Discussion post.

Learning Goal: I’m working on a management discussion question and need the explanation and answer to help me learn.

This discussion involves selecting one type of business and comparing and contrasting three different forms of establishing the business; as a new venture, purchase of an existing business, purchasing a franchise of the business. For example, if you decide to enter into the hamburger business, I want you to compare and contrast all elements of the business plan for establishing a new hamburger business, purchasing an existing hamburger business (you need to find an existing business of this type for sale online) and the purchase of a hamburger franchise business. Take into consideration the following: 1) the brand of the franchise, 2) the demand for the product/service being sold, 3) the cost of the franchise, 4) the franchise requirements such as initial capital, 5) training offered, 6) track record of the franchise, 7) the commissions you are expected to pay the franchise (typically this is a percent of sales), and 8) the amount of marketing performed by the franchise. Please note that this is not a comprehensive list of considerations; your grade will be determined by the level of detail in your analysis. The objective of this homework is twofold: 1) to make you more aware of the pros and cons of different entry forms into an industry, and 2) for you to get used to analyzing an opportunity, the industry, market research and segmentation, marketing plan, operations plan and financial plan.