Board Of Director Of Monarch Books Case Summary

In the letter from the Board of Directors of Monarch Books, it is recommended that the company opens a café in its store due to the fact that it would increase its already large customer base. In this recommendation it is said that the café could be opened in the children's book section and it is assumed that it will empower the bookstore to against a business competitor that recently opened its own café. Although the expected results of this recommendation could be achieved, there are some presuppositions that should be re-examined in order to enrsure that this recommendation renders the predicted outcome.

Firstly, it is unclear that if the opening of the café could actually impact on the increase of the already large customer base of Monarch Books. Since its informed that the book store has a large customer base that was gained due to the fact that the book store is open in the same place for more than twenty years, it is improbable that the merely opening of a new café would have a drastic impact in the absolute size of its customer base. Since the current majority of the clients of Monarch Books go there only for buying books, they probably have other places that they go for having a coffee or eating snacks. Consequently, the investment on …show more content…
Therefore it should firstly scrutinize how a new café would be perceived by the already established customer base of the Monarch Café. Morevover, it should be evaluated if it would be worth it to remove the children's book section in order to create enough espace for having the café. Finally, it should be considered that the fact that Regal Books opened a café does not necessarily warrants that having a café is desirable especially for a book store that is in business for more than twenty years such as Monarch