Internet Cafe

1153 Words Apr 9th, 2014 5 Pages
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
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* Sold products through a network – additional charges 4) Ingram Micro total cost per store 976
Pros:
* Largest B2B trade-only warehouse provider of technology products and services * Provide complete integrated solutions * Billing franchisees directly * Lease arrangements available * If selling their own products, save on warehousing * Possible elimination of most of logistic costs
Cons:
* Limited to 5 countries

Recommendation and implementation

As per the alternatives mentioned previously, it is recommended to choose Ingram Micro as the company of choice to
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