Sugar Bowl Case Study Solution
Alternatives:
Alternative – Strategic partnership
Having a partnership with her friend’s management consulting firm in New York City will benefit the organization.
Pros:
- Joining the management consulting firm will double the salary of Givens
- Hefty bonus amount will assist in the transition process.
- Rapid growth of business in United States of America ease the leverage.
Cons:
- Strategic partnership with an organization will imply legal entanglement.
- Possibility of vulnerable position because of any of the partner’s damage to business.
- Problems due to changes in the organizational culture and the system of management.
Alternative – Offer of promotion discount
Offering promotion discount on specific occasions and events particularly for college students and communal groups.
Pros:
- A great of attracting customers and to build their trust over customers through their efficient and effective organizational performance.
- Increase in the generation of revenues and the customers’ loyalty results in the perception of organizational value.
- Repetitive customers as a result of customer loyalty and efficient customer services.
Cons:
- Excessive discount might affect the profit margin which is required to reduce leverage.
- Young professionals and students of college are more likely to spend money leading to bargaining hunters.
Alternative – Modification of operation hours
Modification in operating hours such as low utilization on Mondays and Tuesdays and increase in weekend because in these two days in reference to the data provided there is a low traffic of customers.
Pros:
- It provides flexibility to meet the responsibilities, personal obligations and needs of families in a convenient manner.
- It makes employees feel comfortable and personal control over the working environment and schedule.
- It significantly brings reduction in burning out of employees due to overloaded work.
Cons:
- In a team oriented organization, there is a need of set guidelines.
- Employers face difficulties with fairness when some employees have the right to work remotely.
- Compressed weeks of work get the complicated handovers of clients as they expect the service to be 7 days a week.
Recommendation:
Considering the strategic issues that the organization has been facing after Givens held the leadership,although, she had made efforts and benefited the organization but the high leverage is a big issue which needs to be resolved. For this purpose, three alternatives have been suggested with their pros and cons. On the basis of organization’s condition, the best suited alternative is thought to be the strategic relationship for the growth of organization. With the fact, the organization requires increased profit margin to pay-off their loan debts. Double salary and the growing market of the United States is the best option to provide organization with a long-term benefit.
Conclusion:
As Givens joined the business started by his grandfather and had been successful in stopping the spiraling losses of Westlake and had also started earning profit.In order to grow the organization, Givens took loans to generate enough revenues which needed to be returned in a period of about five years. Westlake was named as Sugar bowl and as it has a strong and effective cost management system and restructured operation to lead the organizational growth. Three alternatives have been suggested with their pros and cons. The best suited alternative is thought to be the strategic relationship for the growth of the organization with a long-term benefit.
Exhibits:
Exhibit – SWOT Analysis:
| Strength | Weakness |
| · Familiarity with business operations.
· Strong and effective cost management system · Efficient and effective workforce |
· Lack of strategic partnerships
· Highly leveraged · Lacks outdoor activity options |
| Opportunities | Threat |
| · Development of relations and partnerships
· Improvement in the customer services · Retain key employees |
· Entrance of new competitors
· Changes in the climatic condition · Introduction of substitutes |
Exhibit – Porter Five Forces
Exhibit –Alternatives
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