Entrepreneurship questions Assignment Example | Topics and Well Written Essays - 250 words

Entrepreneurship questions - Assignment Example This discussion shall focus on the earning based approach together with its strengths and weaknesses. Moreover it will focus on factors that may affect franchising over the next ten years. This mode of business valuation is based on the concept of predicting the probability of a business to make profits and more wealth in future. In this case, the valuator may undertake various forms of calculation majorly based on determining future income cash flows by using a company’s records indicating past earnings as well as other records indicating general information of past performance. This is specifically done by creating a normalcy of expected revenue and the multiplying it with a specific capitalization factor. One of the strengths of the earning-based approach is the fact that it involves the use of simple computing methods such as the Price Multiple Earnings. Moreover, this method has been considered relatively more accurate as compared to other methods like asset based approach. One the other hand, it is quite challenging to attain 100% accuracy with this method making its greatest weakness. Increasing business competition is one imperative factor that will affect franchising over the next ten years. This is due to the fact majority of upcoming businesses are exposed to high rates of competition with already established businesses thus compelling them to use business models of these already established businesses. Moreover, varying economic factors i.e. fluctuation of prices that majorly affects new small scale businesses may affect franchising over the next decade; this may compel such enterprises to franchise with already established and financially stable businesses. "EARNINGS VERSUS CASH BASED VALUATION TECHNIQUES." EARNINGS VERSUS CASH BASED VALUATION TECHNIQUES. N.p., n.d. Web. 17 Feb. 2014.

Supplier evaluationfor achieving long-term performance Essay

Supplier evaluationfor achieving long-term performance - Essay Example outside the business then it follows that the biggest opportunities for improvement in their cost position will also be found in that wider supply chain (Christopher, 2005). Having the right suppliers ultimately makes a significant difference to an organization’s future in reducing operational costs and improving the quality of its end products, whereas having the wrong suppliers can cause operational and financial problems (Zeydan, Colpan and Cobanoglu, 2011). This has led firms to focus on improving their supply chain by continuously evaluating the performances of their suppliers. To achieve this, firms are increasingly building collaborative relationships with partners in their supply chain in order to achieve efficiencies, flexibility, and a competitive advantage (Whipple, Lynch, and Nyaga 2009). Such a relationship which involves collaborative activities, such as information sharing, joint relationship effort, and dedicated investments leads to trust and commitment. Trust and commitment in turn lead to improved satisfaction and performance. Unlike a transactional relationship where there is only a simple exchange between buyer and supplier, where the supplier provides goods or services and the buyer provides money in payment, the collaborative approach that firms are adopting allows the buyer organization to seek to develop a long-term relationship with the supplier. The strategic view is that the buyer organization and the supplier share common interests, and both benefit from seeking ways of adding value in the supply chain. There is a win-win situation, where buyer, supplier and end-customer can all benefit (CIP, 2010). However, in order for the buyer to keep track of these relationships and assess the supplier performance, an evaluation process must be in place (Stueland, 2004). It is quite understandable why companies today turn to buyers to reduce costs because good buyers will reduce the overall costs suffered by their organization. In turn, this