Small Business, Entrepreneurship, and Franchises

1. Which two areas of business generally attract the most small businesses? Why are these areas attractive to small business? 2. Distinguish among service industries, distribution industries, and production industries. 3. What are the major advantages and disadvantages of smallness in business? 4. What are the major components of a business plan? Why should an individual develop a business plan? 5. Cite one major benefit of franchising for the franchisor. Cite one major benefit of franchising for the franchisee.
Video Case: Murray’s Cheese: More Cheese Please (50 points)
1. How does Murray s overcome one of the most common limitations facing small companies, its nonexistent advertising budget? 2. What are some of the advantages of being a small business that Murray’s can (or does) take advantage of? What disadvantages might it face as a small firm? 3. Do you think the partnership with Kroger will have a negative or a positive effect on the unique experience customers expect from Murray’s? Why?