Question 1

What is the primary purpose of information systems in a large franchise?

Accepted Answer

The major goal of the information systems for a large franchise is to leverage the proven working knowledge and transform the business into a more profitable enterprise

Question 2

Which of the following is NOT an element of virtual relationship management in e-business strategy?

Accepted Answer

Elements of virtual relationship management include: intra-enterprise collaboration through Intranet,collaboration with consumers through Internet,collaboration with suppliers through Extranet

Question 3

Which of the following activities at the franchisor's headquarters office should be the center of attention?

Accepted Answer

Running the franchisor's headquarters office involves four major activities: (1)helping and supporting business units,(2)marketing and advertising to prospective franchisees for franchise development,(3)managing people who perform franchise support and.franchise development,and (4)dealing with financial issues such as accounting and finances.The center of attention for all these activities should be the business units.

Question 4

Why might it be a good idea for a franchisor to investigate several ASP vendors before choosing one?

Accepted Answer

Choosing a trust-worthy ASP vendor is not an EASY task.A franchisor must be sure that the important data of the franchise company is well protected and not being shared by the ASP vendor with a competitor.A franchisor typically investigates several candidate ASPs before choosing the best one among them.The highest value,the lowest risk,and the lowest cost.

Question 5

Which of the following activities at the franchised unit should be the center of attention?

Accepted Answer

Running a franchised unit involves four major activities: (1)making sales to customers,(2)managing people who make sales to the customers,(3)marketing and advertising to customers,and (4)dealing with financial issues such as accounting and finances.The customers should always be the center of the attention

Question 6

Where does working knowledge come from?

Accepted Answer

Working knowledge is generally accumulated from information that is deciphered from data analyses.A franchise system generates voluminous data every day from various information systems,and at the end of day,a report is sent through the communication system to the franchisor's headquarters to summarize the day's business transactions.

Question 7

What is the primary purpose of information systems in a mid-size franchise?

Accepted Answer

A major challenge faced by many mid-size franchises is how to preserve the working knowledge learned over the years.This working knowledge is generally accumulated from information that is deciphered from data analyses.A franchise system's information systems generate voluminous data every day,which is analyzed and deciphered to produce working knowledge.

Question 8

Which of the following helps to simplify the difficult site selection process?

Accepted Answer

Selecting a good business site is perhaps the most important decision in the franchise business.A prospective franchisee will look at many alternative locations and may seek professional advice from the franchisor,real estate agents,attorneys,and the like
Thus,a complicated decision-making process becomes even more complicated as the number of participants and choices increase.Value-cost-risk (VCR)procedures may be used to simplify the process of comparing the alternative sites.

Question 9

What is the primary purpose of information systems in a start-up franchise?

Accepted Answer

Information systems that can improve basic franchisor headquarter operations fall into five major categories: Franchise Support Systems,Franchise Development Systems,Franchisor Headquarters Office Management Systems,Suppliers/Government Contact Management Systems,and Communication Systems

Question 10

The information contained in the daily business intelligence reports becomes the foundation upon which a franchise system builds what?

Accepted Answer

The information contained in the daily business intelligence reports becomes the foundation upon which a franchise system builds its working knowledge profiles,such as Site Profiles,Personality Profiles,and Customer/Product Profiles.

Quiz 12: Information Systems in Franchising