Premium Essay

Internet Cafe

In:

Submitted By darsaklis
Words 1165
Pages 5
Executive summary

Stelios Haji-Ioannou opened the first easyinternetcafe on June 21st, 1999. During the internet boom between 199 and 2002, internet cafes were booming. Following the yield management model1 to this business brought in great profits. After the dotcom/internet bubble deflated, losses were continuing to mount. A change had to occur. The company’s CEO gave the managing director 9 months to start showing improvement. The only way to do this is by changing the operational structure of the company. A complete redirection in the operations philosophy was to franchise the operations. In order to help with this, it is recommended to use the company Ingram Micro to assist with this task. Ingram is the world’s largest B2B trade-only wholesale provider of technology products and services, including supply chain management. The total cost of a franchise will be £976 per store. This will reduce the cost of opening franchises and start increasing profit for the company.

Issue identification

The most important issue that easyinternetcafe currently experiencing is their operations. There is no organization on how the future internet cafes will open and be setup. There is an expectation of opening 208 locations in the next 3 years. The logistics of how this will occur must be defined and solved prior to the project moving forward.
Other issues that the company is experiencing are: * Internet investment bubble burst in 2000 * Closing and downsizing of some of the original cafes * No operating plan for how to supply and open each new franchise * Large number of PC terminals at each store, increasing fixed cost base * Scalability of opening a large number of stores * High costs of setup and inventories with current logistic activities * eIc is losing money, not enough profits * growth is difficult with current

Similar Documents

Free Essay

Caribean Internet Cafe

...1. 1. ¿Que asuntos administrativos debe considerar David Grant antes de abrir "The Caribean Internet Café"? * * Debe considerar el hecho de que en tres años, la gente tendrá mayor acceso al internet privado, y será menor el mercado para giros como el que el pretende abrir * En base a que puede que el negocio solo sea rentable por 3 años, deberá depreciar todos sus activos fijos en 3 años, para después del 3er año tener menores gastos de operación y poder subsistir ante la probable reducción de clientes. * Debe considerar que parte de sus ganancias iniciales, deberán ser utilizadas para el pago de la deuda a largo plazo en que incurrirá con el préstamo * Debe considerar, que las ganancias que le dará el negocio, en el escenario realista, son cercanas al sueldo que le pretende pagar al gerente * Debe decidir si tiene que aceptar el préstamo, la respuesta es si. Sin el préstamo no va a ser posible lanzar el café ni conseguir comprar los artículos que el requiere * El necesitaría en promedio 12 empleados a la semana para cubrir el horario completo de atención al publico 3. Realizar un análisis CVU (Cost Volume Profit Analysis) ¿Cuanto gasta cada cliente en promedio, cual es el costo por cada cliente? Break-Even Sales (units) =Fixed Costs / Unit Contribution Margin Break-Even Sales (customers per year) = Fixed Costs / Customer Contribution Margin Break-Even Sales (customers per year) = 3109133/ 144 = 21,591 On the first year Break-Even Sales...

Words: 374 - Pages: 2

Premium Essay

Internet Cafe

...Research projects Agency funded a larger and more ambitious network nodes were built in high-speed super computers. In fall 1969 the first node was installed in UCLA by ARPANET which can transfer data on a high-speed transmission lines. By 1970 ARPARET grew and its structure expands easily because it can accommodate many different kinds of machine. The original standard for communication was known as the “Network Control Protocol (NCP)”, but as time passed by and the technique advanced, the NCP was superseded by a much higher-level, and more sophisticated standard known as the “Transmission Control Protocol (TCP/IP)”. It converts messages into streams of packets form the source, then resembles them back into messages to the destination. “Internet Protocol” handles the addressing aspect while seeing to it that the packets are well routed across multiple nodes and even across multiple networks. As the ‘70s and ‘80s advanced, many social groups found...

Words: 906 - Pages: 4

Premium Essay

Caribbean Internet Cafe

...the Caribbean Internet Café? Caribbean Internet Café (CIC) venture has both promise and risk attached to it, like any other start up venture. Mr. David Grant should consider the following issues before entering into this venture. His main managerial issue would be cost vs benefit. He must consider if the venture would be profitable for him and for CIC and also how long it will take for him to recover his initial cost. His concern should be "Will he be able to repay his loan on time?" To do this he has to figure out his fixed cost, variable cost and also the start up costs. These are presented in the answers to the following questions. I have also presented an analysis based on Socio economic, technological situation, and SWOT analysis. Socio economical condition in Jamaica There is an unmet demand in the country for easily available internet access and combined with a coffee shop, this can be a great venture. There seems to be a great awareness for the technology but not that many private users. Mr.Grant will have the advantage of new enterprise offering to meet this void in the country. Economically the country has been in negative economic growth and the fact that Mr.Grant will be increasing the price for intenet access by 30% may be a bit expensive to many users. He has to watch the revenue and the economic developments and adjust his pricing accordingly Jamaica has many restaurants and cafe but none of them offer internet browsing services...

Words: 1687 - Pages: 7

Premium Essay

Internet Cafe Report

...Background * HISTORY 2Peng Internet Café started to operate last April 2008 at Dahlia St. Phase 1, Garden Villas, Santa Rosa Laguna. It was established by Christopher V. de Leon and his wife. The computer shop started with 2 PCs under the stair case in their own house. At first, this serves as their family business and a source of income only. Their capital was only P1, 500 for the computers and used Smart Wireless Internet Connection. They then bought 4 units of second hand Pentium 4 computers. Later, they decided to sell all the computer units and added another capital to invest for 9 brand new PCs. This June 2014, they expanded their business and moved to Savemore Garden Villas 3, owning 38 brand new computers costing for about P25, 000 per unit. * VISION To expand the business and to teach others to invest in the new generation. * MISSION To build a gaming community and to show that gaming does not make gamers a violent people. * STRATEGIC PLAN (Goals) 2Peng’s number on goal is to be the first computer and to be the leading computer shop in Garden Villas 3. To achieve this, they focused on business and do hands-on jobs. They make sure that everything is organized as to what the costumers demand. Also, they planned to give opportunities to others by teaching computer related concepts. * ORGANIZATIONAL CHART The organizational chart of 2Peng’s comprises of only 3 personnel. Present ICT Situation 2Peng Internet Café offers the following services:...

Words: 2816 - Pages: 12

Free Essay

Easy Internet Cafe

...Easy Internetcafe Franchise Questions: 1. Steps for opening each franchise are as follows: Step A: contract is signed with franchisee Step B: Cafe location is selected either by the franchisee or with Elc assistance. Step C: Broadband internet connection must be established. Each country steps to establishing a connection is different. For example one country might have a long lead time with a requirement of a certain labour union to install compared to countries where the franchisee can install themselves. Step D: Desks are delivered and installed. Step E: Server delivered and installed. Step F: PC’s delivered and installed. Step G: CVM delivered and installed. Step H: Signage delivered and installed Step I: Chairs delivered and installed Step J: Testing and trouble shooting complete system Step K: Grande opening the business The steps are the same for opening each franchise because each franchise is designed to carry a uniform look , atmosphere, equipment and furniture. The significance of activities have established predecessors in the plan because certain steps must be completed for the next steps to take place. Simple horse before the cart philosophy. Once a contracted is signed it takes 63 days to complete a store if our following recommendations on certain issues met our recommended supply chain suggestions. The reason we choose 63 days is because the time it take a franchise to sign a contact is unknown. If we take the lead times for purchasing...

Words: 288 - Pages: 2

Free Essay

Internet Café

...Galaxy Web and Café Ownership It is a simple restaurant and Internet Café with food and drink served and Internet service provided both for free and paid. It is a family private company in Cambodia. History The 1st Galaxy Web Café was opened at Parkway Square on October 31st, 2004 by local Phnom Penh entrepreneurs offering a new dining option to Cambodian people. With our continued growth over the years, Galaxy Web Café plays a positive role promoting local eating culture. Galaxy Web Café's vision is to be the natural choice for today's health conscious people as all our fresh ingredients are carefully selected and our dishes are meticulously prepared. We promote Healthy Eating in Style - among others, no MSG is used by our expert chefs, we only serve family raised non-industrial chicken for our rice chicken, and our rice noodles do not have the chemical additive. Our menu includes a wide range of local favorites, including Khmer, Chinese, Thai and Western cuisines that are suitable for breakfast, lunch and dinner. In addition, Galaxy Web Café Calmette Outlet serves gratifying dinner buffet every evening from 6:00 to 9:30 pm. Everyone can enjoy a wide range of coffees flavors, fresh tropical fruit juices and delectable cakes and at the same time get free access of internet. Come to enjoy with us to experience the utmost in ambience and delicacies. Locations Parkway Square outlet Mao Tsetoung Blvd., Infront of Parkway Square Sovanna outlet Corner...

Words: 985 - Pages: 4

Premium Essay

Easy Internet Cafe

...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...

Words: 893 - Pages: 4

Premium Essay

Cyberhub Internet Cafe

...UNIVERSITY OF SCIENCE AND TECHNOLOGY Cabanatuan City A FEASIBILITY STUDY ON THE PROPOSED CYBERHUB INTERNET SHOP In partial Fulfilment of the Course Requirements in PROJECT FEASIBILITY STUDY Mr. Ferigrino Urbano Adviser Marco Joseph Bernacer Bernardo Balic Nelson Galang Timtus Oliver Torres Jaydee Nilo Merberth Silvestre Joey Gutierrez September 19, 2011 RECOMMENDATION FOR ORAL EXAMINATION This Project Feasibility Study entitled “A FEASIBILITY STUDY ON THE PROPOSED CYBERHUB INTERNET SHOP”, prepared and submitted by Marco Joseph Bernacer, Bernardo Balic, Nelson Galang, Timtus Oliver Torres, Jaydee Nilo, Merberth Silvestre, and Joey Gutierrez, in partial fulfilment on the requirements in the subject PROJECT FEASIBILITY STUDY has been examined and recommended for Oral Examination. APPROVAL SHEET Accepted for Oral Examination Mr. Felipe E Balaria Chairman Panel Members Mrs. Mercedes Santos Ms. Joy Nacino Mr. Juvenal Yabut Accepted in partial fulfilment of the requirements in the subject PROJECT FEASIBILITY STUDY. Mr. Ferigrino Urbano Adviser Ms. Jocelyn Cruz Dean. CMBT ACKNOWLEDGMENT The researchers would like to extend their special appreciation to the following persons: Mr Ferigrino M. Urbano, their feasibility study Adviser, for his guidance and unwavering support; Miss Cherry Hernandez, owner of Kanuto’s Internet Shop for the information she furnished the researchers; Mr and Mrs Carlos Pajarillaga, owner...

Words: 13550 - Pages: 55

Free Essay

Exercises

...23. Costos directos e indirectos. Starbucks es una compañía de venta al por menor y el servicio bien conocido que ofrece café y productos relacionados con el café. Encontrar su más reciente informe anual o 10-k de informes (archivos con el gobierno federal) en el Internet y revisar sus estados financieros. ¿Qué costos son propensos a ser directo y que son susceptibles de ser indirecta (suponiendo que cada tienda al por menor es el objeto de coste)? Los costos propensos a ser directo son aquellos que están relacionado con el objeto de costo, como por ej. Los envases para los cafés, los sorbetes, las tazas, servilletas, etc. Los costos susceptibles de ser indirecto son aquellos que van dirigido al personal de Starbucks, los empleados, es uno de los costos más importantes de Starbucks ya que son ellos quien brinda la atención. Como se observa en el balance, los costos mayores que presenta Starbucks están en los salarios de los empleados, en el alquiler del store y en los objetos que utilizan para servir sus productos. 24. producción Just-in-time. Ford Motor Company ofrece productos y servicios automotrices. Encuentre su informe anual más reciente o el informe 10-K (presentada ante el gobierno federal) en Internet y revisar los estados financieros de Ford. ¿Cómo podría Ford será capaz de mejorar su situación financiera (balance) y los resultados financieros (cuenta de resultados) mediante el aumento de su uso de la producción justo a tiempo? Ford en el año 2011 tuvo ganancias...

Words: 348 - Pages: 2

Free Essay

Branding Starbucks Coffee

...Starbucks Coffee Estudio de caso: Claudio Covacevich P. Preparado por Starbucks Corporation (NASDAQ) es una cadena internacional de café fundada en Seattle, Washington. 1. Es la compañía más grande de café del mundo, con aproximadamente 16 000 locales en 44 países. Historia En Estados Unidos, hablar de café es pensar en Starbucks. La sorprendente cadena de cafeterías norteamericana va camino de lograr lo que un día se propuso su principal impulsor y máximo responsable de su estrategia, Howard Schultz: convertirse en la marca más conocida y respetada del planeta. Asentada en un concepto muy específico de servicio al cliente y propulsada por una agresiva y fulgurante expansión nacional e internacional, la compañía ha logrado que su popular sello de identidad Historia Todo empezó con una cafetería en Seattle en 1971, y en poco tiempo comenzó su crecimiento a escala local, entrando en el negocio de la importación de café y tostando el grano en una planta propia. El negocio dio un giro de 180 grados cuando, en 1982, Howard Shultz entró en la compañía encargado de dirigir las tareas de marketing y de gestión del negocio minorista. El directivo realizó un viaje a Italia en 1983 en el que descubrió el encanto de las cafeterías de Milán, el sabor de los “espressos” y el placer de pararse a saborear una taza de café en un entorno agradable. Convencido de que ese Historia La visión de Schultz se tradujo en locales acogedores, en los que los clientes podían...

Words: 1572 - Pages: 7

Free Essay

Starbucks During Xxi Century

...6.000 accionistas de Starbucks se reunieron en McCaw Hall en Seattle para la reunión anual de la compañía de café. El primero en la fila apareció en las afueras de la fachada de vidrio del edificio mientras todavía estaba oscuro y poco tiempo después el salón de actuaciones estaba abarrotado.1 A medida que la multitud entraba, un equipo de empleados de Starbucks repartía tazas de café caliente, mientras que otro grupo escribía en tarjetas blancas los comentarios de los accionistas sobre la compañía.2 Desde el horizonte de Seattle por la mañana hasta el grupo de trabajadores con delantales verdes, el ritual anual se llevó a cabo de acuerdo con la tradición de Starbucks. Pero para la compañía icónica, este no había sido un año común. Starbucks se inició en 1971 como una compañía tostadora de café con casa matriz en Seattle. En esa época, el mercado de café más grande estaba dominado por las marcas de supermercado, tales como Folgers y Maxwell House, y el consumo per cápita de café estaba cayendo.3 Sin embargo, durante las siguientes dos décadas los vendedores de granos de café especiales y de alta calidad comenzaron a atraer un séquito de nichos.4 En 1987, el empresario Howard Schultz compró Starbucks con el objetivo de introducir la cultura del café al estilo europeo en el mercado estadounidense. Bajo el amparo de Schultz, Starbucks difundió la cultura de bebidas de café personalizadas y de alta calidad en las áreas urbanas de todo el país. El entusiasmo de los clientes de Starbucks...

Words: 27648 - Pages: 111

Premium Essay

Business Report

...Executive Summary Can Bread and Biscuit Cafe benefit from offering Wi-Fi in its shop? Brad Pitts insisted I conduct research on the pro's and cons of Wi-Fi in the shop. Comparing the length of how long other coffee cafes have been in business and determining where they went wrong, and being able to provide quality customer service, warm inviting ambiance, and comparable menu offerings. Problem ← Large chains with financial stability ← Established coffee houses with Wi-Fi offerings. ← Emerging local competitors. Background The Manager of Bread and Biscuit, Brad Pitts, insisted I set up Wi-Fi in the Dalton, MA shop, as-soon-as possible. As a first step to implementing Wi-Fi, this report compares the pros and cons of Wi-Fi for the shop in reference to other cafes’ in the area. Dalton is nestled in the heart of the Berkshires and many tourists visit this are in the summer and fall. Summer is peak season due to the presence, Tanglewood, MassMoCA, Norman Rockwell Museum, The Clark Art Museum, and Jacobs Pillow. The Berkshires draws visitors from all over New England, New York City, New Jersey, and Long Island. In the fall the same visitors return to catch a glimpse of our fall foliage. Bread and Biscuit’s goal is to create a warm inviting ambiance with coffee, baked goods, and a few “Berkshires” memorabilia. It is a place to gather with friends or family, relax and unwind while sitting in the heart of the Berkshires sipping on your...

Words: 942 - Pages: 4

Free Essay

Trading

...PONTIFICIA UNIVERSIDAD CATOLICA DEL PERU ESCUELA DE GRADUADOS TESIS PARA OBTENER EL GRADO DE MAGÍSTER EN ADMINISTRACIÓN ESTRATEGICA DE NEGOCIOS OTORGADO POR EL CENTRO DE NEGOCIOS DE LA PONTIFICIA UNIVERSIDAD CATOLICA DEL PERU PLANEAMIENTO ESTRATÉGICO PARA EL SUB SECTOR CAFETALERO DEL PERU: PERIODO 2006 AL 2011 PRESENTADA POR: Sr. MARCO LOAYZA OJEDA Sr. MANUEL ORTIZ SÁNCHEZ Sr. LUIS OLIVO VALENZUELA Srta. CLAUDIA CHANG BECERRA Asesor: Profesor FERNANDO D’ALESSIO IPINZA Surco, febrero de 2006 AGRADECIMIENTO Expresamos nuestra gratitud: A los profesores de CENTRUM por compartir sus conocimientos y experiencias. A nuestro Asesor Fernando D’Alessio Ipinza, por su denodada dedicación, acertadas sugerencias, motivación constante y la confianza transmitida, que fueron factores claves para la obtención del resultado final. ii A mis queridos padres y hermanas A Belinda, mi amada esposa A Gonzalo, mi hijo adorado A todos ellos, mi más grande agradecimiento, por su confianza y apoyo inagotables Marco Antonio A mis padres, mis hermanos A Amalia mi querida esposa, A Manuel, Carmen Elena y David mis entrañables hijos, A todos ellos mi profundo agradecimiento por su sólida fe y apoyo incondicional Manuel iii A mis Padres, A mi Hermana Ana A mi querida Esposa Nadia, A Christian y Nicole mis hermosos hijos, A todos ellos mi gratitud por el apoyo brindado y A DIOS por estar siempre en mi. Luis Alberto A Carlos y Meche, mis padres A Carola, Jocelyn...

Words: 62612 - Pages: 251

Free Essay

Anec Juan Valdez

...1957 Nace el icono Juan Valdez como símbolo de la caficultura en Colombia. * 1980 A partir de Juan Valdez, se crea el logo ingrediente 100% Café de Colombia. * 2002 Se posiciona a Juan Valdez como una marca de productos de café con un alto valor agregado. * En los 90 la cadena de valor del negocio del café se empezó a concentrar en el último eslabón controlado por multinacionales. * El concepto global se ha materializado en cuatro formatos de tiendas –Recientemente se implementó un quinto formato (Boutique). Las principales diferencias entre estos radican en su tamaño total, la inversión, el tamaño que dedican a las diferentes áreas, su localización y los productos que ofrecen. * El canal de retail está presente en los principales supermercados en 8 países de América ofreciendo un portafolio diverso de productos de café: * Norteamérica: 740 POS. * México: 60 POS. * Salvador: 50 POS. * Costa Rica: 44 POS. * Colombia: 270 POS. * Perú: 20 POS. * Argentina: 25 POS. * En solo 7 meses Juan Valdez logrócapturar en valores el 5.3% del mercado nacional de la categoría cafés tostados y molidos. * La comunicación de la marca se ha enfocado a actividades de BTL que permiten una mayor interacción con el consumidor y son útiles para adelantar campañas de educación acerca del café premium y sus diferentes variedades. * Degustaciones * Juegos didácticos * Exhibiciones especiales * Ediciones especiales...

Words: 595 - Pages: 3

Premium Essay

Business and Management

...Introduction Central Perk is the name of a theme coffee house located at 616 building A, Chaowai SOHO, Beijing. The interior is an identical recreation of the coffee house of the same name in an American TV show called Friends.  Founded in 2009 and currently staffing 42 employees, Central Perk provides coffee drinks and dessert fare.  History  Owner Du Xin is passionate about the TV show Friends, so much so, that he decided to open a coffee house as an identical recreation of the fictional coffee house in Friends.  He describes the show as his religion, and he started the themed restaurant in 2009 to cater to fans of the show as well as fans of coffee.  Many visitors to the cafe are students, who come for cheap coffee and the constantly looping Friends episodes with Chinese subtitles, which are helpful for learning English. However DuXin also suffered immediate hardship: In the weeks after opening he said “no body came in”.  The shop is physically identical to the coffee house on the TV show Friends.  Owner Du Xin watched hundreds of the show’s episodes to get the details correct, including having a custom made couch to match the one in the show.   Strengths and weaknesses:  Coffee shops are popular destinations, and Central Perk attracts additional customers because of the popular theme.  Within 500m of Central Perk there are 9 other coffee houses; An informal survey of several coffee shops in this area revealed a steady stream of customers, from college students...

Words: 570 - Pages: 3