Building the Franchise of IHoP - Assignment Example

Building the Franchise of IHoP Introduction Setting up the franchise of IHoP is one which incorporates meeting the standards that are given by the franchise as well as ensuring that the corporate culture is matched in terms of the internal environment. The several implications that are associated with this include housekeeping, safety measures, organizational structure and creating a work culture that is conducive to the environment. The ability to create performance outside of the main considerations of tools, machinery, safety and the policies and procedures of the franchise can then provide a stronger set of results with the restaurant that is being built. Following a step by step process can then be used to ensure that the culture is one which is conducive to the needs of the franchise. Building the Franchise The first steps implemented with the project are to ensure that the requirements with IHoP are met with the different needs within the organization. Even though the franchise creates specific developments with the space, electricity, requirements for functioning and the overall organization, the need to implement this is the requirement of the main manager and owner. The strategy implemented at the beginning stages of the franchise is one which incorporates ensuring that all tools and machinery are placed correctly while making sure that the different structure works effectively for the franchise. The franchise system is one which has to be developed specifically to incorporate a set of communication and culture with the main layout which is used while incorporating different methods with the work in the franchise. From recent studies, (Chiou et al, 19: 2004), it is found that the use of a system is one which creates a higher level of satisfaction among employees and customers (Chiou et al, 19: 2004). Building a Franchise Culture The main concepts which are used for the safety, organization and different concepts for IHoP are only the beginning stages of the franchise. When all requirements are met, the owners of the franchise are required to build a system for a franchise culture. The first step to this is to work with new employees, including chefs, customer representatives and waitresses about the rules and regulations which are a part of the main system. Training sessions and the implementation of different ways to communicate become a part of the building of the franchise. As knowledge and learning become a part of the franchise, there is the ability to create an environment which is able to work more efficiently and which has a deeper understanding of the goals of the franchise and restaurant (Chen, 2: 2002). Another aspect that is a part of the franchise culture is building the way in which the employees relate to each other, specifically from the foundation of the franchise which is used. The training is one which should naturally lead to team building, as well as an understanding of the leadership roles that are from the chefs to the customer service representatives. By creating the right set of teams, there is the ability to incorporate a different type of culture which will be based on the internal creativity of the structure. Even though the franchise has different atmospheric requirements, the creativity of team building will allow the IHoP to stand out from other restaurants and will create an inviting atmosphere that both employees and customers will be drawn to (Murray, 7: 2010). Creating Systems Even though the franchise legalities and applications will be used, there is still the need to consider the potential of failure within the system. The franchise turnover and failure rates are known to be an application that is a part of most businesses and which creates complexities with many owners of franchises that can’t maintain the system or culture of the franchise. Researchers have shown (Holmberg, Morgan, 403: 2003) that the top reasons for failure with the franchises are from the inability to adapt to the expected systems while using a sense of innovation and creativity for the culture that is within the given area. Unless individuals are able to create their own prospects with the franchises, there is the inability to have the correct options for growth among the franchises (Holmberg Morgan, 403: 2003). To ensure that the system works with the franchise, there is the need to understand two parts of the process in place. The first is to have a complete understanding of the mission, vision and objectives of the franchise that is being used. This incorporates the different expectations with the franchise and how it should work within the company. The second is to have a flexible system that is based on these different objectives which is used by building an organizational structure and culture that is conducive to a given area. The learned model of the franchise is one which has to be based on classifying the needs of a given area while adapting the franchise model to a given area (Antonie et al, 33: 2006). For IHoP to work effectively, the management and the owners will have to adapt to the organizational structure given while fitting in with the culture of the workers and using innovative measures to create an adaptation to the system that is specific to the franchise which is built. Working with Management The main way in which the IHoP will be able to work effectively is to ensure that the owners, management and the employees combine initiatives with teamwork. The use of leadership by managers that are a part of the IHoP will be essential to creating the culture and atmosphere that is required in the corporation. The management will need to be hired through specific profiles that show experience with leadership while creating an understanding of team value and the ability to combine creativity with the different procedures that are required through the business. The profiles which management will need to incorporate will be based specifically on the capacity to manage employees and to show innovation and teamwork as a part of the management of the corporation. This will make a difference with both the internal and external organization of the company (Petromilli, Morrison, Million, 22: 2002). The objective which will be created with the leadership and different components of the franchise will be based on incorporating a quality management system. Each of the managers will be responsible for developing a way to ensure quality with the processes that are put into place, ranging from the chef work to the customer service assistance. The quality should incorporate a balance between listening to the employees’ needs and working with the clientele. There should also be different senses of leadership for team work and to ensure that the standards are being upheld in the business. The main component of the management team is to create leadership that ensures quality while keeping the standards of the franchise. Combining the quality with innovation and practices of the standards will then create a specific balance for the development of the restaurant (Monroy, Alzola, 585: 2005). Marketing with Franchises Another aspect that is considered with the IHoP is the marketing base which can be used. The franchise doesn’t provide different marketing materials, other than the location that the IHoP has to be in, as well as advertisement materials which can be used. However, other ways to build a strong reputation in the community have to be used for the franchise to work effectively. The first aspect to this is creating the right atmosphere for customers while allowing for the environment to create a sense of loyalty. Customer equity is one of the basic concepts which will be applied. The employees will be trained to create a specific response to customers while offering an environment that is conducive to those who are interested in eating at IHoP. Those who are hired as chefs and waiters will have to fit a specific profile that adds into high quality customer service and comfort for those that are eating at the restaurant. The customer equity can then be built both through creating the right staff as well as using innovation that combines with the main policies to develop a specific employee retention that can then be offered to customers (Blattberg, Getz, Thomas, 5: 2002). Another aspect which can then be created outside of the culture of the employees is based on methods which can be developed with the franchise for the community. The concept of franchise leads will be applied, specifically which allows a restaurant to find alternative and creative means to advertise the opening of a restaurant and to begin building interest in the surrounding community. The leads are based on prospects which are interested in the franchise as well as tapping into different segments and demographics that will respond effectively with what is needed. The sales cycle is one which may have some hindrances, specifically because of the inability to adapt the system to the community which one is in. Research will need to be conducted with the steps that are to be taken with the marketing as well as responses with building the right responses for the community. For instance, grand opening advertisements, special holidays and other types of specials can be incorporated outside of the franchise for more effective results (Baron, 1: 2006). Conclusion The application of building a franchise restaurant moves beyond the basic applications that are given by IHoP. While this works for the legalities, implementation of structure and the requirements for location, there are other concepts which need to be given. The structure is one which also has to incorporate a culture that is specific to the location. This is first developed with the correct system and a sense of creativity among the internal and external environment. This is furthered with training of employees, team building and the ability to work with the right management to ensure that the operations continue to run in the best manner. The last aspect of this is to make sure that the marketing has creativity that is used so there is the correct application and development to the community. The implementation of creativity with the main structure then ensures a higher level of success for IHoP. References Antonie, Maria, Osmar Zaiane, Robert Holte. 2006. “Learning to Use a Learned Model: A two – Stage Approach to Classification.” IEEE (6). Baron, Paul. 2006. “Managing Prospective Franchise Leads.” Franchising World (12). Blattberg, Robert, Gary Getz, Jacquelyn Thomas. 2001. Customer Equity: Building and Managing Relationships as Valuable Assets. Boston: Harvard Business Press. Chen, Ye – Sho. 2002. “Knowledge, Learning, and Capabilities in Franchise Organizations.” International Center for Entrepreneurial Development. Chiou, Jyh – Shen, Chia – Hung Hsieh, Ching – Hsien Yang. 2004. “The Effect of Franchisors’ Communication, Service Assistance, and Competitive Advantage on Franchisees’ Intentions to Remain in the Franchise System.” Journal of Small Business Management 42 (1), 19-36. Holmberg, Stevan, Kathryn Morgan. 2003. “Franchise Turnover and Failure: New Research and Perspectives.” Journal of Business Venturing 18 (3), 403-418. Monroy, Margarita, Lucia Alzola. 2005. “An Analysis of Quality Management in Franchise Systems.” European Journal of Marketing 39 (5), 585-605. Murray, DK. 2010. Borrowing Brilliance: the Six Steps to Business Innovation by Building on the Ideas of Others. New York: Penguin Books. Petromilli, Michael, Dan Morrison, Michael Million. 2002. “Brand Architecture: Building Brand Portfolio Value.” Strategy and Leadership 30 (5), 22-28. Read More