Question

I NEED THE BUSINESS CASE, PROJECT SCOPE, PROBLEM STATEMENT AND STAKEHOLDERS OF THIS SITUATION.

You are working with Cheese Factory to improve the ways of working. The Factory strategy is to develop a business model that allows them to start a Franchise Cheese Factory.

Since 2010 Cheese Factory started a commercial production of cheese. During the previous 10 years they worked on developing the best cheese product in an artisan way. In 2010 they decided to scale up, since the cheese became a trending in the state of Louisiana and they were not able to satisfy the increasing demand. Pete Malone and his wife Melanie invested in equipment, machinery and hire the employees to initiate the commercial manufacture of the cheese, a process that took them about 6 months.

They hired a company for distribution in Louisiana and other states in USA. Once they started the cheese commercial manufacture, they have increased sales in 25% per year, representing a great income to the family. To keep with the demand they have increased the labor every year and the shifts. They started in 2010 producing 2000 tons of cheese per month in a single 8 hr shift. In 2020 the demand increased to 1 million tons per year. It is a great scenario and the family business is happy but concern about their capability to satisfy the current demand. They want to not only achieve this demand but to also develop a Franchise Model that provides them additional income and help them satisfy the market demand.

Answer 1

Franchise Cheese Factory - Business Case

Executive Summary

In order to t cater to the increasing demand for cheese among customers, the owners of the Cheese factory have planned to opt for a franchise model to increase cheese production.

Reasons

The reasons for selecting the franchise model are listed below.

· The cheese factors is family owned with limited capacity and capital required for expansion plans

· Managing increased production is difficult

· Expenses to employ workers, buying equipment and distribution is challenging

Expected Benefits

· To meet the demand for 1 million tons per year

· Additional income for the family-owned business

Expected Challenges

· Lack of control over the production of artisan cheese

Timescale

· Next 6 months

· Cost-benefit analysis is to be conducted once production commences

Major risks

· Lack of experience of the franchisee in artisan cheese making

· Employment of unskilled labour

· Difficulty in managing distribution

Project Scope

· To appoint an experienced franchisee to increase the commercial production of artisan cheese in the USA within the next six months

· To ensure that distribution company is able to manage the increased production

· To ensure the skilled labor are employed by the franchisee in the production process.

Problem Statement

In 2010, the Cheese factory commenced commercial production to meet the increased demand from customers in Louisiana. Following the distribution of cheese across the USA, the demand increased reaching 1 million tons per year. The existing factory is unable to handle the increased demand. The owners planned to select the franchise model to increase the production and provide a source of income for them. However, the owners face inherent challenges due to the availability of experienced franchisees and the increasing load on the distribution network.

Stakeholders

The key stakeholders involved in this situation are

· Family business owned by Pete Malone and his wife Melanie

· Distribution company

· Potential franchisees

· Customers of artisan cheese