Sweet Delights is a successful bakery in Bahrain owned by Mariam. She wants to expand and is considering three options.

First, she could franchise her bakery. The advantages are a ready-made brand, less risk, and training from the franchisor. The disadvantages are franchise fees, limited decision-making, and dependence on the franchisor’s reputation.

Second, she could form a joint venture with a catering company in Saudi Arabia. The advantages are shared costs and risks, access to new markets, and local knowledge. The disadvantages are shared profits, possible conflicts, and different objectives between partners.

Third, she could create a social enterprise. The advantages are a positive public image, supportive customers, and motivated employees. The disadvantages are lower profits, more resources needed, and less investor support.

Now Mariam must decide which option is best for Sweet Delights.

Task:

• Explain two advantages of franchising for Mariam.

• Explain two disadvantages of franchising for Mariam.
  (Go beyond naming — show why each is important for the business.)

Task:

• Explain two advantages of a joint venture with the Saudi catering company.

• Explain two disadvantages of a joint venture.
  (Discuss how these affect Mariam’s bakery in the future.)

Task:

• Explain two advantages of turning Sweet Delights into a social enterprise.

• Explain two disadvantages of a social enterprise.
  (Give reasons why each point would help or hurt the business.)