Drowling Mountain –Analysis and Strategic Recommendation Essay

953 Words Jun 1st, 2013 4 Pages
Case Analysis MEMO

Subject: Drowling Mountain –Analysis and Strategic Recommendation
Drowling Mountain non-profit Ski Resort was the popular choice among Syracuse residents, New York. However, the company has experienced loess for the past two years. Due to the fact that too many competitors with lowers prices and current state of economic recession (appendix 1), in addition, the company is debt heavy (appendix 2) to an extent that impacting its profitability. Based on those reasons, the company needs to be reactive and proactive in order to survival in the changing internal and external environments. Based on the analysis undertaken and the trade-offs considered (Appendix 3), it is recommended that Drownling Mountain, reducing its
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Operation costs have been constant issue for Drownling Mountain. Based on sensitivity analysis towards labour costs (Appendix 4), there is an opportunity to lower costs and increase efficiency. For example, hire more part timers for less-skilled required jobs to replace permanent workers. Scheduling stagger shift in order to eliminate overtime payment. The key is to identify company’s key stakeholders and get their commitment to your plans before we implement them. (Appendix7)

Finally, this Drowling Mountain will be the popular ski resort in the future. (Appendix 8)

Appendix 1 PESTEL Analysis Political | Economic | Socio-Cultural | Technological | * Providing positive economic benefit for the city | * Recent international Economic recession * Customers reluctant to travel due to increased gas prices * Decreased leisure spending | * Nature also plays a big part at preventing profitable income | * High equipment cost |

Appendix 2 Key Performance Indicators Key Performance Analysis | Drowling Mountain | | 2010 | 2009 | ROA | -14% | -12% | Net Profit Margin | -13% | -13% | Debt-Equity Ratio | 305.14 | 322.7 |

| 2010 | 2009 | Long-Term Debt | 3,041,114 | 2,817,016 | Total Assets | 2,546,901 | 2,700,549 | LTD/Assets | 119.4% | 104.3% |

Appendix 3 Issues identified with the Current Strategy Problems with the Current Strategy: | * General skiing
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