 Teams of two or three  One person to scribe  Must give as many answers as possible to a question  For any answers that match my answers your team gets 2 points (1 point for half answers)  An additional answers that I deem as correct your team receives one point  All answers must be written down!

1. Franchises 2. Growth & stakeholders 3. Protecting stakeholders interests

 Franchisor gets a fee and % of profits  Franchisee provides most of the finance to set up the new outlet so the business can grow much faster  The franchisee will be motivated to succeed as they receive most of the profit  Franchisees can learn from each other which helps the business improve  As all franchises contribute to marketing, more can be spent to achieve brand awareness

 The original entrepreneurs no longer own the entire business  If there is a quality or service problem with one franchise, the image of the entire business can be damaged

 Employees – job security and greater rewards  Suppliers – receive additional orders  Local community – more people employed by the business  Government – more tax and less benefit claims

 Supplier – May be bullied by bigger firm  Employees – May not feel part of the business  The business – communication may suffer  The community – the business may relocate (perhaps overseas)  The government – will not receive tax and may have to deal with unemployment if business relocates abroad

 Lobby government – Employees, suppliers  Boycott the products – Customers  Strike – Employees  Complain – Employees, suppliers, community, government  Vote or sell shares - Shareholders

 What is organic growth?  Why might a business take over a competitor?  What are diseconomies of scale?  What causes diseconomies of scale?  Give me an example of backwards vertical integration  Define conglomerate integration