Acct 4720 - Eastriver Entertainment

Eastriver Entertainment

ACCT 4720

Mai Zhang

100216573

Current Situation:

Eastriver Entertainment has been in bowling lanes business for long times, due to prior's GM, Jay Pritchett's heath issue, the business had suffered with costs escalating and revenues softening. Laslie Givens was hired to return the bowling lanes to profitability. Over the past year, Givens has been able to increase company's profit by reducing costs and gradually growing revenues. However, both board and Givens would want to make their business profitable in the market for long term and succeed in the future. Since bowling is a seasonal business and the time of day and day of week varies, which means when Eastriver' is not operating at full capacity, they are losing potential revenue with continuing cost. Therefore, Eastriver must attract a younger or different clientele to maintain the company future growth. Currently, Givens has two ideas for further expand their business including scenarios for kid-friendly and lounge options.

Critical Issues:

In order to succeed in updating their current operation and turning business towards a long-term success, Eastriver Entertainment must address the following:

 How to increase brand awareness so that Eastriver can reach a larger target market in order for future growth through an effective marketing plan.

 How to draft a strategy to expand their current customer base through appealing different demographics such as targeted families & kids or young professionals in Raleigh so that Eastriver Entertainment can facilitate growth.

 How to continue cost scrutiny along with increasing revenue and make staff changes so that the company can generate more profit.

Options:

1. Kid-Friendly

Pro:

* Limited upfront costs, fee arcade games with revenue share model

* No major structural remodel costs

* Lower damages (no alcohol)]

* Minor food/beverage changes

Cons:

* Higher AD expense

* Not sure what kids or parents want

* Being around with kids all day

* Increase PT staff to 8

2. Upscale Bowling Lounge

Pros:

* High