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Assignment for sport facilities and venues - Case Study Example

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This report explains the dilemma facing Ms Nicole Atkins and her options between expansion and competitive tariff/pricing.The report accounts for the now many tennis courts which will be needed in July 2004 .However it is stated that 2004 may go with out too many new building initiatives but the year 2005 will need an over all rehaul of the tennis services if they are to be considered as means of expanding the profit base itself.Finally the report addresses the broader issues facing the Golden Shores Company in terms of the reliance upon, and the relationship between, tennis and the Company's principal business and the effects on the relevant stakeholders.
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Case assignment for sport facilities and venues
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Download file to see previous pages The dilemma being faced by Atkins is similar to the one faced by many expanding business organisations that is to decide whether or not expand their operations beyond a certain point in terms of cost and profitability. ...
This growing seasonal demand versus the diminishing capacity is an operational challenge at Golden Shores.The problem remains that this demand is not permanent or steady through out the year.The aim would thus be for a profit sustainable methodology to apply to the capacity planning decision that faced operations management for the tennis facilities.


Some statistical calculations

Next pertaining to the query about the number of tennis courts which will be needed in July 2004 and its comparison to the present capacity as well as the way ahead for the planning for the next season in terms of capacity by Ms Atkins it is possible to show the following workings.

These workings take into account the peak months of usage as well as the past use of the facility.The rate at which the demand is increasing and the cost of utilising 100% capacity of each court alongwith tariff management.
It can be seen from Exhibit 3 that July and August are the peak months for Guest nights with the total court hours peaking to 2885 hours.
The factors or the formula I would suggest for Ms Atkins would be to focus on capacity decisions which determine other measures of service management such as productivity, growth, change, and competition.
GS tennis courts will have to as a part of the service industry provide services as and when they are demanded because it cannot be inventoried.The cost would the demand variability which will lead to alternating periods of idle service workers or facilities and consumer waits.

This cost has to be subtracted as a trade off to the cost of idle resources versus consumer retention since a dissatisfied consumer base is likely to hurt the long-term profits and ...Download file to see next pagesRead More
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