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[Review Request] Monarch Books Cafe -- Thank you!
[#permalink]
26 Jul 2017, 10:15
26 Jul 2017, 10:15
2
PROMPT
"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.
ESSAY
Recently, Monarch Books, an established bookstore known for its myriad of selection has been considering the implementation of an in-store cafe to increase patronage and subsequently sales. Though change in business model is important as time moves forward and the needs of consumers change, Monarch needs to consider: possible future ramifications of this move on an already populous customer base, demographic study, and proper analysis of how appropriate this move is in relation to the individual success of Monarch Books.
Though Monarch Books has a large customer base at this time for its eclectic array of books, a change in the business model can have unexpected ramifications if not properly considered in a balanced light. Having a previously established customer base is no guarantee of future success. This is evident in the very nature of changing business tactics as businesses that are typically successful aim to continue their success by assessing the changes in populations over time. This is why studies and polls are often taken. Rating consumer satisfaction over time helps to correlate changes with actual success or failure to help account for what may be fruitious in the future.
In addition, though space can conceivably be cleared by discontinuing the Children's section of the bookstore, a question comes to mind about the proporton of Monarch's customer base: how many of the patrons of Monarch are parents who come to the bookstore partly or simply because of their children? Though the population of children may be on the decline nationally, this would be an extraneous piece of information if a majority of the customers of Monarch Books are parents who are aiming to edify their children early with print books or are there in support of their children who have asked to be present at the store. Not all persons in the childrens section are necessarily children.
Finally, opening a cafe in response to Regal Books' success with this business model is largely myopic. There is no way in light of the argument presented to gauge whether or not there is a significant similarity between patronage at Regal Books and Monarch Books. Regal Books may attract a different demographic of customers, and subsequently their success may not reflect the success of the cafe in itself in for Monarch. Monarch Books could best develop insight on whether the need for a cafe is present by analyzing the needs and desires of its own demographic. There is also no telling at this point if Regal Books' cafe will even be successful.
In conclusion, building a new cafe in Monarch Books may not actually be beneficial to business. Monarch Books needs to consider what possible changes, good or bad, to the population of its established customer base would be incurred from building a cafe. Some of the patrons of Monarch Books may actually be more inclined to be in the store because of the present Children's section, so relinquishing the Children's section may do more harm than good for the business. Also, building a business model off of the success of a competing business may not actually result in success for Monarch if the demographic of Monarch and Regal Books are different. Monarch Books would best be suited to collecting more information about its own already present customer base before attempting to expand the customer base with this move.
"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.
ESSAY
Recently, Monarch Books, an established bookstore known for its myriad of selection has been considering the implementation of an in-store cafe to increase patronage and subsequently sales. Though change in business model is important as time moves forward and the needs of consumers change, Monarch needs to consider: possible future ramifications of this move on an already populous customer base, demographic study, and proper analysis of how appropriate this move is in relation to the individual success of Monarch Books.
Though Monarch Books has a large customer base at this time for its eclectic array of books, a change in the business model can have unexpected ramifications if not properly considered in a balanced light. Having a previously established customer base is no guarantee of future success. This is evident in the very nature of changing business tactics as businesses that are typically successful aim to continue their success by assessing the changes in populations over time. This is why studies and polls are often taken. Rating consumer satisfaction over time helps to correlate changes with actual success or failure to help account for what may be fruitious in the future.
In addition, though space can conceivably be cleared by discontinuing the Children's section of the bookstore, a question comes to mind about the proporton of Monarch's customer base: how many of the patrons of Monarch are parents who come to the bookstore partly or simply because of their children? Though the population of children may be on the decline nationally, this would be an extraneous piece of information if a majority of the customers of Monarch Books are parents who are aiming to edify their children early with print books or are there in support of their children who have asked to be present at the store. Not all persons in the childrens section are necessarily children.
Finally, opening a cafe in response to Regal Books' success with this business model is largely myopic. There is no way in light of the argument presented to gauge whether or not there is a significant similarity between patronage at Regal Books and Monarch Books. Regal Books may attract a different demographic of customers, and subsequently their success may not reflect the success of the cafe in itself in for Monarch. Monarch Books could best develop insight on whether the need for a cafe is present by analyzing the needs and desires of its own demographic. There is also no telling at this point if Regal Books' cafe will even be successful.
In conclusion, building a new cafe in Monarch Books may not actually be beneficial to business. Monarch Books needs to consider what possible changes, good or bad, to the population of its established customer base would be incurred from building a cafe. Some of the patrons of Monarch Books may actually be more inclined to be in the store because of the present Children's section, so relinquishing the Children's section may do more harm than good for the business. Also, building a business model off of the success of a competing business may not actually result in success for Monarch if the demographic of Monarch and Regal Books are different. Monarch Books would best be suited to collecting more information about its own already present customer base before attempting to expand the customer base with this move.
Re: [Review Request] Monarch Books Cafe -- Thank you!
[#permalink]
27 Jul 2017, 01:58
27 Jul 2017, 01:58
Expert Reply
For me 6 stars for sure.
regards
regards
Re: [Review Request] Monarch Books Cafe -- Thank you!
[#permalink]
22 Jul 2020, 17:17
22 Jul 2020, 17:17
In a recommendation from the Board of Directors of Monarch Books, the Board posits that Monarch Books should “open a cafe in its store [in order to] attract more customers and better compete” with Regal Books. The Board arrives at this conclusion after identifying three premises: Monarch Book’s loyal customer base, the declining population of children under the age of ten, and its competitor Regal Book’s latest move. in order to better assess the predicted result of the recommendation proposed, it is imperative that the answers to three key questions be scrupulously evaluated.
Firstly, what is the likelihood that Monarch Books is similar to Regal Books? The issue that this question raises is a key flaw in the recommendation — the usage of a troubled analogy. In fact, the Board’s issue here is that it has not yet established enough similarities between Monarch and Regal to warrant the conclusion that Monarch should reactively open a cafe. There is a strong possibility that Monarch’s stalwart customer base values Monarch for its lack of a cafe, since that space can be used to provide a wider assortment of books! Regal, on the other hand, may not have the library to compete with Monarch and thus opened a cafe to give themselves a unique edge. Such details are unknown and unstated. As such, without more information as to what Regal’s true purpose of opening a cafe is or the initial response of the customer’s to Monarch’s opening of a cafe, it is challenging to assess whether such a tremendous capital effort will engender a larger crowd.
Following that train of thought, is there evidence that Regal Book’s cafe opening has proven profitable? In the recommendation excerpt, the Board simply states that Monarch can “attract more customers and better compete”with Regal. It never states that Regal saw positives in their bottom line or an influx of new customers. As the argument stands, there is strong potential that Monarch’s reactive strategy of mimicry will not attract more customers — especially if the children’s area will be renovated into the cafe space. No one knows, based on the Board’s statement, for certain which section of Monarch produces the most profits or brings in the most customers. For all we know, the children’s book section may be the most profitable area and obliterating the space would lead to fewer customers! It must be stated, however, that the Board does attempt to buttress its obliteration decision with “data” from the recent national census, which states that there is a “significant decline in the percentage of the population under ten.” While this information is better than none at all, there is no reason to believe that Monarch’s population is representative of the national census. There is a chance that Monarch Book’s customer base is made largely of families with children under 10. Thus, eliminating this section of the store would in fact counter the intention of the cafe — reduce the customer base. As such, without an understanding of the customer demographic, it is impossible to make any conclusions about the success of the Board’s planned endeavour.
In conclusion, the Board’s recommendation as it stands today is seriously flawed based on the aforementioned points. Without further supporting evidence and answers to the above questions — perhaps in the form of demographic records, competitive analysis, and qualitative feedback from current customers — it would be completely blasphemous to go forward with their reactive strategy and expect a successful outcome. If the Board plans to go ahead with its recommendation, it may find itself in a dire straits for making such a large investment based on an argument that is pure sophistry at best.
Firstly, what is the likelihood that Monarch Books is similar to Regal Books? The issue that this question raises is a key flaw in the recommendation — the usage of a troubled analogy. In fact, the Board’s issue here is that it has not yet established enough similarities between Monarch and Regal to warrant the conclusion that Monarch should reactively open a cafe. There is a strong possibility that Monarch’s stalwart customer base values Monarch for its lack of a cafe, since that space can be used to provide a wider assortment of books! Regal, on the other hand, may not have the library to compete with Monarch and thus opened a cafe to give themselves a unique edge. Such details are unknown and unstated. As such, without more information as to what Regal’s true purpose of opening a cafe is or the initial response of the customer’s to Monarch’s opening of a cafe, it is challenging to assess whether such a tremendous capital effort will engender a larger crowd.
Following that train of thought, is there evidence that Regal Book’s cafe opening has proven profitable? In the recommendation excerpt, the Board simply states that Monarch can “attract more customers and better compete”with Regal. It never states that Regal saw positives in their bottom line or an influx of new customers. As the argument stands, there is strong potential that Monarch’s reactive strategy of mimicry will not attract more customers — especially if the children’s area will be renovated into the cafe space. No one knows, based on the Board’s statement, for certain which section of Monarch produces the most profits or brings in the most customers. For all we know, the children’s book section may be the most profitable area and obliterating the space would lead to fewer customers! It must be stated, however, that the Board does attempt to buttress its obliteration decision with “data” from the recent national census, which states that there is a “significant decline in the percentage of the population under ten.” While this information is better than none at all, there is no reason to believe that Monarch’s population is representative of the national census. There is a chance that Monarch Book’s customer base is made largely of families with children under 10. Thus, eliminating this section of the store would in fact counter the intention of the cafe — reduce the customer base. As such, without an understanding of the customer demographic, it is impossible to make any conclusions about the success of the Board’s planned endeavour.
In conclusion, the Board’s recommendation as it stands today is seriously flawed based on the aforementioned points. Without further supporting evidence and answers to the above questions — perhaps in the form of demographic records, competitive analysis, and qualitative feedback from current customers — it would be completely blasphemous to go forward with their reactive strategy and expect a successful outcome. If the Board plans to go ahead with its recommendation, it may find itself in a dire straits for making such a large investment based on an argument that is pure sophistry at best.
