Westlake Lanes memo
MEMORANDUM
TO: Shelby Givens (General Manager, Westlake Bowling Lanes - here onwards "WBL")
FROM: Kumar Gaurav (Candidate # 75745133, UBC)
SUBJECT: Recommendation towards business planning for WBL
DATE: 2nd September 2013
Key Issues:
Shelby Givens, G.M of WBL could not get the business on track to repay the funds the board had loaned it 16 months before. In Jan 2010, the business profited for the 1st time in two years. But, now she wants to decide on a future direction for the business, so that the debt payment can be speedy and her job gets more interesting. She also deals with multiple external and internal challenges, such as, boosting employee morale, revamping the underperforming F&B section, and growing the customer base.
Analysis:
External Analysis
Porter 's five forces analysis*:
1) Competitive rivalry within the industry*
The rivalry within this industry is very low due to WBL 's strategic location and the loyalty of its patrons. The setup does face some competition from non-orthodox industries, such as,
*Porter 's five forces analysis: adapted from
"http://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy/"
soccer practice, and restaurants ' happy hours. Therefore, we can categorise this force to be of medium effect.
2) Bargaining power of suppliers*
Due to the high availability of suppliers, this force can be categorised as low. In an advent of suppliers raising the prices, WBL can easily find a substitute.
3) Bargaining power of customers*
Since 52% of the surveyed customers fall in the mid-teenage to middle age group (the money holding group), these customers hold the key to financial success of WBL. "Furthermore, 45% of the surveyed customers cited lack of time being the reason for not bowling, WBL needs to save its customer base"** This force can be categorised as high.
4) Threat of new entrants*
Due to the strategic location of Westlake lanes, i.e. in downtown Raleigh and closer to neighbourhoods and
TO: Shelby Givens (General Manager, Westlake Bowling Lanes - here onwards "WBL")
FROM: Kumar Gaurav (Candidate # 75745133, UBC)
SUBJECT: Recommendation towards business planning for WBL
DATE: 2nd September 2013
Key Issues:
Shelby Givens, G.M of WBL could not get the business on track to repay the funds the board had loaned it 16 months before. In Jan 2010, the business profited for the 1st time in two years. But, now she wants to decide on a future direction for the business, so that the debt payment can be speedy and her job gets more interesting. She also deals with multiple external and internal challenges, such as, boosting employee morale, revamping the underperforming F&B section, and growing the customer base.
Analysis:
External Analysis
Porter 's five forces analysis*:
1) Competitive rivalry within the industry*
The rivalry within this industry is very low due to WBL 's strategic location and the loyalty of its patrons. The setup does face some competition from non-orthodox industries, such as,
*Porter 's five forces analysis: adapted from
"http://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy/"
soccer practice, and restaurants ' happy hours. Therefore, we can categorise this force to be of medium effect.
2) Bargaining power of suppliers*
Due to the high availability of suppliers, this force can be categorised as low. In an advent of suppliers raising the prices, WBL can easily find a substitute.
3) Bargaining power of customers*
Since 52% of the surveyed customers fall in the mid-teenage to middle age group (the money holding group), these customers hold the key to financial success of WBL. "Furthermore, 45% of the surveyed customers cited lack of time being the reason for not bowling, WBL needs to save its customer base"** This force can be categorised as high.
4) Threat of new entrants*
Due to the strategic location of Westlake lanes, i.e. in downtown Raleigh and closer to neighbourhoods and