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Westlake Lines

In: Business and Management

Submitted By angeline516
Words 2996
Pages 12
Introduction
Westlake Bowling Lanes is a small business in downtown Raleigh. It was founded by late Dane Sugar and is currently owned by Sugar’s Raleigh-based son, along with a pair of his close friends. During Sugar’s lifetime, he managed every aspect of the business, but after his death in October, 2008, the new board of directors failed in hiring a suitable business manager, until 2009, when they hired Shelby Givens (Sugar’s granddaughter).
The company currently faces serious financial challenges. It was struggling with declining sales and increasing costs. Since 2004, revenues had fallen by more than 40% while costs especially for employees health insurance, maintenance, and utilities climbed. Credits and loans had been borrowed to improve the business and they needed to be paid back. Shelby Givens’ job as the new business manager was to restore profitability of Westlake Lanes by mid-2010, or the business will be sold, most likely, at a loss.
Key Issues * The investors are not happy with the pace at which Westlake lanes is doing business also with the fact that it has debts to be paid * How should the debt be paid off * Uncertain future * Cutting costs * Poor organizational structure * Poor food quality * Poor employee morale * Out-dated facilities
Internal Analysis
In conducting our internal analysis, we are going to be making use of VRINE. In order to use VRINE, we have to first of all, identify Westlake Lanes’ resources and capabilities.
Resources refer to inputs that firms use to create goods and services. Westlake Lanes resources are undifferentiated. It has the normal standard of bowling lanes. It has some intangible resources like its location in downtown, Raleigh close to lively a neighbourhood and restaurants. Sugar also had quite a reputation at Raleigh as he was well known and highly respected. Although,

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