Case Study A rapidly growing fast food company with a franchise business model h

Question

Case Study A rapidly growing fast food company with a franchise business model has begun to experience problems with some of its newly opened locations. Up to 20 percent of them are falling within a year., at a huge cost to the company. The reasons for failure seem numerous, from poor location and advertising, to poor leadership and work planning, to untrained, unmotivated employees. You have been asked to investigate the leadership and management problems at the failing franchises to see if better management training might help turn the business around. Currentlt, new franchise owners receive a one-week orientation to the business prior to gepning their restaurants and periodic refresher training at company management retreats. They are selected primarily based on financial qualifications and past business experience.

Explanation / Answer

To analyze the management problems that the fast food company is having with some of its franchises I would consider doing a ‘root cause analysis’. In this analysis I will adopt a systematic approach for identifying the root causes of the problems that the franchises are facing. The basic idea and premise of this approach is that it will help the fast food company to not only determine problems and their causes but also to develop ways to prevent franchises from failing in future.

Symptoms are being manifested from the failures and the task at hand is to diagnose the underlying problem. This will enable the fast food company to strengthen its business and franchising model to ensure that chances of failures are minimized and all aspects of failures like poor location, poor leadership etc. have been addressed in a meaningful manner.

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