Acct 4720 – Eastriver Entertainment
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Eastriver Entertainment
ACCT 4720
Mai Zhang
100216573
Current Situation:
Eastriver Entertainment has been in bowling lanes business for long times, due to priors GM, Jay Pritchetts heath issue, the business had suffered with costs escalating and revenues softening. Laslie Givens was hired to return the bowling lanes to profitability. Over the past year, Givens has been able to increase companys profit by reducing costs and gradually growing revenues. However, both board and Givens would want to make their business profitable in the market for long term and succeed in the future. Since bowling is a seasonal business and the time of day and day of week varies, which means when Eastriver is not operating at full capacity, they are losing potential revenue with continuing cost. Therefore, Eastriver must attract a younger or different clientele to maintain the company future growth. Currently, Givens has two ideas for further expand their business including scenarios for kid-friendly and lounge options.
Critical Issues:
In order to succeed in updating their current operation and turning business towards a long-term success, Eastriver Entertainment must address the following:
How to increase brand awareness so that Eastriver can reach a larger target market in order for future growth through an effective marketing plan.
How to draft a strategy to expand their current customer base through appealing different demographics such as targeted families & kids or young professionals in Raleigh so that Eastriver Entertainment can facilitate growth.
How to continue cost scrutiny along with increasing revenue and make staff changes so that the company can generate more profit.
Options:
Kid-Friendly
Limited upfront costs, fee arcade games with revenue share model
No major structural remodel costs
Lower damages (no alcohol)]
Minor food/beverage changes
Cons:
Higher AD expense
Not sure what kids or parents want
Being around with kids all day
Increase PT staff to 8
Upscale Bowling Lounge
Pros:
High