Caribbean Internet Cafe - 920 Words

T Case Summary of: Carribean Internet Cafà © 1. What managerial issues should David consider before starting Caribbean Internet Cafà ©? Managerial Issues: Broadly defined as all issues which have an impact on a business manager’s decision. In this case, David should consider: - Political, Economic, Social, Technological (PEST) issues analysis: (i) Political: Bureaucracy and corruption may potentially slow down the pace of enhancing the necessary infrastructure for internet accessibility and usage e.g. laying of telephone lines, persistently high cost of computers etc. (ii) Economic: PC and internet connection prices may fluctuate greatly, or drop to such an extent that people can generally afford them. (iii) Social: There is a†¦show more content†¦How many customer visits will CIC need in order for the Cafà © to break-even in year 1? Year 2? Optimistic Realistic Pessimistic Total fixed cost 2,479,400 2,479,400 2,479,400 Contribution margin 180 180 180 BEP based on no. of visits 13,774.44 13,774.44 13,774.44 Days 312 312 312 Customer per day 44 44 44 The break-even for both year 1 and year 2 should be the same since there are no items mentioned in the case that would be varied based on passing of time. 6. What other information should David consider in reaching a decision? (you should here also draw on topics studied in any other courses and from your own experiences) - Competition: Competitors can potentially duplicate the concept. Entry Barriers are also not high, and can be easily overcome by the other 6 internet service providers. - Agency Costs: The issue of whether the interests of the manager with experience in the restaurant industry are aligned with David’s. - Cultural Risk: Coffee is not traditionally popular in Jamaica. - Concentrated Supplier (which is JTL): A contingency plan should be in place if JTL withdraws its support (terminates the loan or cancels lease of telephone line etc.) for CIC, or divests its 50% stake to a hostile partner. - Usage Patterns: The possibility of PCs and internet usage becoming so affordable and widespread that there is noShow MoreRelatedCaribbean Internet Cafe795 Words   |  4 Pages1 Caribbean Internet Cafà © Performance Management and Control, ACC 287.5 David E. Platt, Ph.D. Caribbean Internet Cafà © Primary Case-Study Objectives 2 ï  µ ï  µ ï  µ Observe the diversity of business measurement issues. Introduce fundamental costing issues. Identify strategic and non-financial issues that are critical for decision making. Caribbean Internet Cafà © Cost Summary 3 ï  µ Here is a listing of costs to be incurred (pg. 3-4). How can we organize this data in a useful way? Equipment Waiter-tutorsRead MoreEssay on Caribbean Internet Cafe633 Words   |  3 Pagesto start an internet cafà ©. 2. David is also planning to hire a manager with Jamaican restaurant experience to help him with the majority of his business activities; this could be an issue as he hasn’t found anyone yet. He isn’t considering the possibility that he will not be able to find someone to fill the position. 3. David also seems to have little business knowledge when it comes to pricing. He examined the market and found that the industry price was $90 per hour for internet service andRead MoreThe Marketing Mix Hard Rock Cafe1259 Words   |  6 Pagesand/or services are moved from the manufacturer/service provider to the user or consumer. 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Focusing on the aesthetics of the cafà © and the purchase behaviour of its customers, this essay intends to evaluate the attempt of this organisation to create a coffee culture in TT. This evaluation will then inform the argument of hybridization by demonstrating how cultures exchange elementsRead MoreCarribean Internet Cafe1263 Words   |  6 PagesAssignment #1: Caribbean Intern Cafà © Date: November 14, 2012 1. There are many issues that Mr. Grant should consider before proceeding with the CIC. There are several things that Mr. Grant should examine before even looking at the projections given to him. Total capital is $2,250,000, $1,000,000 in investments and $1,250,000 in the form of a long-term loan. $1,573,000 is immediately spent leaving $677,000. If he has no customers, he can afford to remain open for 3 months. As well, theyRead MoreAccounting Case Essay1930 Words   |  8 Pagesorders over the internet site. How should this affect the activity cost driver rates calculated in Question 2? How would the switch affect Dakota’s profitability? Caribbean Internet Cafà © 1. What managerial issues should David Grant consider before starting the Caribbean Internet Cafà ©? 2. Define the fixed, variable and start-up costs in this case. 3. What is the contribution margin per customer? 4 How many customer visits will CIC need in order for the cafà © to break-even inRead MoreRe Sba1648 Words   |  7 PagesLibrary to get information on three symbolisms in Rastafari via the internet which I stored on a flash drive. On the 3rd of October 2011 at about 2:30 pm, I gave out 12 questionnaires to the Rastafararians in my community. On the 5th of October 2011, I collected back the questionnaires at about 4:35 pm, from which I gathered additional information on the study. On the 10th of October 2011 at about 10:00 am, I went to an Internet Cafà © to get pictures and additional information about the symbolism whichRead Morecafes monte bianco case analysis4234 Words   |  17 PagesExam†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦....20% CASE ANALYSIS Students will work on the cases in groups of three (preferably) or four. Each group will be required to submit written Case Analysis (five pages plus Exhibits) for each of the following cases: 1. Cafes Monte Bianco: Building a Profit Plan 2. Compagnie du Froid, S.A. In addition, groups will pick four of the remaining cases (except Birch Paper) that interest them for a short write-up (2-3 pages plus exhibits). Case write-ups should include