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Westlake lanes Essay example

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To
Shelby Givens,
General Manager- Westlake Bowling Lanes,
Raleigh, North Carolina.
Dear Shelby,
Please find the attached report for the analysis for the Westlake lanes. Each options were evaluated based on various criteria and continuing the current operation and scrutinizing the costs on periodic is recommended as it is the cost effective strategy for Westlake Bowling Alley

CASE ANALYSIS:
Shelby Given, the granddaughter of founder of Westlake Lanes has taken over as general manager of the company which has long been running in losses. There are several difficulties that the company is facing with respect to functioning of organisation, management of finances and the operational activity of the
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5) Employees often felt that there was no enough work and the job was routine.
6) The role of the board was passive and they did not take interest in the way the business was running and there was infrequent communication from the board members.
7) Most importantly, the business lacked the vision and mission for the company and how it wants to position among its customers.
8) Lastly, the role of Givens with relation to Westlake lanes was more than just professional and she had the responsibility of carrying down the legacy.
FINANCIAL PROBLEMS:
1) Expenses were not segregated and were lumped into a general “supplies” category which made it difficult to analyse the fixed and variable costs that the organisation incurred.
2) There were huge loans from banks that were overdue for payment
3) Unnecessary expenses like payment for services like carpet cleaning were over charged.
4) The premiums on health insurance was increased by 8% adding to already huge fixed costs on which the business was running
5) Declining sales lead to a fall in revenues by 40% compared to previous year.
6) Accounts Payable were 50% higher than the estimate given to her by the board.
7) Advertisement expenses which included thrice-weekly print advertisements were high.
OPERATIONAL PROBLEMS:
1) Repairs and maintenance costs increased after late 1990’s and three machines were expected to soon
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