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 inbusiness at the same location for more than twenty years, has a large customerbase because it

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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 inbusiness at the same location for more than twenty years, has a large customerbase 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 declinein 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 recentlyopened 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.

Although the recommendation from the Board of Directors for Monarch Books to open a cafe in its store seems to be appealing, there are several questions to be answered in order to decide whether the cafe will benefit the bookstore or not. The recommendation claimed opening a cafe in Monarch Books will attract more customers and be better able to compete against Regal Books which also has a cafe. The Board of Directors wants to get rid of the children's books section of the store in order to build the cafe.There seems to be faults in the Board's argument,questions and findings would have to be answered in order to the approve the construction of the cafe.

First, the board said the popularity of the Children's Books section will decrease due to the population decline of the age group under 10. This assumption is at fault because the decline in population of the age group under 10 does not mean the popularity of children's books will decline in the future. A national census is for every ten years. This means the last 10 years showed a significant, the census does not have any predictions for the future population of the next ten year. The next ten years might have a increase in children's population. Closing the children's section might be detrimental to the the store's customer base and Monarch books will lose a significant amount of income.

Second,, the board claimed that opening a cafe will attract new customers. But who would these new customers be? A cafe will surely attract people who wants to purchase food and drinks, but would the customers be interested in also purchasing books at the bookstore? The customers will be interested in going in the bookstore but they might only come out with a latte in hand. The Board wants to see a increase in customers buying books because the money from books is what keeps the doors open. Opening a cafe will only interest people in the cafe and not the books. The board will have to examine who these new customers will be and what they will purchase.

Third, the board claimed MOnarch will be able to compete with Regal Books who recently open a cafe in their bookstore. Wouldn't Monarch lose their uniqueness of the wide selection of books they have. Cancelling the children's section will furthermore decrease MOnarch's uniqueness. The customers of Monarch likes MOnarch because of their selections of books, not their food and drinks. Competing with Regals books might make them lose customers instead of gaining.

The cafe will surely bring in more interest for the bookstore but the store has to be able to see where the gains and loss will come from.

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Comments

argument 1 -- OK

argument 2 -- OK

argument 3 -- not OK.

suggested:
The Regal Books has recently opened a cafe but , has the cafe attracted more customers or even produced any profits? Even if, the Regal Books had attracted more customers, does it necessarily mean that the Monarch Books cafe will have the same outcome? The regal and monarch bookstores can vary in terms of geographical area, selection on books, customer base , cafe conditions and so on.

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