Case Study On Bespoke Threads: Franchising Recommendation And Future Growth Factors
Entrepreneurship and Bespoke Threads
The processes related to the designing, the launching and the running of the various businesses might be referred to the entrepreneurship processes that are undertaken by the concerned business organisations (Scarborough, 2016). The various experts have often been known to have described the processes of entrepreneurship as the capacities or the willingness that is demonstrated by the various members who have been interested in the development, organisation and the management of the concerned business venture (Kirzner, 2015). The concept of the entrepreneurship also takes into account the matters that pertain to the various risks that are related to the commencement of a certain business venture. The establishment of any business venture that had stemmed from entrepreneurship might be expanded though the implementations of the various factors like partnership and franchising (Drucker, 2014).
The given case study throws light on the entrepreneurial venture that was launched by Alison in collaboration with her colleague named Bespoke Threads. The case study reveals the fact that the concerned members who have been involved in the launching of the company did not have the expertise in the manufacturing as well as the designing of the clothes that have been marketed by the concerned company. The owners of the entrepreneurial venture, Bespoke Threads, Alison and her colleague had hired for the professional help in the matters that pertain to designing and the manufacture of the concerned products, bespoke clothing for the female members of the Australian society. The partners broke ways in the longer run after the inclusion of the third partner within the business. The partner of Alison had sold out her shares and Alison had retained the name of the company and had started working from the home. The financial crisis within the global arena had hit the company as well but had survived the same due to the fact that the company had been running on the various outsourcing and not from within the stores (Schaper et al., 2014).
The following report deals with the recommendation for Alison on the matters that pertain to the franchising of the business operations of the concerned organisation. The report further proceeds to discuss the various factors that are related to the matters that pertain to the problems that the business might face during the conditions of the future growth. The report attempts to reach an end with the discussion on the consequences of the business operations from within a store as compared to the operations that involve the outsourcing of the various departments within the given company in discussion, Bespoke Threads.
Franchising as a Business Expansion Strategy
The franchising of an organisation refers to the various factors that pertain to the concept of marketing that might be adopted by the concerned companies as a strategy for the expansion in the various markets all over the world (Dees, 2017). The implementation of the franchisee model for the business expansion tends to deal with the various franchisees who might need to licence the know-how of the company, the procedures that are followed within the company, the various intellectual properties that are present within the company (Fan, Kühn & Lafontaine, 2017). The franchisees also need to adhere to the utilisation of the business model that is followed by the concerned company, the brand name of the company as well as obtain the rights that are required to sell the various products and services that are offered by the concerned company under the same brand name from the concerned franchisers (Kuratko, 2016). The franchiser earns revenues in the form of the various fees as has been agreed to and documented within a certain agreement, better known as the Franchise Argument (Kacker et al., 2016). This method of the business expansion has a huge number of advantages. The company in discussion, Bespoke Threads, might also be benefitted by implementing the expansion of the business beyond the existing territories wherein the concerned company has been operating.
Bespoke Threads, a company that had come into being as an entrepreneurial venture by Alison and her colleague, might be advised to engage in the business growth through the processes of franchising and the outsourcing of the business. The case study reveals the fact that the concerned members who have been involved in the launching of the company did not have the expertise in the manufacturing as well as the designing of the clothes that have been marketed by the concerned company (Schaper et al., 2014). The owners of the entrepreneurial venture, Bespoke Threads, Alison and her colleague had hired for the professional help in the matters that pertain to designing and the manufacture of the concerned products, bespoke clothing for the female members of the Australian society. The concerned company might be advised to engage in the various expansions through the processes of franchising.
The various benefits of the expansion through the various franchising channels might include the fact that the concerned company might have the branches at various locations thereby being able to cater to the larger group of clients (Madanoglu & Castrogiovanni, 2018). This might help in the increment of the client base of the organisation thereby leading to the conditions wherein the company might have the scope of earning the goodwill among the clients (Nijmeijer, Fabbricotti & Huijsman, 2014). This might help the concerned business organisation to build a larger base of the loyal clients of the company thereby leading to the conditions that might help in the matters that pertain to the increase in the generation of the revenues of the organisation. The franchise style of the business expansion might help the concerned franchiser to spread in the international market (Beckmann & Zeyen, 2014). The franchisees are known to be taking care of the political and the legal factors that are present within the international market wherein the company aims to expand thereby helping in the improvement of the factors that are related to the revenue that is generated from the sales of the company. The expansion through the franchising thus, might help Alison to generate more revenue for the concerned company in discussion, Bespoke Threads, thereby leading to the collection of the funds that might help in the matters that pertain to the development of the proper infrastructure of the concerned company. The franchise system of the expansion of the company might help in the matters that pertain to the factors that are related to the renting the various locations wherefrom the company might operate thereby leading to the conditions wherein Alison might operate from her home and not worry about the premises that are required for the operation of the brick and mortar shop of the concerned organisation.
Benefits of Franchising for Bespoke Threads
The case study had revealed the fact that the introduction of the third partner within the initial partnership that was shared by Alison and her colleague had resulted in the breaking of the partnership. The partner of Alison had sold out her shares and Alison had retained the name of the company and had started working from the home. The financial crisis within the global arena had hit the company as well but had survived the same due to the fact that the company had been running on the various outsourcing and not from within the stores (Schaper et al., 2014). However, despite the various challenges that was faced by the concerned entrepreneurial business venture, the company had fared well within the Australian market. The company had faced a growth since its initial days when it had been operating from a certain location at the city.
The experts however suggest that the rapid growth of any company might lead to the conditions that might prove to be disadvantageous for the concerned company in discussion. The rapid growth within the operations of the concerned company might lead to the out growth in the matters that are related to the premises wherein the company might have been operating (Bravo-Biosca, Criscuolo & Menon, 2016). This might also lead to the shortage of the proper working spaces for the concerned members of the workforce of the company. The rapid growth of the company might also lead to the reduction of the morale of the concerned employees of the organisation due to their inability to cope up with the consistently increasing workload. This might also lead to the decrease in the productivity of the concerned organisation thereby leading to the compromising in the various factors that pertain to the quality of the various services that are provided to the concerned clientele of the organisation (Bartz & Winkler, 2016). The lowering down of the quality of the various products and the services that are offered by the concerned company might lead to the increase in the matters that are related to the complaints of the concerned clients of the company thereby leading to the decrement in the overall performance of the concerned company in discussion, Bespoke Threads (Gerbl, McIvor & Humphreys, 2016). This might also lead to the losses in the matters that pertain to the competitive advantage of the concerned company in the given market, the Australian garment market in this case.
Possible Future Growth Challenges and Factors
Bespoke Threads, a company that had come into being as an entrepreneurial venture by Alison and her colleague, as put forth within the given case study, deals in the manufacture of the various handmade clothing materials for the women clientele of the organisation (Schaper et al., 2014). The case study reveals the fact that the concerned members who have been involved in the launching of the company did not have the expertise in the manufacturing as well as the designing of the clothes that have been marketed by the concerned company. The owners of the entrepreneurial venture, Bespoke Threads, Alison and her colleague had hired for the professional help in the matters that pertain to designing and the manufacture of the concerned products, bespoke clothing for the female members of the Australian society. The financial crisis within the global market had hit the company as well but had survived the same due to the fact that the company had been running on the various outsourcing and not from within the stores (Schaper et al., 2014).
The current scenario within the company suggests that the concerned company has been facing an increase in the matters that pertain to the overall growth of the concerned company. Despite the various challenges that was faced by the concerned entrepreneurial business venture, the company had fared well within the Australian market. The company had faced a growth since its initial days when it had been operating from a certain location at the city. In the current situation, the company is observed to have been serving the clientele of the organisation over the various online platforms with the outsourcing of the various factors that pertain to the operations that are to be undertaken in order to deliver the proper products to the concerned clientele of the organisation (Caliendo et al., 2015). The owner of the organisation, Alison is observed to be reluctant in the matters that pertain to the expansion of the brick and mortar stores of the organisation which might result in the increase in the cost of production of the various handmade items that are marketed by the concerned company.
The company might fare better than the other competitors of the concerned company that have been operating within the Australian market with the maintenance of the outsourcing techniques that are implemented within the concerned organisation. The outsourcing of the various business operations might lead to the conditions wherein the tasks at hand are accomplished in a better manner as well as at a faster pace (Schniederjans, Schniederjans & Schniederjans, 2015). This ensures the timely delivery of the various products and services to the concerned clientele of the organisation. This might help in the retention of the clients by the concerned organisation thereby creating a larger client base. The outsourcing of the various operations of the concerned company might help the concerned business organisation in discussion, Bespoke threads to deal with the various matters that might help in the strengthening of the core business processes of the concerned company.
Conclusion
The outsourcing of the various business processing might further include the matters that pertain to the sharing of the risks that are involved within the concerned company (Dinu, 2015). The outsourcing of the various operations of the concerned company might lead to the conditions that are related to the transferring of the risks involved within the company with the various partners of the organisation that might be taking care of the operations that have been outsourced to them (Curran & Storey, 2016). The outsourcing of the various activities of the concerned company in discussion, Bespoke Threads, might lead to the conditions wherein the concerned clients might receive the handmade clothing within the promised time thereby ensuring the retention of the concerned clientele. The outsourcing of the concerned operations of the organisation in discussion might lead to the conditions that are related to the matters that pertain to the reduction in the costs that are incurred by the concerned company in the matters related to the recruitment of the skilled employees as well as the costs that might be incurred in order to ensure the smooth operations within the concerned business organisation in discussion, Bespoke Threads.
Conclusion
In lieu of the above discussion, it might be pointed out that the concerned company in discussion has been progressing in the correct direction in order to gain a better competitive advantage within the given market. The company in discussion, Bespoke Threads, might also be benefitted by implementing the expansion of the business beyond the existing territories wherein the concerned company has been operating. The experts however suggest that the rapid growth of any company might lead to the conditions that might prove to be disadvantageous for the concerned company in discussion. The rapid growth within the operations of the concerned company might lead to the outgrowth in the matters that are related to the premises wherein the company might have been operating. The company might fare better than the other competitors of the concerned company that have been operating within the Australian market with the maintenance of the outsourcing techniques that are implemented within the concerned organisation.
References
Bartz, W., & Winkler, A. (2016). Flexible or fragile? The growth performance of small and young businesses during the global financial crisis—Evidence from Germany. Journal of Business Venturing, 31(2), 196-215.
Beckmann, M., & Zeyen, A. (2014). Franchising as a strategy for combining small and large group advantages (logics) in social entrepreneurship: A Hayekian perspective. Nonprofit and Voluntary Sector Quarterly, 43(3), 502-522.
Bravo-Biosca, A., Criscuolo, C., & Menon, C. (2016). What drives the dynamics of business growth?. Economic Policy, 31(88), 703-742.
Caliendo, M., Hogenacker, J., Künn, S., & Wießner, F. (2015). Subsidized start-ups out of unemployment: a comparison to regular business start-ups. Small Business Economics, 45(1), 165-190.
Curran, J., & Storey, D. J. (2016). Small firms in urban and rural locations. Routledge.
Dees, J. G. (2017). The Meaning of Social Entrepreneurship. In Case Studies in Social Entrepreneurship and Sustainability (pp. 34-42). Routledge.
Dinu, A. M. (2015). The risks and benefits of outsourcing. Knowledge Horizons. Economics, 7(2), 103.
Drucker, P. (2014). Innovation and entrepreneurship. Routledge.
Fan, Y., Kühn, K. U., & Lafontaine, F. (2017). Financial constraints and moral hazard: The case of franchising. Journal of Political Economy, 125(6), 2082-2125.
Gerbl, M., McIvor, R., & Humphreys, P. (2016). Making the business process outsourcing decision: why distance matters. International Journal of Operations & Production Management, 36(9), 1037-1064.
Kacker, M., Dant, R. P., Emerson, J., & Coughlan, A. T. (2016). How firm strategies impact size of partner?based retail networks: Evidence from franchising. Journal of Small Business Management, 54(2), 506-531.
Kirzner, I. M. (2015). Competition and entrepreneurship. University of Chicago press.
Kuratko, D. F. (2016). Entrepreneurship: Theory, process, and practice. Cengage Learning.
Madanoglu, M., & Castrogiovanni, G. J. (2018). Franchising proportion and network failure. Small Business Economics, 50(4), 697-715.
Nijmeijer, K. J., Fabbricotti, I. N., & Huijsman, R. (2014). Making franchising work: A framework based on a systematic review. International Journal of Management Reviews, 16(1), 62-83.
Scarborough, N. M. (2016). Essentials of entrepreneurship and small business management. Pearson.
Schaper, M. T., Volery, T., Weber, P. C., & Gibson, B. (2014). Entrepreneurship and small business.
Schniederjans, M. J., Schniederjans, A. M., & Schniederjans, D. G. (2015). Outsourcing and insourcing in an international context. Routledge.