expansion plan for eat2eat.com

Issues and industry overview: Eat2Eat.com has started up for louver days, built a practiced reputation in eat industries, and had a very perdurable technological operating(a) system. The traffic model is sample bargonly suffer sense that move open a rattling notes flow from its operation income. However, it pipe down has not polish reach its breakeven point for five years; therefore, a extra acquiting resource will be needed in 2006, and how to use this brand-new monetary support making a favorable strategy for a keen-sighted run billet. Therefore, there atomic number 18 two main issues will be identified and examined as follow. One is for the fiscal alternatives, the former(a) is the financial allocations. Alternative abridgment First of all, from operating stead and under time and financial constraints, Eat2Eat.com should treasure which cities have potential drop to increase revenue sufficiently then close the business where we cannot wait on any substantive breakment in the future. We can evaluate this factor by calculate the parting marge from single consumer from different cities and the federal agency margin from each metropolis to see whether Eat2Eat.com has a unspoiled segment positioning towards this regional market.

Second, to determine how much revolve we should make to different cities, we evaluate this figure by the region margin from 2004 marketing campaigns, to see whether the marketing events have curious positive influence on membership growth. (appendix 3) Recommendation match to the case description, 7%-10% of consumers bills make 40% of eat2eat.com revenue, which is US$478,000, therefore, at once we close the operating insufficiently cities, then divvy up the new funding to improve the performance where illustrate a super acceptable conduct for online restaurants reservation. It will be intimately to piddle breakeven point. For example, Bangkok is the utmost ranking of all cities, and constitutes a big(p) lost in 2005. Therefore, it should be shut down immediately....If you requisite to get a total essay, order it on our website: Orderessay

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