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Caribbean Internet Cafe

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Submitted By EMBAraj
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1. What managerial issues should David Grant consider before starting the Caribbean Internet Café?
Caribbean Internet Café (CIC) venture has both promise and risk attached to it, like any other start up venture. Mr. David Grant should consider the following issues before entering into this venture. His main managerial issue would be cost vs benefit. He must consider if the venture would be profitable for him and for CIC and also how long it will take for him to recover his initial cost. His concern should be "Will he be able to repay his loan on time?" To do this he has to figure out his fixed cost, variable cost and also the start up costs. These are presented in the answers to the following questions. I have also presented an analysis based on Socio economic, technological situation, and SWOT analysis.
Socio economical condition in Jamaica
There is an unmet demand in the country for easily available internet access and combined with a coffee shop, this can be a great venture. There seems to be a great awareness for the technology but not that many private users. Mr.Grant will have the advantage of new enterprise offering to meet this void in the country.
Economically the country has been in negative economic growth and the fact that Mr.Grant will be increasing the price for intenet access by 30% may be a bit expensive to many users. He has to watch the revenue and the economic developments and adjust his pricing accordingly
Jamaica has many restaurants and cafe but none of them offer internet browsing services in Kingston area. CIC may be facing competition for those customers who are interested only in coffee or social time but not internet time. The case study mentions that coffee is not popular in Jamaica. Eventhough this could be an issue, Mr.Grant can use this opportunity to make Coffee as an attractive beverage to

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