Franchise Systems in World Economics Essay

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The business world is a quickly evolving entity that contains many opportunities for prosperity and success. Many global companies have locations worldwide, and franchises play an important role in the conduction and maintenance of the business.

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One of the well-known franchises is a chain of motels called “Motel 6”. The management of these motels has an important job of retaining the best possible service and attracting new, as well as previous customers. There are several benefits, as well as drawbacks in buying the franchise. The positive side is that there will always be a demand for inexpensive motels, as people often need a quick stay without the unneeded luxury.

The reason why “Motel 6” has such a reputation is that it is a very “people-oriented” organization. As the business is based on the customers and the service that is being provided, the relationship between the staff and clients is a key feature of such a business. There is a direct correlation between how the staff acts towards the visitors and how the visitors of the hotel will respond towards the staff and the motel in general.

This greatly determines the return rate and the emergence of new customers. The renovations that have taken place recently, also add to the attraction. Even though the look has been modernized, the prices have stayed low, which helps support the reputation gained through years of service (Boone, 2012).

In the past, there have been some organizational problems and staffing issues. As the motel was planned to develop more, the staffing had to be selected with great care. The structure of the employees had to be such that people from all over would feel comfortable, but majorly, the local population was dominant in the business. In the modern days, there is much competition with motels of the same levels but also, larger hotels that provide all the necessities and more.

The competition is very harsh, and so, it would be important to consider when buying the franchise. As mentioned, there have been renovations made, but the downside is that anything new requires time to adjust to the structure of the motel and staff. It is instrumental that the organization of the service is updated and people’s stay is as problem-free as possible. The system of trade and relations between businesses are guided by culture and society.

Some places have better economies due to a specific population and the presence of other businesses (Jakle, 2002). The market is also different. There are certain things that people need, so the demand on the market is special for every location. Overall, there are particular sensitivities that “Motel 6” has about public perceptions and economic challenges.

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The public views are very important, as they create a reputation for the company. The motel leads its philosophy based on fairness and respect. A business that respects the customer and looks forward to the customer’s needs and wants establishes a personal relationship with that person, making the experience more private and friendly.

With the current economy changing, especially at a worsening time, the market is becoming different from before. There are certain things that people need, so the business must adjust to the wants and needs of people. Having in mind the demand, “Motel 6” has much to offer to the small business entrepreneur.

One is competitive rates and conditions that are at the highest level. The workforce has proper knowledge of the industry, so employees will be rather helpful in supporting the development at the beginning stages. The security of the industry is another aspect that is offered, both physical, its terms of structures and locations, as well as market and establishment wise. Before any major decisions being made, the value of the franchise must be determined.

The standard for calculation is taken as the present rates of growth, and the same future rate is assumed. The first calculation made is the value of the business while in operation. The generated assets are taken into account, having in mind all the expenses in maintenance and salaries.

Liquidation option is also present, in case the business must be terminated. The economic conditions are looked at, as the locality of the business plays an important role in the greater scope of things. The financial analysis of previous years in operation is analyzed to determine any trends or weak spots (Laro, 2005).

Purchasing a franchise such as “Motel 6” would be a good choice to an entrepreneur. It is clear that by focusing on the common goals of bettering life through best service and innovative technology, having an impact on individuals and their point of view, the motel makes itself more of a friend than a business.

The management has made many adjustments to make sure the business is successful, but the best treatment for its customers is one of the most important ones. A business that values the consumer will be the most successful, which in turn will lead to a prosperous franchise purchase.

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References

Boone, L. (2012). Contemporary Marketing, 16th ed. Stamford, CT: Cengage Learning.

Jakle, J. (2002). The Motel in America. Baltimore, MA: JHU Press.

Laro, D. (2005). Business Valuation and Taxes: Procedure, Law, and Perspective. Hoboken, NJ: John Wiley & Sons.

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IvyPanda. (2020) 'Franchise Systems in World Economics'. 20 March.

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IvyPanda. 2020. "Franchise Systems in World Economics." March 20, 2020. https://ivypanda.com/essays/franchise-systems-in-world-economics/.

1. IvyPanda. "Franchise Systems in World Economics." March 20, 2020. https://ivypanda.com/essays/franchise-systems-in-world-economics/.


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IvyPanda. "Franchise Systems in World Economics." March 20, 2020. https://ivypanda.com/essays/franchise-systems-in-world-economics/.

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