AFM433 Lecture Notes - Lecture 3: Happy Hour, Vertical Integration, Competitive Advantage
14 May 2019
School
Department
Course
Professor
Westlake Lakes
June 11, 2018
11:23 AM
Size up
• Family business, used to be profitable, now it is losing money
Role: Shelby, General Manager
Requirements: talk to board about, how to repay funds, advise strategies for going forward, to
retain profitability by mid 2010
Stakeholders: employees, vendors, shelby herself, cousin with the college savings, the bank
loan, recreational league bowlers
Strategic objective: restore westlakes business to profitability by the end of 2010
Value prop (major reasons why)
• Bowling
• Menu/ pizza/ alcohol liscence
• Not just bowling, also had soccer practice, happy hour
• Stepping back in time, family environment
• Open all the time, 7 days a week
• Location
• Unique décor/ theme- 70s
o Family environment
• License
• Can reserve lanes
• Would not say #1 of lanes, or ability to rent shoes b/c these are minor in nature
Target customers:
• Professional bowlers/ league bowlers
• Families with children
• People in the Rowley north Caroline area
• Corporate groups
• No vertical integration
Internal Advantage
• Downtown location
• Liquor liscence
• Bowling alleys reputation
• Full time employees
• Ambience
• Onsite maintenance
• Well maintained machinery and scoring technology
• LT supplier relationships allows late payments
o Associated with small businesses, National Bowling Association
o Can buy in bulk
Strategic statement:
• To return profitability by end of 2010
• By offering unique atmosphere tradition
• To league bowlers, and families
Document Summary
Size up: family business, used to be profitable, now it is losing money. Requirements: talk to board about, how to repay funds, advise strategies for going forward, to retain profitability by mid 2010. Stakeholders: employees, vendors, shelby herself, cousin with the college savings, the bank loan, recreational league bowlers. Strategic objective: restore westlakes business to profitability by the end of 2010. Target customers: professional bowlers/ league bowlers, families with children, people in the rowley north caroline area, corporate groups, no vertical integration. Internal advantage: downtown location, liquor liscence, bowling alleys reputation, full time employees, ambience, onsite maintenance, well maintained machinery and scoring technology, lt supplier relationships allows late payments, associated with small businesses, national bowling association, can buy in bulk. Strategic statement: to return profitability by end of 2010, by offering unique atmosphere tradition, to league bowlers, and families, through dt location, reputation with customers. Competitive advantage: no: had declining revenues, mitigating factor is dt location.
