Java Net Business Case For An Internet Cafe Management Essay

Executive sum-up:

Java Net is a different type of cafe and it is non like a typical coffeehouse, will give an unparallel assembly for communicating and amusement by the medium of the Internet. Java Net is chiefly established for run intoing the demand of client. The client wants: ( 1 ) entree to the communicating and amusement web site and can acquire entree to seek the available information to the Internet, and ( 2 ) entree to the cyberspace at a lower cost so that they can able to pay and by this manner that they are n’t separated socially, economically, or politically. Java Net ‘s purpose is to give the residential with a societal, educational, entertaining, environment for cosmopolitan communicating. This cafe will be established in the topographic point of Central London.

This concern program is chiefly made for the intent of acquiring fund in the sum of ?24,000. The subordinate support is necessary to get down work on readying of site and alteration, purchasing equipment, and to measure cost in the first twelvemonth of operations. Additional support has already been fixed in the figure of: ( 1 ) From the Oregon Economic Development Fund, we get ?24,000 ( 2 ) ?19,000 of personal nest eggs from proprietor ( 3 ) ?36,000 from three investors ( 4 ) and ?9,290 in the signifier of short-run loans.

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Java Net will be incorporated as an LLC corporation. It will safeguard the proprietor that ‘s me, and the three investors who are from outside, Doug Wilson, Luke Walsh, and John Underwood, from affair of personal duty and revenue enhancement which is wage as dual. The investors will be considered as stockholders and they may non be responsible disbursement investing of personally ?12,000 each.

The support which is related to the part of capital from the proprietor which is me, stockholders and the Oregon Economic Development Fund, will allow Java Net to successfully set up and run concern operations by twelvemonth one. The big sum of initial capital investing will allow Java Net to give its clients to show it as full features of cyberspace coffeehouse. This cafe is recognized as a alone, up market, and originative environment is necessary to give the clients with an environment that will breed socialisation. Successful operation in twelvemonth one will give Java Net with a client base that will allow it to be self ample in twelvemonth two.

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Java Net has some aims for running the operation for three old ages:

The invention of an alone, up market, originative ambiance that will diverse Java Net from local java houses.

Give an apprehension to the community about the Internet service that is what they offer or what their installations are.

The constitution of an environment that will pull people with assorted involvements and scenes together in a common forum.

To supply a really good java and the bakeshop points at a sensible and just monetary value.

Easily available of internet resources and other installations of online.

Keies to Success

The chief factors which are involved in the success of Java Internet:

The invention of an alone, originative, up market ambiance that will add as the new characteristics of Java Net and distinguish it from other rivals such as: local java store and prospective cyberspace coffeehouse.

The formation of Java Net as a residential Centre for communicating, socialisation and amusement.

The invention of an environment that wo n’t keep the user who are instigator. Java Net will put up its place itself as one of chief educational resource for persons wanted to happen out about their cyberspace installations and options.

Good java and bakery points.


Due to the increase of popularity of the Internet which is continually turning at an exponential rate, easy and low cost entryA is quickly going an necessity of life. Java Net gives communities with the capacity to come in the Internet, take a cup of java, and bask Internet experiences in a comfy environment. All ages and any backgrounds of people will come to bask the alone, up market, educational, and originative environment that Java Net offers.


The hazards consisted with get downing Java Net are:

Will at that place be a demand for the services provided by Java Net in UK?

Will the popularity of the Internet habitue to turn, or is the Internet on less popularity?

Will persons be interested to pay for the service Java Net provides?

Will the cost of come ining the Internet from place bead so needfully that there may non be a market for the Internet Cafes such as Java Net?

Undertaking 2:

1.2 Literature reappraisal:

Java Net, shortly to be established in Central London on 10th and Oak, will supply the community easy and low-cost entry to the Internet. Java Net will offer full entree to e-mail, WWW, FTP, Usenet and all other Internet applications such as Telnet and Gopher. Java Net will besides give clients with an alone and originative location for basking great java, particular drinks, and bakery points.

Java Net will in kind to all ages and backgrounds of clients. The instructional Internet categories, and the aided staff that Java Net offers, will in kind to the audience that does non associate themselves with the age of computing machine. This facet of instruction will draw members such as younger and senior of the community who are rapidly achieving engagement in the alone resources that communicate through online have to supply. The downtown topographic point will give concern people with convenient entree with their forenoon java and on-line demand.

Java Net is a in private under by Oregon Limited Liability Corporation. Cale Bruckner, the laminitis of Java Net, is the bulk proprietor. Luke Walsh, Doug Wilson, and John Underwood, all sustain minority place of stock as private investors.

Undertaking 3:

Information about market

Java Net is run intoing with the chance as stimulated of being the step-mover in the cyber-cafe market. The consistent quality of java, sum with the increasing involvement in the Internet, has been established to be a deriving construct in related markets and it will bring forth the same consequences in other market.

There are some factors such as current inclination, addiction, and gross revenues informations assure that the high demand for java will go on invariable more than the following five old ages. The speedy development of the Internet and online services which has been found there is merely the tip of the iceberg. The possible development of the Internet is enormous, to the point while one twenty-four hours, a computing machine terminus with the connexion of online will be as usual and demand as a telephone. It can be 10 or 20 old ages downward the route, but since the following five old ages, the service of on-line provider market is certain to experience tremendous development. As a modern cyber-cafe in London, Java Net will bask the self-generated advantages of name designation and client committedness. At first, Java Net will keep a 100 % portion of the market of the cyber-cafe here in UK. Since the undermentioned five old ages, rivals will entree the market. Java Net has established an purpose to keep more than a market portion of 50 per centum.

Assignment 2:

Undertaking 1:

Project resources:

Java Net will give full enter to e-mail such as, WWW, FTP, Usenet and other Internet utilizing for illustration: Telnet and Gopher. With the Internet system, printing, scanning, and introductory classs will besides be available to the client. Java Net will besides offer clients with an alone and originative environment for basking the great java, particular drinks and delightful bakeshop points.

Competitive Comparison

Java Net will be the most Internet coffeehouse in Central London. Java Net will change itself from the strictly-coffee coffeehouse in London by offering its clients with combination of Internet and services of calculating.

Service Description

Java Net will supply its clients with complete enter to the Internet and usual computing machine package and hardware. There are some valuable services of the Internet and calculating accoutrements available to Java Net clients are mentioned below:

Enter to external electronic mail histories of POP3.

Customers can subscribe up for an email history of Java Net. This history will chiefly be controlled by the waiter of Java Net and accessible from computing machine systems exterior the Java Net web.

FTP, Telnet, Gopher, and other popular Internet application will be used.

Enter to browser of Netscape or Internet Explorer.

Application of optical maser and colour printing.

Enter to recognized and more utilizing package applications such as: Adobe Photo Shop and Microsoft Word.

Java Net will besides offer its clients with enter to basic categories of Internet and electronic mail. These categories will be started in the afternoon and in the eventide clip. By taking these categories, Java Net will set up a trueness to the clients to its services. The computing machines, accoutrements, Internet entree, and the categories could n’t advert half of the action if carried out of the environment Java Net will supply. Particular offer such as: a good java, particular drinks, bakery related points, and a comfy environment will offer Java Net clients bring in the cafe from the far off from place. It will be considered as a topographic point to bask the installation of calculating in a comfy and well-designed environment.


Java Net will achieve the support of computing machine and Internet entryway from British Telecom Company who provided the support of cyberspace service located in UK. That company will offer the connexions of cyberspace, web looking up, and the hardware necessary to run the Java Network. Allan Brothers will offer Java Net with java stuff, mass java, and paper supplies. At this clip, the contract for the bakeshop related points has non been finished. Java Internet is soon pull offing with Humble Bagel and the Gallic horn to carry through the demand.

Task 2 & A ; 3:


Java Net will pass money in high-velocity computing machines to offer its clients with a speedy and effectual nexus to the Internet. The computing machines will be reliable and diverting to work with. Java Net will widen to advance and alter the method to stay present with the engineering of communications. Other chief involvements is connected with Internet coffeehouse, which is the equipment art and it is available at that place and the other installation is that non each individual has the personal computer of Pentium on their office or place.

Future Servicess

Since Java Net develops, more engineering of communications systems will be included. The hypothesis of auxiliary units has been responsible for in the present program of floor. Since the demand for connectivity of cyberspace grows, on with the growing in competition, Java Net will widen to include modern services to prolong its client base return back for more.

Start-up Summary

Java Net ‘s costs of concern beginning will cover the equipment of java devising, site renovation and alteration, arrange capital to set with losingss in the first twelvemonth, and the equipment of communications require to have its clients online.

The equipment of communications is of import to offer Java Net ‘s clients with a speedy nexus to the Internet and the java services which have to supply to make a big proportion of the beginning cost. And these costs will incur the terminus of computing machine and entire costs included with their constitution. Costss will besides be incurring for the purchasing of two optical maser pressmans and a scanner.

Not merely this, costs will be arranged for the purchasing of the instrument of java preparing. Minor extra instrument, a office bomber, one espresso machine which will be purchasing from other providers.

The site at Central London will necessitate the financess for renovation and alteration. A individual deliberate figure will be distributed for this aim. The Restoration cost estimation will add the cost which is related with fixing the site for opening concern.

Initial cost includes:

Computers 11 = ?22,000

Printers 2 = ?1,000

Scanner 1 = ?500

System package = ?810

Espresso machine 1 = ?10,700

Automatic espresso bomber 1= ?795

Repairs and restructuring:

Coffee /food readying counters2 = ?1,000

Information show counter 1 = ?1,000

Drinking /eating counter = ?500

Stools 16 = ?1,600

Computer desks with chairs 6 = ?2,400

Items of letter paper = ?500

Telephones 2 = ?200

Cost of ornament = ?13,000

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Necessary things:

Initial cost

Cost on legal affairs

Cost of stationary





Coffee machine

Bomber of bean

Printer scanner, system package etc.

Line of communicating


Entire initial cost

Initial capital

Cash Required

Initial stock

Other Current Assetss

Long-run Assetss

Entire Assetss

Entire Requirements

Location of Company and chances

A site has been chosen at Central London in UK. This site is selected for assorted grounds, including:

Closeness to the business district concern group.

Closeness to trendy, up market eating houses.

Closeness to London over land Station. Parking handiness.

Renting cost is low – ?.85 per square pes for 1700 square pess.

High visibleness.

These qualities are consistent with Java Net ‘s purpose of offering a chief portion of communicating and socialisation for the British community.

Assignment 3:


Execution of the undertaking:

Java Net normally uses three important schemes. First: they concentrate on drawing new user of Internet. By offering friendly environment to a new user, Java Net expects to learn and develop a loyal client base.

Second, which is the most of import scheme dressed ores on pulling in strength Internet users. Strength Internet users are tremendously associated with the Internet and its services. Here, a big group of clients get the service from the Java Net. Power users should hold the cognition, understanding and experience of web-browsing that novice Internet users feel interesting and exciting.

The 3rd and the last scheme stress on set uping a societal environment for the client of Java Net. A societal environment, that gives amusement, will help to draw clients that could n’t normally concentrate about using the Internet. In former in topographic point at Java Net, the group of clients that occurred for the over standard amusement offerings, will acknowledge the prospective amusement range the Internet can offer.

Scheme Pyramid

The undermentioned subtle offer a construct of Java Net ‘s three basic schemes. Strategy pyramid artworks are demonstrated in the appendix of this program.

Attract novice Internet Users

Java Net ‘s first scheme focuses on pulling novice Internet users. Java Net programs on pulling these clients by:

Offering a friendly and societal environment for new users. Java Net will be served through qualified forces concentrated on functioning the client ‘s demand.

Java net arranges a client service desk will ever be served. If a client has any type of question or affair, Java Net forces will ever be available to make aid.

Java Net will supply basic categories on the topic of Internet and electronic mail. These categories will be plan in such a manner that can assist novice users recognize themselves with these basic tools and the Java Net computing machine systems.

Competitive Edge

Java Net will concentrate on the scheme of distinction to accomplish a competitory advantage in this kind of cafe market. While offering the service of cyberspace, Java Net distinguishes itself from other coffeehouse and creates competition with all other coffeehouse in UK. In add-on, Java Net offers a relaxed environment with a java and bakeshop related points ; distinguish itself from other Internet servicers in UK.

Undertaking 2:

Selling Scheme

Java Net will put itself as an up market java house and the most attractive service supplier of cyberspace. It will supply Standard quality java and drinks of different gustatory sensation with a sensible and competitory monetary value. Because of the larger figure of coffeehouse in UK, it is necessary that Java Net establishes sensible monetary values for its java. Java Net will use the technique of advertisement as it is considered as the chief beginning of publicity. The cafe opening with an attention deficit disorder which will be a voucher for a free one hr of Internet usuage. In add-on, Java Net will offer off three hours of cyberspace utilizing which is free usage to novitiates who sign up for a basic to the Internet workshop giving by Java Net.

Pricing Scheme

Java Net chiefly depends on the value of java and drinks of different gustatory sensation on the analysis of retail net income provided by our provider, Allan Brothers Coffee Co. , Inc. Allan Brothers, which has been in this kind of java concern for about of 22 old ages and has established a proper pricing scheme.

Establishing a sensible market on the footing of hourly monetary value, it is more hard to utilize online because there is no such type of direct competition from another cyber-cafe in country. Therefore, Java Net will see three chief beginnings to set up the hourly charging rate. First, we concentrate the cost to utilize other Internet service supplier ; either it is the house of local networking or UK on-line supplier. The provider of internet entree applies assorted strategies of pricing. Some charges are fixed as on the footing of monthly hours, where other provider charges the fee on the footing of hourly rate. In add-on, some servicers apply a scheme with a blend of every bit pricing strategies. By this, Java Net may quickly repair or charged more internet service fee for an person at a monthly footing. Second, Java Net besides concentrates about the market of other internet user. Third, Java Net may make a market study on current market status. By analysing these three factors Java Net fix the hourly monetary value of $ 5.

Promotion Strategy

Java Net will chiefly use scheme of pull for increasing the consciousness and their demand. Primarily, Java Net has fixed its initial budget of ?5,000 in order to promotional sector which will consists of advancing to pull off the vouchers system for the free clip of cyberspace utilizing which is free on the footing of publication of local and the publicity of house for illustration: providing clients the free clip utilizing more cyberspace if the payment will be cleared ab initio by Java cyberspace.

Java Net assumes that if competition addition that means new rivals entree the cyberspace concern market, Java Net has to pass more money for the sector of advertisement for increasing their gross revenues for taking in instance of market portion.

Gross saless Strategy

Because of the retail concern of Java Net, they recruit forces for keeping the dealing of day-to-day or monthly gross revenues and for these employees they should hold the proficiency I computing machine or should hold the good computing machine cognition. There is another option on Java Net that is if the employees are non computing machine experts so they are trained by the adept technician of Java Net. These full clip technicians of Java Net are ever ready for helping the clients. for distinguishes the services of Java Net from their rivals, they committed to supply friendly and helpful services which is considered as the cardinal success factor for them.

Undertaking 3:

Prediction of gross revenues

Datas for gross revenues calculating are now presented by the tabular array and graph below:

Gross saless: here, Java Net is chiefly relied on their java point and gross revenues of espresso in order the fiscal information supplied by Allann Bros Coffee Co to the Java Net.A Their gross revenues of cyberspace are measured by gauging the hours total in related to the terminus on each twenty-four hours and after that they have to besides gauge the Numberss of hours of consumer usage.

Cost of goods sold: merchandises which are java related, it ‘s cost of gross revenues are chiefly measured by the analysis of the retail net income which is chiefly receive from Allann Bros. Coffee Co. here, java related points that is bakery points costs are the 20 per centum of the merchandising monetary value. The cyberspace utilizing cost is ?660 as monthly footing which have to pay as the networking fees to Bellevue company. E-mail history fees is besides the merchandising monetary value of 25 % .

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Java Net, shortly to be established in Central London on 10th and Oak, will supply the community easy and low-cost entry to the Internet. And I produced the study of concern research on the new service of constitution of this company in UK. Java Net will supply its clients with complete enter to the Internet and usual computing machine package and hardware. Java Net is run intoing with the chance as stimulated of being the step-mover in the cyber-cafe market. The consistent quality of java, sum with the increasing involvement in the Internet, has been established to be a deriving construct in other markets and will bring forth the same consequences in other market. Java Net will be the most Internet coffeehouse in Central London. Java Net will change itself from the strictly-coffee coffeehouse in London by offering its clients with combination of Internet and services of calculating. Java Net will give full enter to e-mail, WWW, FTP, Usenet and other Internet utilizing for illustration: Telnet and Gopher. With the Internet system, printing, scanning, and introductory classs will besides be available to the client. Java Net will besides offer clients with an alone and originative environment for basking great java, forte drinks, and bakery points. The chief intent of composing this study is to demo the benefit of making concern on cyberspace coffeehouse which is most profitable and sensible.


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