Question 4

As evident from the thorough study of the case, Givens has certainly implemented tight cost controls and operational efficiency strategies. She is found to have taken strict control of current operations to figure out rooms for correction and maintained firm focus on strategic growth agenda (Strategic partnership alternatives) for the business.

The customer base is mainly comprised of young professionals and graduates in their 20’s and early 30’s and large groups or HR managers for private events. In order to target the youngsters’ segment, Givens has focused largely on leveraging the urban lounge concept and createda compelling and conductive environment.To further add up on its growth and ensure that patrons regards the legacy of this club, Givens have to come up with something that focuses the increased market share in the long-run with continuous building-up of Sugar bowl’s bowling legacy. For this, she can hold a 6-week free of cost ‘how-to-bowl’ classes for teenagers on Mondays and Tuesdays where they will be allowed to bowl two games a day for 6-weeks. This would promote Sugar Bowl as a metaphor for bowling promotion and enhance the chances for increased market share of loyal customers. A promotion to give-away a free 6-month membership to the winner at the end of competition will help spread the word of mouth. This campaign can be titled “Bowlers’ youngSTAR” which depicts the very nature of its target class.

Question 5

  1. If no private events are scheduled for Mondays and Tuesdays, the lounge will have savings of $2440 on Mondays and $3020 on Tuesdays. The calculations are based on readings from Q1 2012 where no income has been contributed from private events.The flow of patrons on Mondays and Wednesdays compared to the entire week stands at 5% and 7% respectively.
  2. Assuming there are no private events on Mondays and Tuesdays, the club; if closed, will lose around $5252 each Monday in revenues and $2812 in profits. Similarly, it is expected to lose a sum total of $6500 in revenues and $3480 in profits each time it shuts operations on Tuesdays.
  3. A private event, if conducted on Monday or Tuesday, would add a substantial amount in revenues depending on what amount of event(s) is booked. For a general consideration, we predict an event of average amount of $5,000. A corresponding profit of almost 14% net profit margin amounting to almost $700 from a single eventwould credit the Income account of Sugar bowl.
  4. As for acquiring a not-veteran advice, I wouldn’t suggest closing down on Mondays and Tuesdays since that would overall result in losses, and the monetary calculation may not be possible for now. But this would certainly make Sugar Bowl lose a market share in times when competition in the nearby vicinity tends to increase.

Another option that Sugar Bowl can think of implementing is an offer to avail a certain percentage of a discount on any Monday or Tuesday of the same month in which the patronhas visited the venue earlier………………………

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