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.



My response:
The Board of Directors of Monarch Books assume that opening a café in the store will increase the number of customers. While, this might be an added attraction for the incoming consumers, the board doesn’t make a cogent case of how and why the café would help lure more customers.
First and foremost, it is clearly stated that Monarch Books has been in business at the same location for more than twenty years with a large customer base. Not many businesses can survive such long years. Sometimes, a lot of big companies succumb to the ups and downs that an economy faces during the years. Most markets follow capitalism that is based on consumer demands. The fact that Monarch Books has been able to have a large customer base for twenty years is proof enough that there has been always a demand for books among consumers and a preference for Monarch Books. There is no strong intention provided as to how the café would benefit the bookstore.
The argument assumes opening a café will attract more customers but there is no justification provided for this assumption. Was there a feedback provided by the customers stating they want a café? Was there a survey or poll conducted to estimate how many customers would even like a café in the store? If the bookstore already has a large customer base, why is a café needed? The argument provides no data to validate its assumption that more customers will visit the bookstore if a café was opened.
Secondly, the argument states that space could be made for the cafe by discontinuing the children’s book section. Yes, the recent national census indicated a significant decline in the population under the age of ten but the reason Monarch books has a lot of customers is because of its wide selection of books. Before changing its business model, a meticulous evaluation of the possible ramifications of the change is highly warranted.
Also, the argument states ‘recent’ national census, there is no prediction made for the coming years. What if the number of children under 10 rises in the next 5 years, the bookstore would not have books to cater to these children if the children’s book section was removed resulting in a loss of customers.
Hence, the recent national census cannot be used to extrapolate information for the future.
Lastly, the argument mentions that Regal Books opened its own café but fails to prove as to how that affected its sales. What were the sales of the bookstore before and after opening the café? Did the number of customers rise? If they have lower sales than Monarch Books even after opening the café, then what is the point of competition? These questions regarding Regal Books need to be assessed before establishing a similarity between the two bookstores.
Thus, the argument of the Board of Directors proves to rife with holes and assumptions. Unless, the aforementioned data and answers are not studied diligently, the argument of opening a café in Monarch Books to increase customers seems implausible.