Write the Case abstract (introduction) State the vision, mission/objectives, and values; Identify the components of the mission and comment about its comprehensiveness

  1. Individual Case Report 1 (10 marks)

Perform the following steps for the company assigned to you.

  1. Write the Case abstract (introduction)
  2. State the vision, mission/objectives, and values; Identify the components of the mission and comment about its comprehensiveness
  3. Perform External Audit
    1. Perform PESTEL analysis for external forces
    2. Perform SWOT Analysis
    3. Develop CPM Matrix
    4. Develop EFE Matrix
  4. Perform Internal Audit
    1. Identify strengths and weaknesses
    2. Perform Financial Ratio Analysis
    3. Develop IFE Matrix

The case is solved but I need just rewriting to avoid plagiarism  and complete the missing which is in the a-b text in highlight.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merryland Amusement Park – 2009

 

 

  1. Case Abstract

 

Merryland Amusement Park is a comprehensive business policy and strategic management case that includes the company’s 2008 financial statements, competitor information and more.  The case time setting is the year 2009.  Sufficient internal and external data are provided to enable students to evaluate current strategies and recommend a three-year strategic plan for the company.  Merryland Amusement Park is located in Kansas City.

 

 

  1. Vision Statement (proposed)

 

Bring joy and happiness to our customers while visiting Merryland Amusement Park.

 

  1. Mission Statement (Propose)

 

Bringing entertainment (2) to Kansas City and surrounding areas (3), we strive ourselves to deliver unique and quality attractions to our customers (1) through highly technologically advanced rides and features (4).  We believe in continuous enrichment of our staff (9) and accordingly, providing friendly and fun environment for our customers (6), leading us to be a profitable company for our investors (5) and our community (7, 8).

 

  1. Customer
  2. Products or services
  3. Markets
  4. Technology
  5. Concern for survival, profitability, growth
  6. Philosophy
  7. Self-concept
  8. Concern for public image
  9. Concern for employees

 

  1. External Audit

 

          Opportunities

 

  1. Closest theme park was miles away, making it a great opportunity for residence to have a local park to go to
  2. No direct competition except small amusement centers
  3. Customer loyalty exists to have a local theme park
  4. New theme park can offer state of the art rides, making it more attractive for locals to go
  5. To form partnership with other hospitality businesses for reduced or promotional rates
  6. Can struck deals with local high school or middle schools for special events such as prom nights or graduation ceremony / parties
  7. Can offer promotional discounts such as corporate discount, senior citizens, or rewards / membership with AAA to local business or businesses in the surrounding areas

 

Threats

 

  1. Willingness of patrons to drive long distance to visit other theme parks
  2. Small niche amusement centers based in malls had begun to surface with highly attractive water parks, modern steel coasters, entertainers, and an endless array of promotions, discounts, and family fun “packages”
  3. Weak economy has impacted disposable income of consumers for spending too much money on leisure travel and / or attending theme parks
  4. Consumers have become more price conscious and are looking for more local deals and specials
  5. Typical vacations are booked in advance so starting a new theme park may not see high volume of tourists till the second year or beyond
  6. Theme parks require extensive amount of capital to start along with large amount of working capital for advertising and operational expenses

 

 

CPM – Competitive Profile Matrix

 

Merryland  Theme Parks Amusement Parks
Critical Success Factors Weight Rating Weighted Score Rating Weighted Score Rating Weighted Score
Price competitiveness 0.10 2 0.20 4 0.40 3 0.30
Technology 0.12 1 0.12 4 0.48 2 0.24
Product Safety 0.10 1 0.10 4 0.40 2 0.20
Customer Loyalty 0.13 2 0.26 4 0.52 1 0.13
Market Share 0.10 1 0.10 4 0.40 2 0.20
Advertising 0.15 1 0.15 4 0.60 2 0.30
Product Quality 0.12 1 0.12 3 0.36 2 0.24
Product Image 0.10 1 0.10 3 0.30 1 0.10
Financial Position 0.08 1 0.08 3 0.24 2 0.16
Total 1.00   1.23   3.70   1.87

 

 

 

External Factor Evaluation (EFE) Matrix

 

Key External Factors Weight Rating Weighted Score
Opportunities      
1.    Closest theme park was miles away, making it a great opportunity for residence to have a local park to go to 0.08 3 0.24
2.    No direct competition except small amusement centers 0.07 3 0.21
3.    Customer loyalty exists to have a local theme park 0.07 3 0.21
4.    New theme park can offer state of the art rides, making it more attractive for locals to go 0.07 3 0.21
5.    To form partnership with other hospitality businesses for reduced or promotional rates 0.06 3 0.18
6.    Can struck deals with local high school or middle schools for special events such as prom nights or graduation ceremony / parties 0.06 3 0.18
7.    Can offer promotional discounts such as corporate discount, senior citizens, or rewards / membership with AAA o local business or businesses in the surrounding areas 0.06 3 0.18
Threats      
1.    Willingness of patrons to drive long distance to visit other theme parks 0.07 2 0.14
2.    Small niche amusement centers based in malls had begun to surface with highly attractive water parks, modern steel coasters, entertainers, and an endless array of promotions, discounts, and family fun “packages” 0.09 1 0.09
3.    Weak economy has impacted disposable income of consumers for spending too much money on leisure travel and / or attending theme parks 0.1 2 0.2
4.    Consumers have become more price conscious and are looking for more local deals and specials 0.1 1 0.1
5.    Typical vacations are booked in advance so starting a new theme park may not see high volume of tourists till the second year or beyond 0.08 1 0.08
6.    Theme parks require extensive amount of capital to start along with large amount of working capital for advertising and operational expenses 0.09 2 0.18
Total 1.00   2.2

 

  1. Internal Audit

Strengths

 

  1. Gaining federal government influence toward a “historical site” designation, which would help to secure the property and its assets for potential investors for the purpose of site restoration
  1. Growing grassroots level interest throughout Kansas in seeing Merryland restored to its previous days of carnival-like splendor
  2. Ability to raise money through 3 different sources
  3. Strong and established management skills
  4. Good pool of local candidates to select from for staffing and supervisory positions
  5. Locals have a very strong and loyal support for restoring the park
  6. Brand recognition for the roller coaster and its nick name “scream machine”

 

Weaknesses

 

  1. Negative reputation from current owners before it is taken over by new owners
  2. General park maintenance was neglected during the unsuccessful sale attempt
  3. Falling revenues were also attributed to the growing interest in nontraditional theme park attractions fueled by the cost of gasoline and increasingly tight economic conditions
  4. Local real estate values, the lack of maintenance, and no new investment into the park resulted in steadily declining values from 2004 to 2008
  5. Merryland’s lack of marketing and promotion in lieu of higher ticket prices further contributed to its own declining backyard patron interest
  6. Lack of having an understanding of demographic changes and the need of the customers
  7. Require extensive investment for buying and purchasing new machinery along with several new primary attraction park rides
  8. Land parcel is not large enough to add both a water park and expand the park with new rides

 

Internal Factor Evaluation (IFE) Matrix

 

Key Internal Factors Weight Rating Weighted Score
Strengths      
1.    Gaining federal government influence toward a “historical site” designation, which would help to secure the property and its assets for potential investors for the purpose of site restoration 0.07 3 0.21
2.    Growing grassroots level interest throughout Kansas in seeing Merryland restored to its previous days of carnival-like splendor 0.06 3 0.18
3.    Ability to raise money through 3 different sources 0.03 3 0.09
4.    Strong and established management skills 0.08 3 0.24
5.    Good pool of local candidates to select from for staffing and supervisory positions 0.07 3 0.21
6.    Locals have a very strong and loyal support for restoring the park 0.07 3 0.21
7.    Brand recognition for the roller coaster and its nick name “scream machine” 0.08 3 0.24
Weaknesses      
1.    Reputation from current owners before it is taken over by new owners 0.05 1 0.05
2.    General park maintenance was neglected during the unsuccessful sale attempt 0.06 1 0.06
3.    Falling revenues were also attributed to the growing interest in nontraditional theme park attractions fueled by the cost of gasoline and increasingly tight economic conditions 0.07 1 0.07
4.    Local real estate values, the lack of maintenance, and no new investment into the park resulted in steadily declining values from 2004 to 2008 0.05 2 0.1
5.    Merryland’s lack of marketing and promotion in lieu of higher ticket prices further contributed to its own declining backyard patron interest 0.06 1 0.06
6.    Lack of having an understanding of demographic changes and the need of the customers 0.07 1 0.07
7.    Require extensive investment for buying and purchasing new machinery along with several new primary attraction park rides 0.09 2 0.18
8.    Land parcel is not large enough to add both a water park and expand the park with new rides 0.09 2 0.18
Total 1.00   2.15

2 Merryland Amusement Park — 2009 Gregory Stone Regent University In September 2009, the “Support Merryland” advocacy group was started to draw public interest in the historic Merryland Amusement Park. Anthony (Tony) Kenworthy is currently aligned with this Kansas historical preservation group for the purpose of gaining federal government influence toward a “historical site” designation, which would help to secure the property and its assets for potential investors for the purpose of site restoration. There is also a growing grassroots level interest throughout Kansas in seeing Merryland restored to its previous days of carnival-like splendor. Tony is fully aware of this state sentiment and intends to use it to move a state-based initiative forward for just that purpose. Tony has to make a decision! The owners of Merryland Amusement Park, a derelict “50 acres of fun!” amusement park located in Kansas City, have again put the attraction up for sale after several failed attempts to reopen the park. Merryland officially closed its entrance gates to the public in 2009. If Tony waits too long, his colossal theme park dream will vaporize. If he acts too quickly, he might get the keys to the Titanic. Poor financial management and other factors contributed to the owners’ decision to close and sell the park. Tony has three investment options, and investors associated with each are ready to move, even in the face of poor park performance—or, in this case, nonexistent performance. Tony’s entrepreneurial magic is just what the amusement park needs, if not more of an entrepreneurial miracle. The park is the perfect fit for providing fun activities for disabled children—Tony’s personal passion. Tony’s first option is to buy the park, make the renovations, and reopen it under his management. Altria, a major corporation, has offered all the cash he needs to make the purchase representing Tony’s second option. Finally a local consortium of entrepreneurs gives him more control, but far less cash. Choosing the right option could make or break Tony’s career, his finances, his life, his reputation, and even his personal relationships. Background Merryland is a local theme/fun park that originally opened in 1955. The park was started and managed for 33 years by Stanley Merry, a nephew of the man the park was named after. In 1988, Stanley Merry died and left the park to his only heir, his widowed daughterin-law, Samantha Steinberg. Samantha had little interest in owning, and much less in operating, an amusement park. Her second husband, Alan, took up the responsibility for most of the day-to-day operations. Although the couple operated the park from 1988 to 2008, Samantha’s heart was never in the business. Maintenance budgets and the total number of employees were annually reduced to the detriment of the park’s operations. They simultaneously, however, kept annually increasing park entrance fees, “to suck every last dime we can get out of the park,” according to Samantha. Falling revenues and a noticeable degrading of the park’s facilities prompted longtime owners Samantha and Alan Steinberg to put the park up for sale in the fall of 2006, with an asking price of $5.8 million for the 50-acre facility. Twenty of those acres were still in woods and fields behind the 30-acre theme park area. Two other groups tried unsuccessfully to take over the operations and keep Merryland going prior to the amusement park officially closing in 2009, but both found refurbishing costs and operating costs were far more than anticipated. Rising liability CASE 2 • MERRYLAND AMUSEMENT PARK — 2009 15 insurance costs were equally challenging. In late 2007, Alan Steinberg, now 85, and Samantha Steinberg, herself 87 years old, again had full control of the park and desire a minimum of $2 million this time around. “It has to be cash,” Samantha stated adamantly. “This time there is no leasing or holding the note.” She did quickly add that she and her husband, however, would consider proposals to do something else with the undeveloped land, such as building a corporate headquarters, expanding the park, or some other kind of development opportunity. Although Merryland only closed its doors in 2009, it has since become a target for vandals, with more than 20 break-ins recently reported. Police arrested two men a month ago after they found spray-painted swastikas and other graffiti on buildings. “They were really reckless,” Alan Steinberg lamented. “They turned over ticket booths, broke into the office, and threw furniture out the windows.” Tony, Just Another Hard-Working Entrepreneurial Guy Born in Chesapeake, Virginia, Tony graduated from the University of Richmond with a double major in economics and accounting. He served as president of his fraternity and improved the overall quality of the food, house services, negotiated better utility rates, and achieved all of it without having to increase monthly member rent rates. Tony’s Love for the Summer Camp Kids Between his freshman and sophomore years, one of Tony’s fraternity brothers hired him to work during the summer at an eastern Virginia youth camp. It didn’t take long for Tony to work his entrepreneurial magic again. He was instrumental in helping the camp managers get a grip on cash flow and a better system of managing camp expenses. As he implemented his new marketing initiatives, they quickly measured increases in both new campers and the subsequent revenue generated from the steady increase in the number of camp attendees. He was the leader, the hero, and garnished the attention once again. The campers loved the camp programs, the parents loved the camp, the camp managers loved Tony, and Tony discovered that he really, truly loved working with the kids. The camp finally had a brand identity in the marketplace, a focus, and was gaining a positive reputation throughout the community and state. Although Tony enjoyed working with the camp managers, he soon found that his one true camp love was working with the actual campers. He especially thrived from seeing kids with disabilities tackle their obstacles and discover their unique talents. The corporate sponsorship opportunity he created significantly increased the number of kids who could finally attend the camp. Working with “his kids” would often cause him to tear up as he watched them learn about their special abilities and skills. His love for the kids and his ability to make them happy made this the perfect summer job throughout his college career. Sure, the pay wasn’t the best, but he got to work with his fraternity brothers. Tony was able to maintain as much fun off the clock as he had during the day with the kids. His “panty raid” attempts occasionally sparked the ire and disdain of the women counselors who felt he should have long outgrown such childish pranks. Graduation from the university landed Tony the position of business manager for the camp. The work was fun but didn’t allow the level of daily involvement with the kids, and he sorely missed that. His position did, however, bring him into increased contact with Jennifer, and she actually seemed to be “warming” up to him. Managing a not-for-profit organization put a cap on his entrepreneurial drive and prevented him from deriving financial dividends from the increased profits he brought to the operation. He was far more the capitalist, with the desire to be rewarded for a job well done. Without the creativity and opportunity to innovate, he quickly lost motivation—especially in light of the lack of financial gain. Tony as a Showbiz Pizza Business Manager The job as a business manager for a Showbiz Pizza franchise in nearby Camden, Virginia, got Tony’s entrepreneurial DNA quickly engaged again. The franchise was a combination pizza parlor, game room, and bar. A local favorite for children’s birthday parties and a 16 GREGORY STONE EXHIBIT 1 Merryland Income Statements for 2004–2008 2004 2005 2006 2007 2008 Sales Revenues 1,245,000 1,450,000 1,253,000 1,020,000 890,000 Cost of Goods Sold 310,000 465,000 403,000 323,000 301,000 Gross Margin 935,000 985,000 850,000 697,000 589,000 Operating Expense 736,000 796,000 780,000 595,000 502,000 Operating Income 199,000 189,000 70,000 102,000 87,000 Interest Expense 15,000 18,000 15,000 12,000 9,500 Net Income Before Taxes 184,000 171,000 55,000 90,000 77,500 Taxes 73,600 68,400 22,000 36,000 31,000 Net Income 110,400 102,600 33,000 54,000 46,500 Key Financial Ratios 2004 2005 2006 2007 2008 Current Ratio 2.3 2.4 1.9 1.6 1.4 Total Asset Turnover Ratio 1.5 1.7 1.3 1.1 0.9 Net Profit Margin 0.089 0.071 0.026 0.053 0.052 Other Data 2004 2005 2006 2007 2008 Employees 10 full, 10 full, 8 full, 7 full, 5 full, 32 part 35 part 30 part 25 part 30 part Maintenance Expenditures 54,000 44,000 45,000 36,000 29,000 Average Number of Rides Operating per Day 22 22 20 19 15 place for area families to have their family night out, Tony was able to interact more frequently with kids again. During his three years as business manager, he implemented numerous small operational changes that increased corporate profitability (see Exhibit 1). He entered into a lease agreement with a local vendor to develop the business model to lease the gaming equipment to all the Virginia Showbiz franchises. This enabled Showbiz to offer its owner/operators the most current games all while reducing operating and repair costs. He also shut the restaurant down at 10 PM to families and children, and then reopened the bar operation an hour later until 2 AM for locals to drink, dance, carouse, play pool, play video games, and have good clean adult fun. Then Tony heard from one of his fraternity brothers that Merryland Amusement Park was up for sale, and he knew his dream job had arrived! The Sale of Merryland During the unsuccessful sale attempt and subcontracted operation of Merryland, general park maintenance was neglected. Falling revenues were also attributed to the growing interest in nontraditional theme park attractions fueled by the cost of gasoline and increasingly tight economic conditions (see Exhibit 1). Local real estate values, the lack of maintenance, and no new investment into the park resulted in steadily declining values from 2004 to 2008 (see Exhibit 2). Other local patrons were more willing to make the longer drives to stay for several days or a week to the larger “mega” theme parks such as Six Flags St. Louis as a family vacation. Although there were no directly competing amusement parks in Kansas, the Steinbergs never seemed to fully grasp the significance of that opportunity (see Exhibit 3). Consequently, small niche amusement centers based in malls had begun to spring up. The bigger, more lavish CASE 2 • MERRYLAND AMUSEMENT PARK — 2009 17 EXHIBIT 2 Merryland Amusement Park Balance Sheets 2005–2009 ASSETS FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Current Assets Cash $102,600 $33,000 $54,000 $46,500 $0 Other Current Assets $ 0 $ 0 $ 0 $ 0 $0 Total Current Assets = $102,600 33,000 $54,000 $46,500 $0 PROPERTY, PLANT, & EQUIPMENT FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Land $4,225,675 $3,877,925 $2,722,583 $2,077,748 $1,893,932 Land Improvements $ 37,500 $ 32,250 $ 25,500 $ 5,000 $ 0 Buildings $ 202,600 $ 183,000 $ 172,000 $ 156,500 $ 125.000 Equipment (Rides) $ 425,000 $ 375,000 $ 325,000 $ 225,000 $ 175,000 Total Prop Plnt & Eqmt = $4,890,775 $4,468,175 $3,245,083 $2,464,248 $2,193,932 Total Assets = $4,993,375 $4,501,175 $3,299,083 $2,510,748 $2,193,932 LIABILITIES & CAPITAL FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Current Liabilities Accounts Payable $ 75,702 $ 80,950 $ 68,064 $ 89,325 $ 98,783 Current Borrowing $ 72,146 $ 75,388 $ 72,466 $ 74,539 $ 107,414 Other Current Liabilities $ 26,723 $ 28,943 $ 24,889 $ 29,385 $ 31,845 Subtotal Current Liabilities $ 174,571 $ 185,281 $ 165,419 $ 193,249 $ 238,042 Short-term Liabilities $ 54,723 $ 50,630 $ 46,598 $ 42,554 $ 39,784 Total Liabilities = $ 229,294 $ 235,911 $ 212,017 $ 235,803 $ 277,826 Net Worth = $4,764,081 $4,265,264 $3,087,066 $2,274,945 $1,916,106 EXHIBIT 3 Kansas Entertainment Attractions Name Address Facility Type Attraction Description All Star Adventures (East) 1010 N.Webb Road Wichita, KS 67206 Amusement Park Wichita’s only amusement park with rides for kids and go karts. Wild West World 7300 North Wild West Drive Valley Center, KS 67147 Theme Park Featuring cowboys and Indians, Wild West World is the first major theme park in Kansas and the world’s only one sporting an all-Western theme. The park opened in May 2007 and closed in July 2007. Its owners declared bankruptcy and were hoping to sell the park so that it could reopen. Those plans failed, however. The rides were sold to other parks. Zonkers 20070 W. 151st Street Olathe, KS 66061 Theme Park Zonkers (previously Jeepers!) is an indoor theme park serving families with children of all ages. The park provides a diverse mix of arcade games and amusement rides built to scale for indoor use. Rides include the popular Python Pit (roller coaster), Yak Attack (mini-Himalaya), Venetian Carousel, Train, and Banana Squadron (airplane ride). 18 GREGORY STONE Name Address Facility Type Attraction Description Carousel Park 3834 W. 7th Street Joplin, MO 64801 Amusement Park This is a family fun park for young and old. Park features dozens of amusement rides, two 18-hole miniature golf courses, multispeed batting cages, the fastest go karts in the area, water-spraying bumper boats, an exciting indoor arcade, indoor and outdoor birthday party areas. Silver Dollar City 399 Indian Point Road Branson, MO 65616 Theme Park Park for all ages combines the wholesome family fun of a major theme park with the timeless appeal of crafts and a dedication to preserving 1880s Ozarks culture. Six Flags St. Louis P.O. Box 60 Eureka, MO 63025 Theme Park Six Flags St. Louis is a major amusement park featuring eight themed lands of adventure. The six flags that fly over the park represent the countries and states that have influenced St. Louis history—France, Spain, Great Britain (which at one time had jurisdiction over the area), Illinois, Missouri, and the U.S.A. The park features more than 40 attractions and game areas, more than 25 food outlets and gift shops, live shows, and a tropical paradise water park called Hurricane Harbor. Worlds of Fun 4545 NE Worlds of Fun Drive Kansas City, MO 64161 Theme Park The park is themed around the Jules Verne book, Around the World in Eighty Days, and is divided into five major sections—Scandinavia, Africa, Europa, the Orient, and Americana. Rides, attractions, shops, shows, and restaurants are named according to the area theme. The park also has an attached water park called Oceans of Fun. EXHIBIT 4 Missouri Entertainment Attractions theme parks, however, offered highly attractive water parks, modern steel coasters, entertainers, and an endless array of promotions, discounts, and family fun “packages” that made it worth the several-hundred-mile drive to be thrilled and entertained (see Exhibit 4). Merryland’s lack of marketing and promotion in lieu of higher ticket prices further contributed to its own declining backyard patron interest. Alan and Samantha, unlike the previous owners, were far removed from the changing needs, wants, and desires of a new generation of amusement park children, teens, and adults that began to take shape in the early 1990s. Customer demographics had shifted, and Merryland didn’t shift with them. The Steinbergs initiated a lawsuit against the interim operators. In the lawsuit, they listed Louie the Clown as one of the items damaged or taken from the park. The interim operators all said they knew nothing about the missing clown’s whereabouts. The Steinbergs were also attempting to collect $450,000 in back rent and damages, but the former operators have said that they don’t owe anyone any rent for anything. Merryland’s “Screamer” Roller Coaster For residents of Kansas City, there was only one reason to go to Merryland—the roller coaster! Some people nicknamed it the “scream machine” and with good reason. The history of the “Screamer” reflected a constant search for greater and more death-defying thrills. Merryland Park’s Screamer roller coaster was a product of the Philadelphia Toboggan Company and one of the last surviving original wooden coasters designed by Herbert Paul Schmeck. Along with the Screamer, another of the trademark attractions was the park’s Wurlitzer organ with Louie the Clown in front of it. Patrons always loved the wooden coaster and would swear they noticed a big difference in the ride of Merryland’s over others. Although it wasn’t all that tall and not as fast as those in other parks, Merryland’s made up for all those shortcomings with its sway— the back-and-forth motion that created the “out-of-control” sense of pending disaster, especially on the curves. That was due primarily to the Screamer’s state-of-the-art wheel technology. CASE 2 • MERRYLAND AMUSEMENT PARK — 2009 19 The Screamer was one of the first coasters to have some of the newly developed coaster wheel technology of its day. Once underway, the different types of wheels on the coaster work together to keep the ride smooth. The running wheels guide the coaster on the track. The friction wheels control the lateral sway (movement to either side of the track) motion. The final set of wheels keeps the coaster on the track. Those would have kept it firmly glued to the rails even if it had been inverted. Improved compressed air brakes stopped the train as the ride ended, adding a somewhat last moment of unintentionally designed thrill. The Screamer provided a distinctively rough, noisy, and out-of-control feeling for its riders, and its reputation was known throughout Kansas. Tony’s Interest in Merryland Tony’s believes that operating a theme park would enable him to directly serve disabled kids and their families of Kansas and surrounding states. Additionally, he would have his own business where he could put his creativity and innovative marketing skills to work. And, he could derive compensation commensurate with the work and profits. He could achieve the independent financial success he had not yet accomplished but still very much desired. During his investigation into purchasing the park, Tony discovered that many of the rides were old and their deterioration was reflected on the company’s balance sheets (see Exhibit 2). Although antique rides are considered to be an attractive and uniquely distinguishing characteristic for a theme park, it also requires the rides to be in a high-quality refurbished condition. That was not the case for those at Merryland. Maintenance alone would not help their survival; a major renovation of all the rides along with the park’s infrastructure would have to be undertaken. New machinery along with several new primary attraction park rides would need to be purchased and installed. A major renovation of several classic rides also had to occur, and those were expensive to stay true to the original engineering designs, paint schemes, and operational format. Many of the replacement ride parts would have to be custom manufactured. Rotational Motion Consultants Tony needed an amusement park ride expert, preferably a contractor who knew the industry and could visit Merryland with him. That’s when he found Rotational Motion, a company based in Maryville, Tennessee, that sells all types of new and used amusement rides for theme parks, carnivals, family centers, and equipment for location-based entertainment venues. They also have a large inventory of rides available for short- or long-term lease and are willing to install/lease for a week, month, or even up to a year. James Millner, account representative with Rotational Motion. arranged to meet Tony at Merryland on a crisp fall day. “The park is over 50 years old, but they have those old carousels and that big old roller coaster,” explained Tony, pointing at the permanently parked coaster train. “Obviously some people lack the appreciation for rollercoaster history. Sure, the roller coaster looks as if it could fall apart at any given moment, but the locals say it’s still one of the best roller coasters they’ve ever ridden. This was one of those places you could go with your friends and family on weekends— and have fun!” James spent two full days with Tony evaluating the rides, and his early estimates indicated the necessary renovations could not be done for anything less than $5 million. Rotational Motion is a full service equipment rebuilder. They specialize in working with the best engineers in the industry to ensure all restoration work is done to current safety standards. Their modern company has the machine shops and fabrication facilities capable of working with rides in any state of deterioration. All their refurbishing work is conducted under the direction of structural and electrical professional engineers. Their electrical system work always meets or exceeds current American Society for Testing and Materials (ASTM) standards. “This place should have closed 10 years ago based on the equipment condition,” lamented James. He continued, “Simple and old-fashioned are appealing qualities, but ragged, rusty, and scary aren’t. Merryland is proof this region must be highly resistant to change.” 20 GREGORY STONE Tony explored options for the 20 acres of land behind the park. He reasoned that it could be sold to an expanding industrial park for about $1 million or perhaps leased for a long-term income option. On discussing the possibility of using the acreage for other purposes with the contractor, he noted that the land could also be used to expand the park by adding more rides or even a water park. James explains that more rides, such as a scenic train ride, can be added for about $1 million. He notes, however, that a water park will be considerably more expensive, costing upward of $10 million. Tony soon realizes the land parcel is not large enough to add both a water park and expand the park with new rides. The Steinbergs sent Tony a market psychographics report that had been prepared for them two years earlier by a local university marketing class. Tony believes the most important information in it is that kids under seven like simple rides while kids over seven (including adults) want a variety of rides including water-based attractions. The Purchase Options Available to Tony Several organizations with ties to Kansas City have strong interest, albeit different motivations, for seeing Merryland continue. Each group, however, lacks amusement park management experience to adequately tackle the obstacles facing the operation. The Steinbergs did keep them informed of Tony’s interest, and they subsequently contacted him to discuss their various levels of interest. As Tony met with each, he soon found that three funding options are potentially good matches for the talents he can bring to Merryland. Option 1: Altria’s Cash Offer to Purchase An executive for Altria had become aware of Tony’s growth performance with Showbiz Pizza and was genuinely impressed with his ability to build business, profits, and market share. They originally wanted Tony to work for them but soon realized that he would fit best in an entrepreneurial setting. Their expansive U.S. market interests had them aware of Merryland, and it wasn’t long before they learned of Tony’s interest in the amusement park. Such a venture would help diversify their corporate holdings while providing market penetration. Altria meets with Tony and offers to carry the entire cost of the renovation and add a water park, something Altria deems necessary for the park to reopen as a profitable operation. Altria’s finance executives place a call to Tony and offer to invest $25 million in the existing park. That amount will include the purchase price, all the required renovations, and the new water park. Additionally, many of the park’s attractions will be included in a new climate-controlled energy-efficient “green dome” for year-round operation. Tony is genuinely interested but wants to know more about the company that is making such a lucrative offer. His research discovers that on January 27, 2003, Philip Morris Companies, Inc. changed its name to Altria Group, Inc. Philip Morris USA was a wholly owned subsidiary of Altria Group. Even under this new name, Altria continued to own 100 percent of Philip Morris USA. In the fall of 2003, Philip Morris moved its headquarters from New York City to Richmond, Virginia. Philip Morris USA had split from Philip Morris International in 2008. The resulting drop in cigarette exports motivated Philip Morris to plan a shutdown of its Concord, North Carolina, manufacturing facility and move all domestic production to Richmond. The shutdown is planned to be completed by 2010. Some view the name change as an effort by Altria to deemphasize its historical association with tobacco products. Altria also formerly owned Kraft Foods but spun the company off in March 2007 to focus on its tobacco business and products. Despite the problems that Altria faces, its sales continue to grow as evidenced by its third quarter 2009 revenue increase of 5 percent to $5.2 billion, primarily from higher sales of its Phillip Morris USA cigarette brands. Altria Group has a 28.7 percent economic and voting interest in SABMiller, the world’s second-largest brewer. Several consumer groups, however, have called for boycotting all Miller Beer products to put pressure on Altria/Philip Morris to really end smoking by children and underaged teens. CASE 2 • MERRYLAND AMUSEMENT PARK — 2009 21 Altria’s specific funding conditions are fourfold: 1. The park must promote only the Altria product line. This will include displaying the Altria name prominently around the park, having all of the rides and game kiosks offer prizes that emphasize the Altria product line, and banning the sale of all other competitors’ products. 2. As manager, Tony must offer/honor free tickets and/or discounts to customers who mail in a certain number of points from Altria product cartons and packages. 3. The name of the park must be changed to Altria Gardens and Water Park. 4. Altria wants 10 percent of the gross profit. They agree to give Tony total control of operations but insist that he consult with them before he makes any single expenditure over $50,000. Altria will promote the theme park on its product packages and cartons during pre- and early-season promotions in March and April, and again during July for a fall push. Option 2: A Consortium of Local Business Entrepreneurs A consortium of local Kansas City business entrepreneurs also contact Tony with an offer to purchase the park. Having grown up with Merryland as a part of their community life, strong feelings of nostalgia have motivated them to consider the investment to preserve Merryland as a historical site. Several of them are actively involved with the Kansas City Historical Preservation Society. They laid out the following offer to Tony: 1. They will allow Tony to make the renovations to the existing park and let Tony completely manage and control the daily operations. 2. These “venture capitalists” want 40 percent of the park’s net income but will give Tony total autonomy in running the park’s day-to-day operations. 3. They also want the additional 20 acres of land signed over to their control for additional purposes they will not disclose. They state their primary interest in rebuilding the park is to offer the people of Kansas and surrounding states the same experience as they had while growing up. 4. Each of the investors currently runs at least one other business and guarantees park promotion and publicity through those existing enterprises. Option 3: Getting a Loan The final option Tony considers is getting a conventional business loan himself. One of his former fraternity brothers is an investment banker in Norfolk, Virginia. 1. This friend believes Tony could get a loan for the purchase of the park without any difficulty, but he does not believe he can get the full amount needed to renovate Merryland and build the water park. An initial inquiry reveals that Tony could get $9.2 million for the purchase and renovations. 2. His friend believes that if the park is profitable for the first two years, then he can obtain another $10 million to build the water park. His friend, however, did not specify what is considered “profitable.” The Things to Consider Those who leave the Kansas City area say other theme parks just aren’t the same. One of Tony’s fraternity brothers, Franklin, grew up in Kansas City and was a Merryland Park regular. He explained to Tony, “Just last year I moved back to Virginia near the DC area, and I’ve been to parks around the United States—from California to Texas, Maryland to Virginia, Florida, and places in between. I still prefer, and horribly miss, my Merryland experience!” Merryland Park was an integral part of Kansas City’s history, and it’s been a fine part of it (see Exhibits 5, 6, and 7). Where else could you ride a 50-plus-year-old coaster? The “old” part of that is the thrill. Merryland Park was dirt cheap and a nice place to take children. It may have been considered a beginner’s theme park, but at those prices, how could you resist going without kids? It was a great place for first dates and senior citizens as well. 22 GREGORY STONE EXHIBIT 5 2008 General Kansas City, Kansas, Population Demographics Subject Number % Subject Number % Total population = 146,866 100.0 BY SEX AND AGE Male 71,769 48.9 Female 75,097 51.1 Under 5 years 11,953 8.1 5 to 9 years 11,868 8.1 10 to 14 years 11,388 7.8 15 to 19 years 11,314 7.7 20 to 24 years 10,975 7.5 25 to 34 years 21,341 14.5 35 to 44 years 21,946 14.9 45 to 54 years 17,717 12.1 55 to 59 years 6,253 4.3 60 to 64 years 5,072 3.5 65 to 74 years 8,973 6.1 75 to 84 years 6,056 4.1 85 years and over 2,010 1.4 Median age (years) 32.3 (X) 18 years and over 104,917 71.4 Male 50,196 34.2 Female 54,721 37.3 21 years and over 98,122 66.8 62 years and over 19,964 13.6 65 years and over 17,039 11.6 Male 6,830 4.7 Female 10,209 7.0 RACE One race 142,481 97.0 White 81,910 55.8 Black or African American 44,240 30.1 American Indian & Alaska Native 1,103 0.8 Asian 2,527 1.7 Asian Indian 219 0.1 Chinese 250 0.2 Filipino 107 0.1 Japanese 35 — Korean 134 0.1 Vietnamese 206 0.1 Other Asian 1,576 1.1 continued HISPANIC OR LATINO AND RACE Total population = 146,866 100.0 Hispanic or Latino (of any race) 24,639 16.8 Mexican 20,597 14.0 Puerto Rican 253 0.2 Cuban 178 0.1 Other Hispanic or Latino 3,611 2.5 Not Hispanic or Latino 122,227 83.2 White alone 71,870 48.9 HOUSEHOLD BY TYPE Total households = 55,500 100.0 Family households (families) 36,226 65.3 With own children under 18 yrs 18,032 32.5 Married-couple family 22,878 41.2 With own children under 18 yrs 10,246 18.5 Female householder, no husband present 10,108 18.2 With own children under 18 yrs 6,176 11.1 Nonfamily households 19,274 34.7 Householder living alone 16,180 29.2 Householder 65 years and over 5,512 9.9 Households with individuals under 18 years 20,826 37.5 Households with individuals 65 years & over 12,720 22.9 Average household size 2.62 (X) Average family size 3.25 (X) SCHOOL ENROLLMENT Population 3 years and over enrolled in school 39,564 100.0 Nursery school, preschool 2,812 7.1 Kindergarten 2,286 5.8 Elementary school (grades 1–8) 19,158 48.4 CASE 2 • MERRYLAND AMUSEMENT PARK — 2009 23 EXHIBIT 5 2008 General Kansas City, Kansas, Population Demographics—continued Subject Number % Subject Number % Native Hawaiian & Other Pacific Islander 56 — Native Hawaiian 16 — Guamanian or Chamorro 11 — Samoan 21 — Other Pacific Islander 8 — Some other race 12,645 8.6 Two or more races 4,385 3.0 EXHIBIT 6 2008 Kansas City, Kansas, Marriage Status, Income, and Employment Data Subject Number % Subject Number % MARITAL STATUS Population 15 years and over 111,531 100.0 Never married 33,889 30.4 Now married, except separated 51,863 46.5 Separated 3,049 2.7 Widowed 8,166 7.3 Female 6,653 6.0 Divorced 14,564 13.1 Female 8,243 7.4 GRANDPARENTS AS CAREGIVERS Grandparent living in household with one or more own grandchildren under 18 years 4,643 100.0 Grandparent responsible for grandchildren 2,210 47.6 continued High school (grades 9–12) 8,804 22.3 College or graduate school 6,504 16.4 EDUCATIONAL ATTAINMENT Population 25 years and over 89,540 100.0 Less than 9th grade 8,132 9.1 9th to 12th grade, no diploma 15,671 17.5 High school graduate (includes equivalency) 30,780 34.4 Some college, no degree 19,580 21.9 Associate degree 4,922 5.5 Bachelor’s degree 6,566 7.3 Graduate or professional degree 3,889 4.3 % high school graduate or higher 73.4 (X) % bachelor’s degree or higher 11.7 (X) DISABILITY STATUS OF THE CIVILIAN NONINSTITUTIONALIZED POPULATION Population 5 to 20 years 36,723 100.0 With a disability 3,569 9.7 Population 21 to 64 years 81,013 100.0 With a disability 21,334 26.3 Percent employed 54.7 (X) No disability 59,679 73.7 Percent employed 74.4 (X) Population 65 years and over 16,381 100.0 With a disability 8,289 50.6 EMPLOYMENT STATUS Population 16 years and over 109,206 100.0 In labor force 68,858 63.1 Civilian labor force 68,791 63.0 — Represents zero or rounds to zero. 24 GREGORY STONE Subject Number % Subject Number % VETERAN STATUS Civilian population 18 years & over 104,921 100.0 Civilian veterans 13,780 13.1 INCOME Households 55,533 100.0 Less than $10,000 7,289 13.1 $10,000 to $14,999 4,310 7.8 $15,000 to $24,999 8,784 15.8 $25,000 to $34,999 8,694 15.7 $35,000 to $49,999 9,962 17.9 $50,000 to $74,999 9,683 17.4 $75,000 to $99,999 4,222 7.6 $100,000 to $149,999 2,005 3.6 $150,000 to $199,999 280 0.5 $200,000 or more 304 0.5 Median household income (dollars) 33,011 (X) With earnings 43,921 79.1 Mean earnings (dollars)1 41,825 (X) With Social Security income 14,879 26.8 Mean Social Security income (dollars)1 10,923 (X) With Supplemental Security Income 3,063 5.5 Mean Supplemental Security Income (dollars)1 5,774 (X) With public assistance income 2,545 4.6 Mean public assistance income (dollars)1 2,492 (X) With retirement income 8,804 15.9 Mean retirement income (dollars)1 14,900 (X) Median earnings (dollars): Male full-time, year-round workers 30,992 (X) Female full-time, year round workers 24,543 (X) EXHIBIT 6 2008 Kansas City, Kansas, Marriage Status, Income, and Employment Data—continued Employed 62,940 57.6 Unemployed 5,851 5.4 Percent of civilian labor force 8.5 (X) Armed Forces 67 0.1 Not in labor force 40,348 36.9 Females 16 years and over 56,961 100.0 In labor force 32,977 57.9 Civilian labor force 32,968 57.9 Employed 30,301 53.2 Own children under 6 years 13,044 100.0 All parents in family in labor force 7,737 59.3 INCOME Families 36,581 100.0 Less than $10,000 3,064 8.4 $10,000 to $14,999 1,903 5.2 $15,000 to $24,999 5,208 14.2 $25,000 to $34,999 5,718 15.6 $35,000 to $49,999 7,257 19.8 $50,000 to $74,999 7,773 21.2 $75,000 to $99,999 3,561 9.7 $100,000 to $149,999 1,649 4.5 $150,000 to $199,999 225 0.6 $200,000 or more 223 0.6 Median family income (dollars) 39,491 (X) Per capita income (dollars)1 15,737 (X) 1If the denominator of a mean value or per capita value is less than 30, then that value is calculated using a rounded aggregate in the numerator. — Represents zero or rounds to zero. (X) Not applicable. CASE 2 • MERRYLAND AMUSEMENT PARK — 2009 25 Conclusion Tony ponders the following guestions as well as his three options: • Who exactly are Merryland’s customers? • What are their needs, wants, and desires? • What is the best way to market/advertise/promote the park to its consumers/ customers? • Is control of the operations really important for Tony as an entrepreneur? • What is the right balance of control/risk for each of the purchase options? • How will Tony’s core values impact his ability to make important decisions? • Is Tony’s passion to help disabled kids overshadowing his ability to bring corporate life back to Merryland? The Steinbergs have just notified Tony that by next Friday they intend to put Merryland up for sale on eBay—lock, stock, and barrel—at a starting bid of $1.6 million, unless they hear from him definitively within a week. Prepare a strategic analysis for Tony. EXHIBIT 7 Kansas Employment Summary by Industry 2008 2009 Level Change Percent Change Total Nonfarm 1,384,042 1,387,871 3,829 0.3% Production Sectors 260,502 260,838 336 0.1% Natural Resources, Mining, & Construction 74,329 75,006 677 0.9% Manufacturing 186,073 185,333 -740 -0.4% Durable Goods 120,175 120,431 256 0.2% Nondurable Goods 65,898 64,901 -997 -1.5% Trade, Transportation, & Utilities 261,824 258,253 -3,571 -1.4% Wholesale Trade 60,476 60,895 419 0.7% Retail Trade 147,394 144,713 -2,681 -1.8% Transportation & Utilities 53,954 52,645 -1,309 -2.4% Service Sectors 601,921 607,922 6,001 1.0% Information 40,614 39,179 -1,435 -3.5% Financial Activities 74,139 74,963 824 1.1% Professional & Business Services 147,037 149,603 2,566 1.7% Educational & Health Services 172,545 175,496 2,951 1.7% Leisure & Hospitality 115,457 116,230 773 0.7% Other Services 52,129 52,451 322 0.6% Government 259,795 260,858 1,063 0.4% *Annual values are derived from average quarterly observations and projections. Detail may not sum to total due to rounding.


 

PLACE THIS ORDER OR A SIMILAR ORDER WITH BEST NURSING TUTORS TODAY AND GET AN AMAZING DISCOUNT

get-your-custom-paper

The post Write the Case abstract (introduction) State the vision, mission/objectives, and values; Identify the components of the mission and comment about its comprehensiveness appeared first on BEST NURSING TUTORS .