Case: Gilligan Oakmont Country Club

4351 Words Dec 9th, 2012 18 Pages
Gilligan oOakmont Country Club 1
Thomas W. Gilligan
University of Southern California


t is the summer of 1996 and management must decide whether or not to alter the process used to trade the club’s 450 memberships. The current fixed price system, in which management sets the transfer fee for club memberships, offers some degree of financial certainty for existing and prospective members as well as for the club’s financial planners. However, the fixed price system promotes chronic imbalances between the number of members wishing to leave the club and the number of eligible candidates wanting to enter the club. These imbalances create frustrations for eligible candidates, hardships for long-time club members, difficulties in
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Regular members also vote on the adoption of new articles or amendments to Oakmont’s bylaws.

Most of Oakmont’s regular members are professionals, entrepreneurs or corporate leaders who reside in Glendale and the neighboring communities of La Crescenta, La Canada-Flintridge and Pasadena. Some are executives or high-ranking managers in the entertainment industries that permeate the Los Angeles basin. Many current members are children of long-time Oakmont members. Surveys conducted by the club indicate that many members consider other clubs before joining Oakmont. Three nearby clubs - Annandale Country Club in Pasadena, San Gabriel Country Club in San Gabriel, and Lakeside Country Club in Burbank – compete directly with Oakmont for new members. Indeed, the need to provide competitive club characteristics and amenities was a major motivation for the recent renovation of Oakmont’s Clubhouse. Regular members wishing to leave Oakmont do so for a variety of reasons. Some have moved or are planning to move to locations that would limit or preclude their use of Oakmont. Others wish to give up their golfing privileges but continue their association with Oakmont as social members. Some find that due to changing life circumstances (e.g., the death of a spouse), their club usage has declined and it is no
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