Your Own Franchise - Research Paper Example

? Introduction: Franchising refers to the use of another organizations successful business model. For a person issuing out the franchise, this is a form of developing a business chain, through minimizing of risks. The success of the franchisor will depend on the success of the individual who purchased the franchise. This paper takes about a franchise in the insurance sector. It analyzes the franchise, the amount required to start it, the pros and cons of owning the franchise, and the strategic, administrative, and operation strategies the franchise holder should initiate for purposes of making it a success. It also outlines the various training techniques that the franchise holder should initiate for purposes of succeeding in the business. This paper has a conclusion, which is a summary of the main points identified. Brand Description: The franchise under consideration is Allstate Insurance Company. To purchase the franchise, an individual requires about $50,000. Allstate is ranked amongst the fortune 100 companies, and it is one of the most highly recognized insurance and financial companies in United States of America. The company was formed in 1931, and its success and achievements are pegged on its innovation (Bond, 2012). The company operates an exclusive agency force, and its expansion is always dependent on the financial position of its agents. The company is always looking for motivated and highly ambitious people who want to own and operate its Allstate agencies (McCarthy, 2010). The major business products of Allstate insurance company is insurance services targeted at home owners, and auto mobile owners. These insurance services are offered mainly through the various franchise holders of the company. The marketing of these insurance products is done under the brand names of Esurance*, Allstate*, and Esurance* (Bond, 2012). The company provides investment and retirement insurance products, as well as life insurance cover. It also provides variable and traditional life insurance cover. These insurance products are always interest sensitive, and their premiums are affordable. It also provides fixed annuities, such as health insurance covers, and voluntary accident cover. Other services and products that the insurance company issues are the business insurance products detailed to serve owners of small business organization. Household insurance cover to consumers targets products such as boats, motorcycles, as well as condominium insurance policies (Bond, 2012). Under the dealer services, Allstate provides non-insurance and insurance products that are sold mainly to auto mobile dealers. The company also has an Allstate roadside service. These services include wholesale and retail products meant to assist road side users. Resources used: One source of information that has provided guidance in selecting this franchise is the organizations website. The organization runs a website with the URL name, www.allstate.com. This website is useful because it provides all the necessary information pertaining to the formation, and operations of Allstate insurance company. The website provides the historic formation of Allstate insurance agency, and it identifies its mission, objectives and aims. It is from the organizations website that we are able to know that the company provides most of its services through agencies and franchises (Allstates, 2013). The website also contains the financial records of the company. These records are not for only the current year, but they are distributed to reflect the financial position of the company for over ten years ago. It is also easy to assess information contained in this website. This is because it does not require an individual to open an online account with the company, so as he or she can access the website. All that an individual needs is an access to the computer, and the internet. Another source of information is a book by Bond (2012), referred to as Bonds top 100 franchises. This book by Bond (2012) identifies 100 top performing franchise companies. It gives a detailed description and analysis of these franchises. Bond (2012) identifies franchise companies with more than 50 operating units. Bond (2012) evaluates these companies on the grounds of their historical operations and performances. He also evaluates these companies based on the market dynamics in which they operate, the brand identification, financial stability, on-going support, franchise satisfaction and the level in which the organization trains its employees. Bond (2012) analyzes over 2500 franchises in North America, including the United States. He categorizes them into three distinct groups, namely, the service based franchises, the food based franchises, and the retail based franchises. Bond (2012) identifies Allstates insurance group as a leading franchise in the service sector. In this book, Bond (2012) denotes that Allstates Insurance Company has an efficient and excellent managerial strategy, with aggressive expansion strategies. He provides all financial information of the company, for over ten years, analyzing them and thereafter gives an advice on whether an individual can purchase the franchise of the company (Bond, 2012). This book is therefore a very important source of information, and it gave me a great insight on the operations of Allstates insurance company, and their managerial strategies. On this basis, this book played a great in influencing my opinion to choose Allstates insurance agency as a franchise. Another great source of information is a book by McCarthy (2010) referred to as Recreational vehicle dealer franchises. In this book, I manage to learn the impact of various policies by Allstate on motor vehicle and home owners. However, this book concentrates so much on the impact of the Allstates insurance policies on motor vehicles. This book does not only focus itself on Allstates insurance company, but it also focuses on other insurance companies such as AIG insurance company. This book explains the nature of completion amongst the various insurance companies, and their strategic management policies. This is for purposes of creating a strong brand name, so that they might easily sale their franchises. This book identifies specific policies by Allstates insurance company, and compares them with similar policies from other competing insurance companies. On this basis therefore, this book was very important in helping me to compare the products of Allstates insurance company, with the products of other competing insurance companies. As a result of these comparisons, I was able to choose Allstates as my preferred franchise. Pros and Cons of Owning an Allstates Insurance Franchise: An individual who owns an Allstates insurance franchise will have the following opportunities (Bond, 2012), The franchise owner will develop his or her ideas, and this includes choosing the location of the business, and its members of staff. There is comprehensive list of financial and insurance products that a franchise holder can sale. The franchise holder will build a business book that he or she has an interest in There is very good commissions, and rewards offered to best performing franchises. Franchise holders are given an opportunity to participate in an education program that is aimed at improving their sales and managerial skills. Franchise owners have an opportunity to enjoy consultation services from the company. These services are aimed at ensuring that the franchise holders can acquire skills that will help them in running the franchise. Despite these advantages of owning a franchise with Allstates insurance company, it has one major disadvantage. That is of dishonesty while dealing with customers. This is for purposes of the company making huge profits. For instance, in 2008, the company was accused by the Association for American Justice (Allstate, 2013). The association claimed that, Allstates instructed its franchise holders to find ways and measures of avoiding paying insurance claims. This is definitely negatively affected the image of the company. However, Allstates dismissed these allegations as inaccurate, and out of place Levels of Administration to support the Franchise: The first level of administration, meant to support the franchise is the establishment of strategic goals that the franchise will aim to accomplish. Under this level of administration, the organization will hire personnel who are skillful in strategic administration and management. This office will consist of three individuals, who are knowledgeable on every aspect of strategic management (Bond, 2012). They will have the responsibility of developing the strategies that the organization has to undertake for purposes of achieving their goals. This department will have to identify the changing needs of insurance customers, and how to market the products of Allstate, for purposes of creating a loyal customer base. The second level of administration is the administrative functions. Under these functions, the franchises will establish an administrative office. The main roles will be to enforce the various recommendations from the department in charge of strategic management. The functions of this department will also include hiring and training of employees to conform with the culture of the organization. It is this department that will develop the visions and objectives of the company, and thereafter find ways of implementing them. The operations department on the other hand will involve itself with the actual implementation of the objectives of the company (McCarthy, 2010). This department will only take directions from the administrative department, and it will consist of the sales people, and accountants hired by the franchise. Outline of the Training Program: After obtaining the franchise, it will be very important to hire the right people who will help in carrying out the objectives of the business organization. However, it is difficult to get the right people with the necessary skills that the franchise will need for purposes of carrying out is objectives (Noe, 2013). On this basis, there will be a need of training the employees, for purposes of imparting these skills to them. Noe (2013) identifies the following six step training manual for employees. Step 1: Identification of the objectives, mission and goals of the company. Step 2: Identifying the various skills that the organization needs. Step 3: Identifying the various skills that employees of the organization have, and ones that they lack. Step 5: Developing programs that will aim at imparting the various skills that employees lack. This might include on job training, coaching sessions, or classroom studies. Step 6: This will include conducting an appraisal to find out if these skills are actually imparted into the employees, and they are effective in carrying out the objectives of the franchise. Conclusion: In conclusion, this paper manages to identify Allstates insurance as the company to franchise. This paper manages to effectively analyze the advantages and disadvantages of owning a franchise under the name of Allstates insurance company. However, from this paper, we can denote that the advantages are superior, as compare to the disadvantages. To achieve success in administering the franchise, this paper manages to explain the strategic, administrative and operational strategies for the franchisee. This will ensure that the organization manages to conform to the requirement and terms of the Franchisor. The franchisee understands the need of having a highly skilled work force. On this basis, he develops a six point strategy of training its employees to ensure that they obtain the necessary skills. References: Allstate. (n.d.). Allstate Insurance. Retrieved November 10, 2013, from http://www.allstate.com Bond, R. E. (2012). Bond's top 100 franchises (2012 (4th) ed.). Oakland, Calif.: Source Book Pubns.. McCarthy, K. E. (2010). Recreational vehicle dealer franchises. Hartford: Connecticut General Assembly, Office of Legislative Research. Noe, R. A. (2013). Employee training and development (6th ed.). New York: McGraw- Hill/Irwin. Read More