this company sounds like a bust- but in all honesty most retailers are like this. and it's suprising that ex franchise owners are even mentioning this kind of talk because thats slanderous and they can be sued by coldstone... which ironically will bring up their profits!
Cold Stone executives talk about how they plan on expanding; however, this article describes the exact opposite is happening. Stores are shutting down more and more rapidly while sales decrease in times of a bad economy. I feel Cold Stone picked a bad time to set its goals so high, because of our current economy.
If cold stone is lying to their potential franchise owners there company may weaken once word gets out. Potential franchise buyers must also understand how to run a business and the company can not be held responsible for poor management skills
I do not believe Cold Stone would be the only ice cream company suffering from the current economic situation. Ice cream for many people is just a luxury item and right now people are less likely to spend that $4 dollars on a scoop when they can get a quart for half of that. I think maybe before they opened up more and more stores they should have had better planning so they would realize that many of these stores wouldn't profit.
I think they need to change their plans and goals to fit in todays economy. Cold Stone Ice Cream is pretty expensive. The economy is not that great now and people are going to choice to buy food for their families then spend the money on Cold Stone Ice Cream.
Its true. Now a days businesses are expanding way too quicky without thinking, another example is Starbucks. they expanded too many stores and too close together so they had to close a lot of them. Coldstone has a lot of stores out there but they also sell expensive icecream even tho it is DELICIOUS! with the economy not doing so well and people starting to look after what they eat a little more, people are lookin for the cheap little icecream to satisfy their needs.
It is definately easy to acknowledge when a franchise is expanding to fast, especially when you see three or four of them with the same area. Cold stone is very good in what they do it seems, from the video we watched, but I think it just might have been a case of poor planning and jumping the gun to get to their goal quicker than they wanted.
There might be some truth to Cold Stones comment that “franchisees were ill-prepared to run a business.” I think that when you are paying over $4 for a tank of fuel and your grocery bill keeps going up every week. People are a lot less likely to pay $4 for each of their family members to have ice cream.
Although some Cold Stone locations shut down recently, I do not think that this company will take a major hit. Even though they reported some loss in their profits, I do think when the economy as a whole gets better then most companies will recover.
They have good goals and are the number 6 selling brand. They will lose a lot of business if they keep opening stores to close to eachother. They have to watch and make sure that the stores are a certain distance apart. The economy is starting to save but once the economy is better their business will start making more money.
It is important to do some research before any planning. It is not always working the way we expect. They definitely should consider their strategy before doing anything.
Welcome BCCC Principle of Management students. We will use this blog to keep current in the world of managing a business. Thanks in advance for posting and commenting throughout the semester.
18 comments:
this company sounds like a bust- but in all honesty most retailers are like this. and it's suprising that ex franchise owners are even mentioning this kind of talk because thats slanderous and they can be sued by coldstone... which ironically will bring up their profits!
Perhaps they need to reevaluate their plans!
Cold Stone executives talk about how they plan on expanding; however, this article describes the exact opposite is happening. Stores are shutting down more and more rapidly while sales decrease in times of a bad economy. I feel Cold Stone picked a bad time to set its goals so high, because of our current economy.
I didn't know that Cold Stone was doing that poorly that they had to close down more than 100 stores but its not that suprising in this economy.
I think it's kind of ironic how they're talking about expanding their company when so many stores are closing now because of our bad economy.
If cold stone is lying to their potential franchise owners there company may weaken once word gets out. Potential franchise buyers must also understand how to run a business and the company can not be held responsible for poor management skills
I do not believe Cold Stone would be the only ice cream company suffering from the current economic situation. Ice cream for many people is just a luxury item and right now people are less likely to spend that $4 dollars on a scoop when they can get a quart for half of that. I think maybe before they opened up more and more stores they should have had better planning so they would realize that many of these stores wouldn't profit.
the company have a good plan for their tactical goals. Good plan on the company’s policy with national coupons
I think they need to change their plans and goals to fit in todays economy. Cold Stone Ice Cream is pretty expensive. The economy is not that great now and people are going to choice to buy food for their families then spend the money on Cold Stone Ice Cream.
Its true. Now a days businesses are expanding way too quicky without thinking, another example is Starbucks. they expanded too many stores and too close together so they had to close a lot of them. Coldstone has a lot of stores out there but they also sell expensive icecream even tho it is DELICIOUS! with the economy not doing so well and people starting to look after what they eat a little more, people are lookin for the cheap little icecream to satisfy their needs.
sounds like they need a new "pyramid of success."
i thang cold stone have setting a high goal
It is definately easy to acknowledge when a franchise is expanding to fast, especially when you see three or four of them with the same area. Cold stone is very good in what they do it seems, from the video we watched, but I think it just might have been a case of poor planning and jumping the gun to get to their goal quicker than they wanted.
There might be some truth to Cold Stones comment that “franchisees were ill-prepared to run a business.” I think that when you are paying over $4 for a tank of fuel and your grocery bill keeps going up every week. People are a lot less likely to pay $4 for each of their family members to have ice cream.
Although some Cold Stone locations shut down recently, I do not think that this company will take a major hit. Even though they reported some loss in their profits, I do think when the economy as a whole gets better then most companies will recover.
They have good goals and are the number 6 selling brand. They will lose a lot of business if they keep opening stores to close to eachother. They have to watch and make sure that the stores are a certain distance apart. The economy is starting to save but once the economy is better their business will start making more money.
It is important to do some research before any planning. It is not always working the way we expect. They definitely should consider their strategy before doing anything.
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