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
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.
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Stelios, CEO of the parent company, will not hesitate to pull the plug as the losses continue to mount.
Profit– Nature: Strategic – Short and Long term
If the company cannot make a profit the CEO will pull the plug. An enormous amount of costs are incurred for the set up and supply of new stores.
Core Competency – Nature: Strategic – Long Term
Logistics and transportation are not the core activities of eIc as proven by the spiraling costs. EasyInternet café needs to focus more on the software and service level.
Bottlenecks - Nature: Strategic - Short term
Logistics is a bottleneck as they can only open as many stores as they can ship to and set up. It is a drag on scalability, efficiency and a bottleneck on growth and is the main reason for spiraling high costs and continuing losses.
Environmental and Root Cause Analysis
Easy internet café decided to radically revamp their operations and it was decided to appoint franchisees for the new stores and if possible for their existing ones. 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.
It was also decided that they have smaller stores with 20 to 30 PCs. The plan was for quick growth with 10 stores per week over the next 2-3 years. The Management team thought that it was important that every cafe looked the same, with common signage, furnishings and PCs.
There are many steps involved in opening an EasyInternet café as listed in the below chart. Once the contract is signed is seemed to take an average of 11 weeks.
|activity |Description |Average Duration |Immediate Predecessors |
|A |Contract is signed with franchisee |1 wk | |
|B |Space for café is contracted or existing space |4 wks |A |
| |acquired | | |
|C |Broadband internet connection |4 wks |A,B |
|D |Desks installed |1 day |B |
|E |Server delivered and installed |2 days |B,C |
|F |PC’s delivered and installed |2 days |D,E |
|G |CVM delivered and installed |1 day |E |
|H |Signage delivered and installed |1 day ...