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Hi sir
1) For (a) , the qn had asked us to use porters 5 forces. For threat of customers bargaining power, it was reflected as Nesta being the customer, and not Nesta’s direct customers, ie ordinary consumers like us.
If i have treated consumers as being the customers to explaim threat of customers bargaining power, would that be correct?
2) Also in terms of franchising, can the franchiser have the autonomy in interfering the actions taken by the management of the franchisee? For eg the franchiser might think that the strategy used by the franchisee’s management is not appropriate, do the franchiser have the right to interfere?
1 The customer/supplier relationships are two sides of the argument and you would probably have been fine. The important thing is to think about Nesta’s (as a customer) relationship with suppliers. At some point you have to consider NESTA’s relationship (as supplier) with its customers.
2 Franchisors often have very detailed terms in the franchise agreement that allow enormous influence over franchisees even dictating, for example, how the friachisee’s employees should style their hair or dress.
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