Siomai Co. Term Paper

Introduction

The franchise business has been around a long time; in fact they go back as far as the 1850’s. The notion of selling off a business or a part of a business in order to expand into new areas usually came from the lack of investment funds from the business owner. While the business of franchising has grown over the years it all had to start somewhere. The concept of franchise businesses started with the Singer Sewing Machine Company in the 1850s.

Isaac Singer had two problems that were keeping him from being successful. One, he didn’t have the capital to build a sales force, two, no one would buy a machine unless they were trained to use it. Singer’s solution was to charge a licensing fee to business people who would own rights to sell and train in certain geographical areas.

“Franchising can be defined as a system based on a close and ongoing collaboration whereby a company, the franchisor, gets into partnership with one or several companies, the franchisee(s).

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Its prime aim is to develop a franchise concept designed in the first place by the franchisor.” A franchise is a business system in which private entrepreneurs purchase the rights to open and run a location of a larger company. The franchising company, or franchisor, signs a contractual agreement with the franchisee, explaining in detail the company’s rules for operating the franchise.

In the United States, franchises are typically organized under state laws, although the Federal Trade Commission requires that franchisors provide full disclosure of franchise contracts in advance, to allow franchisees the opportunity to make a good business decision.

Franchise businesses come with a number of pros and cons that franchisees must take into account before signing the contract. Today, franchising is helping thousands of individuals be their own boss and own and operate their own business. Franchising allows entrepreneurs to be in business for themselves, but not by themselves. There is usually a much higher likelihood of success when an individual opens a franchise as opposed to a mom and pop business, since a proven business formula is in place. The products, services, and business operations have already been established.

Background

“SIOMAI CO” was first established in the Philippines in the year 2007 specializes in manufacturing and distribution of a variety of traditional Chinese Food that are convenient and modern enough to take only minutes to serve. SIOMAI CO’S stringent quality control standard is the key ingredients of their products. Their quality control starts from the selection of raw materials from certified panels of suppliers to manufacturing of the finished products; only the finest quality of ingredients is used. Siomai Co. Branches:

• Siomai Co. Binangonan
  Sta. Ursula St., Binangonan, Rizal
• Siomai Co. Katipunan
  Katipunan Avenue cor. Aurora Blvd., Quezon City
• Siomai Co. Gil Puyat LRT
  Gil Puyat Cor. Taft Avenue, Manila
• Siomai Co. Blue Wave Mall Marikina
  Sumulong Highway Cor. A. Tuazon St., Marikina City
• Siomai Co. Riverbanks Mall
  Riverbanks Center, 84 A. Bonifacio Ave, Marikina City
• Siomai Co. Riverbanks Tiangge
  Riverbanks Center, 84 A. Bonifacio Ave, Marikina City
• Siomai Co. Biñan (National Hi-Way Sto. Niño St., Biñan City )

VISION:

Siomai Co. aims to satisfy the taste and needs of its consumers in the Philippine society. The efforts of Siomai Company are focused on bringing the most distinctive and innovative dimsum products to the Philippine market. The main concern of Siomai Company is the health of its customers and thereby it strives to serve hygienic and healthy food along with taste and quality.

MISSION:

To satisfy their customers and to stay ahead of the competition by innovating new products and services based on the needs of their customers and market demand.

Products:

* Pork Siomai, Japanese Siomai, Sharksfin, Chicken siomai, Quail Egg Siomai, Mushroom Siomai
* Siopao (Asado and Bola-Bola)

Process

Siomai Co is the type of franchising called Business Format Franchising which is the most popular type of franchising and the approach where a company provides a business owner with a proven method for operating a business using the name and the trademark. The company has to provide assistance to the owner of the business at the beginning, and the business owner has to pay a fee in return. In this type of franchise, the franchisee is buying the right to more than just producing and distributing a franchisor's product as in the manufacturer type of franchise, and more than simply selling a franchisor's product as in the product type of franchise.

Instead, entrepreneurs who choose the franchise business format are really purchasing the franchisor's strategic business operation model, which has proven to be effective; and the right to produce, distribute and/or sell the franchisor's goods and/or services comes along with that purchase. Our group conducts a survey to find out the needed answers for our term paper. We use survey questionnaires distributed to every employee to ask them about the franchise Siomai Co. until we came up to their answers that satisfies our questions.