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An entrepreneur is hoping to open Caribbean Internet Cafe in Kingston, Jamaica. He has gathered data on all the relevant costs: equipment, rent, labor, etc. He has also found a partner in the local telephone company, Jamaica Telecommunications Limited (JTL). JTL has provided equity and a long-term loan at favourable interest rates. He is now faced with the task of analyzing fixed, variable and start-up costs, contribution margin, and the concept of break-even to guide his decision.
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Caribbean Internet Cafe is a Harvard Business (HBR) Case Study on Global Business , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Caribbean Internet Cafe is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Caribbean Internet Cafe case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Caribbean Internet Cafe will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.
Caribbean Internet Cafe case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Global Business, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Caribbean Internet Cafe, is to not only build a competitive position of the organization but also to sustain it over a period of time.
The Caribbean Internet Cafe case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
In the Texas Business School, Caribbean Internet Cafe case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Caribbean Internet Cafe
The first step to solve HBR Caribbean Internet Cafe case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Jtl Jamaica is facing right now. Even though the problem statement is essentially – “Global Business” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Jtl Jamaica, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.
Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Caribbean Internet Cafe.
The external environment analysis of Caribbean Internet Cafe will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Caribbean Internet Cafe case study. PESTEL analysis of " Caribbean Internet Cafe" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Caribbean Internet Cafe macro-environment and how it impacts the businesses of the firm.
To do comprehensive PESTEL analysis of case study – Caribbean Internet Cafe , we have researched numerous components under the six factors of PESTEL analysis.
Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.
Government policies have significant impact on the business environment of any country. The firm in “ Caribbean Internet Cafe ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.
Data safety laws – The countries in which Jtl Jamaica is operating, firms are required to store customer data within the premises of the country. Jtl Jamaica needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.
Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Caribbean Internet Cafe has numerous instances where the competition regulations aspects can be scrutinized.
Import restrictions on products – Before entering the new market, Jtl Jamaica in case study Caribbean Internet Cafe" should look into the import restrictions that may be present in the prospective market.
Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Jtl Jamaica in case study “ Caribbean Internet Cafe ” should look into these export restrictions policies.
Foreign Direct Investment Policies – Government policies favors local companies over international policies, Jtl Jamaica in case study “ Caribbean Internet Cafe ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.
Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.
Tariffs – Chekout how much tariffs the firm needs to pay in the “ Caribbean Internet Cafe ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Jtl Jamaica can compete against other competitors.
Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Caribbean Internet Cafe case study have to assess whether their business can benefit from such government assistance and subsidies.
Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.
Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.
Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.
Corruption level – Jtl Jamaica needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.
Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.
Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Caribbean Internet Cafe case study. PESTEL analysis of " Caribbean Internet Cafe" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
Amanda Watson
Amanda is strategy expert at Texas Business School . She is passionate about corporate strategy, competitive strategy, game theory, and business model innovation. You can hire Texas Business School professinoals to revolutionize your strategy & business.
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