Problem
Read the mini case below and then answer the question
Smart Fix!
Rishi was feeling great. His little business (called Smart Fix) fixing and re-selling damaged smart phones had really taken off in the last 18 months, despite the ongoing issues related to the pandemic. Operating out of his home had reduced overhead costs for him and he was the really only labour in the business. The only problem he had was the conversation he had last week with Julie, his limited partner. Although she was not interested in the day to day operations, she was concerned about the long term strategy for the company and had come across an online article, which prompted her to speak to Rishi.
Julie read an article that stated in the next 12 months both Apple and Samsung will begin a process to franchise businesses which are repairing their smart phones. If the business does not enter into to the franchise agreement with either Apple or Samsung, they will not be authorized to fix their phones. The franchise agreement only allows the business to focus on either Apple or Samsung - it cannot service both models and it cannot service any other type of device (that is not made by the manufacturer).
Julie knew Rishi had some decisions to make based on this. The cost to become franchised was expensive and would certainly reduce profits on future repairs. Although things were going great for Rishi now, it seemed the business had no direction or plan? Julie also wondered if Rishi could keep up with demand, if he chose to become an franchised repair shop? He was already working at least 16 hours a day, which was putting some strain on his personal relationships.
Rishi decided he needed some expert advice. Seeking out his former Business Instructor, Ian, he decided to ask him to recommend what he should do?
Task: As Ian, recommend to Rishi what you think he should do based on the case above. You need to include at least 4 CONCEPTS from chapters in answering your question. An example of a concept might be something like:
Porters 5 Forces, SWOT Analysis, Creating a Strategic Plan, Establishing Functional Areas for the Business, Reviewing Determinants of Supply or Demand (or both), outlining advantage or disadvantages of a franchise compared to a business from scratch, etc.