| 1) Fighting attritional battles-a common practice of giant | | | | business, consider this: a) The franchise agreements |
| corporations is to start a price war to drive down | | | | are all written in favor of the franchiser. b) There are |
| profits. With more capital, they can afford a loss for | | | | sometimes hundreds of restrictions in advertising, hiring |
| longer than their smaller competitors. Incorrect | | | | personnel, product line and many other areas. c) |
| Response-when smaller businesses cut prices it | | | | Franchisers promise the franchisee a certain territory, |
| actually helps the corporation because their greater | | | | but constantly violate this agreement. d) Working with |
| resources eventually insure they'll win. Correct | | | | a franchise combines the worst of self-employment |
| Response-avoid the attritional battle by selling different | | | | and having an autocratic boss, i.e. long hours with little |
| items, bundling equivalent products with other | | | | pay and a lot of rules. Incorrect Response-signing |
| merchandise and setting diverse price structures.2) | | | | one-sided agreements and then trying to work the |
| Building a superstructure- Wal-Mart, Office Max and | | | | mega-corporations afterwards. Correct |
| Home Depot build gargantuan superstores known as | | | | Response-avoid playing the corporations game. Play |
| category killers because they are designed to remove | | | | your game instead with your own rules. If you are |
| all competition for that type of business. Incorrect | | | | tempted to become a franchisee at least get the |
| Response-trying to carry as much inventory as a huge | | | | federally mandated Uniform Franchise Offering |
| chain store plays into their strengths. Correct | | | | Circular. This gives you a record of the franchiser |
| Response-modern entrepreneurs can compete with | | | | history and is an excellent indicator of your probability |
| superstores by finding areas where they are weak. | | | | of success. Also, check with Dun & Bradstreet and |
| Small businesses should have specialized products and | | | | the FTC web site Changing the rules-just when you |
| services that the chain stores don't have. Such as | | | | learn the old rules, corporations will create new ones |
| catering to children, the affluent or certain ethnic and | | | | that highly favor them. Corporations will use political |
| regional groups to name just a few.3) Monopolizing | | | | influence to get exemptions from the minimum wage, |
| Resources-you think the Sherman and Clayton | | | | safety regulations, pension obligations and others. |
| Anti-trust Acts ended monopoly practices? Think | | | | Incorrect Response-complaining to the corporation |
| again! Prosecutions at the anti-trust division of the | | | | about their injustice. Correct response-expose their |
| justice department are at an all time low. Wal-Mart, | | | | inconsistency to the public. Their hypocrisy often |
| Microsoft and other corporations routinely violate | | | | causes them to rescind their rules.8) Policies-a slight |
| anti-trust law because the fines are so low. Even if | | | | variation on the rule change strategy. Corporations act |
| legal action is taken, it can take years to see any | | | | as though their policies are law and then expect |
| results. Incorrect Response-in today's business climate | | | | everyone to follow their one-side decrees. The |
| seeking anti-trust relief is mostly a waste of time. | | | | "aggressive" accounting policies that led to the recent |
| Correct Response-find a substitute for the product | | | | corporate scandals are a good example of this. |
| that is being monopolized. For instance, an independent, | | | | Incorrect Response-accepting the unfair policies as |
| movie theatre owner was forced to pay exorbitant | | | | law. Correct Response-recognize policies aren't law. |
| prices for first run movies from the motion picture | | | | Make corporations follow your contract and the law, |
| companies. Instead of accepting these inflated charges | | | | not their policies9) Definition game-corporations will |
| he substituted classic movies for newly released films. | | | | suddenly re-interpret a word or phrase in a contract to |
| By doing so, he bypassed the big studio's monopoly.4) | | | | give themselves an unfair advantage. Incorrect |
| Hijacking employees-corporations will often raid smaller | | | | Response-accepting the alterations of words. Correct |
| businesses for their employees. Incorrect Response-to | | | | Response-make sure all contracts are clearly written. |
| enter bidding war to keep your valuable employees. | | | | Legally challenge all revised definitions.10) What's yours |
| Correct Response-have new hires sign a | | | | is mine-corporations frequently conduct bogus audits, |
| non-competitive clause that prohibits them from | | | | withhold paychecks and tie up other funds with their |
| working at rival firms. Treat existing employees so well | | | | franchisees, partners and contractors. Then they |
| they won't want to leave.5) Arbitration-although it is | | | | negotiate their return for their benefit. Incorrect |
| made to sound great, arbitration takes all the teeth out | | | | Response-fighting a drawn out court battle. Correct |
| pursuing legal action for business disputes. It is also | | | | Response-let your adversary know their pursuits will |
| costly to initiate. Thereby making it useless for settling | | | | lead to undesired outcomes such as bad publicity, |
| small matters. Incorrect Response-assuming arbitration | | | | increased taxes or counter suits.You can learn more |
| is a fair way to resolve business conflicts. Correct | | | | of these corporate strategies as well as the small |
| Response-don't sign agreements with arbitration | | | | business countermeasures in "Battling The Corporate |
| clauses. If you do, have it modified as close to a court | | | | Giants: The Ultimate David and Goliath Story" available |
| proceeding as possible. Especially focus on getting | | | | at The author, Daniel L. Lowery has over 17 years |
| complete discovery.6) Playing a one-sided | | | | experience in sales. He has spent the last 11 years |
| game-considering opening a franchise? While they're | | | | operating a cellular phone franchise in southern |
| repeatedly touted as the safest way to own a | | | | California. |