THE PUB SURVIVE, THRIVE OR DIE:CASE ANALYSIS Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

THE PUB SURVIVE, THRIVE OR DIE:CASE ANALYSIS Case Solution

Part 1

Root Cause Analysis

Financial Problems

As far as the financial crisis is concerned, the main issues will be highlighted in this section. The first problem is that the government increased the minimum wage per employee and the government also refused to give health and liability insurance coverage, which was increasing the cost of the Pub. The sales were also declining because of the increased competition and low promotional strategies, since the pub is restricted to promote the use of alcohol.

On the other hand, the pub is going to be bankrupt if it doesn’t take loan from the university that is more than 100,000$,which will also increase its cost of capital. Moreover, the pub’s BODs are heavily relying on the inefficient staffs who are students in majority having no or less managerial expertise and experience. However,there are some unfavorable economic indicators which are also threatening the company to operate its business effectively, which includes health and money conscious people, high insurance cost, declining usage of alcohol beverages, rising minimum wage of workers and declining student population.

Pubs Relation with the University

The Pub was a separate entity and it was not operating its business at arm’s length, however the pub was in discretion of the university and the university was able to terminate the lease of the pub if the management did not listen to the university’s management. The university restricted the pub to invest in its new accessories such as tables, chairs and other bar appliances to make the experience better than ever. Moreover, the university was also neglecting the needs of the pub and other requirements, which were necessary for it to stay competent and profitable.

Determinants of the new location
The main problem with the new location was to wait in a long line for entry.Moreover,the capacity is restricted to 300 guests, which was impossible for the new location to cope up. However, the weekend dance parties accounted for almost 80 to 90% of the revenue but the pub would beunable to provide that much space to fulfill the requirements of the weekend parties and it has to rent out some more space which will increase its cost and decline its profits.
Moreover, if the pub will move towards the new location, then it will have a small dance floor which may lead it to lose potential customers as well as its golden members who frequently visit the pub and provide a huge chunk of revenue.
Part 2

SWOT Analysis

SWOT analysis mainly used to analyze the internal strengths and weaknesses while considering the external opportunities and threats, which a company is facing or may face in the future. (Gretzkey, 2012). The following section will cover the SWOT analysis of the Pub.

Strengths

• The pub has a strong customer base and a strong customer relation as due to its membership facilities the members are also reliable and loyal to the pub.
• The Pub also has a strong hierarchy which is very simple to understand and also it is working efficiently.Furthermore,every employee knows what his responsibilities are and why he or she is in the pub.The pub makes it clear by giving the precise Job Description to the employees.
• The pub has strong managerial skills as we saw in the case that scooter is managing the customers and the whole pub since 1993 and he was also a graduate from the commerce program at the same universities having expertise in financial and operational management.
• Being the most social place in the campus, the pub was hiring only students regard less if part time or full time. Also, the majority of the employees were students except for the doorman and the manager. Furthermore,the pub has diversified expertise in the management because of the diversified staffing (staff having different expertise over different fields).
• The Pub generates huge revenue from the weekend parties a we have seen that the company is making almost 90% of its revenue from weekends and dance parties.....................

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