2. 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 in business at the same location for more than twenty years, has a large customer base becaus

The board of directors of Monarch Books recommends opening a café in its store at the expense of the children’s book section to increase more customers and to be competitive to tis rival bookstore Regal Books which recently opened its café. The board expects that installing a café in its store can make Monarch Books more competitive because it can draw more customers while the anticipated profits from children’s book section are minimal as the national census implied a significant decline of children population. However, this recommendation needs three more explanations to make the prediction sustainable.

First, the board should measure the exact consequences of sacrificing the children’s book section. The board thinks that Monarch Books has been famous for its large selection of books on all subjects over the last twenty years. Since wide selection of books has been a well-known tradition of Monarch Books, closing children’s book section has possibility to ruin its reputation. Children’s book section might be a small part among the various book sections; however, sacrificing one insignificant section means can mearn losing the reputation which has come downthey have built up for more than twenty years. Therefore, Tthe board should consider the expected profits of having a café exceed the potential long term profits of maintaining the tradition.

Second, the board should examine that the same result of national census on child population change can be applied to the local region where Monarch Books is located. Since As the national widenationwide tendency of decreasing child population is obviouspresented from the survey, the industries target which aim to young population as their main customers can be damaged. However, the field of business of a bookstore business is rather local unless it is heavily dependent on on-line business. If the local population still has enough numbers of children while the total volume of child population in the nation is restricted, the future earning of children’s bookstore is still promising.

Third, the board should have evaluated the preference on the café in a bookstore. A bookstore is a public space that various kinds of people pass by. The noise coming from the café can be obstacles bothersome to other customers who want to concentrating concentrate only on reading and buying books. Additionally, even some of the potential customers of the bookstore are not in favor of the existence of a café, because of their personal preferences. Therefore, the board should make sure that their customers would be happy with the future café which will be built in Monarch Books.