Essay About Internet Café And Largest Internet Cafes

Logistics and Project Planning at Easyinternetcafe Ltd
Logistics and Project Planning at easyInternetcafe Ltd.Report on: Third Party Logistics (3PL)Module 3Session 8Prepared by: Joanna BentumMember ID: 8001063March 8, 2016Executive Summary                Table of ContentsExecutive Summary                                                                        2        Issue Identification                                                                         4Root Cause Analysis                                                                4Alternatives and Options                                                                7Recommendations                                                                        8Implementation                                                                        9Monitor and Control                                                                 10        Issues Identification         Throughout this case there are several different issues that easyinternetcafe (EIC) has faced, are currently going through, and can see arising in the future. For the purpose of the written report four issues facing EIC identified have been identified. Between 1992 and 2002 EIC budget produced a deficit and they ended have loses of £80-100 million. Due to the heavy investments into company owned stores at each new store opened, EIC was having trouble keeping their business profitable. There is and was a lack of an efficient logistics system. Without this type of system the company could not keep up with the level of activity and were not able to provide cost saving, easy logistics processes for the equipment to the franchises. There were a couple different issues in regards to opening franchises. Firstly, there was no consistent timeline laid out for opening new stores; each franchise had different time frames they worked in. Secondly, there was no project plan for opening stores. If a project plan was in place logistical and non-logistical operations for the stores would be organized within a similar time frame of opportunity. Each franchise location consists of different processes and costs, depending on where the store is located. Root Cause AnalysisQualitative AnalysisEIC is facing closing their doors in nine months. In order to avoid is devastating effect they must make a profit. Not only is growth essential here but, logistical activities need to be cost effective. Outsourcing could be an option for activities such as logistics, as EIC considers this function to be a non-caring activity. To look closer into EICs situation a SWOT (Strengths, Weaknesses, Opportunities, and Threats) will be examined. SWOT AnalysisStrengthsExperts in yield managementConsumers have access to the internet for one of the lowest costs aroundEICs founder is a well renown entrepreneur EIC has established itself as a well-known internet café throughout Europe; as well into other continentsEIC offers the largest internet cafes in the worldEIC is recognized and supported by the general publicEIC has earned recognition for innovation, marketing, use of technology, and investment in high and attractive retail propertiesWeaknessesThe internet bubble has already burstECI is too large for the market and needs to downsizeEIC did not put a project plan (operation plan) in effect for new storesEach store has high investments and fixed costsThe weight of decision making regarding large investmentsThe revenues levels needed to not only make a profit but breakeven were quite large The high expectations for growth and revenue did not happenOpportunitiesRe-asses operations Lower or eliminate need to large investments going forward as franchises can take this costDecrease drain on capitalOpen 10 new stores in 2-3 years to create quick growthEliminate the majority of staff at the cafesDownsize to smaller cafesCreate a unity amongst cafes; branding Outsource non-caring activitiesThreatsOutsourcing logistics functions will mean no direct control of these functions from EIC. As this function has become necessary and important to EIC after the strategy change this might be difficult to let go ofLogistics has and can act as a bottleneck for growth. This has also lead to high costs and lossesThe logistics system needs to be efficient and feasible to handle increased levels of activity and help make easy cost efficient processes