Café D. Pownd Harvard Case Solution & Analysis

Café D. Pownd Case Study Help

Proposal of HiringNew Skilled Labor

The café is facing the deficiency of the skilled labor, because the three lines that the café has in total are operated by just six employees, out of which some are not performing their duties effectively, an example of which is the cash register attendant in the line 3, whose register is closed most of the time.The café requires least amount of investment and can make its decision for the implementation of changes in its layout much faster as compared to the rest of the proposals.

Pros and Cons of Alternative

Proposed New Layout


  • For the implementation of the new layout, less investment is required.
  • Decision making for new layout will take less time.
  • It can be easily started, without having to go through any extensive market research.


  • It will not help in capturing the market share.
  • It only has short-term benefit.
  • It could get failed when the customer’s inflow increases.

Propose New Outlet


  • The new outlet will help the café in capturing the market share.
  • It has long-term benefits.
  • It will help the café in growing its revenue.


  • The new outletfor café needsa massive investment.
  • The recruitment of new labors is required.
  • An increase in its operating cost.

Propose New Hiring of Skilled Labor


  • Less amount of investment needed.
  • It can easily be started.
  • Decision making for the recruitment of new skilled labor will consume less time.


  • It has short-term benefit.
  • It will not help the café in expanding its business.


As an analyst, I would recommendthe management of Café D. Pownd to optfor the proposal of new outlet. The NPV of this proposal is higher than the rest of the proposals. This proposal will help the café in expanding its business, which will automatically lead towards an increased revenue. By opting for this proposal the café  would not be faced with any spaceissue, which would not only satisfy the needs of its current customer base but will also increase the possibility of the café having a new customer base alongside the existing one. More skilled labor is required for the new outlet, who would serve the customers the way they wish to be served. The other two proposals will help the company on short term basis, which would not be of any help to the café in attracting a new customer base and expanding its business. Anyhow, if the customer base does increase if the café opts for any of two remaining proposals then the café would be faced with the limited space issue again, which would hinder the café to cater an increased number of customers in the long run.Therefore, the best proposal among all of the proposals is the proposal of New Outlet.................................


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