Internal analysis:
VRINE Analysis:
The main and foremost competitive advantage of Westlake is that the company is contributing in the bowling industry for more than thirty years in the market. VRINE analysis is based on analyzing the company’s resources in terms of how much these resources are valuable, rare, imitable and exploitative.
Valuable:
One of the major competitive advantages of the company is its loyal customers that the company is enjoying for more than thirty years. The loyalty factor from customers is a continuous source of profitability for the company. Along with this, it helps the company in keeping its loyal customers away from its competitors. The operation is said to be valuable as it will create a positive image to its customers.
Rare:
The company’s resources are found to be rare in terms of the fact that the company is surviving in the bowling industry from the 70s era and family business is a factor that makes this competence rare.
Inimitable:
The competency of the company cannot be substitutable and never be imitable because it is practically impossible for any company to open a company and claim to have its presence of thirty or more than thirty years.
Exploitable:
The capability mentioned above can definitely be exploitable as the company can utilize it to enhance the reputation of the company. In order to exploit its competence effectively, the company needs to advertise this more. In addition to this, the employees of the company can also take advantage in terms of utilizing its previous data.
Value Chain analysis:
Inbound Logistics:
Inbound logistics of the company include receiving of supplies that are food, shoes, beverages, and, etc. the company is not given much to inbound logistics.
Operations:
The operations of the company include four full-time employees. Further, Gary is responsible for the maintenance of grounds, machinery and building and his salary is around $40000. Shirley is responsible for back office sales and marketing, and her salary is around $31000. Next, Daniel is responsible for kitchen and bar supplies along with cooking and serving food, and his salary is $24000. Lastly, Jenny is responsible for lane and shoe rental along with customer service and her salary is of $26000.
Outbound logistics:
Outbound logistics of the company include providing league rentals. In addition to this, outbound activities also include providing shoes and lanes to those paying to bowl.
Sales and marketing:
The company has not made many efforts in its marketing and sales department.
Service:
Customer service at Westlake bowling is done at the front desk. In addition to this, all the repair services in the company are done by maintenance department. With the help of customer service, the company keeps building up to the code. Moreover, the customer service of the company is friendly as well.
Procurement:
The procurement of the company includes the purchase of beverages, food and remaining supplies from the suppliers. Other activities in procurement include health insurance and cleaning company.
Company infrastructure:
The infrastructure of the company is based on small business that is owned by families. In addition to this, the company is based on a few and selective employees. Furthermore, the employees at Westlake bowling often have free time. Additionally, the finances of the company have not been managed on a proper basis.
Summation:
After the assessment made through internal analysis, the company can go forward in achieving and maintaining its competitive advantage on a long-term basis.
Financial analysis:
Financial analysis for Westlake lanes has been done based on the financial statements analysis of the company.
Operating margin of the company for four-years has been calculated as shown in the appendix. Initially, the operating margin of Westlake lanes was positive but later on, the margins started to decline and then in 2007, the operating margins of the company turned negative that shows a loss in the business. From 2007 till 2009, the operating margin of the company is declining and that in turn proved the inefficiency of the company. In these circumstances, it is the right option for the Westlake Lanes to make a reduction in its expenses.
From 2006 till 2009, the gross margin of the company was extremely well as seen that it reached 82% by the end of 2009. This ratio has shown that gross margins are not the reason behind the company’s loss and inefficiency. Thus, the general manager of Westlake Lanes is still on the right track. Next ratio to analyze is debt to equity ratio that was high in the year 2005 because of the funding that the company borrowed for the improvements by credit. Furthermore, the debt to equity ratio is still on the higher side that in turn is decreasing the company’s equity.............................
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