Internet Cafe

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Date Submitted: 03/12/2013 08:19 PM

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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...