The following is a recommendation from the Board of Directors of Monarch Books.
“We recommend that Monarch Books open a café in its store. Monarch, having been in business at the same location for more than twenty years, has a large customer base because it is known for its wide selection of books on all subjects. Clearly, opening the café would attract more customers. Space could be made for the café by discontinuing the children’s book section, which will probably become less popular given that the most recent national census indicated a significant decline in the percentage of the population under age ten. Opening a café will allow Monarch to attract more customers and better compete with Regal Books, which recently opened its own café.”
Write a response in which you discuss what questions would need to be answered in order to decide whether the recommendation is likely to have the predicted result. Be sure to explain how the answers to these questions would help to evaluate the recommendation.
The Board of Directors of Monarch Books recommends that they open a café in their store to attract more customers. While this may seem like a reasonable recommendation on the surface, I believe that the Board has overlooked some important issues that they should consider before making a final decision.
First of all, many bookstores are closing, including Monarch. Monarch Books has had much success over the years, but times are changing and customers are turning to the internet for the same type of books that Monarch sells. If Monarch Books wants to survive, they must consider all options available to them, such as expanding their online selection of books to selling through Amazon. Second, opening a café would divert Monarch Books’ focus from their core business. Monarch Books is much more than just a bookseller – they also sell magazines, stationary, greeting cards, and other goods. Opening a café, which is a considerable investment that requires hiring staff, will take time away from Monarch Books’ daily operations, which are already extremely busy. Third, opening a café would be a waste of resources. Monarch Books is a well-established business, yet they still lack the resources to open a café. Even if they were able to hire staff, acquiring the necessary supplies and setting up the café would still cost a significant amount of money. Overall, the Board of Directors of Monarch Books is recommending that they make a risky investment that has questionable returns, and they need to consider other options before making a decision.