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What risks do you think you would face if you were a successful manager in a large organization who suddenly had an offer to go into business for yourself? Why do you think Treadwell decided to become a multi-brand franchisee instead of staying with KFC?
What risks do you think you would face if you were a successful manager in a large organization who suddenly had an offer to go into business for yourself? Why do you think Treadwell decided to become a multi-brand franchisee instead of staying with KFC?
Expert Solution
Risks that I may face as per the given situation are:
- I risk losing my customer base if I am unable to serve them efficiently. This means that if I am unable to serve the consumers in a manner they've become accustomed to, or if I am incapable of fulfilling their demands, then I might lose my customer base.
- Risk from other competitors in the market. Treadwell also faced this challenge in the early days of setting up his corporation. I should understand the competitive strategies of my competitors before entering into the market so that I can deal with them efficiently.
- I may also face the risk of insufficient capital. Managing a budget is not an easy job in the business world. I must make sure that I have enough capital to be able to cover all my expenses.
In my opinion, I think that Treadwell must have separated from KFC because he gained full knowledge about the retail, fast-food world and was ready to expand his reach. He understood the trends in the fast-food industry and came to know that people prefer ready-made food. He learned marketing practices from KFC and how to attract a large customer base, and was able to apply them to his expanded portfolio. He implemented all these strategies to his own franchises and increased his customer base greatly.
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