Crunch and Munch is the country’s favorite fast-food vendor of fried chicken. Over the
years, the company has diversified into providing a larger variety of snacks like hot
dogs, burritos, and burgers, but consumers still consider it the best seller of fried
chicken. Many parties have approached Crunch and Munch with offers to buy the
company, but Crunch and Munch continues to operate through its stores and franchise
outlets. What is franchising? Why would franchising be a good contractual system for
Crunch and Munch?
ToyTrain is a toy company that sells its products in most regions of the United States. It
produces a variety of toys for children of every age group, from toddlers to preteens.
What are ToyTrain’s options for organizing its marketing department? Briefly describe
each structure as it would apply to Toy Train. Which organization do you think would
be best for ToyTrain? Why?