1. What is the new-new approach to starting a new venture? How does this
approach differ from a new-old approach?
The new-new approach, in the word new-new it means taking approach by introducing
things, products or services that have never been introduced into the market before in
short you would introduce something that is unique in the market for example when the
first cellphone, laptop was introduced in the market, so how does this approach differ
from a new-old approach, so when we say new old approach, it means taking an old
product or someone else idea and creating an new business line with a little bit of twist
or spin to it, the milk tea, there are a lot of entrepreneurs that creates a new label and
formulas in terms of a selling milk tea
2. What is meant by the term franchise?
A franchise is a permission provided by the owner of certain rights to create or sell a
product under specific terms. In other words, a franchise is the right of the franchisee to
produce a licensed product. The franchisee pays the franchiser for the right to utilize the
licensed material in this contract. The most common we can see franchise are the fast
food chains like Mcdonalds, Jollibbee, and KFC where we can really see them sparse
all around the world.
3. What are some of the major disadvantages of franchising? Cite and explain at
least two.
-The franchise fee and start-up cost is not a joke considering as well as the ongoing
royalty costs. It would really cost you a lot for example the Mcdonalds here in the
Franchise Fee cost PHP 1,150,000 and the Investment Capital: PHP 45m - 60m.
- The second major disadvantage is the Control, entering into a franchise there is a
legal agreement between the franchisee and the franchisor. And that franchise
agreements often dictate how you manage your firm, leaving little room for innovation or
if you wish to change something about the product or management. There are
frequently limitations on where you can operate, what you can sell, and who you can
partner with.