Westlake Lanes Case Essay

Words: 1895
Pages: 8

Problem Identification Shelby Givens, general manager of Westlake Bowling Lanes has worked over a 9 month period to try and get the company back on its feet. Although Westlake generated its first month of profit in over 2 years, they still weren’t close to paying back the loan from the board members. Shelby has come up with 2 ideas she thinks will revive the business and attract new customers and she is ready to present them to the board. Ultimately, the board members will be the ones to decide if they will support her, or sell the business. Will Shelby be able to convince the board members one of her ideas is worth pursing to save the business from liquidation and generate future revenue?

External Analysis
Porters 5 Forces:

PESTEL
Political:
No applicable information in this case.
Economic:
• Named one of the top 10 fastest growing cities in the Unites States
• Population grew by 46.3% over 10 years
• Health insurance, maintenance and utility costs increased over the past few years
• Entertainment venues had held up well during the economic recession
• Shelby wondered if she fired any of the employees if they would be able to find new jobs in the economy; still a struggle after the recession
Sociocultural:
• Median age was 31.9
• Many young professionals lived in the region
• 47% of residents 25+ possess a college degree or higher
• Income ranges from $50,000-100,000 for 1/3 of the residents
• Most workers from Raleigh worked in a professional or managerial capacity
• Parents paid a premium for kid focused entertainment, even when they were spending less on themselves
• Downtown has restaurants, shops, galleries and other attractions
• Customers are loyal
• Most popular played sport in the United States
Technological:
• Scoring and screen technology was updated and expensive
• 3 machines expired in the end of 2010 and would need new upgrades
Environmental:
No applicable information in this case.
Legal:
No applicable information in this case.
Internal Analysis
VRINE
Is it valuable?
They have strong customer loyalty since they have been