Franchises


A franchise is a contract arrangement by which the owner of a trade name, trademark, copyright, or process grants permission to others to use this property in selling goods or services under specified conditions.

The purchaser of a franchise (franchisee) obtains the advantage of offering a well-known or unusual product that may already have wide appeal. The franchisee  also receives the benefit of mass buying and advertising. Typically, the buyer of a franchise may pay a flat fee for the franchise as well as an additional percentage based on sales. The franchisee may also be required to pay a fractional share of the franchisor’s promotional costs and to purchase certain supplies from the franchisor.

Contract and sales laws pertaining to franchises are comparatively new. If the franchise involves the resale of goods or food, both the franchisor and franchisee will usually be liable under a breach of warranty if the food or other merchandize is not wholesome or proper from the consumer’s standpoint. However, tort liability to a third person is usually the responsibility of the franchisee alone. In a case where the franchisee’s truck struck  and negligently injured a pedestrian , the franchisor would normally have no responsibility.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Training and Community Colleges


The power of images and names deceives us into picturing big companies as big concentrations of people. They rarely are. Most of the work of any major organization goes on at a multiplicity of small to medium-sized shops, offices, or factories, often widely separated from one another as well as from the head office. Each work site may be no longer than an independent small or medium-sized enterprise in its neighborhood.

Since the operations performed at one work site may bear little resemblance to those at another in the same company, work sites may differ in their training needs as widely as they differ in geography. Accordingly, each work site normally administers most of its own training, with the exception of specifically managerial subjects or skills so company-specific, important, and widely needed that it is more cost effective to conduct them at a central location.

By the same token, each work site has finite resources of staff, space, equipment, and money available for training. One point it must therefore decide about any particular need is whether it is more cost-effective to conduct the training in-house or outside. More and more work sites have turned to community and junior colleges to run training programs for them. So community colleges have evolved various arrangements for working with employers. They have thus employed business-industry coordinators, who learn what services the employers need tell them what the colleges can do to help. Some colleges hire and train industry people to execute the colleges’ training assignments.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Contractual Relationship


A contractual relationship exists when employers and employees have a legal agreement regarding how employee issues are handled. Under such contractual arrangements, discharge may occur only if it is based on just cause. Inasmuch as a distinct definition of just cause does not exist, they are guidelines derived from labor arbitration of collective bargaining relationships under which just cause can be shown as follows:

  • Was there adequate warning of consequences of the worker’s behavior?
  • Are the rules reasonable and related to safe and efficient operations of the business?
  • Before discipline was rendered, did a fair investigation of the violation occur?
  • Did the investigation yield definite proof of worker activity and wrong doing?
  • Have similar occurrences, both prior and subsequent to this event, been handled in the same way and without discrimination?
  • Was the penalty in line with the seriousness of the offense and in reason with the worker’s past employment record?

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Selecting your Foreign Agent


  1. Your agent should be a national of the country where you aim to do business and should have experience in your industry or product line.
  2. The agent should not be involved with a competing company or product, but could be representing a complimentary line.
  3. Do your own checking of references. Have your banker check your agent’s bank references.
  4. Where credit is an issue, get a credit report from a local credit agency.
  5. Check at least five or six of the agent’s references: clients, customers or other business contacts relevant to your business.
  6. Visit your prospective agent in the foreign country and ask to come along on customer calls. Watch carefully how clients, secretaries, and purchasing agents respond to the agent.
  7. Since the personal relationship is so important in business abroad, the contact person must be someone who can negotiate for your company and who has authority to sign a contract on the spot.
  8. Make sure responsibilities are clear. The agent is typically responsible for promoting your interests and products, but it is no standard procedure as to who pays for what. For example, the agent can design local advertising campaign and pay for it, or bill you, or, conversely, you must provide advertising.
  9. If possible, make the written contract with your agent short-term and nonexclusive so that you have a safety valve. However, it is essential for you to treat it as an exclusive arrangement and to establish a strong mutual long-term commitment. Many agents will not consider a contract that is not exclusive or that does not continue for several years.
  10. Consult a local attorney before making any commitment to a national. It is difficult to get out of an agent agreement, so terms of termination and other “outs” should be established in the beginning. Agency laws in foreign countries are changing rapidly and legal problems arising from small mistakes can put you out of the market permanently

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Productivity Improvement Programs


The main elements of a successful productivity improvement program are the following:

  • Top management must be wholly committed to the program.
  • An effective organizational arrangement headed by someone responsible to top management for the program is essential.
  • Full awareness and understanding of the program objectives must exist at all organizational levels. Good labor-management relations are vital.
  • There should be free-flow communication between different structural elements of the organization. Recognition of the key role played by workers is crucial and must be demonstrated through a sound productivity gains-sharing system.
  • The program should be linked with measurement processes that are practical and easily understood. Goals should be set on the basis of feasibility as well as desirability.
  • The productivity improvement techniques (technical, behavioral and managerial) chosen for the program have to fit the situation and needs.
  • Monitoring, evaluation and feedback processes to identify results and barriers provide a basis for design improvements.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Strategies for Worldwide Innovation


The multi-domestic strategy is appropriate for innovations that depend on understanding local customer preferences, tastes, expectations, distribution channels, and local government regulations than they do on the technological knowledge on which they rest. This strategy is appropriate when the need for market information is high while that for technological information is low. Makers of packaged consumer goods (detergents and cereals) such as Unilever have pursued this strategy. Firms that pursue the multi-domestic strategy have self-sufficient units in each country to better discern and meet local customer preferences and tastes. On the other hand, if technological information requirements are high relative to market information requirements, a firm may want to pursue a global strategy. Firms can locate their facilities either where the environment is most suitable for technological innovations or at home where they have some endowments that give them some advantage. From there they develop products for world markets. If both market and technological information demands are low, a firm can operate using the international arrangement. It can take advantage of whatever home capabilities it has to develop products for its home market. Once the products are successful at home, it can then transfer the capabilities and the innovation to overseas. If both market and technological information needs are high. The transnational arrangement is best. In this mode, firms have access to the best sources of innovation, and the technological knowledge and the market knowledge that underpin them, worldwide.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Lectures, Line of Sight.

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