Case Review

In: Business and Management

Submitted By jvanderveen
Words 4470
Pages 18
HARVARD BUSINESS SCHOOL | BRIEFCASES
This document is authorized for use by bu zhan, from 8/19/2013 to 12/4/2013, in the course: MGMT 3280-004 Dr. Ford-Eickhoff MW 2:00 – 3:15 pm Fall 2013, University of North Carolina at Charlotte. Any unauthorized use or reproduction of this document is strictly prohibited.
5

913-537 | Sugar Bowl
Setting Pricing
Givens leaned on Petty’s experience to finalize hours of operation and rates for bowling, food and beverages.
Hours of operation
6pm to 2am, 7 days/week
Lane Rental
$40 per hour, or $10/hour per person
Expected # of customer rotations/night
3
Maximum # of customers
150 (or, 450/night assuming 3 rotations)
Organizational
Givens divided the staff into three divisions. Petty managed restaurant operations, and Givens managed bowling operations and sales (including marketing and events). Both Givens and Petty agreed that hiring a part-time bookkeeper to keep track of receipts and deposits was critical. Reluctantly, Givens acknowledged that eliminating employee health insurance coverage (which had accounted for 12% of Westlake’s fixed expenses) was fiscally responsible. Gary Spalding, with his lane machinery expertise, was an instrumental employee. She offered Spalding a raise equal to the value of his insurance, which he rejected. Ultimately a 30% salary increase and an extra two weeks of vacation annually convinced him to stay. Petty said: Smith and Sinclair, old Westlake employees, didn’t meet any of the criteria we set for Sugar Bowl employees. Shelby didn’t want to terminate them out of a sense of loyalty, but our budget was very tight and we had to make the most productive choices for Sugar Bowl.
Givens terminated Sinclair (a lackluster kitchen worker who had been on temporary leave) but not Smith, who had worked for Dane Sugar for more than 20 years, remained loyal to Westlake after his death, and helped…...

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