Students select a real-world case study based on their own industry or workplace context, and submit a 2500-word report on an appropriate aspect of business economics. The assessment task is intended...

Contents
1    Introduction    1
2    Applications for KFC Franchise business in India    1
3    KFC makes decisions based on depreciation model    2
4    Investment Decisions    2
4.1    Problems    3
4.2    Solution    3
4.3    Consequence of Profit    3
5    Extant decision made by the company    4
6    Evaluation of Decision    4
7    Opportunity costs    5
7.1    Advantageous and Benefits of the Franchisee    5
8    Describe an investment decision    10
9    Reference    11
Introduction
KFC has a solid foothold in India. The organization has around 350 KFC outlets spread across various parts of country and have vivid presence. It was in June of 1995 that KFC opened its first store in Quite a while which was a two-story outlet on Brigade Road in the city of Bangalore. The organization began to extend outside of Bangalore in 2004. To take into account the requirements of the vegan individuals in the nation, KFC began the 'So Veg, So Good' menu which was planned for pulling in the veggie lover clients of the nation. With its ubiquity among the Indian open and its delightful food which expects to cook both veggie lover and non-vegan individuals, KFC has figured out how to get probably the greatest
and in the food business in India.
Applications for KFC Franchise business in India
· Individuals who are interested in franchisee business model of KFC, they need to visit the KFC's official website and register it.
· On landing on the company's official page, one has to select on the 'Alliance with Us' option
· When the Alliance with Us' option opens up then an application form for franchising opens up
· The form is further reviewed and analyzed by the support staff of KFC. If the application is shortlisted and selected then KFC sends delegates from company to contact the candidate.
· Franchisee as well as employees has to undergo training programs organized by the company such that they are able to learn about the business.
KFC makes decisions based on depreciation model
Revenue is the total number of sales of product offered. Essentially, most of restaurants would earn highest profits by selling the food and offered beverages which they offered like Krusher, coffee etc. However, KFC has other source of income like merchandising of their food products. KFC when entering any geography performs exhaustive and extensive research on the consumer segments and what excites them rather than applying the same menu on a different geography. Apart from product decisions which is curated and customized as per the geography all other aspect of management like operations, marketing, processes and procedures are all standardized in order to provide consistent service to the customers i
espective which KFC franchisee one enters.
Investment decisions of the KFC is based on depreciation model and not overhead model. Fundamentally, famous restaurant business is based on franchising and one of the underlying principles is to keep the overhead cost at the minimum. By the virtue of the franchising business model KFC was essentially providing selling rights to operate the KFC store. This helps in keeping the overhead at the minimum and making local owners responsible to run their individual units while keeping the cost of food at minimum while service remains prompt for a culture that is inclined minimum waiting time as well instant turnaround.
Investment Decisions
It is not exactly good or bad practice such that decisions made on certain principle would only produce one set of outcome. Focusing only on depreciation can result in bad decisions sometimes since it bounds the prospective keeping all other parameters are fixed. For instance, overhead cost needs to be least at all the time in KFC.
Problems
Some problems are listed below
· Control - There are scenarios where franchisor may feel that KFC is exerting undue pressure and takes into consideration great degree of control. Practically, there can be no decisions that can be taken without consulting the franchisor.
· Expensive - For franchisor, getting involved with KFC may be an expensive affair. Therefore, entrepreneurs getting in the food business must have the ability to a
ange essential finance.
· Time Taking - KFC takes a lot of time in selecting franchise. There is requirement of exhaustive research before providing the franchise of KFC especially they need to analyze whether it is profitable to perform business or not
Solution
One of the best practices used to fix the above mentioned problems is proper, effective and timely communication between franchise and franchisor. This helps both the parties to comprehend each other better and leaves less room for misunderstanding.
Consequence of Profit
KFC is in franchising business can be establish strong range of profits for both the franchisor and franchise based on its long legacy and
and recognition. Profit is shared as per the contract laid by KFC, which can vary from 20% to 40% of total profit. There can be another a
angement in which KFC just...