Rotary Cove

Dexter Holman October 16, 2011 CBAD 478 Rotary Cove Beach: Practice Case Analysis Rotary Cove Beach, of Goderich, Ontario, is troubled due to not having direct revenue streams, which in turn causes the beach to lose money on a yearly basis. The YMCA acquired the Cove’s operations in 2003. More recent, the Goderich Town Council gave a $20,000 donation for operations, but the unprofitability of the Cove has caused the Council to reevaluate whether they should spend taxpayers money on a tanking beach. The branch manager, for the area YMCA, was forced into a mandating of a $370,000 net loss allowance. This mandate resulted in the YMCA trying to come up with ways the Cove could become profitable based on its’ present situation. Internally, there is much positive strength the company can build off of. I have found that the beach is very nice, which would bring tourists and locals for scenery reasons. The beach is also a low cost option for tourists coming on vacation. The trained staff is often accredited for the beach’s high safety regards which make the beach more family friendly. The beach also differentiates itself from other beach by allowing for equipment rental, creating a slightly different product to beachgoers. Along with these and a value committed approach the company can leverage these strengths to make the profitability problem go away in years to come. Also there are things internally that are considered weaknesses. The main weakness the company possesses is the unprofitability of operations. This lack of profit is most attributed to not having a beach that is vertically integrated. No vertical integration means that outside of beach activities the Cove has no influence on where money is spent. This lack of profit has also created a crutch system on the community to cover this gap in revenue and costs. When any entity relies almost solely on someone or group, they hold the risk of being affected by that other group’s emotions and feelings, which makes the