Richard School of Business
CASE SUMMARY
David grant is an MBA student hoping to open Caribbean Internet Cafe in his hometown Kingstons, Jamaica upon his graduation as he always wanted to be his own “boss”. Due to low accessibility and usage of internet in Jamaica, David thought of it as a good timing to pursue this business opportunity. He has gathered data on all the relevant costs: equipment, rent, labor, etc. He has also found a partner in the local telephone company, Jamaica Telecommunications Limited (JTL), where he previously worked. JTL has offered to provide equity and a long-term loan at favorable interest rates. He is now faced with the task of analyzing the gathered information and making a decision of whether he should proceed with the venture, and if so, if it would be a profitable business for him and JTL.
TABLE OF CONTENT
CASE SUMMARY 1
INTRODUCTION 2
PROBLEM DEFINITION 3
CONCEPT FEASIBILITY STUDY 3
TARGET MARKET 4
LOCATION 4
COMPETITION 4
ECONOMIC FEASIBILITY 4
CAPITAL AVAILABLE 5
START UP COST 5
FIXED MONTHLY COST 5
PRICE COST MARGIN ESTIMATION 5
TARGET CUSTOMER SEGMENT – 20000 6
REVENUE PER YEAR 6
PROFITABILITY 6
CONCLUSION 6
RECOMMENDATIONS 7
INTRODUCTION
The report deals with the study of a business proposal to open an internet café. The report studies the decision of David Grant who is an MBA student, to open Caribbean Internet Café in his home town Kingston, Jamaica. David while studying in London visited a number of cafes and was intrigued by the concept. While visiting his hometown Kingstons, Jamaica during summers he noticed that in spite of high awareness of the internet, there was low accessibility and usage of the same. Seeing a potential market of consumers, David decides to open a European concept based Café which will offer brewed coffee, imported wines, juices and baked products. He decides to have three areas in the
David grant is an MBA student hoping to open Caribbean Internet Cafe in his hometown Kingstons, Jamaica upon his graduation as he always wanted to be his own “boss”. Due to low accessibility and usage of internet in Jamaica, David thought of it as a good timing to pursue this business opportunity. He has gathered data on all the relevant costs: equipment, rent, labor, etc. He has also found a partner in the local telephone company, Jamaica Telecommunications Limited (JTL), where he previously worked. JTL has offered to provide equity and a long-term loan at favorable interest rates. He is now faced with the task of analyzing the gathered information and making a decision of whether he should proceed with the venture, and if so, if it would be a profitable business for him and JTL.
TABLE OF CONTENT
CASE SUMMARY 1
INTRODUCTION 2
PROBLEM DEFINITION 3
CONCEPT FEASIBILITY STUDY 3
TARGET MARKET 4
LOCATION 4
COMPETITION 4
ECONOMIC FEASIBILITY 4
CAPITAL AVAILABLE 5
START UP COST 5
FIXED MONTHLY COST 5
PRICE COST MARGIN ESTIMATION 5
TARGET CUSTOMER SEGMENT – 20000 6
REVENUE PER YEAR 6
PROFITABILITY 6
CONCLUSION 6
RECOMMENDATIONS 7
INTRODUCTION
The report deals with the study of a business proposal to open an internet café. The report studies the decision of David Grant who is an MBA student, to open Caribbean Internet Café in his home town Kingston, Jamaica. David while studying in London visited a number of cafes and was intrigued by the concept. While visiting his hometown Kingstons, Jamaica during summers he noticed that in spite of high awareness of the internet, there was low accessibility and usage of the same. Seeing a potential market of consumers, David decides to open a European concept based Café which will offer brewed coffee, imported wines, juices and baked products. He decides to have three areas in the