Discussion Questions
Q1.
- Spotting opportunities and exploiting them.
- Constant search for knowledge on how to run a business successfully
- Setting up systems that will assist in running the business, and doing changes when necessary
- Establishing efficient means of communication between employees, franchisees and clients
- Promotion 1-800-GOT-JUNK?’s products and services over media
- Expansion of the business to various parts of the United States of America, Canada, and Australia and other countries
- Progressive improvement of the company’s technology
- Quick detection of weak points and quick rectification
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- Effective management of the company’s resources
- Use of effective risk management measures
- Effective management of business operations
Q2.
Scudamore did a commendable job of 9/10 in preparing 1-800-GOT-JUNK? for expansion. First, he took Michael Gerber’s advice developing a franchise model for business success (Barringer & Ireland, 2010). In a franchise business model, business operations are divided into identifiable parts, and then systems are developed for each of the parts (Barringer & Ireland, 2010). The franchise business model makes it easy to manage an expanding business (Franchise Direct, 2013). Scudamore also took advantage of technology and set up the JunkNet information system, which assisted in dispatching schedules to franchisees and in the input of receipts and expenses from any geographical location (Barringer & Ireland, 2010). Lastly, Scudamore promoted 1-800-GOT-JUNK over media, which increased the numbers people who were interested in the company’s products and services (Barringer & Ireland, 2010).
Q3.
1-800-GOT-JUNK? already has 300 franchises and still has the potential to expand further(Barringer & Ireland, 2010). 1-800-GOT-JUNK? is on the expansion stage because there is increased customer confidence and interest in the company’s products which is evident in the 30000 phone calls that were received after the firms promotion on Oprah (Barringer & Ireland, 2010). The increased confidence and interest also means that there is increased demand, which is characteristic of the expansion phase of a business (Garman & Forgue, 2010). During the expansion stage, it is advisable to advertise products and to expand a business to capture the increasing demand, which is what Scudamore was doing. 1-800-GOT-JUNK?’s services are not only on demand in the United States, but also in Canada, and Australia and two other countries (Barringer & Ireland, 2010).
Q4.
Scudamore used a franchise model for his business whereby he created systems for various operations of the business, which employees and franchisees would follow (Barringer & Ireland, 2010). Scudamore also developed the JunkNet information system, which made the dispatch of schedules and the collection of receipt and expenses information efficient and remotely accessible (Barringer & Ireland, 2010). The JunkNet information system also made it possible for 1-800-GOT-JUNK? to expand easily since the system was accessible from any geographical location. Therefore, 1-800-GOT-JUNK‘s managers only need to log into the JunkNet information system to control and monitor business activities.
Application Questions
Q1.
Septic waste disposal is an additional service that 1-800-GOT-JUNK? can offer. Septic waste disposal will require that 1-800-GOT-JUNK? invests in specialized tanks for containing the waste and pumps loading and offloading the waste. The implementation of the solid waste disposal services should be separate and independent from junk disposal, because of the differences in handing the wastes. After adding septic waste disposal to the list of services 1-800-GOT-JUNK? can inform existing and potential customers about the new services offered via advertisement.
Q2.
- Strengths
- 1-800-GOT-JUNK? is conscious of protecting the environment, because they recycle recyclable waste (1-800-GOT-JUNK?, 2013). This is appealing to many customers who are aware about the importance of responsible waste disposal.
- 1-800-GOT-JUNK? benefits from recycling waste, they recycle papers, glass, metal, plastics, and tires just to mention a few (1-800-GOT-JUNK?, 2013). Recycling is a good stream of income for 1-800-GOT-JUNK?.
- (a) Weaknesses
- 1-800-GOT-JUNK? only offers junk disposal services and lacks diversity. This puts the company at a disadvantageous position if it is to face increased competition.
- Some of the services offered by 1-800-GOT-JUNK? can be offered by competitors. For instance, companies that offer moving services can offer the services of moving junk waste from one location to another, thereby increasing competition against 1-800-GOT-JUNK?.
2. (b) The average day of a franchisee would be to would be to collect schedules from the JunkNet system in the morning (Barringer & Ireland, 2010). The schedule contains the various places and times that the franchisee is to carry out junk maintenance services. After providing the services, the franchisee receives payment from the client and writes a receipt. At the end of the day, the franchisee enters the receipts information and the expenses incurred information into the JunkNet system (Barringer & Ireland, 2010).
References
1-800-GOT-JUNK?. (2013). 1-800-GOT-JUNK? The World’s Largest Junk Removal Service. 1-800-GOT-JUNK ?. Retrieved from:
Barringer, B.R., & Ireland, R.D. (2010). Entrepreneurship: Successfully launching new ventures (3rd ed.). Upper Saddle River, NJ: Prentice Hall.
Franchise Direct. (2013). Expand Your Business with Franchising. Franchise Direct. Retrieved from:
Garman, E. T., & Forgue, R. E. (2010). Personal finance. Mason, OH: South-Western Cengage Learning.
