MAR 3203- RETAIL MANAGEMENT HOPKINS FSU (TEST 1) EXAM QUESTIONS WITH CORRECT
ANSWERS |LATEST UPDATE 100% SOLVED| GRADED A+
What are the disadvantages of independent retailers? 1. Lack of bargaining power
2. Lack of economies of scale
3. Labor intensive operations
4. Over- dependence on owner
5. Limited long-run plan
What are chain retailers? 1. Operate multiple outlets under common ownership
2. Engage in some level of centralized or coordinated purchasing and decision making
3. In the U.S. there are roughly 110,000 retail chains operating about 900,000 establishments
What are the advantages of chain retailers? 1. Bargaining power
2. Cost efficiencies
3. Efficiency maintained by computerization, warehouse sharing and other functions
4. Defined management philosophy
5. Considerable efforts in long-run planning
What are the disadvantages of chain retailers? 1. Limited flexibility
,2. Higher investment codes
3. Complex managerial control
4. Limited independence among personnel
5. Excessive standardization due to extreme concern for bargaining power
What is Franchising? A contractual agreement between a franchisor and a retail franchisee
that allows the franchisee to conduct business under an established name and according to a
given pattern of business
List the top 5 largest franchises 1. Subway
2. McDonalds
3. KFC
4. Burger King
5. 7 Eleven
List the top 5 most popular franchises 1. Subway
2. Quiznos
3. UPS store
4. Cold Stone Creamery
5. Dairy Queen
, Product/ Trademark (Franchising format) 1. Franchisee acquires the identity of a franchisor
by agreeing to sell products and/or operate under the franchisor name
2. Franchisee operates autonomously
3. 2/3 of retail franchising sales
4. Auto dealerships and gas stations
Business format (Franchising format) 1. Franchisee receives assistance, location, quality
control, accounting systems, startup practices, management training
2. Common for restaurants and real-estate
Advantages of Franchising 1. Low capital required
2. Acquisition of well known names
3. Operating/ management sales taught
4. Cooperative marketing possible
5. Exclusive rights
6. Less costly per unit
Disadvantages of Franchising 1. Over-saturation could occur
2. franchisors may overstate potential
3. Contractual confinement
4. Agreements may be cancelled or voided
5. Royalties are based on sales, not profits
ANSWERS |LATEST UPDATE 100% SOLVED| GRADED A+
What are the disadvantages of independent retailers? 1. Lack of bargaining power
2. Lack of economies of scale
3. Labor intensive operations
4. Over- dependence on owner
5. Limited long-run plan
What are chain retailers? 1. Operate multiple outlets under common ownership
2. Engage in some level of centralized or coordinated purchasing and decision making
3. In the U.S. there are roughly 110,000 retail chains operating about 900,000 establishments
What are the advantages of chain retailers? 1. Bargaining power
2. Cost efficiencies
3. Efficiency maintained by computerization, warehouse sharing and other functions
4. Defined management philosophy
5. Considerable efforts in long-run planning
What are the disadvantages of chain retailers? 1. Limited flexibility
,2. Higher investment codes
3. Complex managerial control
4. Limited independence among personnel
5. Excessive standardization due to extreme concern for bargaining power
What is Franchising? A contractual agreement between a franchisor and a retail franchisee
that allows the franchisee to conduct business under an established name and according to a
given pattern of business
List the top 5 largest franchises 1. Subway
2. McDonalds
3. KFC
4. Burger King
5. 7 Eleven
List the top 5 most popular franchises 1. Subway
2. Quiznos
3. UPS store
4. Cold Stone Creamery
5. Dairy Queen
, Product/ Trademark (Franchising format) 1. Franchisee acquires the identity of a franchisor
by agreeing to sell products and/or operate under the franchisor name
2. Franchisee operates autonomously
3. 2/3 of retail franchising sales
4. Auto dealerships and gas stations
Business format (Franchising format) 1. Franchisee receives assistance, location, quality
control, accounting systems, startup practices, management training
2. Common for restaurants and real-estate
Advantages of Franchising 1. Low capital required
2. Acquisition of well known names
3. Operating/ management sales taught
4. Cooperative marketing possible
5. Exclusive rights
6. Less costly per unit
Disadvantages of Franchising 1. Over-saturation could occur
2. franchisors may overstate potential
3. Contractual confinement
4. Agreements may be cancelled or voided
5. Royalties are based on sales, not profits
