5Y07 Report

Overview Horseshoe Resort was founded in 1963, as a ski and golf resort in Horseshoe Valley of Oro-Medonte, Ontario. Horseshoe is 47 years old now and mainly focuses on providing the ski and golf operations with other typical hotel facilities. The company’s primary customers are ranging from skiers to golf lovers and the families who are aiming to have activity-based vacations. Additionally, its unique location stands out because it was on the southern ridge of a U-shaped valley. So they can make use of the landscape to construct specific facilities like mountain biking and hiking trails. The current financial situation was not well due to the fact that the net income of 2009 was $541,940 and the ratio of profitability was only 2.9%. As a result, the company has to determine what portfolio of activities and how to invest the fund to increase Horseshoe’s profitability and customer volume.
SWOT Analysis Horseshoe resort has several strengths. Since it was the first ski club located in the specific area with relatively long history, customers will be attracted by its reputation. Furthermore, Horseshoes’ Highlands course has been home to professional events such as the 2006 Canadian Tour Championship, which proves its high quality and proficient construction. Another advantage is the creation of using its U-shaped landscape to build mountain biking and hiking trails throughout the nearby forest for the reason that these facilities are exclusive and only provided by Horseshoe. However, the company is also facing some weaknesses. Compared with its competitors like Blue Mountain, Mount St. Louis Moonstone, the ski operations of Horseshoe with 25 runs and six chairlifts are comparatively limited. As a result, there will be a restriction to the customer volume. In addition, the price of the ski-lift tickets is higher than its competitors except Blue Mountain, which will adversely affect the customers willing to visit. Ultimately, a large portion of direct labor