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Business Ownership - Coggle Diagram
Business Ownership
Franchise
Advantages:
benefit from economies of scale
ongoing support & mentoring
market research is complete
existing customer base
business idea is proven success
Disadvantages:
reduces creativity
geographic restrictions on sales
high start-up cost
brand reputation can be damaged
Indigenous Business
Why important for Ireland?
create entrepreneurial role models
lower reliance on FDI
provide local benefits
improve balance of payments
loyal to Ireland
Why a Business Changes its Organisatioal Structure Over Time
continuity of existence
pay lower taxation rates
benefit from limited liability
become seperate legal entity
to allow for expansion
Changing Trends in Ownership Structure
increasing popularity of franchises
increasing popularity of alliances
Irish businesses becomng MNCs
privatisation of state-owned firms