Submitted by: Submitted by magicalunicorn
Views: 447
Words: 371
Pages: 2
Category: Other Topics
Date Submitted: 03/12/2013 08:19 PM
After careful review of the case study Raj has submitted the following
recommendation.First of all there were three zones that we need to identify
for the following different areas of europe that was identified in the case
study.
Zone 1 - (France, Spain, Netherlands) - £300 per store
Zone 2 - (Poland, Czech, Finland) - £450 per store
Zone 3 – (Greece, Turkey, Bulgaria) - £750 per store.
The predecessors plan would work if there were 10 stores openings per week,
at the same location and distance from elc. The process of opening a
franchise could take anywhere from a week to several months depending on
location and negotiations. It would take approximately 70 days to open the
cafe once a contract was signed according to the table in the case study. If
the franchisee didn’t have place for the cafe, eIc would help in finding a
location. Then the internet connection had to be installed by the local
telecom supplier which could take a few months.
I believe that if they created a centralized warehouse would benefit them
because it would significantly reduce the cost, the amount of staffing and
simplify the logistics and franchisee would have a better idea when they
would be receiving the orders. If you take lead time into affect it could cause
an increase in safety stock.
UPS
UPS would not provide billing services direct to the franchisee
eIc would need to buy the equipment and take ownership of the goods
eIc would need to pay a consolidated invoice
Total costs would be £1110 per store
Exel
Different company would maintain the billing
Two positions would need to be filled a contracts manager and an
administrator
3. Total cost was £1,434 per store
Globalserve
Product directly delivery to the franchise
Globalserve will charge a transaction fee of 3.25% and local reseller mark-
up of 5%, of the equipment purchase value for each transaction.
The total cost per store would...