not listening to each other which results in the inefficiency of the business.
As for his personal experiences, the franchisee claims that at first the problem was to master the language of business communication. “I had no problem hiring people who speak business English,” he states, “but to make the business flow smoothly, I also had to take part myself. I just had to convince the franchisor I was a reliable person. I think I succeeded in that: although my business English still needs improvement, I was very interested in the Classic Rock Coffee business, and the feedback I got was only positive. This was when I learned that to build trust you had not only to speak but to listen as well.”
Conclusion
After the analysis of the literature and the conduction of the research, is it possible to come to the following conclusion. Firstly, the importance of proper business communication in franchising goes without saying. Secondly, it is clear that without business communication the franchise is not possible. In fact, business communication is the only way to establish effective business. Furthermore, the key aspects of business communication that can be applied to franchising is creating loyal relationships, being frank and accurate, and being interested in the process. To have a full understanding of what actions does the partner take it is necessary to stay in contact all the time and, of course, be really keen on the business. Finally, it necessary that the parties listen to each other; in terms of business communication, this art is not to be underestimated.
Works Cited
Brounstein, Marty, Arthur H. Bell, Dayle M. Smith, Connie Isbell, and Alan Orr.
Business Communication. New York, United States: John Wiley & Sons, 2010. Print.
“Franchise in Dubai.” Business Information Series 1.4 (2012): 4-24. Print.
Kaul, Asha. Effective business communication. New Delhi, India: PHI Learning, 2014. Print.
Kumar, Raj. Basic Business Communication: Concepts, Applications and Skills. New Delhi, India: Excel Books India, 2011. Print.
Loewinger, Andrew P., and Michael K. Lindsey. International Franchise Sales Laws.
Chicago, United States: American Bar Association, 2006. Print.
Sehgal, M. K., and Vandana Khetarpal. Business Communication. New Delhi, India: Excel Books India, 2008. Print.
Talk to Me: Good Communication as a Business Strategy. Franchising World, 2008. Web.