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What problems does Shelby Givens face when she begins her wo

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by

Kevin Guzman

on 21 November 2014

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Transcript of What problems does Shelby Givens face when she begins her wo

Westlake Bowling Lanes Case Study

Case study question #1
What problems does Shelby Givens face when she begins her work at the Westlake Lanes in March 2010? And what advice would you give her for her first day?
Employee
-Problems

Four part-time employees
(20 hours, $8.25)

No assigned task, job description or authority figure
- Ex. Damaged wallpaper

Poor work ethic
- Ex. Reading newspaper
- Ex. No records of customers spending
Interior Problems
Outdated music
(70’s and 80’s music)

Outdated interior

Dark walls

Fluorescent Light bulbs
Establishing Financial Control/Action Plan
Shelby Givens
General Manager of Westlake Lanes
Granddaughter of Dane Sugar, the founder of Westlake Lanes (family business)
B.A. in English at the University of Virginia
Attended business school, graduated in 2009
Returned to take on ownership in family business
General Problems
To pay back
Told that if no profit was made by mid-2010, the bowling alley would go out of business
Other problems
Employee problems
Food problems
Interior problems
Lack of comparative advantage
Financial problems
Shelby’s Achievements From 2009-2010; Quarter 1
Advice For First Day
Based on Jim Harvey's speech structures
-Solution

Employed
Job descriptions
Mission statement
Weekly meetings
Offered homemade treats
Let go of employees unwilling to adapt to change
Lack of Comparative Advantage
Soccer practice

Local bar’s happy hour

Poor usage of liquor license

Poor food menu

No change since 1980’s

Use frozen foods

*Have full kitchen, but did not utilize it to their advantage
Financial
Problems

Payables were 50% higher than estimated

Unpaid invoices

8% increase in employee insurance premium
Solutions

Made two piles of unpaid invoices
Could threaten business
Could wait

Direct communication with vendors; to clarify fixed vs. variable cost
Researched health insurance providers/plans
- May reduce cost by 13%

New cleaning crew for ½ price/purchased own supplies for cheaper cost

Electric expense reduced by 30%
- Fluorescent Light Bulbs

Cut advertising expense by half
- Adopted cost-effective advertising methods
- Ex. Targeted corporations/universities (8 week league)

Changed operation hours
- Increase of 26% in customers
6% revenue increase

8.5% cost reduction

Forecasted 2010 net income to $20k

Corporate outreach

Customer demographic data

Increased patronage 30%
Keep implementing new ideas

Have an open mind

Have alternative options available

Observe your surroundings

Good Luck

Thank you for listening
You may ask questions . . .
Full transcript