Step 1: Assess Need for Strategic Change, 6-2a Your group represents the managem

ID: 385822 • Letter: S

Question

Step 1: Assess Need for Strategic Change, 6-2a Your group represents the management team of a locally owned and operatecd water park, The Beach, which has been in business for 15 years: Revenues are $5 million per season equipment is neither new nor old the company has little debt they have a good reputation in the community they get a flood of job applicants each summer Next season, the Paramount's King's Island amusement park across the highway is adding a water park to its traditional thrill ride attractions Step 2: Conduct a Situational Analysis (SWOT), 6-2b SWOT Analysis Template STRENGTHS WEAKNESSES OPPORTUNITIES THREAT

Explanation / Answer

Step 1: The points were assesed and it has been observed that there is going to be intense competition next season due to the competitor's amusement park's addition of water rides.

Step 2: SWOT ANALYSIS

STRENGTHS

-Company has little debt

-Good reputation in the community

WEAKNESSES

-Equipment is neither old nor new

OPPORTUNITIES

-Revenue are $5 million dollars per season (opportunity to invest)

-They get a flood of job applicants each summer (good source of human resource)

THREATS

-Next season, the Paramount’s King’s island amusement park across the highway is adding a water park to its traditional thrill ride attractions.

Step 3:

I believe that diversification of the water park such as expansion by including new themes and concepts are the strategic alternatives to gain the competitive advantage. This is because The Beach is an already established brand and adding new rides and themes in defense of the competitor’s theme park would definitely help the water park to gain the competitive edge and sustain in the industry.

Strengths- The management team should capitalize on its brand as a reputed water park in the community. The management team should first give priority for safety of the water riders more than just revenue as is now. This would increase the brand’s preference among the community members and would increase revenue.

Weaknesses- Since the equipment is neither old nor new; the management team can consider seeking replacement of new equipment as they would be worn out soon. The current equipment might give way and cause any accident. This can be avoided by replacing equipment which has high safety standards.

Opportunities- Since the revenue is $5 million per season, the water park can exploit opportunities by re-investing this revenue in a diversified business which suits other seasons (such as summer and spring). A recommendation is resort and sports centers which might attract more tourists and people who do not compromise on fitness. Additionally, the plethora of job applicants can be considered for recruitment for the expansion of the water park.

Threat- The best way to minimize the threat of the competitor’s introduction of traditional thrill ride attraction is to capitalize on the strengths of The Beach water park and diversify the business in which people come around all time of the year. Additionally, water park can be expanded by introducing new thrill rides.

I would not recommend a risk adverse strategy to sustain in the business as it is. This is because the water park in doing extremely well in terms of revenue currently as there is no competition in the community. Since the competitor has plans to introduce water rides, then it is high time that The Beach consider strategic alternatives for gaining the competitive advantage.

I recommend a risk taking, daring strategy because if there are no risks taking in terms of strategic alternatives, then there would be fall in the sales and revenue of the business. Eventually, this might lead to closing down the business itself. The strategic alternatives are: