Identify the indicators that your business is ready to expand.

Case Study
Part 1Developing a Strategic Growth PlanThe Scenario: Success All Around!Sally now has won three Michelin Stars and becomes the first Three Star restaurant in North America. The presentation of the Michelin Award goes to those ambitious chefs and restaurants for their culinary excellence. It’s the most prestigious Culinary International Award presented to qualified establishments and Chefs. The event’s organizer, The Michelin Guide, has led the world in food and restaurant inspections. To be honored with a Michelin Star denotes the benchmark of excellence. Sally has joined the competition seeking her third Michelin Star. Only the best restaurants worldwide are eligible to receive the Third Michelin Star. The winners in the Michelin guide gain recognition as having “exceptional cuisine, worthy of a special journey.” A two Michelin Star classification denotes “excellent cuisine worth a detour.” One Michelin Star simply says, “very-good cuisine in its category.” Sally is set on winning the third Michelin Star and has been working on the only qualification – “Perfection.”The Restaurant, now in its fifth year of operation has become the number one destination for vacationers coming to Florida as well as foodies from all over the world. Food critics have poured in from all over just for the opportunity to experience the delights and write about the savory treats served in Sally’s signature dish. One savory treat included a specially formulated dessert created by Sally. The desert has become so popular that many customers have requested extra take-home orders. A substantial number of patrons have asked if the dessert would ever be sold separately in markets.Annual revenue from the restaurant is approaching over twenty million dollars. The business has amassed direct ownership of fifty properties located around the country in high-density cities. Sales from the Table app has steadily grown to over six million dollars in annual sales through subscriptions and advertising revenue. You have invested in kitchen-to-door food delivery using the cooking lesson kitchen-vision that combines the delivery of ready to cook meal packages. The service is designed to give customers the experience to compete with Sally’s streaming cooking lesson shows. The return on investment (ROI) on this venture has more than paid the initial investment and is now showing profit level income. The company enjoys the highest credit ratings and has outstanding loans securing the purchase of the original property, as well as the other investment properties. The loans are in their final years and the projected restaurant revenue has positioned the business in a favorable position that will enable the company to redeem the commercial paper before the due date, saving 12% of the outstanding balance. You and Sally both agree that it’s time to develop a growth plan.This assignment has 2 parts:IComplete the Business Growth Document answering the questions based on the course materials. You may add your personal perspective to the answers.Complete the Strategic Plan Chart and Upload the Chart and the Business Growth Document.You will attach these documents to your discussion posting.IIDiscussion:Based on the information that you have gathered, discuss the following:Identify the indicators that your business is ready to expand.Identify three ways to grow your business.Describe your Vison and how it impacts your Mission.
Part 2Michelin Award Restaurant Going FranchisingThe ScenarioAs a part of the Restaurant’s long-range marketing plan, you invested in the purchase of national property locations of the now-bankrupted “Sahara Desert Dish” franchise properties. Based on your Discussion and Strategic Plan results, you both agree that it’s time to go nationwide with the company’s patented dessert brand, “Brain Freeze.” Examination of the company’s financial position, you now have a healthy portfolio of investments, product revenue, and cash on hand.The Restaurant’s dessert menu has produced an exceptional revenue stream. These products can easily be marketed as a standalone venture. The company portfolio includes the Sahara Desert Dish property purchased in anticipation of this day. The properties are all in upscale locations that easily support the Restaurant’s thematic Desert menu.Looking Sally straight in the eye, you state, “It’s now or never, we need to get that Franchise Division going.” Sally was taken aback by the use of her statement, inquiries whether the operation will interfere with her entering the third Gold Star competition. You reply, “If Wolfgang Puck can open up gourmet pizza shops, that’s the only incentive we need to startup our Desert franchise operation.” Sally fires back, “You’re the one studying business law! Why did it take you so long to bring it up?” Sally continues, “Start working on the documents, and I’ll get started on creating the franchise operations menu and food handling processes.”In your Discussion, you covered all of the eventualities companies face in expansion periods. The initial investment in the bankrupt properties has positioned the growth in a prime position. The commercial paper securing the properties is almost paid off. Converting the properties into a new enterprise will reduce the carrying cost and increase the current revenue streams by a minimum of 20%. Franchise Licensing Fees and property leasing rentals will initially bump revenue by approximately 35%.To start your review, first, research the requirements required to establish a legally recognized Franchise operation. Using the Strategic Business Plan and the other resources you now have, complete the Franchise feasibility information and determine what steps are needed to enter this highly competitive area. Review the resources and respond to the Assignment.To fully understand the nature of Franchises, review the following Documents:Business Growth document and the new Strategic PlanRespond to the questions provided in theChecklist,Test for Franchising Feasibility,Review Form 505, andForm 506.Upload your responses. Use all available information from the case studies, the text readings, and all information available, and any other research. Where response requires information not explicitly presented, use your vision to fill in the gaps and answer the questions. Information not established in the case study can be found in the franchise information. Use the documents in your assessment of your company’s readiness to take the next steps to success. Leave no blanks, and do not submit short answers that do not explain the basis for your response.Here are all of the related documents to fill out and submit:The Checklist for The Basic Franchise Agreement (DOCX)SBA Introduction to Franchising (PDF)Test for Franchise Feasibility (DOCX)Form 505 (DOCX)Form 506 (DOCX)
Part 3Complying with Federal Regulations for FranchisesYou have operated one of your property sites as a prototype for the Franchise Operation. The properties are all in upscale locations that support the Restaurant’s thematic Desert profile.The new site has been test marketing the Franchise concept with the patented dessert brand, “Brain Freeze,” that savory specially formulated dessert treat created by Sally.The desert has become so popular that many customers have requested extra take-home orders. A substantial number of patrons have even asked if the dessert would ever be sold separately in markets. The dessert menu has a strong sales position in overall restaurant sales and generated a cash flow that supported the entire overhead of the test model.Your company is now ready to launch the Franchise Operation, but you must first prepare.To fully understand the nature of Franchises review the following documents:Your task is to assemble the preliminary documents used to establish a national Franchise operation. So far, you have:A Partial FDD Franchise Information (PDF) outlining the Franchise requirements that legally permit your company to sell and enter into franchise agreements with franchisees.Compare the Partial FDD Franchise Information against the specifications found in the Electronic Code of Federal Regulations website (ECFR). Make sure all statutory requirements are in the FDD. Document any missing sections highlighting any deficiencies or variations from the Statute if any. Using the FDD Franchise Agreement (DOCX) provide detailed answers for each question answered, explaining why you chose your answer. Short, yes, or no answers are not appropriate, statements without support are not acceptable. Next, using the Partial FDD Franchise Information and any other appropriate information, complete the following:Franchise Agreement (DOCX) by filling in the blanks or bracketed “[ ]” information (using this Blue Font color) and fill in any other missing terms required to solicit prospective Franchisees.Using: Franchise Agreement Checklist (DOCX), provide answers to the questions provided on the list. Short answers or one or two words will not be sufficient to pass this Assignment.Support Documents: these documents are essential to completing the assignment.507_Franchise Agreement (DOCX).508_Franchise_Agreement (DOCX).Pango_Financial_Presentation (PPTX).Upload your documents. Use all available information from the case studies, the text readings, and all information available, and any other research. Where response requires information not explicitly presented, use your vision to fill in the gaps and answer the questions. Information not established in the case study can be found in the franchise information. Use the documents in your assessment of your company’s readiness to take the next steps to success. Leave no blanks, and do not submit short answers that do not explain the basis for your response.

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