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Week #6 Learning Activity - Essay Example

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For instance, Allegra has Performance Groups of about six franchise owners who serve like a board of directors and advise one other on business directions and technology adoption. Franchisers have…
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Week #6 Learning Activity
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QUESTIONS What inputs did Allegra management use to formulate their strategic plan? Allegra used inputs from franchisers and s to create their strategic plan. For instance, Allegra has Performance Groups of about six franchise owners who serve like a board of directors and advise one other on business directions and technology adoption. Franchisers have hands-on customer and competition knowledge, so they can provide timely and important information and ideas that can shape Allegra’s strategic plan. Furthermore, Allegra also has a web-based service that allows customers to create design templates. Customer participation provides direct information on what the market currently needs and wants.
2. What benefits did Allegra franchisee’s gain from the organizations strategic planning commitment?
Allegra gains various benefits from its strategic planning commitment. Specifically, these benefits are the following: (1) Better communication and relationship with franchisers who are attracted to and appreciate Allegra’s Profit Mastery Program; (2) Efficient time management outcomes that reduce error rates; (4) Lower error rates that reduce production costs and increase profits;(5) Higher customer satisfaction because of reduced error rates; and (6) Improved quality management dedication and outlook (“Chapter 13” 34) inside the company and among franchisers.
3. Why do many small businesses fail to do strategic planning?
Many small businesses fail to do strategic planning because of the following reasons: (1) Business owners do not know or apply the process of strategic planning; (2) They do not have time management skills that can help categorize different tasks by urgency and importance (“Chapter 13” 5); and (3) They have not built the needed relationships and connections with important stakeholders who will help them in the strategic planning process.
4. Does buying a franchise reduce the need for a small business to do strategic planning? If not, how does it change it?
Buying a franchise decreases the need for strategic planning because the franchisor designs the strategic plan, since the latter owns the franchise. Nevertheless, franchisers should and can still contribute to the strategic planning process by offering ideas/suggestions and informing the franchisor of issues and problems. In addition, being a franchisee changes the strategic planning process because the franchisee has less autonomy and control over the decision-making process. Franchisers are more of participants than the final decision-makers, especially when compared to sole proprietors.
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“Chapter 13: The Search for Efficiency and Effectiveness.” Read More
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