Photo AI
Explain the term 'franchise' - Leaving Cert Business - Question A - 2007
Question A
Explain the term 'franchise'. Michael Brennan has recently completed his degree in Administration and Marketing. He has started his first job as overall Marketing M... show full transcript
Worked Solution & Example Answer:Explain the term 'franchise' - Leaving Cert Business - Question A - 2007
Step 1
Explain the term 'franchise'.
Answer
A franchise is a business model where a franchisor grants a license to a franchisee to operate a branch of their business. This arrangement allows the franchisee to sell the franchisor's products or services under their brand name.
The license usually requires the franchisee to pay an initial fee and ongoing royalties based on sales. In return, the franchisee benefits from the established reputation of the franchisor and access to their business methods, marketing strategies, and support.
Examples of franchises include well-known brands such as McDonald's, Supermac's, The Body Shop, and O'Brien's Sandwich Bars.
Step 2
Outline three reasons why businesses carry out market research.
Answer
-
To find out information about the target market: Businesses conduct market research to understand customer demographics, preferences, and needs, allowing them to tailor their products and marketing strategies effectively.
-
To determine demand for a new product/service: Research helps businesses assess whether there is a market need for their products or services before launching them.
-
To evaluate the marketing mix: Market research aids in examining elements of the marketing mix—product, price, place, and promotion—helping businesses optimize their approach.
Step 3
Using examples, explain the terms (i) field research and (ii) desk research.
Answer
-
Field Research (Primary Research): This involves collecting original data directly from sources in the marketplace. Techniques can include surveys, interviews, and focus groups. For example, a company may conduct surveys to gather firsthand opinions from consumers about their products.
-
Desk Research (Secondary Research): This involves analyzing existing data already collected from other sources. For instance, businesses may review industry reports, competitor analysis, and academic articles to gather information without having to conduct new surveys.
Step 4
Outline one financial reward and one non-financial reward that Michael may receive in his job.
Answer
-
Financial Reward: One financial reward Michael may receive is a salary, which is a fixed amount paid to him annually for his role as Marketing Manager.
-
Non-Financial Reward: A non-financial reward could be job satisfaction from his contributions to the business's success, which can enhance his personal fulfillment and motivation.
Step 5
Outline the purpose of two of these forms.
Answer
-
Form P21: This form serves as a balancing statement for all PAYE taxpayers, summarizing their tax entitlements and liabilities for the tax year. It consolidates the taxpayer's income and tax credits, ensuring correct tax liabilities are paid.
-
Form P60: This form is provided annually to the employee, detailing their total pay and the deductions for income tax and PRSI (Pay Related Social Insurance) for the year. It helps employees assess their annual income and tax contributions.