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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The key issue faced by general manager Shelby Givens of Westlake Lanes is whether or not to maintain the current practices of the business or seek new alternatives. She must convince the board that within her allotted one year, progress has been made in improving the business and ultimately convince them that profitability is in the foreseeable future and that their personal debt will be repaid.
night, it is likely incompatible with the business strategy to pursue convert Westlake Lanes into
Throughout the years Westlake Bowling lanes performance level was reducing, Shelby Givens was appointed as the general manager in order to make the situation better and repay the long-term loans. Board faced the situation whether to sell the business and repay the loans (or) to continue its operations as Shelby Givens plans shows promising revenue in the future.
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b. Business hours should be analysed in order to understand the non productive hours. In these hours, 80% of the electrical equipments can be turned OFF. These hours can be utilised in making stand-in training programs to ensure the self-sustainability of WBL
Further, machines continued to break down because of non-functioning motors and were exposing workers to considerable safety concerns. Therefore, fewer machines were being used and in turn increased demand, which in turn further increased delays of meeting customer demand for the products.
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Westlake Bowling Lanes is a bowling alley founded by Mr. Sugar in the early 1970s in downtown Raleigh. Shelby Givens, Mr. Sugar’s granddaughter, becoming the general manager of Westlake Bowling Lanes after the death of Mr. Sugar, has helped the business making profit for the first time in over two years through her 9-month efforts. However, Westlake still need to pay back the $100000 loan owed by the board before. Shelby needs to convince the board about two plans she decided to renovate the business, the first is to establish a family entertainment area, and the second plan is to develop a recreation area for young and single person. The board need to decide to choose whether to support one of Shelby’s plan, maintain the status quo or sell the business to pay back loans.
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