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UNIVERSITI KUALA LUMPUR BUSINESS SCHOOL

FINAL EXAMINATION
2012 SEMESTER

SUBJECT CODE

SUBJECT TITLE

LEVEL

TIME / DURATION

BACHELOR
3 HOURS

DATE

:
INSTRUCTIONS TO CANDIDATES

1. Please read the instructions given in the question paper CAREFULLY.

2. This question paper is printed on both sides of the paper.
3. This question paper consists of TWO (2) sections; Section A and section B.
4. Answer ALL questions.
5. Please write your answers on the answer booklet provided.

THERE ARE () PAGES OF QUESTIONS, EXCLUDING THIS PAGE.

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SECTION A (Total: marks)
INSTRUCTIONS: Answer any FOUR (4) questions.
Question 1

a. Explain what do you understand the meaning of Franchising

(2 marks)

b. Describe the product and trade name franchising and give an example

(8 marks)

Question 2

Usually the franchisee gains certain potential advantages from being involved in a
franchise relationship. Explain five main advantages related.
(10 marks)
Question 3

Before investing a franchise you should come up with a business plan. The second
component of a franchise business plan is an articulated franchisee recruitment package.
Describe five expectations and responsibilities of each party in this package.
(10 Marks)
Question 4

To properly develop the franchise system, the franchisor must create three levels of
administration which called Franchisor Development Process. Briefly discuss the stages
in the process.
(10 marks)
Question 5

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Why should a franchisor develop training booklets for prospective franchisees?
(10
marks)
SECTION B (Total: 60 Marks)
INSTRUCTIONS: Answer any THREE (3) questions.
Question 1

Normally a franchisor will do a market analysis of a specific city or country to determine

likely areas in which to open new franchise outlets.
a.

Related to the above statement, explain what is meant by primary service area
(PSA) for the proposed business.
(4 marks)

b.

Discuss FOUR (4) main important in determining size and shape of a PSA
(16 marks)

Question 2
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.
Elaborate what are the six strategies adapted from the process-driven business strategies
of Hammer (1996).
( 20 marks)
Question 3
A franchisor seeking to develop markets in foreign countries needs to be aware of the
various restrictions of world trade. Explain the terms below:
a. Tariffs
b. Quota

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c. Embargo
d. Exchange control
(5 marks X 4 = 20 marks)
Question 4
A franchisee, like any other business entrepreneur is faced with ethical dilemmas on a
daily basis. Discuss four main facts associated with the ethical dilemmas faced.
( 20 marks)

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[ marks]

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END OF QUESTION PAPER

ECB30303_Franchise Business Management