Executive Summary Paradise parks were the entertainment parks started by Mr. Francis by an idea of relaxation and shared humanity. The park was performing well right from the start but the problem begins later on and for the last two years it made loses. CFO of the park, Nathan Cortland came up with an idea to resolve the problem. Jill Hoover, CEO of the park along with other members were not sure about the proposed idea as it was against the company's values and culture. So the topic of discussion is whether Nathan's idea can enhance Park's performance or undermine it? REPORT Situational Analysis The whole case revolves around Jill Hoover, CEO of the park and the daughter of the founder and Nathan Cortland, CFO of the park. Paradise parks were making profit right from the start, but the problem begun from the last two decades when their profits had remained slim. And finally for the last two consecutive years they made loses. The reasons for this problem could be many. The competition was growing in the industry and many new players were also entering, fighting for the same set of customers. The labour costs were rising due to low unemployment in late 1990's. Due to a series of industry mishaps insurance rates had also soared, the capital costs of building the new rides were also rising. And the real-estate tax benefits that the Park received originally were also expiring. All these factors resulted in high operational costs and finally decrease in revenue. So the company had to come up with some innovative ideas to avoid the threats of bankruptcy or a hostile takeover. To increase revenue, the park was left with only three options, i.e. to increase visits per customer, increase average spending per visit,... ... middle of paper ... ...ill help the park in attracting new customers and increasing visits per customers. The park should also start the in house advertisement system, for this they should contact different corporate houses to make them aware about the advertisement facilities available within the park. This would help them in increasing their revenue. And once the revenue has been generated they can then invest it in installing the latest rides and improving infrastructure. Conclusion The above recommendations are given, keeping in point to improve the performance of the company. If they follow the given recommendation then they will not only increase their revenue but will also increases the number of visits per customer and would also attract new customers. They should not only follow these steps in short-run but for maximum benefits they should follow it in long run also.
Orlando is known for its tourist attractions and theme parks. Surprisingly, we found out that business and leisure travelers’ amounts were almost the same for weekends. Hence, we also keep the prices high for the weekdays as it is an elastic demand market. If we increase the price, the total revenue will increase proportionally. On the other hands, we set the weekend’s price as close as to the weekday’s price in order to improve our profits. We tend to target on business travelers for these 3 cities as market research showed that they are the majority customers.
One of the most crucial problems was that the company simply ran out of money. Their fallacious revenue evaluation and expectations were too lofty. There were a few aspect that no one could predict: as was mentioned, the unprecedented fast grow and a dangerous untested marketplace. Plus to all this they were just the victims of bad timing. In turn, board members and investors were often disappointed. As the result you have costs that were much higher than expected and revenues were the opposite down poor. All these were the reasons of the insolvency of Govworks.com.
Focus on the needs of the customer and put the needs of the employee second, follow by the need of the leader as the last so to develop and grow the relationship of the customers while strengthening the
3. Other recommendation is that the company should provide direct answers to the problems to the stakeholders and not only to their shareholders in order eliminate a bad perception of the community. Involve the community should be taken as an essential part of its operation but not as an extra effort.
Six Flags built two other parks in the late sixties and early seventies. These three parks would be the only theme parks opened and constructed under the Six Flags name. When deciding on a strategy, the organization chose a strategy of growth. The plan was to purchase smaller, existing amusement parks across the globe. At one time, Six Flags acquired and operated 46 parks, with the majority of the acquisitions occurring in the late 1990s. The new parks carried the Six Flags name, but the theme of the original park was not carried over. Each new park was individualized, including one that operated an attached Sea World, and another an aquarium. The organization did, however, add waterparks to most of the facilities that did not already have one available.
Disney failed to realize that while its strategy in Japan worked for Japan, its Japan strategy was not going to work in Paris. Disney decided to photo copy their operation and learned that was not acceptable. In 1992, several unforeseen issues arose that Disney was not prepared to handle. There were transatlantic airfare wars and currency movements that lead people to avoid traveling to Paris. Also, Disney was expecting a flocking of French people to visit the park; yet again basing their assumptions on the performance of the Japanese park (Cateora & Graham, 2007).
recent experience with Disneyland in Paris not to have a too aggressive capital structure in place, they
How could a company that was built into a multibillion dollar empire fail less than two decades later? Blockbuster Entertainment started with one store in Dallas in 1985 and rose up to become the dominant force in the movie rental industry. They were acquired by Viacom, at the pinnacle of their success, for $8.4 billion in 1994 and were in bankruptcy by 2010. A series of blunders by upper management, highlighted by a lack of strategic vision, led to Blockbuster’s rapid decline and ultimate failure.
...were the major reasons for the lower sales. They overlooked the opportunity to profit on the established costumers need for Theme Park entertainment because they did not realized who in fact were their customers.
The first theme park opening in 1955 was Disneyland in California. After one full year of construction demands and a total investment of $17 million the Six thousands invitations to the grand opening had been mailed inviting people to experience the magic Disney had created but when the gates opened the Disneyland was far from magical. Workmen were still planting trees, the paint was still wet and the asphalt wasn’t set. The food stalls and restaurants ran out of food due to the high number of people because of counterfeit tickets being sold. Walt Disney didn’t know didn’t know what was going on because his attention was on the live broadcast. The rides broke down shortly after use. When Walt Disney World opened in 1971 the
The Walt Disney Company is known throughout the world as a leader in entertainment. The strategies that the Walt Disney Company have used include competitive advantage, a growth strategy, and a renewal strategy. When a person mentions a theme park, Disney is the first park that comes to mind. They were not the first theme park, but they have mastered the art of creating memories for adults and children alike. As a former employee of Disney I can vouch for the amount of effort that goes into creating memories for families. Disney is a leader when it comes to the theme park business, and other parks look at Disney as a leader. An example of this is that other parks will not raise admission prices, until Disney first raises their prices. WESH.com said "It remains to be seen if Disney's move will trigger a round of similar increases at other Orlando theme parks. Historically, when Disney raises its prices, the other parks follow" (2011, p.1). There is not a company in the world that can provide the "magic" that the Walt Disney World company can provide (Disney.com, 2011).
Outdoor Adventure Paintball Park is experiencing a variety of problems related to its management. The primary issue with the company is that it was designed without a critical consideration for growth and this has led to internal issues such as lack of direction and inappropriate staffing. The following management plan provides a blueprint for directing the company and better utilizing its resources.
With all of the designing that was happening in the company, it helped to shrink its profits. Lego City was a popular toy for children but the redesigning shrank the sales and attention the product was once getting. A worker of Lego said it well when he said, “Management was to blame, the same people who were doing crappy products then are making world-class products today” (Greene). Essentially the managers and higher up executives didn’t communication what direction the company should be going. They didn’t have a strategy to follow and tell their employees. With no clear strategy and communication in place, things were a free for all. This lead to the declining profits and stability of the company. Lego assumed that if the designers were able to create whatever they saw fit, that somehow it would lead to a breakthrough in the toy maker’s product line. However, this ideology backfired with high production costs and low profit margins.
Many investments for infrastructure construction in the destination primarily designed for the business tourists (hotels, restaurants, transportation…) provide economic profits, and they can also be enjoyed by local residents and leisure tourists.
The economy can be clearly identified as the most beneficial aspect of tourism. “According to recent statistics, tourism provides about 10% of the world’s income and employs almost one tenth of the world’s workforce” (Mirbabayev, 2007). In Australia alone, Tourism contributed $87.3 billion in 2012, and employed 908,434 (7.9%) people (Kookana & Duc Pham, 2013). Tourism is “one of the most profitable and rapidly developing industries in the world” (Popushoi, 2004). Every year the number of tourists increase dramatically and consequently the revenues from tourism will increase substantially.