Table of Contents
Executive Summary 2
Issue Identification 3
Environmental and Root Cause Analysis 4
Alternatives and Options 6
UPS Global Logistics 6
Exel 6
Globalserve 6
Ingram Micro 7
Recommendations and Implementation 8
Monitor and Control 10
Executive Summary
EasyInternetcafe was started by the easyGroup in the midst of the Internet boom in the United Kingdom. The mission of this company is to provide customers with access to the internet at the lowest possible cost. After the Internet Investment bubble burst, easyInternetcafe is experiencing a loss in profits and is struggling to survive.
The original business concept was to have large, stand-alone cafes with 250-800 PCs per store. After the initial internet boom phased out, a
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Since logistics is one of the non-core activities, the present logistics system needs to be analyzed to determine the most efficient and effective strategy that will be aligned with the companies objectives.
The table below shows the events and timelines that occur when opening a new franchise.
Event
Timeline
Find a space for the café – EIC will help the franchise owner find a location
28 Days
Set up broadband internet connection
28 Days
Install desks
1 Day
Deliver and install server
2 days
Deliver and install PCs
2 days
Deliver and install CVM
1 day
Deliver and install chairs
1 day
Complete system testing
2 days
Open for business
1 day
As some of the activities overlap, the average time it should take to open a new location is approximate 70 days. However, depending on the franchise location, the outbound transportation costs will change. They are classified into 3 zones based on their distance from the UK:
Zone 1 – closest to UK (France, Spain, Netherlands) @ £300 per store
Zone 2 – mid-range from UK (Poland, Czech, Finland) @ £450 per store
Zone 3 – farthest from UK (Greece, Turkey, Bulgaria) @ £750 per store
The majority of the stores (23 locations) are located in Zone 1, which is £6900 in outbound transport costs. Zone 2 has 13 stores, which is £5850, and Zone 3 has the remaining 11 which is £8250. That results in a total £21,000 in outbound transportation costs for the stores in all three zones. Management needs to
The business that I want to open would be a franchise of a McDonald’s restaurant. McDonald’s is a fast-food restaurant that serves a variety of products, but is mostly known for its
Therefore, by launching an e-business, Broadway Café will have an opportunity to leverage it current assets, its customers. To follow in this opportunity will be the employees, technology infrastructure, and information to gain and maintain market share.
1. Franchisees gain numerous advantage when they purchase a franchise. First, while a franchisee may be opening a new store, it is part of an already established business and system. This means a franchisee has access to turnkey operations, allowing an increased speed to establishing and growing the business. Franchisees also get support for management and training activities, as well as financial assistance. Going hand in hand with this, a franchise already has an established brand name, quality of goods and service which have been standardized across the franchisor’s larger company, and national advertising programs from franchisors. Franchises also have large-volume, centralized buying power. A franchise has proven products, and
The franchiser can attain rapid growth for the chain by sign- ing up many franchisees in many different locations.
You pay a franchise fee and you get a format or system developed by the company (franchisor), the right to use the franchisor’s name for a limited time, and assistance. For example, the franchisor may provide you with help in finding a location for your outlet; initial training and an operating manual; and advice on management, marketing, or personnel. The franchisor may provide support through periodic newsletters, a toll-free telephone number, a website, or scheduled workshops or seminars.
The first choice of business is the franchise. In a franchise, legal binding agreement is entered into between two firms, the franchisor (the product or service owner) and the franchisee (the firm to market the product or service in a particular location). The franchisee pays a certain sum of money for the right to market this product” (Rubin, 1978, p.224). The franchising is more prevalent in the restaurant industry (Hoffman & Preble, 2003). The two distinct features of this business type include; first, in order to notable service components should
Because of their substantial growth over two decades, they have spent a considerable amount of time defending their image. Their “clustering” strategy put many small coffee shops out of business and many consumers began to wonder if there really was a need
Franchising is a business model that allows companies to rapidly expand their market share. According to Franchise.com (2015), there are three types of franchises: distributorships, trademark licensing, and business format franchises. When two organizations enter into a distributorship, the originating company provides the rights another company to sell their products. An example of a distributorship is when an auto manufacturing company grants rights to a dealership to sell their vehicles (Franchise.com, 2015). Trademark licensing is when one company allows another company to use their trademark (Franchise.com, 2015). The business format franchise authorizes franchisees to sell the parent company’s products and/or services as well as utilize their business model. This type of franchising is the most common and is the type needed to obtain to open a new Cold Stone Creamery.
...................................................10 Alternative 3 – Review Existing Locations..........................................................................................11 Alternative 4 – Expansion through Franchise Operations.....................................................................11 Alternative 5 – Expand Catering Segment ...........................................................................................12 Recommendations and Action Plans .......................................................................................................12 Recommendations ..............................................................................................................................12 Action Plans .......................................................................................................................................13 Contingency Plan ...................................................................................................................................14 Attachments ...........................................................................................................................................15 Exhibit 1.............................................................................................................................................15 Exhibit 2.............................................................................................................................................16
1. Where did the original idea for the Starbucks format come from? What lesson for international business can be drawn from this?
in the specialized coffee industry, Starbucks cemented its hold on the market by hosting free wireless
The targeted industry is coffee shop for this business venture. According to the latest research from the NPD Group, the coffee shop industry continues to thrive in the evolving economy [1]. In the past years, out-of-home coffee servings have fallen by more than 3%, but while the visits in coffee shops remained flat. Even though the marketplace is challenged, the market is still huge [2].
Two major developments in the first decade of the 21st century were the widespread use of the Internet and the growth of high street coffee shops such as Starbucks and Costa Coffee. A business opportunity that combines these two ideas is to set up a town centre coffee shop that offers wireless Internet connection, computer terminals and
Franchisors are increasingly having to be more and more selective in the adoption of franchisees with factors such as economic climate and the potential difficulty with growth playing key factors in the decision making process. It is not simply an ability to grow which creates a successful Franchise and nor is it the desire of any franchisor to adopt every potential franchisee. Franchisors are becoming more and more scrutinising as the global economy declines. There is a general understanding within any franchised
3. The objective of logistics is to obtain efficiency of operations through the integration of all material acquisition, movement, and storage activities in the firm.