I.

Key Problems or Challenges

Customer Experience: For a new concept to flourish, customer experience is key

to success. However, according to surveys, Sugar Bowl customers only reported positive
feedback 85% of the time. Complaints of long wait times, high costs, and unorganized
group events plagued the bowling alley.
Underpredicatabilty: Additionally, it was difficult for Givens to predict the
number of people who would visit the alley on a nightly, or even weekly, basis. Capacity
Monday through Wednesday stayed around 15% as Thursday through Sunday capacity
floated near 35%. Attendance also fluctuated from season to season and was hard to
predict. Another element that was consistently under-predicted was how much each party
would spend. Based on her initial conversations with Michael Burke she expected spend
to be around $60.00, but was disappointed when she saw that it was closer to $40.00.
Private Event Issues: Finally, private events were necessary to maintain business

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on slower days at the beginning of the week. However, it was hard to consistently book

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these types of events. To add to the pressure, the full-time employee who oversaw

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booking these events was going to need a more lucrative salary to remain interested in the

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position.

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I.
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External Analysis
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II. Market Economic Environment
- Consumers are willing to pay a higher price - $400,000 SBA Loan from Local Bank
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- Givens must account for her market when making - Revenue must reach 70% of projected revenue
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strategic decisions after four operating quarters

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- Can’t rely on data from different markets - Value must open no later than 15 mo. post-funding
The market may look strong in other areas of - Givens’ condominium is posted as collateral.
the country, but Givens needed to evaluate Tumultuous environment with a lot of room
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her own market for problems to arise

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III. Internal Analysis

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Strengths Weaknesses Opportunities Threats

Staffing Offer from Not enough

New Concept Interested Buyer interested from
Marketing consumers
Budgeting Management
Special Events Consulting Firm Low cost options
Strategic result in issues
Partnerships Attendance Potential to
Predictability Charge Higher Tumultuous
Loyal Consumers than Average Economic
Market Prices Environment
Demographic
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 After looking at the internal operations of Sugar Bowl, it is apparent that they
have many strengths, weaknesses, opportunities, and threats. For that reason, I decided to
conduct a SWOT analysis. This tool will assist in visualizing exactly what Sugar Bowl
can improve upon or potentially take advantage of. It will also aid in making a decision
about what do to in the future.

IV. Mutually Exclusive Solutions

Sell the Business and Peruse Other Options

Selling Sugar Bowl to the local investor who was willing to start negotiations at $1M
- Generate ROI and financial benefits for investors, family and friends.
- Hand over the business to an eager investor who could commit time and capital to the project.
- Close family may be upset over the sale of the bowling alley
Benefits investors and allows for the business to remain open

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Continue Operations at Sugar Bowl with Improvements

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Continuing operations at Sugar Bowl, but improving upon customer experience, predictability, and
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- Improve customer experience by hiring more staff to assist in general - difficult to accomplish
- Potentially lose more money and run the risk of overall business failure
- Please family member who want to keep Sugar Bowl
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- Continue to struggle with time management and potentially face burnout very quickly
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Allows for Givens to pursue her career goals as well as keep Sugar Bowl open
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V. Recommended Chosen Alternative Course of Action and Justification

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After evaluating all the options available to Givens, I believe the best, most time and cost
efficient, option is for her to sell the business to the interested investor and pursue other career
goals with the team in New York City. Selling the business gives her the opportunity to benefit
investors, friends and family as well as leave the business in a good financial position. Although
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some may be upset with Givens’ decision to sell, it ultimately provides her with the best
opportunities while still allowing Sugar Bowl to flourish.
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Choosing to sell the business diminishes the cost implications of continuing to run the
business on her own. By accepting an offer of, potentially, over one million dollars, Givens will
be able to ensure that Sugar Bowl lands in the hands of an investor who may have more
experience than her and can make a greater impact on the company.
To successfully implement this solution, Givens needs to discuss her decision with key
stakeholders as well as employees. After she has briefed them all on the events that will take
place, negotiations will begin. Below is a timeline of completion for the recommended solution.Total
Completion Time

4
Brief Stakeholders and Begin Negations and Pay Out Investors and
Employees Settle Transition Ownership
1 Month 1 Month 2 Months
Months
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