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Case Memo Westlake Lanes Essay

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TO: Shelby Givens, General Manager, Westlake Bowling Lanes FROM: Exemplar #1 SUBJECT: Business Strategy for Westlake Lanes – Analysis and Recommendations DATE: March 10, 2010 1. Issues and Options Since 2004, Westlake Lanes has experienced declining revenues and increasing costs driven primarily market factors and an absence of effective cost and operations management. Despite the company’s recent turnaround under Shelby Givens’ leadership, it is not on track to repay the Board for the money it lent 16 months ago. On March 24, 2010 a Board of Directors meeting is scheduled to discuss the strategic direction of the company. It is my understanding that Westlake Lanes is considering the following three options for its…show more content…
2.3 Strategy and Operations The Urban Bowling Lounge option is potentially quite lucrative; however, it is also arguably the riskiest option due to the magnitude of the investment. League bowling is the aspect of the business that provides the most consistent revenue stream. Since league bowling takes place at night, it is likely incompatible with the business strategy to pursue convert Westlake Lanes into an Urban Bowling Lounge. Raleigh’s growing population of affluent young professionals constitutes a significant business opportunity. If Westlake Lanes chooses the Urban Bowling Lounge option, its close proximity to the lively neighborhoods and restaurants in Raleigh could be a source of competitive advantage that is sustainable and difficult to imitate. Conversely, if the company chooses a different business model, it may forgo an opportunity to leverage its unique location. 2.4 Human Resources Both of the new strategies involve increasing part-time staff; this implies that there may be opportunities to decrease full-time staff. A change in the company’s strategic direction may jeopardize the employment status of the company’s three remaining full-time employees. While it is likely that Gary Spalding’s maintenance services would be needed in all scenarios, the other employees may not be the right fit for the company’s new vision. Ultimately the board will
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