Cold Stone Creamery Franchise’s Information Systems

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Table of Contents

Introduction
Software Packages
Networks
Hardware
Email and Instant Messaging Programs
Web Site
Disaster Recovery Plan
Conclusion
References

Introduction

Cold Stone Creamery is the company which performs its business activity on the basis of the Franchise relations. Originally, franchising is the business activity, which requires a multi-angle approach towards the development of the business activity in general and the issues of management in particular. The aim of this paper is to define and research the software packages, networks, hardware, email and instant messaging programs, web site, and disaster recovery plan. Originally, there are the factors that are required by the parent organization, and therefore would be used for the successful running of the business. All the aspects of this business activity will be represented from the point of view of the successful business strategy and all the required details for the marketing activity.

Software Packages

Software packages, which are required for the Cold Stone Creamery Franchise business activity do not differ from the packages of any business organization. One of the most important software for any organization is financial accounting software. Originally, there were a number of variants of such software nevertheless, there was no necessity to purchase expensive licensed software for the first time. Free software is reliable enough and will help not only in accounting but also is saving money for the improvements of business activity. Thus, GnuCash is personal and small-business financial-accounting software, freely licensed under the GNU GPL.

Another software tool which will be required is the office pack. MS office is widely known for its universality, nevertheless, there are also free equivalents exist. Thus, OpenOffice may be used by management, as all the necessary functions for text editing and creation of presentations are provided with this pack.

Taking into consideration the fact that the purchase of the licensed software may cost up to $2000 in total, there is strong necessity to mention that free software should not be treated with skepticism. Originally, purchase of the license does not mean that the software will be working properly, nevertheless, one can always rely on the technical support service. Free software, in its turn, often works quicker and are more reliable and technically advanced by various plug-ins. (Dicke, 2004).

Networks

Networking system of the franchise company is not less essential than for any other business company. The internet is the tool of the working communication among the workers and management team. Network is the necessary instrument for the automation of the business performance as well as the constant update of the software all over the organization. The best variant of business network is the mixed variant of wireless and wired network, as some of the devices, like electronic bar-code reader or the system of recognizing electronic passes may be portable, and wired connection is not suitable for such devices. As for the internet connection, I should be provided for the chief management only, for the communication with the central office of the Cold Stone Creamery Corporation.

Hardware

In light of the fact that hardware breakdown may cause not only the expenses for the new equipment, but also the loss of the necessary business information and serious financial losses associated with it. Thus, preference should be given to the reliable manufacturers of durable hardware. As for the trademarks Welsh and Ilan (2006) emphasize that Dell is optimal variant of price and quality. The era of PCs is approaching its end; consequently, the staff should be equipped with laptops. They are cheaper than PCs; nevertheless, their functionality is enough for the business performance, while portability and mobility is beyond any competence.

Email and Instant Messaging Programs

The fact is that most corporations, which have numerous subsidiaries, or act on the franchise basis have their own email servers. As for the matters of instant messaging, it is emphasized in Sherman (2008) that the real necessity of this type of communication is defined in the course of business activity. Surely, business corporations rarely resort to such services as ICQ, Jabber, MSN or AIM. Surely, some team members may use them for the corporate or personal communication, nevertheless, the inter departmental communication may be arranged with the help of video conferences (if urgent discussion of any issue is required). If the urgency of the problem does not require instant messaging, the problem may be discussed via email.

Web Site

Web site is the least necessary component of the business activity of the franchised subsidiary. The fact is that, web site is generally created for potential customers and hitting the target audience. Cold Stone Creamery is the well known corporation which acts within the national scales, consequently, it is within the concerns of the central office of the corporation to take care of the advertisement and creation of the web site. In the light of this fact, it should be emphasized that the franchised subsidiary does not have to spend its resources on the web advertisement, as its main aim is to care of the awareness within the region.

Disaster Recovery Plan

First of all, before creating the disaster recovery plan there is strong necessity to obtain at least the average data of the disasters and possible hazards, as well as their Annual Occurrence Rate. Moreover, business risks should be taken into consideration. In the light of the fact that the business issues often cause the largest expenses, the following data should be considered:

	Low	High
Initial Franchise Fee	42,000	42,000
Travel & Living Expenses While Training	500	5000
Real Estate	6,500	26,000
Architectural Fees	4,000	10,000
Leasehold Improvements	90,000	170,000
Exterior & Interior Signage	9,700	15,200
Equipment	91,300	111,300
Initial Inventory	8,000	8,000
Employee Uniforms	500	800
Grand Opening	100	5,000
Insurance Premiums	500	2,500
Permits & Licenses	2,000	3,000
Telephone & Utility Deposits & Hookups	250	1,000
Miscellaneous	3,800	3,800
Computer Training and Food Safety Certification Course	100	250
Additional Funds/Working Capital-3 months	35,000	35,000
Total	294,250	438,850

These are the investment requirements for purchasing the Cold Stone Creamery franchise. Low and High columns represent the minimal and maximal investment sums correspondingly. Sherman (2008) in his research dedicated to the issues of franchise investment emphasizes the direct association with the possible minimum of the investment and increasingly high rates of the financial risks. Consequently, the higher the investments are – the lower risks the company will experience.

As for the matters of natural disasters, it should be stated that all the working rooms and spaces should be equipped with fire detecting and fire fighting systems, as well as anti theft systems. If the region is subjected to hurricanes or floods, the corresponding measures should be taken.

One of the largest risks is represented by IT danger and improper adjustment of network security systems. Only qualified IT personnel should be hired in order to avoid these risks. From this point of view, it should be stated that the particular attention should be paid to the security software package. This may be either free or licensed – the only factor, which is important, is the qualification of the IT department members.

Disaster recovery itself will depend on the hazard itself; nevertheless, the initial actions will be associated with the removal of the consequences of the disaster, and then restructuring of the business structure or security systems in order to avoid similar hazards in future.

Conclusion

The information system of the Cold Stone Creamery franchise is an important part of the business activity in general. The fact is that the constantly globalizing world requires quicker response and reaction for the appearance problem or risk, consequently, the properly adjusted communication system is the main factor of successful business performance and marketing activity.

The research of the software packages, networks, hardware, email and instant messaging programs, revealed that there is no need to save money on cheaper hardware, while free software may be even more preferred then the licensed.

As for the matters of disaster recovery planning, it should be emphasized that the information sphere is subjected not only to informational risks and hazards, but also to natural disasters, financial risks (equipment may be sold for the debts), low endurance etc. Consequently, risk assessment is the action of high priority for the informational system of the business organization. Moreover, the communication factor is also very important in the risk assessment, and it should be taken into consideration.

References

Dicke, Thomas S. Franchising in America: The Development of a Business Method. Chapel Hill, NC: University of North Carolina Press, 2004.

Sherman, Andrew J. Franchising and Licensing: Two Powerful Ways to Grow Your Business in Any Economy. 3rd ed. New York: AMACOM, 2008.

Welsh, Dianne H.B., Ilan Alon, and Cecilia M. Falbe. “An Examination of International Retail Franchising in Emerging Markets.” Journal of Small Business Management 44.1 (2006): 130.

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