Strategy Views

How mathematical game theory can inform practical problems in international relations - like stopping wars.

Day 273 & Two Marks There has been an interesting discussion on the Queens, by LinkedIn game - what are the minimal number of marks you need to make to produce a correct solution of the game. The question can be tightened up a bit. Turn on Auto Xes in the options. Count a mark as either as "X" or a "Queen". Make no errors or undoes. Does every game after a minimal, say less than 3, marks turn into a game that solves itself? A game solves itself when: 1) Auto X's are on, 2) there is always just one colour left after each mark, until the game is solved. In Game 273, can you guess how many colours or squares that you need to place before the game solves itself? Here is an example - two marks, one X and one Queen to start the game. Each mark, after the first two, is forced. There is at least one colour which only has 1 square left. And this is true until the game is solved. Can this game be done with less marks? (Probably not.) If not, how do you prove this? (Harder question. Working on it.) Here is the movie:

Ready, Start, Grow: The Farmer Boys Blueprint for Franchise Launch Success

The Hidden Cost of Weak Standards: Why Franchisees Need Financial Cushioning By Joe Caruso Franchising is a proven path to business ownership, offering a blueprint for success through a strong brand and operational support. But beneath the surface lies a critical challenge that many franchisors overlook: weak financial standards for prospective franchisees. Insufficient requirements for available cash and net worth can lead to cascading problems for franchisees and, ultimately, for the entire brand. Financial cushioning isn’t just a safeguard for franchisees—it’s a necessity. Here’s why it’s time for franchisors to take a hard look at their financial standards and ensure their franchisees are set up for long-term success. Are Your Financial Standards Stuck in the Past? If your franchise’s available cash and net worth standards haven’t changed in decades, you may be courting disaster. The economic landscape has evolved, and costs have soared across the board—from labor to rent to marketing. Standards that were sufficient 20 years ago may leave today’s franchisees woefully underprepared. When financial requirements are too low, they open the door to underqualified candidates. These candidates might express interest in the opportunity, but their inability to handle the financial realities of business ownership can lead to cash flow issues, operational struggles, and high turnover among staff. The Lead Qualification Bottleneck Some franchise sales teams lower financial thresholds to attract more leads, thinking this will widen their pool of potential franchisees. However, this short-term strategy can backfire, creating a clogged lead funnel filled with underqualified candidates who will struggle to succeed. Weak financial standards lead to more underprepared franchisees entering the system. This often results in: Locations failing to achieve profitability. Franchisees unable to afford experienced managers or team members. Resources spent managing distressed franchisees instead of growing the system. For franchisors, these struggles can erode brand reputation and disrupt the flow of systemwide operations. The Multi-Unit Mirage The risks of weak financial standards are amplified when franchisees sign multi-unit development agreements. Franchisors love the appeal of scaling quickly through multi-unit deals, but without the proper financial foundation, these franchisees often fail to build out their territories. Instead of driving growth, undercapitalized franchisees leave promising markets underdeveloped. This creates opportunity costs for the franchisor and impacts systemwide momentum. Worse, these failures often drain resources as franchisors try to salvage distressed multi-unit agreements. Click-Thru to read more...https://lnkd.in/e_yvf_vK

Very interesting conversation on franchising qualifications here. Get ideas and add yours.

Ready, Start, Grow: The Farmer Boys Blueprint for Franchise Launch Success

Strategy and Logic The Queen's Game is more than a test of strategy; it's a masterclass in critical reasoning. Each week, I dive into its intricate logic to uncover a principle that can sharpen decision-making in business, leadership, and life. This week's exploration of Day 222 reveals a fresh insight—the principle of deductive closure. Mike Durocher, Sparsh Agarwal, Denis Pageau (SOCIETALogist), Oscar Varona, Gayani Wickramarathna, Nico Müller, Kailash Prasad Bhawsinka, Jeffrey Fein, Tiffany Schwartz, Alexander Krastev 🔖, Alastair Isles, Stephen Comstock, Dan Biswas, Mauro Berlanda, Kevin StJohn, Maryna B., Bruce Johnston, Marco Moscatti,, Richard Tay,, Steve Foran, P.Eng, CSP, Norman Germond, Dr. Pashmeen Lakhani, Mara Licia Frigo, Marina Krakovsky, Nitya Goyal #business #strategy #games

The Hidden Cost of Weak Standards: Why Franchisees Need Financial Cushioning By Joe Caruso Franchising is a proven path to business ownership, offering a blueprint for success through a strong brand and operational support. But beneath the surface lies a critical challenge that many franchisors overlook: weak financial standards for prospective franchisees. Insufficient requirements for available cash and net worth can lead to cascading problems for franchisees and, ultimately, for the entire brand. Financial cushioning isn’t just a safeguard for franchisees—it’s a necessity. Here’s why it’s time for franchisors to take a hard look at their financial standards and ensure their franchisees are set up for long-term success. Are Your Financial Standards Stuck in the Past? If your franchise’s available cash and net worth standards haven’t changed in decades, you may be courting disaster. The economic landscape has evolved, and costs have soared across the board—from labor to rent to marketing. Standards that were sufficient 20 years ago may leave today’s franchisees woefully underprepared. When financial requirements are too low, they open the door to underqualified candidates. These candidates might express interest in the opportunity, but their inability to handle the financial realities of business ownership can lead to cash flow issues, operational struggles, and high turnover among staff. The Lead Qualification Bottleneck Some franchise sales teams lower financial thresholds to attract more leads, thinking this will widen their pool of potential franchisees. However, this short-term strategy can backfire, creating a clogged lead funnel filled with underqualified candidates who will struggle to succeed. Weak financial standards lead to more underprepared franchisees entering the system. This often results in: Locations failing to achieve profitability. Franchisees unable to afford experienced managers or team members. Resources spent managing distressed franchisees instead of growing the system. For franchisors, these struggles can erode brand reputation and disrupt the flow of systemwide operations. The Multi-Unit Mirage The risks of weak financial standards are amplified when franchisees sign multi-unit development agreements. Franchisors love the appeal of scaling quickly through multi-unit deals, but without the proper financial foundation, these franchisees often fail to build out their territories. Instead of driving growth, undercapitalized franchisees leave promising markets underdeveloped. This creates opportunity costs for the franchisor and impacts systemwide momentum. Worse, these failures often drain resources as franchisors try to salvage distressed multi-unit agreements. Click-Thru to read more...https://lnkd.in/e_yvf_vK

"What are the benefits and challenges of exiting your franchise through a merger or acquisition?" Joe Caruso answers - Selling going concern franchise unit(s) through a merger or acquisition hinges on financial performance. Larger operators benefit from scale and strategic buyer interest, while smaller owners may secure higher valuations in traditional sales to new owners, where outright sales are more common than mergers. EBITDA plays a critical role, as lower profitability units typically see reduced valuations compared to high-performing counterparts. A well-thought-out strategy and the right advisors are key to maximizing outcomes. Click-thru here to read what Federico Fiorentini Sandy Rowley Joel Bissitt VFP Fernanda Hernandes Ribeiro Kimberley Daly contributed to this LinkedIn Franchise Article https://lnkd.in/ezA2i-nV