Business Strategy Decisions and Marketing RecommendationsPlease read the attached case carefully, Then, answer the below question by writing one page full.QuestionWhat operations policy and business strategy decisions and marketing recommendations would you make to the CEO of Sea Pines? To John Baker? (Consider future demand growth, pricing, profitability and marketing tactics.) HINT:Consider the monthly variation in demand vs. capacity. Dont confuse operating costs & revenues with investment costs.The answer for the question must be based in the following 4 decisions and the answer must show numbers and calculation related to the financial of the company.My decisions:1- Build 4 courts 2 clay 2 hard top?2- Training facility kids (many visitors average age was 37 married with kids 5-10),hire a pro to teach at night during down time under the lights?3- Flat rate no student pass after 2 hours price stays the same4- 14 day pass people stay 12 days, waste 2 days to make more money $33/day$450Limit: Full one pageREQUIREMENT
S management operation managementAnswer preview
What operations policy and business strategy decisions and marketing recommendations would you make to the CEO of Sea Pines? To John Baker? (Consider future demand growth, pricing, profitability, and marketing tactics.) The CEO of the company should consider building four tennis more tennis courts to cater for the increased demand. But the company should build three clay courts and one hard court since most people preferred the clay courts as they had a natural feel. This would cost the company a total of $192,000 ($48,000each *4courts) as the investment cost. Based on the projected number of guests increase (Exhibit 5), the total number of guest would be 230,312 (59,950+ 83,887+ 86,475). Adopting a pricing strategy of $ 20 per guest for first two hours and $ 10 for any extra hour the total revenue for the company would be $ 4,606,240 (total guest during the peak period Feb to April * price visitors) (230,312 guests * $20 per person)
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