Westlake Lanes Essay Example for Free

Westlake Lanes Essay The company’s target market strategy is not properly set because Westlake Lanes hasn’t identified the market’s new needs and trends at the same pace that the growth of Raleigh’s population has been developing. Facts: A business profile in a Raleigh paper stated that stepping into Westlake Lanes was like taking a step back in time. Shirley Smith said that the menu hasn’t changed much since late 1980’s. Between 2000 and 2010 Raleigh population grew 43% while the revenues for Westlake Lanes decreased 10% average annually for the same time period. There was a 100% increase in losses from 2008 to 2009. There has been a lack of good management on accounting, people, and business overview of Westlake Lanes. Facts: As Givens studied the invoices she said, many charges seemed excessive and asked herself: Had anyone performed competitive research for routine services like carpet cleaning? In 2009, shortly after starting as a manager, Givens invited her employees to help define a mission statement and job descriptions. Givens noticed that Bullock and Sinclair took time to read the paper and/or wondered outside to talk on their cell phones. They offered Shirley Smith the chance to be general manager even though she lacked formal managerial experience. Possible solutions a. The company’s market strategy is not properly set because Westlake Lanes hasn’t identified the market’s new needs and trends at the same pace that the growth of Raleigh’s population has been developing. i. Renew and adapt their strategy in order to keep the market they already have and to be able to attract new customers. ii. Follow the first strategy, which consists in adding kid friendly video and arcade games and a designated private party space. This strategy will let us keep the space for the league bowlers, iii. Modify and adequate the facilities so that the previous strategy can be accomplished. b. There has been a lack of good management on accounting, people, and business overview of Westlake Lanes. iv. Make sure that every new investment or expense follows the strict cost control that Givens has been following. v. Once the business becomes profitable do not share the dividends between the owners and reinvest them. Course of action and justification Due to the losses that the business has experienced in the past 3 years, it is critical to take action and define a new way to approach the market in order to make the company profitable again. That’s why it’s necessary to adapt the business by adding a new concept focusing on a different target without setting aside the current and loyal costumers. The new strategy consists on attracting families by adding kid-friendly video and arcade games and a private party space to complement the existing lanes. As a first step Shelby Givens needs to familiarize with the kid business and make a research of other bowling businesses where the â€Å"Kid-Friendly† zone has been already implemented in order to get the knowledge and get ideas in how to do it. Then, adapt the facilities according the strategy’s needs. Also would be necessary to create a new job position with the expertise required for handling kid’s events so Shelby Givens can focus mostly in the general management. Advertising would be necessary to promote this new model within the current clients with posters and flyers and with the current marketing channels. There is an estimated attendance of 50,000 people per year; approximately there is a $20.00/kid fee, resulting in $1,000,000.00 of revenue.