Chapter 6: Organizational Strategy, Review Section 6-2-Strategy Making Process T

Question

Chapter 6: Organizational Strategy, Review Section 6-2-Strategy Making Process The Beach Based on Exhibit 6.1: Three Step of the Strategy Step 1: Assess Need for Strategic Change, 6-2a Your group represents water park, The Beach, which has been in business for 15 years: the management team of a locally owned and operated - Revenues are $5 million per season -equipment is neither new nor old the company has little debt they have a good reputation in the community they get a flood of job applicants each summer Next season, the Paramount's King's Island amusement park across the highway is adding a water park to its traditional thrill ride attractions. - SWOT Analysis Template WEAKNESSES OPPORTUNITIES THREATS

Explanation / Answer

Step 1:

The state of business is at a strady state. Competitve pressues for attracting customers seems to be the potential problem area.

Step 2:

Strengths

1. Low Debt giving itself the ability to transform itself with sustainable access to capital

2. Good consumer and employer brand

Weakness

1. Most rides might reach aging around the same time in the future

2. Competition is located very near to the user.

Opportunities:

1. Raise more debt to fund expansions

2. Loyal consumer base ensures simple improvements to ensure stickiness

Threats:

1. Competitve pressure to entice newer audiences

Step 3:

Going with the current state of affairs might result in customers being enticed away by the new exciting elements of the new park. The agressive park expansion strategy can be rolled in the following phased manner.

1. Study the current customers and create recreational spots for them. If they are savvy millenials then having photographic areas will add their interest in clicking photographs.

2. Adding facilities such as spa or seasonal workshops which can generate steady revenue streams from the existing audience.

3. To avoid the risk of a lot of rides running out of their usable lifetime around the same time, the park can keep adding one new ride every year and advertise it to attract customers. From the financing perspective, the one ride can replace another ride which is about to wear out/most profitable to resell and operations can exist in the same space and debt if required and can be raised in small amount every year.

4. Create a loyalty program that reward customers for high spends during a visit and/or their visit every year.

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