Answer:
The correct answer is Franchisor, franchise.
Explanation:
The franchisor: Charges marketing rights so that the franchisor company can use its brand, trade name and the design of the franchisee's establishment. In most cases, these elements cannot be modified to maintain the same quality levels of the franchisor. In addition, know-how, business experience and technical and commercial assistance are also provided during the term of the agreement.
The franchisee: Is the owner of the business and who makes the necessary investments to start it up. Thus, you pay a fee to the franchisor to use your brand. Such a subscription is like a "right of entry" into the business. Even, periodic amounts may be established in the contract according to sales volume and / or technical and commercial assistance. In addition, the franchisee has the exclusive franchise regime with respect to a certain geographical area and a type of products.
It should be live on the web in only a few minutes.
Explanation:
The app developer for small companies has officially been announced by Google. The new tool called simply "Website" is free and gives small business owners an opportunity to create and produce websites on a laptop or mobile phone in minutes.
60 per cent of small companies in the world don't have their own websites, according to Google. With the launch of the new website creator, Google is clearly trying to increase that number.
Website is an expansion of Google My Business. You will therefore need a full GMB database to use the application. To create a website, Google automatically pull details from your GMB listing and can then be personalized with subjects, photographs and text.
Answer:
Option B. Chester Company
Explanation:
The company wants to pursue Niche Cost Leader Strategy. In a Niche cost leader strategy the product is highly differentiated and the cost the company charges to its customer is low as apposed to other competitors. The companies that has highly differentiated product and are new entrants usually use this strategy to win a good share of market size.
The strongest competitor would have lowest price, very stable market share price, high investment in plant and equipment, higher production capacity, lowest return on investment, lowest earnings per dollar sales. etc.
Now we will asses different reports and conclude which competitor will be the strongest competitor for the Niche Cost Leader Strategy company. The analysis is given as under:
- <u>Lowest Price:</u> If we look at the Production information, Price Column and take the average price of the products of each company then we can conclude that Chester's price of average product is $20, Baldwin has $24.17 and the rest of the competitors are charging high. This means Chester is charging lowest price.
- <u>Stable Market Share Price:</u> The vulnerability of share price of Chester is the lowest which stands at $0.45. This means that the stock exchange values the company's share as a stable stock with least vulnerability. (See Stock Market Summary)
- <u>Lower Return on Asset and Return on Sales:</u> If we analyze the Selected Financial Statistics then we will acknowledge that Chester also has 2nd lowest Return on Assets and Return on sales which shows that the company is charging lower prices to its customers. Baldwin is not appropriate to consider here because the company is incurring losses hence its Return on Assets and Return on Sales can not be considered as good indication.
- <u>Higher Investment in Plant and equipment:</u> The company has 2nd highest investment in plant and equipment with highest Net Book Value of $148k and Baldwin stands at $178k. Now again the higher investment of Baldwin is financed by debt which costs the company more than Chester. This means Chester would be strongest competitor because the company will have to only bear the depreciation cost which is non cash flow in nature and not the interest cost which Baldwin is bearing. (See Income statement for Interest Cost and Balance sheet for Carrying value of the asset).
- <u>Production Capacity:</u> Chester has the highest production capacity which means that the company despite its 2nd largest investment in plant and equipment. This means that the plant and machinery of Chester is more innovative which is the reason that the production capacity is higher than other competitors.
From the above analysis it seems that Chester is pursuing Niche Cost Leader Market and is the strongest competitor that the company will face. Hence B is the correct option here.