The Wallingford Bowling Center Case
The Wallingford Bowling Center Case
Question 1
The steps in the decision making process are; Identifying and diagnosing problems, generating alternative solutions, evaluating alternatives, making the choice, implementing the decision, and evaluating the decision. In using and applying these concepts to this case, with the first step we identify the major problem with the bowling center which is that the profit pool is too low at the end of the year and that capacity and sales needs to be increased. Five alternative solutions are; more advertising, offering incentives to customers during slow hours to increase sales, use the extra space and rooms to generate income by renting that space, closing the business during slow times, put the business on the market to gauge potential profit from sale.
In evaluating the alternatives we determine the adequacy of the alternatives that have been generated. More advertising would provide a larger customer base especially for the slow periods in turn increasing profits, but it may not be an adequate solution because of the company’s position of operating expenses; however it could increase profits by luring in more customers especially during times when capacity is low. Offering incentives to customers is an option that could provide more customers that otherwise would not have visited the business. Using the extra space of the bowling alley as a rental for special events especially during slow hours could provide a potential profit in space that would otherwise go unused. Closing the business during slow hours would be a very viable option because it would save on operating costs and in turn increase the profits. Testing the market with this business could also be an option, although the profit pool has not been desirable, the business seems to be established which could be very attractive to potential buyers. It would at least be worth a look to see what kind of profit margin could be reached with a sell.
Making
Question 1
The steps in the decision making process are; Identifying and diagnosing problems, generating alternative solutions, evaluating alternatives, making the choice, implementing the decision, and evaluating the decision. In using and applying these concepts to this case, with the first step we identify the major problem with the bowling center which is that the profit pool is too low at the end of the year and that capacity and sales needs to be increased. Five alternative solutions are; more advertising, offering incentives to customers during slow hours to increase sales, use the extra space and rooms to generate income by renting that space, closing the business during slow times, put the business on the market to gauge potential profit from sale.
In evaluating the alternatives we determine the adequacy of the alternatives that have been generated. More advertising would provide a larger customer base especially for the slow periods in turn increasing profits, but it may not be an adequate solution because of the company’s position of operating expenses; however it could increase profits by luring in more customers especially during times when capacity is low. Offering incentives to customers is an option that could provide more customers that otherwise would not have visited the business. Using the extra space of the bowling alley as a rental for special events especially during slow hours could provide a potential profit in space that would otherwise go unused. Closing the business during slow hours would be a very viable option because it would save on operating costs and in turn increase the profits. Testing the market with this business could also be an option, although the profit pool has not been desirable, the business seems to be established which could be very attractive to potential buyers. It would at least be worth a look to see what kind of profit margin could be reached with a sell.
Making