Rotary Cove Beach Harvard Case Solution & Analysis

CRITICAL ISSUES

The principle worries that the management of the Rotary Cove Beach need to investigate is an option store era plan for the beach in order to keep on permitting the residents and traveler of Goderich to benefit from the profits of general society beach. Presently, there is a high reliance on awards from the council; however, even that alternative may get distracted in the forthcoming elections of the council committee that will lead the council to manage funds for the beach development.

Second most important concern that stays alive is work pressure. The branch manager of the YMCA, Thomson realized that the problem that she is facing in her employment particularly with the center needed in dealing with the Rotary Cove Beach. Any alternative that will decrease the reliance on grants and prompts to income generation for the sunny shore will be beneficial. Alongside that, it can permit Thomson to get eventually off from the sunny shore activities and investigate other work issues that YMCA is facing. It would be significant considering instead of proceeding in the same way through 2010. According to the future projections, increase in expenses is normal in the near future because of the compensation and wage incremental alongside additional operating expenses. With a potential misfortune in grants, it is essential that YMCA investigates alternative solution for revenue generation options for the Rotary Cove Beach.

ANALYSIS

There are several analyses made under the following:

¶        Situational Analysis/SWOT Analysis

¶        Porter’s Five Forces Model

¶        Competitors Analysis

¶        Financial Analysis

SITUATIONAL/SWOT ANALYSIS

The Quick Situational/SWOT analysis of the Rotary Cove Beach that is given under the appendices in Exhibit 1 makes us to look into the strengths, weaknesses, opportunities and threats of the Rotary Cove Beach that can help in determining a decision on the suggested alternatives in the following portions.

The foremost strengths of the sunny shore includes that it is important in the Goderich locality as well as convenient for the suburban areas of Goderich. It is because of the other beaches that are far away from the Goderich community and this gives the Rotary Cove Beach a competitive edge over other beaches in terms closeness and ease of access to travel there. On the other side, it is Rotary Cove Beach that is protected and has an edge over other sunny shores as it is the only beach that has the facility of recording the water conditions and temperature with the shops that sell the life jackets for children.

The Rotary Cove Beach also has some weaknesses that it cannot generate direct revenue, which make it vulnerable accordingly if there any changes occur in the economic conditions. An incident occurred in 2005, when a child drowned in the Rotary Cove Beach that created a negative image for a while. An optimistic view is that this incident has no further effect on the popularity of the beach.

Those threats are in the external environment in the form of competition, which can affect the beach and its revenue by generating stream if the management of YMCA brought about the new plan; which can generate more revenues from the activities at the beach.

Opportunities can be availed by expanding the facilities of the Rotary Cove Beach. It can be availed by starting more entertaining activities such as volleyball courts and volleyball camps. Outsourcing of the Beach to third party can become an opportunity, if that third party will develop infrastructure by using the private sector investments. The beach can also be converted into a family resort in order to increase tourism. There is also an opportunity that can be attained by allowing summer students to take part into entrepreneurial projects in managing the beach.

PORTER’S FIVE FORCES MODEL

As Rotary Cove Beach is a part of the entertainment and tourism industry; therefore, it has a certain degree of rivalry. From the Porter’s Five Forces Models, it can be easily viewed that bargaining power of buyers is highly varying with respect to the tourists. Further, more tourists mean that buyers have more bargaining power compared to the local residents.

In addition, supplier has a high bargaining power because of the brand loyalty and the threat of substitute also exists because of other public and private beaches. These beaches offer the same amount of services that Rotary Cove Beach offers.

There is a high entry barrier particularly in the form of direct competition as a natural waterfront, which cannot be created by using the technology. On the other hand, there are other sources of entertainment that has low entry barriers and the Rotary Cove Beach may find a lot of rivalry.

COMPETITORS ANALYSIS

Competitor analysis will simplify the negotiating position of the Rotary Cove Beach; which will help in order to make decision for Thomson. There are more than a few key areas in which this beach has a competitive edge over its direct competitors. The proximity to Goderich and its prominence in the area is one of them................

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Head of YMCA Goderich-Huron considers changes in operations to Rotary Beach Property Cover, which was unprofitable for years. It should assess whether a number of factors, including financial considerations may change operations for the coming year. Its evaluation and recommendations must be approached with the general financial strategy of the branch in the consideration of various stakeholders, including Goderich on the city council. "Hide
by Elizabeth M. Grasby, Greg Smith Source: Richard Ivey School of Business Foundation 15 pages. Publication Date: March 28, 2011. Prod. #: W11090-PDF-ENG

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