Sugar Bowl Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Sugar Bowl Case Solution

The expenses are calculates as a percentage of sales, while taking 2011 statement as a base year. The pro-forma income statement shows that Sugar Bowl’s profitability will increase, as soon as the business becomes more stable, while resolving the operation related issues, as the net income has increased from $63793 in 2011 to $178361 in 2012 and $191334 in 2015 (See Appendix 3). On the basis of such performance, it is recommended that investors should purchase the Sugar Bowl business, as the business has the potential to grow and it would generate higher margins.

Question (b)

Initially, Givens made key strategic decision of turning the under-performing business into a unique and trendy youth oriented business, by taking out loan, which raised the company’s insurance and the rent costs. However, changing the business with the shifting industry patterns has helped in achieving the higher sales and net profitability. In addition, Shelby Givens put efforts in revving the business by adopting a different menu and outlay of the bowling facility, which attracted more consumers and increased the company’s net margins.

Moreover, there were some factors which hindered the performance of the Sugar Bowl. First of all, the staff morale and motivation were low, which led to decreased productivity, resignation by waiters and demotions by the employer. The employees are the essential part of the business as they are the front faces for delivering the customer service with good quality. Moreover, the company faced financing shortage, which were increased due to high salary requirements, outsourced repair and maintenance services and delayed launch of Sugar Bowl.

Question (c)

If investors want to purchase the stake of Given, Then there are few things which they should keep in mind.

Given reduced the number of employees, therefore investors should increase the number of employees to meet the demand and work requirements, because employees were attending more than expected number of customers per day.
Due to low salaries employees were losing their interest in the company and was not performing up to standards, if investors decides to buy the given’s stake then they have to work for the motivation of employees. To increase employee motivation they should revise their payroll and benefit plans.
They need to work on the cost of the company, the company can reduce the cost by moving towards online marketing, because online marketing is low cost marketing and company can utilize this amount for other cause.
Sugar bowl was attending more than expected customers on daily basis so, they should do survey on weekly basis to predict the right number of customers so that company can arrange human capital and other resources accordingly.
Sugar bowl was outsourcing the services for repair & maintenance, as it was costly option for Sugar bowl, so investor can arrange in-house services to reduce the maintenance cost.
The company infrastructure was lacking in gaining customers attention, as there was seating for only two peoples, so company need to get group seating to enhance customers experience and their attention.
Sugar bowl had many internal operations problem like liquor theft, unexpected losses, unauthorized charges and shrinkage. In order maintain these internal operations investors need to bring on board talented and well experienced managers along with effective accountability process........................
Sugar Bowl Case Solution

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