Easy Internet Café

Case Study Analysis
Table of Content

Page 3 – Executive Summary

Page 4 – Issue(s) Identification

Page 5 – Environmental and Root Cause Analysis

Page 7 – Alternatives

Page 9 – Recommendations and Implementation

Page 10 – Monitor and Control

Executive Summary

With our decision to radically revamp our operations to appoint franchisees for the new stores and existing ones, it is critical that we have an operating system that reflects this major change. With the new strategy the franchisees would be required to bear the costs of the property and hardware. It is hoped that these actions would reduce elc’s drain on capital.

We are focusing all our time on the logistics for the stores which is the main reason for escalation of high costs and continuing losses. We are not focusing on our core competencies of our business which is our software and service level.

Four companies were reviewed for focusing on the logistics of the equipment for the stores. I would recommend going with Ingram Micro as their focus is on supply chain management. Easy Internet Café needs centralized warehousing where all equipment and furnishings are staged before forwarding onwards to the franchisees to reduce costs. With centralized warehousing it will reduce costs, especially if the location was more central to our customers for faster and easier shipping. This will also simplify Inventory management throughout the supply chain as there would be one management system instead of multiple.

This is exactly what eIc requires in order to cut costs and to meet our goal of 10 stores per week over the next couple years.

Issues Identified

Immediate Issue:

The immediate issue is that there is not a real operating plan for how eIc intends to supply, and open each new franchise which is an integral part of cutting costs to stem the