expansion plan for eat2eat.com

Issues and industry overview: Eat2Eat.com has started up for five years, built a unspoiled reputation in dining industries, and had a very long-lasting technological operating system. The business model is sample bargonly chance upon sense that can generate a rattling gold flow from its operation income. However, it still has not polish make its breakeven point for five years; therefore, a extra cargon resource will be needed in 2006, and how to put through this brand-new monetary support making a favorable strategy for a long run business. Therefore, there are two main issues will be identified and examined as follow. One is for the pecuniary alternatives, the other is the financial allocations. Alternative abridgment First of all, from operating perspective and under time and financial constraints, Eat2Eat.com should evaluate which cities have potential to increase revenue sufficiently then close the business where we cannot see any shape improvement in th e future. We can evaluate this factor by calculate the parting margin from single consumer from different cities and the place margin from each city to see whether Eat2Eat.com has a talented segment positioning towards this regional market. Second, to determine how much muck up we should make to different cities, we evaluate this figure by the part margin from 2004 marketing campaigns, to see whether the marketing events have remarkable positive influence on membership growth. (appendix 3) Recommendation equalize to the case description, 7%-10% of consumers bills constitute 40% of eat2eat.com revenue, which is US$478,000, therefore, at once we close the operating insufficiently cities, then allot the new funding to improve the performance where illustrate a super acceptable behaviour for online restaurants reservation. It will be substantially to piddle breakeven point. For example, Bangkok is the lowest ranking of all cities, and constitutes a big( p) lost in 2005. Therefore, it should be ! shut down immediately....If you essential to get a full essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay