Case Case Study 10.1 Amalgamated Polymers,

Please readΒ Case Study 10.1 Amalgamated Polymers, Inc. After reading Case Study 10.1, please answer the question below. pg 21 23

Instructions:

Please provide well- written and well-reasoned answers to the following discussion questions. Complete and submit the assignment by today.

 

Follow the guidelines in the Case Reflection Paper rubric below.

Prepare a list of possible questions that the investment committee might raise about the proposal. What should James Hyman’s responses be?

Submission Instructions:
All responses in this discussion forum must be professional, well-reasoned, well-written, and free from profanity. This discussion assignment should reflect the fact that this is a written product for a graduate professional program. All responses should be professional, and if you disagree with a submission, keep it professional.

GRADING RUBRIC for REFLECTION PAPER

Page 1 of 4

 

CRITERIA FAILS TO MEET EXPECTATIONS

0

NEEDS IMPROVEMENT

5

MEETS EXPECTATIONS

8

EXCEEDS EXPECTATIONS

10

YOUR SCORE

ORGANIZATION

Clearly organized

introduction, body,

conclusion

Fails to meet this criteria by obvious

disregard for the

expectations stated in

the criteria;

Disorganized and the

reader can not follow

the paper at any

length

Disorganized, leaves reader wondering

what is being said;

abrupt ending

Paper has intro, body, and conclusion

but may take a re-

reading to understand

Easy to read, topic introduced, organization

clearly evident with

proper introduction,

body, conclusion

 

Does this paper address the prompt

or the topic?

The topic of the paper is not addressed at all;

Fails to stick to the

topic therefore fails to

meet the criteria

Student does not clearly identify his/her

reflections about the

topic; may veer from

topic

The entire paper’s content relates to the

prompt or topic; the

student explains his/her

reflections about the

topic but may take a re-

reading to

understand

The student’s reflection about the topic is

explained in clear

language; immediately

interesting and supported

with detail

 

Paragraph Organization and

Writing Style: Ideas

are clearly

connected and

make sense

Fails to meet this criteria by obvious

disregard for the

expectations stated in

the criteria

Paragraphs are disorganized; ideas are

included which do not

relate to the main idea;

ideas are not connected

and have little or no

supporting details; one

sentence paragraphs

Each paragraph has a central idea that is

supported with details;

ideas are connected and

important points make

sense

Each paragraph has a central idea; ideas are

connected and

paragraphs are

developed with details;

paper is easy to read and

β€œflows” naturally in an

organized pattern

 

 

 

GRADING RUBRIC for REFLECTION PAPER

Page 2 of 4

CRITERIA FAILS TO MEET EXPECTATIONS

0

NEEDS IMPROVEMENT

5

MEETS EXPECTATIONS

8

EXCEEDS EXPECTATIONS

10

YOUR SCORE

ORGANIZATION

Fails to meet this criteria by obvious

disregard for the

expectations stated in

the criteria

Paper is shallow and does not present

detailed evaluation of

reflection about the

topic; little use of

business literature to

support thought

The paper shows that the student has

thought about the topic

although the written

presentation may

appear weak or lack

clarity; use of business

literature to support

thought

Paper provides evidence (through the use of

description, details, and

use of business

literature) that the

student has examined

his/her own belief

systems and related this

to their current views

about the topic; use of

business literature to

support thought

 

 

 

GRADING RUBRIC for REFLECTION PAPER

Page 3 of 4

 

CRITERIA

FAILS TO MEET EXPECTATIONS

0

NEEDS IMPROVEMENT

5

MEETS EXPECTATIONS

8

EXCEEDS EXPECTATIONS

10

YOUR SCORE

GRAMMAR

Basic writing expectations:

mechanics,

spelling,

grammar, or

punctuation

errors

More than 8 grammatical ,

punctuation, or BWE

errors

4-7 grammatical, punctuation , or

BWE errors

Between 1-4 grammatical,

punctuation, or

BWE errors, but

they are minor and

do not detract from

the paper

No errors whatsoever!

Use of transitions to connect

sentences and

ideas

Fails to meet this criteria by obvious

disregard for the

expectations stated in

the criteria

Choppy; sentences do not connect or

transition well; ideas

do not connect

Paper expresses the ideas of the author;

sentences relate to

one another; may

take a re-reading to

understand

Paper is easy to read and makes sense the first

time it is read. It is

interesting and well

written; sentences

connect and flow.

 

Correct choice of verb tenses, words, Avoidance of wordy phrases, correct use of pronouns

Fails to meet this criteria by obvious

disregard for the

expectations stated in

the criteria

Improper use of language or slang;

wrong word choice;

appears β€œpadded”

Occasional wrong word choice;

somewhat wordy

but not enough to

detract from the

summary; May

occasionally use the

wrong tense.

 

 

No wrong word choice or slang; uses correct

verb tense and pronouns.

Well written and use of

words convey meaning

 

 

 

 

 

 

GRADING RUBRIC for REFLECTION PAPER

Page 4 of 4

 

CRITERIA

FAILS TO MEET EXPECTATIONS

0

NEEDS IMPROVEMENT

5

MEETS EXPECTATIONS

8

EXCEEDS EXPECTATIONS

10

YOUR SCORE

FORMATTING

Follows APA professional

writing style of

using 12 point

Times New

Roman font,

1inch margins all

around, correct

APA headings

Fails to meet this criteria by obvious

disregard for the

expectations stated in

the criteria; 3 or more

errors

Meets the criteria with 2 errors

Meets the criteria with 1 error

Exceeds this by completely meeting all

of these requirements

with NO exception!

 

Correct format of title page

including

running head,

page numbers,

correct page

justification

Fails to meet this criteria by obvious

disregard for the

expectations stated in

the criteria; 3 or more

errors

Meets the criteria with 2 errors

Meets the criteria with 1 error

Perfect title page, running head, page

numbers, and page

justification!

 

Correct use of citations within

paper according

to APA; Correct

APA reference

page

Fails to meet this criteria by obvious

disregard for the

expectations stated in

the criteria; 3 or more

errors

Meets the criteria with 2 errors

Meets the criteria with 1 error

Perfect use of citations within paper per APA

format; Correct reference

page!

 
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What Are The Characteristics Of Businesses That Can Succeed With Same-Day Delivery?

Please make sure one of your references is base on the article listed in the attachment as well.

 

  • What are the characteristics of businesses that can succeed with same-day delivery?
  • What are the potential trade-offs when companies consider this type of service to offer to their customers?
  • What factors related to innovation would increase the likelihood of success and why? In formulating your response, consider the following along with any other factors that you think are important:
    • Does home delivery reduce any costs?
    • Is the location of warehousing facilities important?
  • Β©2013 by the Kellogg School of Management at Northwestern University. This case was prepared by Professor Sunil Chopra. Cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. To order copies or request permission to reproduce materials, call 800-545-7685 (or 617-783-7600 outside the United States or Canada) or e-mail [email protected]. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any meansβ€”electronic, mechanical, photocopying, recording, or otherwiseβ€”without the permission of Kellogg Case Publishing.

    SUNIL CHOPRA KEL732

    The Future of Same-Day Delivery: Same as the Past?

    Although home delivery of pizza has been successful in the United States, most other same- day delivery efforts have failed. The same-day delivery battle has again heated up with Amazon, Walmart, and eBay launching major efforts to implement same-day delivery.

    Amazon has a new game. Now that it has agreed to collect sales taxes, the company can legally set up warehouses right inside some of the largest metropolitan areas in the nation. Why would it want to do that? Because Amazon’s new goal is to get stuff to you immediatelyβ€”as soon as a few hours after you hit Buy.

    It’s hard to overstate how thoroughly this move will shake up the retail industry. Same- day delivery has long been the holy grail of Internet retailers, something that dozens of startups have tried and failed to accomplish. (Remember Kozmo.com?) But Amazon is investing billions to make next-day delivery standard, and same-day delivery an option for lots of customers. If it can pull that off, the company will permanently alter how we shop. To put it more bluntly: Physical retailers will be hosed.1

    Walmart reacted to Amazon’s efforts by announcing tests for same-day delivery in a few cities.

    The big-box giant announced this week that it too would be offering same-day delivery, using its extensive network of superstores as distribution centers, and shipping products to consumers via UPS. According to a report in The Wall Street Journal, the service will initially be available in the Northern Virginia, Philadelphia, Minneapolis, San Jose, and San Francisco areas. The service will cost $10 per delivery, with no minimum order. Amazon’s own same-day delivery service costs $8.99, with a $0.99 per-item shipping charge.2

    Whereas Amazon and Walmart were offering same-day delivery for products they stocked, eBay was experimenting with same-day delivery for products it did not necessarily stock. The Wall Street Journal reported on a customer order for which eBay sent a courier to Macy’s for the

     

    1 Farhad Manjoo, β€œI Want It Today: How Amazon’s Ambitious New Push for Same-Day Delivery Will Destroy Local Retail,” Slate, July 11, 2012. 2 Christopher Matthews, β€œWalmart Announces Same-Day Delivery, Tries to Beat Amazon at Its Own Game,” Time, October 11, 2012.

    This document is authorized for use only by Roman Moore in WMBA-6060B-6/WMBA-6060-6/MGMT-6659-6-Marketing for Competitiveness-SEM-Term-wks-9-thru-16- (03/08/2021-05/02/2021)-PT4 at Laureate Education – Walden University, 2021.

     

     

    THE FUTURE OF SAME-DAY DELIVERY KEL732

    2 KELLOGG SCHOOL OF MANAGEMENT

    purchase and then had it delivered within an hour.3 The paper reported that eBay had a team of fifty couriers in San Francisco that β€œfetch and deliver goods directly to customers’ doorsteps within an hour of an online order.” eBay had also started the service in New York and planned to roll it out in other cities. Others testing same-day delivery included the U.S. Postal Service, with a program called Metro Post, initially offered in San Francisco.

    The Iconic (www.theiconic.com.au), an Australian company selling clothing, shoes, and accessories, offered three-hour delivery within Sydney for $9.95. It promised to have goods picked, packed, and delivered within three hours to Sydney metro areas, between 7:00 a.m. and 6:00 p.m. on business days. Although the company was young, this service had been extremely well received. 7-Eleven Japan was another company offering home deliveryβ€”in this case, its 7- Meal service targeting Japan’s aging population. The service offered a menu of high-quality meals that customers could choose to pick up at 7-Eleven stores or have delivered to their homes or offices.

    If history was any guide, the profitable implementation of same-day delivery would be challenging. Urbanfetch and Kozmo pursued this business model during the dot-com boom. Urbanfetch operated in densely populated areas like London, Manhattan, and Brooklyn but was forced to shut down in Fall 2000 due to a lack of funding; Kozmo, which raised more than $280 million in funding and operated in eleven cities, folded in early 2001.

    Opinions were clearly divided about the potential for success with same-day delivery. One writer opined that β€œthis move [by Amazon] will shake up the retail industry,”4 whereas a New York Times article countered that β€œsome retail analysts are questioning whether the expense and difficulty of same-day delivery would be worth it.”5

     

     

    3 Greg Bensinger, β€œOrder It Online, and . . . VoilΓ ,” Wall Street Journal, December 3, 2012. 4 Manjoo, β€œI Want It Today.” 5 Stephanie Clifford, β€œSame-Day Delivery Test at Wal-Mart,” New York Times, October 9, 2012.

    This document is authorized for use only by Roman Moore in WMBA-6060B-6/WMBA-6060-6/MGMT-6659-6-Marketing for Competitiveness-SEM-Term-wks-9-thru-16- (03/08/2021-05/02/2021)-PT4 at Laureate Education – Walden University, 2021.

 
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Financial Case Study

Only use handouts or material provided and complete the questions, and the spreadsheet

β€’ DoΒ notΒ use outside historical or industry information. No web resources!
β€’ Answers should be typed, 1.5-spaced, 11p fonts, and at mostΒ 8 pagesΒ of text. Page margins should be at least 2.5 cm (top, bottom, left, right). Numerical calculations and spreadsheets can be added as exhibits.
β€’ Be sure to clearly state and motivate any assumptions and calculations you make.
β€’ If you feel that something is not clear or that you need to make some additional assumptions to answer a question, state so clearly on the exam. For fairness reasons, questions regarding the exam cannot be answered during the exam time.
β€’ Try to be succinct and to the point in your arguments. To obtain a high score, your report should also be well-structured and well-formulated.

 

You should include the calculations in your word document in an appendix, but also show these calculations in a separate excel file.

Harvard Business School 9-296-078 Rev. September 9, 1996

 

Research Associate William DeWitt (MBA β€˜95) prepared this case under the supervision of Professor Richard Ruback as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation.

Copyright Β© 1996 by the President and Fellows of Harvard College. To order copies, call (617) 495-6117 or write the Publishing Division, Harvard Business School, Boston, MA 02163. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any meansβ€”electronic, mechanical, photocopying, recording, or otherwiseβ€”without the permission of Harvard Business School.

1

The Chrysler Takeover Attempt

On April 12, 1995, financier Kirk Kerkorian made an unsolicited offer to buy the outstanding shares of Chrysler for $55 each, a 40% premium over the previous day’s closing price of $39.25. At closing on the 12th, Chrysler shares had risen to $48.75. Kerkorian was Chrysler’s largest shareholder, owning 10%. Lee Iacocca, Chrysler’s former CEO who was forced into retirement in 1992 by the board, was backing the Kerkorian bid. The proposed $19.5 billion deal was sketched out to include $2 billion in Chrysler equity already held by Kerkorian and Iacocca, $3.5 billion from outside equity investors, $8.8 billion in bank debt, and $5.2 billion from Chrysler’s own $7.6 billion in cash. The group planned to suspend annual dividends, totaling $650 million a year, to help finance the deal.

Chrysler had built up its cash balance from $3 billion to $7.6 billion from 1992 to 1994 with solid performances in a number of divisions. CEO Robert Eaton argued that a cash reserve of at least $7.5 billion, or $21.13 per share, should be kept as a cushion for the next downturn in the industry. But Kerkorian and Iacocca thought otherwise. In a news conference shortly after the announcement, Iacocca stated:

You just watch, it [the cash] will self-fulfill the prophecy. If you keep saying, we need $7.5 billion and it’s just a cushion, then the union — and I know them like I know my kids — will say, ‘We have a place to put that money.’ They will want part of [it] baked into the UAW contract for three years.1

Kerkorian and Iacocca argued that Chrysler needed $2.5 billion in cash and $2.5 billion in bank lines of credit to survive the next recession. Alex Yemenidjian, an executive at the Tracinda Corporation, which was Kerkorian’s wholly owned investment vehicle, summed up the position succinctly: “We understand they want a cushion, we just believe the cushion is too large.”2

After an emergency board meeting, Chrysler issued an announcement, saying it was “not for sale.” Eaton remarked, “We don’t want to put Chrysler at risk. We’ve worked hard to build this company’s financial strength, to increase shareholder value, and to build the confidence of customers, employees, dealers and suppliers. We have no desire to reverse this process.”3 Other observers were less subtle about the proposal. “It’s immoral,” said a ranking U.S. official with an Italian bank. “I believe in enhancing shareholder value, but as a long-term concept rather than a short-term grab for profits. This could only happen in this country.”4

1. As quoted in The Wall Street Journal, April 13, 1995. 2. Ibid. 3. Ibid. 4.

As quoted in The Detroit News, April 19, 1995.

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296-078 The Chrysler Takeover Attempt

2

Company Background

Chrysler was incorporated in 1925 by Walter Percy Chrysler, a former vice president of General Motors (GM). Resigning from GM over policy differences, Chrysler rescued the Maxwell Motor Corporation from insolvency and designed its new Chrysler automobile. First exhibited in 1924, the car was an immediate success and before year’s end, the company had sold 32,000 cars and had earned more than $4 million. By 1940, Chrysler had acquired Dodge and Plymouth, controlled 25% of the domestic market, and surpassed Ford to become the second largest automaker in the industry behind GM. Although it lost ground to Ford and GM in the ensuing decades, Chrysler was still third among U.S. and worldwide automakers by the end of the 1960s. But the 1970s were not good to Chrysler, as the oil shocks, inflation in the economy, and increased Japanese competition all took their toll on the company.5

The Iacocca Years In 1974 losses totaled a massive $52 million, and the next year’s deficit was five times that amount. After a brief respite in 1976 and 1977, Chrysler incurred net losses of $205 million in 1978 and $1.1 billion in 1979. In just one year, Chrysler’s worldwide sales of motor vehicles fell by 1.6 million units.6 It took a complex set of negotiations with creditors and unions as well as a $1.5 billion government bailout to save Chrysler from bankruptcy in 1978. Lee Iacocca, the charismatic CEO who was hired shortly after being fired from the presidency of Ford, presided over Chrysler’s comeback with a flair for communications and salesmanship. By 1981, Chrysler was on its way back. Its fleet had achieved the best corporate average fuel economy in the industry at 25.5 miles per gallon, and its Aries and Reliant models had both received the prestigious β€œMotor Trend Car the Year” award. By 1983, Chrysler had achieved the largest percentage increase in U.S. retail sales of any major domestic car maker (19% for cars and 11% for trucks). Earnings were positive again in 1983 and the company repaid the government loan seven years early.7

After its recovery in the early 1980’s, Chrysler diversified. It acquired Gulfstream Aerospace, Finance America, and E.F. Hutton Credit Corporation, among others. It also merged with American Motors Corporation, acquired the Italian automaker Lamborghini, and established several joint-ventures with Mitsubishi and Samsung. But at the end of 1989, Chrysler announced that it was scrapping its holding-company structure (which was created just four years earlier) to cut costs. Soon thereafter, it announced it would try to sell Gulfstream and Electrospace Systems, marking a humiliating end to the company’s diversification strategy.8

In 1991 Chrysler lost $759 million, its debt was junk rated, and its pension plans were underfunded by more than $4 billion. Domestically, Chrysler was selling only one in twelve cars, as opposed to one in every nine cars five years earlier. Critics argued that Chrysler’s financial problems were a direct result of failing to invest in new product development in the mid 1980s.9 But by 1992, new models were ready, and hopes were high for another recovery. Fortunately, sales of the higher-margin minivans (a product Chrysler virtually invented in 1984) were strong, and its other new models were earning good reviews. They were the low priced Dodge Shadow and Plymouth Sundance; the high performance Dodge Stealth; the Dodge Spirit and Plymouth Acclaim sedans; and the Jeep Grand Cherokee and Dodge Dakota V-8 trucks. Despite all this, the board thought it was time for new leadership. In 1992 they chose Robert Eaton, head of European operations at GM, to replace Iacocca.

Eaton Takes Over Eaton’s focus from the start was on transforming Chrysler into a company that could withstand downturns. Shortly after becoming chairman, he told company managers, “My

 

5. International Directory of Company Histories, Volume 1. 6. Chrysler Annual Report, 1980. 7. For further information, see β€œChrysler: Iacocca’s Legacy,” Harvard Business School Case No. 493-017. 8. Ingrassia, Paul, and White, Joseph B., Comeback, The Fall and Rise of the American Automobile Industry. New York:

Simon & Schuster, 1994, p. 195. 9. Frank Washington, “LH, as in ‘Last Hope’,” Newsweek, June 29, 1992 as quoted in HBS case No. 493-017.

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The Chrysler Takeover Attempt 296-078

3

personal ambition is to be the first chairman to never lead a Chrysler comeback.”10 The early results were good as the stock price soared in 1992 and 1993 on the heels of the economic recovery. New product development was accelerated even more, and good reviews came out for the LH sedans, the Dodge Neon, and the midsize Cirrus and Stratus models. Chrysler also continued to dominate the minivan segment. In one of Eaton’s first major product moves, the company invested $2.6 billion on a complete redesign of the minivan line — more than any new-vehicle development program in company history.

But as interest rates began to climb and the stock price remained flat, Chrysler was forced to take steps to mollify Kerkorian, who was the largest shareholder at 9%. Management boosted its dividend by 60%, announced a $1 billion share buyback, and diluted its poison pill so that individual investors could raise their stakes to 15%. Nevertheless, the share price continued to fall. Between mid-December and the April 12 Kerkorian bid, Chrysler’s stock price fell 16% — a drop of one-third from its peak of $53 in January, 1994 (see Exhibit 2).11

The Tracinda Group

The 77-year-old Kerkorian was the son of poor Armenian farmers from Fresno, California. He made his first millions running commercial and military flights during the 1950s and 1960s, many of them between Los Angeles and Las Vegas. He bought and sold properties in Las Vegas and eventually pioneered the notion of building huge hotels and attracting people who had never gambled before. Enticing people to “play where they stay” was a new idea which proved extremely successful.12 Another large part of his estimated $2.5 billion net worth came from timely acquisitions and disposals of Hollywood studios, among them Columbia Pictures and MGM/UA.

Kerkorian owned all of the Tracinda Corporation, which was the holding company for his Chrysler stock. He began purchasing Chrysler in 1990 in the middle of the recession for $12.37 per share. By 1995, he had spent about $676 million accumulating his stake. At the closing market price of $48.75 the day of the announcement, Kerkorian’s 36 million shares were worth nearly $1.8 billion.

Many analysts wondered whether Kerkorian was serious about his intent to buy control of Chrysler. Ownership of a heavy manufacturing entity was not characteristic of his long investment history.13 For his part, Iacocca, 70, stated that he would serve only as an advisor to Chrysler if the deal went through, saying, “after 47 years in Detroit, I don’t want to go back.”14 But others were more suspicious of his motives. One reporter commented: “It’s impossible to believe Mr. Iacocca’s current protestations that he doesn’t want to run Chrysler again. He never wanted to stop running it, and at the very least a Kerkorian victory would leave him in charge of all the major strategic decisions at the company.”15

The Auto Industry Cycle

Supply In the volatile auto industry, car companies can quickly shift from making a lot of money to posting big losses when sales drop. One reason for this is that traditionally, auto companies built enough production capacity to supply everyone who wanted a car in a boom year. This maximized profits in boom years but led to excess inventory problems in bad years. Also, in good times they received payments for cars as soon as they were assembled, and did not have to pay parts suppliers for

 

10. As quoted in The Wall Street Journal, April 14, 1995. 11. The Economist Newspaper, April 15, 1995. 12. The Washington Post, April 14, 1995. 13. Los Angeles Times, April 14, 1995. 14. As quoted in The Wall Street Journal, April 13, 1995. 15. Paul Ingrassia, “What’s Driving the Chrysler Deal,” The Wall Street Journal, April 19, 1995.

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296-078 The Chrysler Takeover Attempt

4

up to 45 days. When sales sagged, however, auto makers ended up paying for parts before the cars were sold, straining cash reserves.16

To cover their high fixed costs when sales were flat, auto makers cut their prices to move existing inventory. These cuts, typically in the form of rebates and dealer incentives, often escalated into industry “incentive wars.” Thus earnings would be more variable than actual vehicle sales. For example, from 1989 to 1990, Chrysler’s vehicle sales fell 16.8% from 2.38 to 1.98 million units. In that same period, pretax income fell 74%, from $565 million to $147 million. Likewise, when vehicle sales increased 11.5% from 1993 to 1994, pretax income rose 51.9% in the same period.

Demand Interest rates had a large impact on demand. As with most companies, higher rates increased the cost of capital and squeezed margins. But with auto manufacturers, rising rates also had a dramatic impact on consumer demand because buyers who financed their auto purchases would have higher monthly payments. Federal Reserve interest rate policy was thus a key variable affecting the auto cycle. Other key demand indicators were employment, real income growth, the underlying age composition of the motor vehicle fleet, and the strength of the dollar relative to the currencies of Japan and Europe.

The consensus among analysts in early 1995 was that new vehicle sales would be sluggish because of the recent Federal Reserve rate hikes and an overall slowing of the economy. Some believed that the auto cycle had already peaked, predicting that 1994 volumes would be very difficult to match. A downturn was inevitable, they argued, and it was more likely to come sooner rather than later. But others believed that slower demand growth (rather than an actual decline in demand) would lead to a longer, flatter cycle for the auto companies. In this scenario, Chrysler’s sales volumes would be maintained by the pent-up demand still lingering from the last recession.

Chrysler’s Cash

When the 1989-1991 recession ended, management established the goal of building up $5 billion in cash to weather the next downturn. But when revenues increased, Chrysler raised the target to $7.5 billion. As one official put it, “$7.5 billion would be prudent. If you run the company with less cash, you run a greater risk of having to cut product spending and pension funding in the next downturn.”17 But in 1995 Chrysler’s pension was fully funded for the first time in almost 40 years, and its credit rating had just been upgraded to single-A by the major credit agencies.

Company plans called for an aggressive capital expenditure program, projected to cost $3.2 billion in 1995 and $3.1 billion annually thereafter. Other projected cash outlays included the $1 billion stock buyback in 1995 (subject to β€œmarket conditions”), and increasing the dividend payment from $1.00 to $1.60 per common share, adding about $200 million to the annual cash outlay for dividends. In addition, Chrysler’s stated goal was to lower its debt-to-capital ratio from 18% to 10%. This would cost approximately $1 billion, although the timing of the debt pay-down was unknown.

On the product side, Chrysler was aggressively rolling out its new models and predicting that profit margins would improve as the product mix changed. But some external factors were creating uncertainty. Inventories for the Neon and the LH full-size sedans were running above normal in the first quarter. For the minivans, Chrysler was projecting the loss of approximately 65,000 units during the model changeover. Also, Ford was building its inventories to uncomfortable levels, and all manufacturers were adding capacity to the sport utility line which included Chrysler’s high-margin Grand Cherokee. The concern was that this could lead to price cutting, followed by reduced margins.

 

16. The Wall Street Journal, April 17, 1995. 17. As quoted in The Wall Street Journal, April 17, 1995.

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The Chrysler Takeover Attempt 296-078

5

Finally, the crisis in Mexico was depressing sales there and creating some uncertainty about the market for the T300 pickup and the Cirrus/Stratus lines which were manufactured in Mexico.

Deal Structure and Financing

For Tracinda, the structure of the deal would have an impact on two key issues related to Chrysler’s cash position. First, the amount of cash they were going to use from the company’s balance sheet would directly affect its ability to weather a future downturn. Second, the deal structure itself could have cash flow implications depending on the amount and type of leverage used for the buyout.

Using $5.2 billion of Chrysler cash to finance the deal would leave approximately $2.4 billion on the balance sheet. Depending on projections of additional cash build-up in the short term, Chrysler would have anywhere from $2.5 billion to $4 billion to weather the next downturn. As for the cash flow implications of adding $8.8 billion of leverage, it appeared that the after-tax cost of the additional interest would be almost offset by the elimination of dividends.

Chrysler’s finance subsidiary might also be available to support some of the leverage in the deal. Chrysler Financial (CFC) was a well-managed company with earning assets to equity of roughly 4.5 times. This was much lower than GMAC (GM’s finance unit) which was at 9.0 times, and Ford Financial Services which was at 9.6 times. Increasing leverage at Chrysler Financial might provide an additional $2 billion in capital for the deal.

At the time of the announcement, Kerkorian had not yet obtained financing for the deal. A Tracinda spokesperson cited the need for secrecy as the reason no banks had been contacted. But there was some uncertainty about whether it could be raised at all. One reason was that more than 150 banks – – ranging from small local lenders to some of the world’s biggest banks — were already tied up in Chrysler credit agreements.

Reactions

As both sides in the deal stepped up the rhetoric on the proposed takeover, Chrysler’s analysts remained mixed in their opinions. Summarizing the pro-management stance, one analyst observed: “It’s really uncertainty in the economy that drove the stock down and put Chrysler in play. And that is completely out of Chrysler’s control.”18 These analysts were convinced Chrysler represented a great buying opportunity, with an inherent value in the range of $70 to $90 per share. David Cole, Director of the Office for the Study of Automotive Transportation, was even more bullish: β€œWall Street has undervalued the [auto] industry,” he said, placing the value of Chrysler at $100 per share.19 But others suggested that the large cash hoard and weak stock price were signs that Chrysler wasn’t handling its finances properly. “The market is the ultimate arbiter on how Chrysler is being run, and the market is saying it’s sorely mismanaged.”20

Public reaction to the Tracinda group was mostly negative, as many were calling the deal a flashback to the excesses of the 1980s. The Tracinda team was unmoved. Yemenidjian summarized the group’s attitude: “We are the owners of the company. We are not some outside intruders who came in to spoil the company. The lack of respect is abominable.”21

 

 

18. John Casesa of Wertheim Schroder, as quoted in The Wall Street Journal, April 14, 1995. 19. As quoted in William J. Cook and Linda Grant, U.S. News & World Report, April 24, 1995. 20. Analyst Nicholas Lobacarro of S.G. Warburg & Co., as quoted in The Wall Street Journal, April 17, 1995. 21. As quoted in USA Today, April 27, 1995.

This document is authorized for use only in Dr Angie Andrikogiannopoulou’s FM474M CEMS EXCHANGE at London School of Economics and Political Science (LSE) from Dec 2019 to Jun 2020.

 

 

296-078 The Chrysler Takeover Attempt

6

Exhibit 1 ChryslerΓ­s Board of Directors

Name Age Occupation Director Since Lilyan H. Affinitok 63 Former Vice Chairman, Maxxam Group 1982 Robert E. Allen 60 Chairman and CEO, AT&T 1994 Joseph E. Antoninik 53 Former President and CEO, Kmart Corp. 1989 Joseph A. Califano, JR. k 63 Secretary of Health, Education, and Welfare (1977-79) 1981 Thomas G. Denomme 55 Chrysler Vice Chairman 1993 Robert J. Eaton 55 Chrysler Chairman and CEO 1992 Earl G. Graves 60 Chairman and CEO, Earl G. Graves Ltd. 1990 Kent Kresa 57 Chairman and CEO, Northrop Grumman 1989 Robert J. Lanigan* 66 Chairman Emeritus, Owens-Illinois 1984 Robert A. Lutz 63 Chrysler President and Chief Operating Officer 1986 Peter A. Magowan* 52 Chairman, Safeway 1986 Malcolm T. Stamper 69 Former Vice Chairman, Boeing 1984 Lynton R. Wilson 54 President and CEO, BCE Inc. 1984

kAlso a director of Kmart Corp. *Both Lanigan and Magowan headed companies that were acquired in leveraged buyouts by KKR.

Source: annual report.

Exhibit 2 Big Three Closing Stock Prices and the S&P 500 Index, 1/3/95 to 4/12/95 (1/3/95 = 100)

77.00 79.00 81.00 83.00 85.00 87.00 89.00 91.00 93.00 95.00 97.00 99.00

101.00 103.00 105.00 107.00 109.00 111.00

1/ 3/

95

1/ 6/

95

1/ 11

/ 95

1/ 16

/ 95

1/ 19

/ 95

1/ 24

/ 95

1/ 27

/ 95

2/ 1/

95

2/ 6/

95

2/ 9/

95

2/ 14

/ 95

2/ 17

/ 95

2/ 23

/ 95

2/ 28

/ 95

3/ 3/

95

3/ 8/

95

3/ 13

/ 95

3/ 16

/ 95

3/ 21

/ 95

3/ 24

/ 95

3/ 29

/ 95

4/ 3/

95

4/ 6/

95

4/ 11

/ 95

S&P 500 GM Ford Chrysler

This document is authorized for use only in Dr Angie Andrikogiannopoulou’s FM474M CEMS EXCHANGE at London School of Economics and Political Science (LSE) from Dec 2019 to Jun 2020.

 

 

The Chrysler Takeover Attempt 296-078

7

 

Exhibit 3 Geographical Sales Breakdown for the Big Three (in millions) (1)

United Other Latin U.S. as % States N. America Europe America All Other Total of Total

GM (excluding GMAC) 1994 101,186 8,377 24,850 5,305 1,456 141,174 0.72 1993 89,868 7,312 21,847 4,595 1,248 124,870 0.72 1992 79,783 7,509 26,291 3,311 1,236 118,130 0.68

Ford (automotive) 1994 73,008 21,784 12,345 107,137 0.68 1993 61,559 18,507 11,502 91,568 0.67 1992 51,918 21,579 10,910 84,407 0.62

Chrysler (consolidated) (2) 1994 45,655 3,877 2,692 52,224 0.87 1993 37,847 3,349 2,404 43,600 0.87 1992 31,529 2,906 2,462 36,897 0.85

Sources: annual reports.

1) Note classification differences in accounting for sales other than in the U.S. 2) Chrysler does not break its geographical sales out on an equity basis. See footnoe on equity method in Exhibit 8 .

 

 

Exhibit 4 Geographical Unit Sales Breakdown for the Big Three (in thousands)

United Outside U.S. as % States U.S. Total of Total

General Motors 1994 5,016 3,312 8,328 60.2% 1993 4,729 3,056 7,785 60.7% 1992 4,381 3,304 7,685 57.0%

Ford 1994 4,276 2,363 6,639 64.4% 1993 3,824 2,141 5,965 64.1% 1992 3,361 2,403 5,764 58.3%

Chrysler 1994 2,254 508 2,762 81.6% 1993 2,022 454 2,476 81.7% 1992 1,730 445 2,175 79.5%

Sources: annual reports.

This document is authorized for use only in Dr Angie Andrikogiannopoulou’s FM474M CEMS EXCHANGE at London School of Economics and Political Science (LSE) from Dec 2019 to Jun 2020.

 

 

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Busi 600 Case Assignment 3 Kg

 

Case Assignments Instructions

You will write 4 Case Assignments based on the β€œNCRCC: Teeing Up a New Strategic Direction” case study. Each Case Assignment must be 750–1,000 words and use current APA format with a cover page, 1” margins, 12-point font, content, in-text citations, and a reference page (the word count does not include the questions, cover page, or reference page). No abstract is required; simply type the questions as headings and respond. In addition, you must incorporate 2–4 scholarly research articles in your response.

Β· Case Assignment 3 will answer case discussion questions 5 & 7

Submit Case Assignments 1–3 by 11:59 p.m. (ET) on Sunday of the assigned modules/weeks.

 

BUSI600 Case Assignment Grading Rubric 90 points

 

Content – 70%

Advanced

Proficient

Developing

Not present

 

Case Β Β Analysis

18 to 20 Β Β points

Insightful throughout. Completely developed all Β Β relevant information. Critical issues and key problems that supported the Β Β Case Analysis were clearly identified, analyzed, and supported.

17 points

Specific, solid. Less carefully developed. Some Β Β insights. Critical issues and key problems that supported the Case Analysis Β Β were partially identified, analyzed, and supported.

1 to 16 Β Β points

Vague, obvious, underdeveloped, or too broad. One or Β Β more main issues not identified. Limited evidence of critical thinking. Critical Β Β issues and key problems that supported the Case Analysis were not clearly Β Β identified, analyzed, and supported.

0 Β Β points

Several main issues not identified. Oversimplified, Β Β vague, unclear, or cannot be understood. Little or no evidence of critical Β Β thinking. Critical issues and key problems that supported the Case Analysis Β Β were poorly identified, analyzed, and supported.

 

Synthesis Β Β of course theories/ concepts and case analysis

18 to 20 Β Β points

Convincingly interpreted and Β Β linked to course theories/ concepts. Considers context and limits of position Β Β where appropriate. Key points were clearly identified and supported with a Β Β well thought out rationale based on applying specific concepts or analytical Β Β frameworks to the data provided in the case.

17 points

Relevant. Appropriately Β Β interpreted and linked to main course theories/concepts. Key points were Β Β partially identified and supported with a well thought out rationale based on Β Β applying specific concepts or analytical frameworks to the data provided in Β Β the case.

1 to 16 Β Β points

A few generalized connections made to course Β Β theories/concepts. Connections not clearly linked to case. Key points were Β Β not identified and supported with a well thought out rationale based on Β Β applying specific concepts or analytical frameworks to the data provided in Β Β the case.

0 Β Β points

No clear connections between the facts of the case Β Β and relevant theories/concepts. Key points were poorly identified and Β Β supported with a well thought out rationale based on applying specific Β Β concepts or analytical frameworks to the data provided in the case.

 

Application Β Β of Scholarly Research

21 to 23 Β Β points

Author accurately applied 4 or more scholarly (peer Β Β reviewed) sources.

19 to 20 Β Β points

Author accurately applied at least 3 scholarly (peer Β Β reviewed) sources.

1 to 18 Β Β points

Author accurately applied 1 or 2 scholarly (peer Β Β reviewed) sources.

0 Β Β points

Author did not apply scholarly (peer reviewed) Β Β sources.

 

Structure – 30%

Advanced

Proficient

Developing

Not present

 

Mechanics

9 points

Correct spelling and grammar are used throughout the Β Β essay. There are 0–1 errors in grammar or spelling that distract the reader Β Β from the content.

8 points

There are 2-3 errors in grammar or spelling that Β Β distract the reader from the content.

1 to 7 Β Β points

There are more than 3 errors in grammar or spelling Β Β that distract the reader from the content.

0 Β Β points

There are more than 5 errors in the grammar or Β Β spelling that distract the reader from the content.

 

APA Β Β Style

9 points

There are 0–1 minor errors in APA format in theΒ requiredΒ Β Β items: title page, running head, font Β Β type and size, line spacing, headings, citations, and references.

8 points

There are 2–3 minor errors in APA format in the Β Β required items.

1 to 7 Β Β points

There are more than 3 errors in APA format in the Β Β required items.

0 Β Β points

A title page is not present and/or there are more Β Β than 5 errors in APA format in the required items.

 

Word Β Β Count

9 points

The minimum word count of 750 words is met or Β Β exceeded. Excluding the cover page and Β Β References page(s).

8 points

The word count of 700 words is met. Excluding the cover page and References Β Β page(s).

1 to 7 Β Β points

The word count of 650 words is met. Excluding the cover page and References Β Β page(s).

0 Β Β points

There are fewer than 650 words. Excluding the cover page and References Β Β page(s).

 

Total

Business Research Methods, 11e, Cooper/Schindler

1

>cases

NCR Country Club started out as a benefit for thousands of National Cash Register employ- ees. By the late 1990s, those employees were aging rapidly and the core membership needed to be increased. NCRCC offers two golf courses. One is an award winning, championship- hosting course on the PGA tour. But it wasn’t attracting new members, especially younger families. This case is about a membership study done as part of a larger management initiative to evaluate several strategic directions the club might take to expand its member- ship. www.ncrcountryclub.com

>Abstract

>The Scenario NCR Country Club (NCRCC) started in 1954 as an employee benefit of the National Cash Register Co. but is now an open-membership club. This country club located in Kettering, Ohio (near Dayton), hosts two 18-hole golf courses. The NCR South course, a par 71 championship course of 6,824 yards of heavily wooded rolling countryside, the site of the 1996 PGA Championship, the 1986 U.S. Open, and the 1998 U.S. Mid-Amateur, is consistently ranked by Golf Digest as one of the top 100 courses in the United States. The prairie-links style of the North course, a 6,358-yard par 70 course, is considered challenging. In southwestern Ohio, the active golf season usually lasts from May through October. Within a 30-minute radius of NCRCC, the avid golfer will find eight other private golf and country clubs as well as 29 public golf clubs and courses.

In 1997, after the purchase of NCR Corporation by AT&T, AT&T provided a $4.0 million interest-free loan to raze the original clapboard-sided clubhouse and replace it with an all-brick colonial-style facility. Boasting both formal and informal, inside and outside eating facilities as well as banquet and party rooms, the members voted that the new clubhouse would be totally smoke-free. The rich cherrywood paneling and the hunter green and burgundy dΓ©cor mellow the high-ceiling, interior spaces. Golf memberships are $20,000 with social (nongolf) memberships at $1,000 each. NCR employees did not and do not pay membership fees to join. Additionally, each member must spend $150 per quarter in dining receipts and pay $225 (golf) or $160 (social) in annual dues.

Needing to attract new members to support the renovated facility after AT&T divested itself of NCR and given the growing age of its members, NCRCC implemented an aggressive membership campaign in 1998. The goal was to bring golf memberships to 680 and attract as many social memberships as possible. After only moderate success, NCRCC commissioned McMahon Group to assist with strategic planning.

NCRCC: Teeing Up a New Strategic Direction

Used with permission of Pamela S. Schindler Β©2001.

 

 

Business Research Methods, 11e, Cooper/Schindler

2

McMahon Group specializes in providing research and strategic consulting to golf clubs and full-service golfing facilities. β€œGolf club membership within the United States is perceived as a discretionary luxury of life. NCR faces a similar situation found elsewhere in clubs around the countryβ€”an older satisfied membership which sees no reason to change what they perceive to be a good thing,” shared Frank Vain, president of McMahon Group. β€œWith NCR, we faced another wrinkle. Because NCR was once corporately owned, NCR retirees and current employees saw membership as an entitlement, a right.”

After McMahon’s First Impressions visit (a free on-site assessment where a club specialist tours facilities, collects information on membership and operations, and discusses industry trends with strategic planning committees), NCRCC’s board hired McMahon to provide direction and assistance to NCRCC’s strategic planning committee. β€œHistorically, NCRCC has a 7 percent penetration rate among NCR employees. NCR’s employee pool was trending smaller, providing continuing downward pressure on NCRCC membership,” explained Vain. β€œWith membership segments of NCR retirees (1/3 of members) and current NCR employees (another 1/3 of members) getting less numerous each year, only the segment comprised of non-NCR affiliates provides an opportunity for growth. NCRCC needs to become a stand-alone club to survive.”

McMahon Group conducted six focus groups at NCRCC on December 3–4, 1998, involving 43 members, seven nonmembers, and 12 employees. Especially among younger members (under 46) and nonmembers, a golf-only club was less attractive than the full service array that some other area country clubs offered. A consistent theme was that members did not feel they received the overall level of service at NCRCC that they expected from a fine private country club, whether it be in the dining operation or on the golf course. Staff members were frustrated that meeting the board’s profit directive was often counterproductive to a high level of service. The NCRCC board directed McMahon Group to conduct a membership study to explore the feasibility of adding additional facilities, including swimming and fitness facilities to attract younger adults and families with children.

McMahon Group distributed mail surveys to 1,650 members and their spouses in January 1999 (see Exhibit C-NCR 1–2). A return rate of 57 percent and 48 percent, respectively, netted 886 usable surveys. Data were interpreted at Β±3% (or Β±0.1) at the 95 percent confidence level. Due to McMahon’s extensive consulting and research experience with golf facilities nationwide, it was able to compare NCRCC’s membership survey results with those of members of 80 other country clubs.

>The Research

NCRCC: Teeing Up a New Strategic Direction

 

 

Business Research Methods, 11e, Cooper/Schindler

3

Overall, 72 percent of NCRCC members were either satisfied or very satisfied. This is slightly less than the 79 percent satisfaction level for other clubs. Only 12 percent are very satisfied, with other clubs averaging 21 percent. The group with the highest dissatisfaction rate (19 percent dissatisfied or very dissatisfied) was the key 55–64 age group, with the under 46 group generating 11 percent dissatisfaction. While members currently saw the club as an β€œAdult Golf and Dining Club” (63 percent), many believed its future would need to incorporate facilities for children, if the club were to remain competitive for new members. This was especially true for those members under age 46.

Most current members joined for golf (80 percent either important or very important) or dining (77 percent either important or very important). Most members were satisfied with golf (81 percent either satisfied [29 percent] or very satisfied [69 percent]). However, level of satisfaction was lower with the over 65 group when it came to course layout (58 percent very satisfied) and condition (77 percent very satisfied). Fewer members were satisfied with dining (49 percent either satisfied or very satisfied). However, even given some dissatisfaction, 61 percent felt their membership was a good value.

The 37th Hole, the casual dining facility, generated concerns about speed of service (27 percent either dissatisfied or very dissatisfied), professionalism of wait staff (19 percent either dissatisfied or very dissatisfied), and menu variety (36 percent either dissatisfied or very dissatisfied). The same concerns surfaced in the formal dining area, with menu variety and meal-to-meal consistency generating the highest dissatisfaction scores. It is very important for NCRCC to provide casual adult dining (95 percent either very important or important), but less so for casual family dining (78 percent), outdoor dining (69 percent), formal dining (44 percent), men’s grill (37 percent), and women’s grill (22 percent). Dining prices are seen as the same (65 percent lunch, 48 percent dinner) or higher (32 percent lunch, 47 percent dinner) than other clubs and restaurants frequented by members. Members overwhelmingly continue to endorse the no-smoking rule (97 percent formal dining, 94 percent 37th Hole, 83 percent bar/lounge).

β€œMembers think of NCRCC as first a golf club, but the golf wasn’t meeting expectations. Second, members see NCRCC as a dining club, but the members were dissatisfied with the casual dining product and service,” shared Vain.

Survey results offered good and bad news. Additional facilities would not be attractions to most current members, but many members are interested in improving the current facilities. Fully 59 percent, however, were unwilling to pay higher dues (including 43 percent of under age 46) to obtain the changes they found attractive.

>Some Results

NCRCC: Teeing Up a New Strategic Direction

 

 

Business Research Methods, 11e, Cooper/Schindler

4

β€œNew facilities were an attraction for the non-NCR affiliated segment,” summarized Vain in discussing what McMahon Group shared with the strategic planning committee following the completion of the study. β€œNew facilities, especially swimming, fitness, and outdoor dining, provide the best opportunity to broaden the attraction of the club.”

β€’ 74% golf (single or family) and 24% social, with 2% corporate memberships.

β€’ 65% are (23%) or had been (42%) employed at NCR. β€’ 55% male, 45% female. β€’ In each of four age groups:

β€’ Under 46 (19%) β€’ 46–55 (23%) β€’ 56–65 (26%) β€’ 66 or older (33%)

β€’ 74% lived within seven miles of NCRCC. β€’ 42% had been members for 20 or more years. β€’ 78% did not have children (under age 21) living at home. β€’ 41% belonged to a swimming/tennis club (15%) or fitness facility (26%). β€’ 81% reside in the Kettering-Dayton area year round.

Facility Additions Swimming pool 30 60 Tennis courts 22 36 Health and fitness center 30 49 Spa 30 58 Activities For adults 26 40 For families 23 53 For children 18 47

>Who Answered the survey

All Members Members under 46 (% ) (% )

Improving the driving range (Important or Very Important) 36 Improving short game practice area

(Important or Very Important) 40

Current Facility Alterations Expanding bar/lounge (Important or Very Important) 41

NCRCC: Teeing Up a New Strategic Direction

 

 

Business Research Methods, 11e, Cooper/Schindler

5

1 Build the management-research question hierarchy, through the investiga- tive questions stage. Then compare your list with the measurement questions asked.

2 Given the research question, how appropriate were the measurement questions?

3 Describe the sampling strategy. How appropriate were the various sam- pling design decisions?

4 What, if any, problems did you find with the questionnaire as a whole? Consider structure, directions, question order, question phrasing, appropri- ateness of response strategy chosen, etc.

5 If you were McMahon Group, how would you present the findings of your study to the NCRCC board? Explain the rationale for your chosen method.

6 Given the data presented in the case: 7 What would you recommend to the board of NCRCC with respect to

adding facilities like tennis courts, a swimming pool, a spa, a fitness center, and a year-round driving range?

8 What would you recommend to the board of NCRCC with respect to adding or changing programming activities like social activities for adults, families with children, and children?

9 What would you recommend with respect to changing current operations?

>>>>>Discussion

>Sources Frank Vain, president, McMahon Group, provided the instrument and data with the permission of Larry Appleby, general manager, NCR Country Club in November 1999. Used with permission of Pamela S.

Schindler and Donald R. Cooper, Business Research Methods, 7/e, Burr Ridge, IL: McGraw-Hill, Β© 2001.

NCRCC: Teeing Up a New Strategic Direction

 

 

INSTRUCTIONS:

Please complete the questionnaire, answering all questions that pertain to your interests at the Club. If you do not par- ticipate in a particular Club activity and do not feel qualified to respond to the questions regarding that activity, please leave those questions blank or indicate β€œNo Opinion” and move on to the next question. Note: Space is provided at the end of the questionnaire for your written comments and suggestions.

Completed questionnaires should be mailed in the enclosed postage-paid envelope by the date printed on the cover let- ter directly to McMahon Group at 884 Woods Mill Road, Suite 201, St. Louis, MO 63011.

IMPORTANT: Completely fill in the ovals that correspond to your answers for each question with either a pen or a pen- cil. The surveys will be electronically scanned. Please do not make extra marks on the questionnaire except in the space provided for written responses at the end of the survey.

1. Please indicate your β€œoverall” satisfaction with NCR Country Club:

2. Which of the following best represents what you feel (1) is currently and (2) should be the primary purpose of NCR Country Club? (Please mark only one per column.)

(1) Currently (2) Should be

A family oriented, full service country club with activities for children. ❍ ❍

An adult oriented, full service country club with limited activities for children. ❍ ❍

A golf and dining club primarily for adults. ❍ ❍

A golf club primarily for adults. ❍ ❍

3. Using a scale from β€œ5” (Very Important) to β€œ1” (Very Unimportant), how important were each of the following to you in your decision to join NCR Country Club?

To meet new friends ❍ ❍ ❍ ❍ ❍

Club location

β€”in relation to home ❍ ❍ ❍ ❍ ❍

β€”in relation to work ❍ ❍ ❍ ❍ ❍

Club social functions ❍ ❍ ❍ ❍ ❍

EXHIBIT C-NCR 1–2 NCR Country Club Membership Survey*

(continued)

*This survey has been reformatted from its original design to fit the specifications of this text. Neither the questions nor the essence of the design has been modified.

Fill in your answers like this οΏ½

Not like ❍� or ββœ— or ❍

(1) Currently (2) Should be

(5) Very (4) (3) (2) (1) Very Important Important Neutral Unimportant Unimportant

(5) Very Satisfied (4) Satisfied (3) Neutral (2) Dissatisfied (1) Very Dissatisfied

❍ ❍ ❍ ❍ ❍

coo98706_cases.qxd 6/9/02 2:05 PM Page 735

 

 

(5) Very (4) (3) (2) (1) Very Important Important Neutral Unimportant Unimportant

(5) Very (4) (3) (2) (1) Very Satisfied Satisfied Neutral Dissatisfied Dissatisfied

Friends were/are members ❍ ❍ ❍ ❍ ❍

Parents were/are members ❍ ❍ ❍ ❍ ❍

Exclusivity of club’s members ❍ ❍ ❍ ❍ ❍

Affiliation with NCR Corporation ❍ ❍ ❍ ❍ ❍

Competitive initiation fee ❍ ❍ ❍ ❍ ❍

Private parties/banquets ❍ ❍ ❍ ❍ ❍

Reputation of club ❍ ❍ ❍ ❍ ❍

Dining ❍ ❍ ❍ ❍ ❍

Golf ❍ ❍ ❍ ❍ ❍

Availability of 36 holes of golf ❍ ❍ ❍ ❍ ❍

β€œTop 100” ranking of golf course ❍ ❍ ❍ ❍ ❍

4. Please indicate your satisfaction with these characteristics of your Club’s Board of Trustees, Committees, and Management:

BOARD

Communication with the membership ❍ ❍ ❍ ❍ ❍

Degree to which board is representative of membership ❍ ❍ ❍ ❍ ❍

COMMITTEES

Effectiveness of Club committees ❍ ❍ ❍ ❍ ❍

MANAGEMENT/STAFF

Effectiveness of Club management ❍ ❍ ❍ ❍ ❍

Responsiveness to member questions and suggestions ❍ ❍ ❍ ❍ ❍

Overall level of service provided by Club’s management & staff ❍ ❍ ❍ ❍ ❍

5. Please indicate how important each of the following Club activities/services is to you and also how satisfied you are with each:

Rating scale: 5 = Very satisfied, 4 = Satistifed, 3 = Neutral, 2 = Dissatisfied, 1= Very dissatisfied, N.O. = No opinion

Rating scale: 5 = Very important, 4 = Important, 3 = Neutral, 2 = Unimportant, 1 = Very unimportant, N.O. = No opinion

736 CASES

coo98706_cases.qxd 6/9/02 2:05 PM Page 736

 

 

CASES 737

(5) Very (4) (3) (2) (1) Very Satisfied Satisfied Neutral Dissatisfied Dissatisfied

SATISFACTION IMPORTANCE

5 4 3 2 1 N.O. 5 4 3 2 1 N.O.

Golf ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Dining ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Club social functions ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Private parties ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Children’s activities ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Family activities ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

6. Please respond to the following statement: β€œI receive good value for the cost of my membership at NCR Country Club.”

7. Please respond to the following statement: β€œThere are a sufficient number of social activities at the club that appeal to my age and interest group.”

8. Do you have access to the Internet?

❍ Yes ❍ No

Are you aware the club has an Interent website?

❍ Yes ❍ No

Would you like e-mail notifications from the Club on a regular basis?

❍ Yes ❍ No

9. Please indicate your satisfaction with the following aspects of the Club’s newsletter, The Mulligan, and also Club communication in general.

Newsletter Content

Notification of upcoming events ❍ ❍ ❍ ❍ ❍

Membership activities and stories ❍ ❍ ❍ ❍ ❍

Club business (reports from board committees) ❍ ❍ ❍ ❍ ❍

Newsletter appearance/format ❍ ❍ ❍ ❍ ❍

Newsletter timeliness ❍ ❍ ❍ ❍ ❍

Club communication in general ❍ ❍ ❍ ❍ ❍

(5) Strongly Agree (4) Agree (3) Neutral (2) Disagree (1) Strongly Disagree No opinion

❍ ❍ ❍ ❍ ❍ ❍

(5) Strongly Agree (4) Agree (3) Neutral (2) Disagree (1) Strongly Disagree No opinion

❍ ❍ ❍ ❍ ❍ ❍

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738 CASES

Rating Scale: 5 = Very satisfied, 4 = Satisfied, 3 = Neutral, 2 = Dissatisfied, 1 = Very dissatisfied, N.O. = No opinion

Section II. Golf

IF YOU ARE NOT FAMILIAR WITH THE GOLF FACILITIES AND OPERATIONS, PLEASE SKIP TO THE NEXT SECTION OF THE QUESTIONNAIRE.

10. Please indicate your satisfaction with these aspects of the SOUTH and NORTH golf courses:

SOUTH COURSE NORTH COURSE

5 4 3 2 1 N.O. 5 4 3 2 1 N.O.

Course layout ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Overall course condition ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Course landscaping (flowers and plantings) ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Tee box condition ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Condition of fairways ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Condition of greens ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Condition of bunkers ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

SOUTH COURSE NORTH COURSE

5 4 3 2 1 N.O. 5 4 3 2 1 N.O.

Irrigation ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Drainage ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Condition of cart paths ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Course restrooms ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Availability ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Condition ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Availability of drinking water ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Beverage cart availability ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

11. Please indicate your satisfaction with these aspects of the golf operations at the Club:

(answer survey for question 11 on the following page)

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CASES 739

(5) Very (4) (3) (2) (1) Very No

Satisfied Satisfied Neutral Dissatisfied Dissatisfied Opinion

Golf Pro Shop

Interior appearance ❍ ❍ ❍ ❍ ❍ ❍

Pro Shop cleanliness ❍ ❍ ❍ ❍ ❍ ❍

Merchandise selection ❍ ❍ ❍ ❍ ❍ ❍

Pro Shop service ❍ ❍ ❍ ❍ ❍ ❍

Pro Shop prices ❍ ❍ ❍ ❍ ❍ ❍

Pro lessons ❍ ❍ ❍ ❍ ❍ ❍

Bag drop service ❍ ❍ ❍ ❍ ❍ ❍

Bag storage and club cleaning service ❍ ❍ ❍ ❍ ❍ ❍

Cart service ❍ ❍ ❍ ❍ ❍ ❍

Cart cleanliness ❍ ❍ ❍ ❍ ❍ ❍

Practice range

Condition ❍ ❍ ❍ ❍ ❍ ❍

Size ❍ ❍ ❍ ❍ ❍ ❍

Range ball condition ❍ ❍ ❍ ❍ ❍ ❍

Speed of play ❍ ❍ ❍ ❍ ❍ ❍

Tournaments

Quality ❍ ❍ ❍ ❍ ❍ ❍

Value for price ❍ ❍ ❍ ❍ ❍ ❍

Format of tournaments ❍ ❍ ❍ ❍ ❍ ❍

Adult golf programs (i.e., leagues) ❍ ❍ ❍ ❍ ❍ ❍

Junior golf programs ❍ ❍ ❍ ❍ ❍ ❍

Tee time reservation system ❍ ❍ ❍ ❍ ❍ ❍

Halfway House

Hours of operation ❍ ❍ ❍ ❍ ❍ ❍

Service ❍ ❍ ❍ ❍ ❍ ❍

Menu variety ❍ ❍ ❍ ❍ ❍ ❍

12. How do you feel about the overall use of the golf course as it now exists at the club?

(5) (4) Somewhat (3) (2) Not Quite (1)

Excessive Excessive Fine as Is Dissatisfied Not Enough

Amount of time available for casual, open member play ❍ ❍ ❍ ❍ ❍

Amount of time permitted for guest use ❍ ❍ ❍ ❍ ❍

Amount of time available for junior play ❍ ❍ ❍ ❍ ❍

(continued)

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(5) (4) Somewhat (3) (2) Not Quite (1)

Excessive Excessive Fine as Is Dissatisfied Not Enough

Number of member-scheduled events/tournaments ❍ ❍ ❍ ❍ ❍

Number of nonmember outings on Mondays ❍ ❍ ❍ ❍ ❍

Number of nonmember outings on days other than Mondays ❍ ❍ ❍ ❍ ❍

13. Please respond to the following statement: β€œIf the Club had a caddy program I would support the program and use caddies on a regular basis when I play golf.”

14. Please indicate your satisfaction regarding these aspects of the dining in the 37th HOLE, the MEMBERS’ DINING ROOM, and for PRIVATE PARTIES:

MEMBERS’

37th HOLE DINING ROOM PRIVATE PARTIES

5 4 3 2 1 N.O. 5 4 3 2 1 N.O. 5 4 3 2 1 N.O.

Service:

Staff appearance ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Speed of service ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Friendliness of wait staff ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Professionalism/ training of wait staff ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Food:

Qualityβ€”Food well prepared ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Food presentation (visually pleasing) ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Meal-to-meal consistency ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Menu variety ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

(continued)

(5) Strongly Agree (4) Agree (3) Neutral (2) Disagree (1) Strongly Disagree No opinion

❍ ❍ ❍ ❍ ❍ ❍

Rating scale: 5 = Very satisfied, 4 = Satisfied, 3 = Neutral, 2 = Dissatisfied, 1 = Very dissatisfied, N.O. = No opinion

740 CASES

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CASES 741

MEMBERS’

37th HOLE DINING ROOM PRIVATE PARTIES

5 4 3 2 1 N.O. 5 4 3 2 1 N.O. 5 4 3 2 1 N.O.

Other:

Ambiance/décor of rooms ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Wine list/selections ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Value for the price ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Party planning assistance ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Party follow-up by staff ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

15. How important is it for the Club to provide each of the following dining styles?

(5) Very (4) (3) (2) (1) Very

Important Important Neutral Unimportant Unimportant

Casual adult dining ❍ ❍ ❍ ❍ ❍

Casual family dining ❍ ❍ ❍ ❍ ❍

Formal dining (coat & tie required) ❍ ❍ ❍ ❍ ❍

Outdoor dining ❍ ❍ ❍ ❍ ❍

Men’s grill ❍ ❍ ❍ ❍ ❍

Women’s grill ❍ ❍ ❍ ❍ ❍

16. How do the Club’s prices compare to the prices charged for similar meals at other clubs and restaurants you visit regularly? Please compare similar dining experiences (i.e., dining in the 37th Hole should be compared to dining in a casual, grill-type restaurant and dining in the Members’ Dining Room should be compared to a more upscale-type restaurant).

(5) Much (4) (3) About (2) Somewhat (1) Much The Club’s prices are . . . Lower Lower the same Higher Higher

Lunch ❍ ❍ ❍ ❍ ❍

Dinner ❍ ❍ ❍ ❍ ❍

Private parties ❍ ❍ ❍ ❍ ❍

Social events ❍ ❍ ❍ ❍ ❍

Wine ❍ ❍ ❍ ❍ ❍

Cocktails ❍ ❍ ❍ ❍ ❍

17. Please respond to the following statement: β€œThe clubhouse should remain a totally nonsmoking facility.”

(5) Strongly Agree (4) Agree (3) Neutral (2) Disagree (1) Strongly Disagree No opinion

❍ ❍ ❍ ❍ ❍ ❍

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Section IV: The Future

18. Listed below are examples of new facilities or additional services the Club may consider adding in the future. Using a scale from β€œ5” (Very important) to β€œ1” (Very unimportant), please indicate how important you feel each item is to the future of the Club.

(5) Very (4) (3) (2) (1) Very

Important Important Neutral Unimportant Unimportant

Add a swimming pool ❍ ❍ ❍ ❍ ❍

Add tennis courts ❍ ❍ ❍ ❍ ❍

Add a health/fitness facility ❍ ❍ ❍ ❍ ❍

Add paddle tennis courts ❍ ❍ ❍ ❍ ❍

Add a bowling alley ❍ ❍ ❍ ❍ ❍

Add spa facilities (sauna, steam room, Jacuzzi, etc.) ❍ ❍ ❍ ❍ ❍

Provide more social activities ❍ ❍ ❍ ❍ ❍

Provide more family activities ❍ ❍ ❍ ❍ ❍

Provide more children’s activities ❍ ❍ ❍ ❍ ❍

Add a year-round driving range ❍ ❍ ❍ ❍ ❍

19. Listed below are examples of improvements to the existing Club facilities that may be considered in the future. Using a scale from β€œ5” (Very important) to β€œ1” (Very unimportant), please indicate how important you feel each item is to the future of the Club.

(5) Very (4) (3) (2) (1) Very

Important Important Neutral Unimportant Unimportant

Enlarge the bar/lounge ❍ ❍ ❍ ❍ ❍

Enlarge the banquet room to better accommodate large functions such as weddings ❍ ❍ ❍ ❍ ❍

Provide better pedestrian access ❍ ❍ ❍ ❍ ❍

Improve the golf driving range ❍ ❍ ❍ ❍ ❍

Improve the golf short game practice area ❍ ❍ ❍ ❍ ❍

Modify the North Course where possible to make it more challenging ❍ ❍ ❍ ❍ ❍

Modify the South Course where possible to make it more challenging ❍ ❍ ❍ ❍ ❍

742 CASES

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CASES 743

20. a. Please respond to the following statement: β€œI would be willing to pay somewhat higher annual dues in order to make the Club more private and provide a higher level of service.”

(5) Strongly Agree (4) Agree (3) Neutral (2) Disagree (1) Strongly disagree ❍ ❍ ❍ ❍ ❍

b. How much of an annual dues increase would you be willing to pay to make the Club more private and provide a higher level of service? (Please mark only one.)

❍ Nothing ❍ 20%

❍ 5% ❍ 30%

❍ 10% ❍ 40%

❍ 15% ❍ 50% or more

21. At present, the Club allows nonmember outings on the golf course on Mondays as well as other days of the week. These outings generate substantial revenue for the Club, which helps to keep member dues lower than they would be without this revenue. However, these outings also reduce member access to the courses, add wear and tear to the courses, and limit the amount of time available for course maintenance.

Please respond to the following statements.

a. β€œThe Club should eliminate outings on days of the week other than Mondays, and I would be willing to pay an additional $100 in annual dues for improved course access and to make up for this lost revenue.”

(5) Strongly Agree (4) Agree (3) Neutral (2) Disagree (1) Strongly Disagree No Opinion ❍ ❍ ❍ ❍ ❍ ❍

b. The Club should eliminate half the outings on Mondays and all outings on days of the week other than Mondays and I would be willing to pay an additional $300 in annual dues for improved course access and to make up for this lost revenue.”

(5) Strongly Agree (4) Agree (3) Neutral (2) Disagree (1) Strongly Disagree No Opinion ❍ ❍ ❍ ❍ ❍ ❍

c. The Club should eliminate all outings, both on Mondays and other days of the week, and I would be willing to pay an additional $500 in annual dues for improved course access and to make up for this lost revenue.”

(5) Strongly Agree (4) Agree (3) Neutral (2) Disagree (1) Strongly Disagree No Opinion ❍ ❍ ❍ ❍ ❍ ❍

22. Please respond to the following statement: β€œOne of the golf courses should always be open for member play on Mondays.”

(5) Strongly Agree (4) Agree (3) Neutral (2) Disagree (1) Strongly Disagree No Opinion ❍ ❍ ❍ ❍ ❍ ❍

23. Some clubs include additional fees such as locker rental, bag storage, shoe-shine service, and driving range in the annual or monthly dues. At NCR Country Club, additional charges such as locker rental and shoe-shine service are optional services and fees and are billed as separate items.

Please respond to the following statement: β€œOver the next few years NCR Country Club should move in the direction of bundling all fees and charges (such as locker rental and shoe-shine service) into one dues amount to be paid annually.”

(5) Strongly Agree (4) Agree (3) Neutral (2) Disagree (1) Strongly Disagree No Opinion ❍ ❍ ❍ ❍ ❍ ❍

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Section V: About You 24. Your membership classification is (spouses of membersβ€”please mark the membership classification of your hus-

band or wife):

❍ Family, Golf ❍ Corporate ❍ Social

❍ Single, Golf ❍ Nonresident

25. Which of the following best describes your membership status?

❍ Current NCR employee ❍ Retired or RIF’d NCR employee ❍ Associate member

26. What is your gender?

❍ Male ❍ Female

27. What is your age category?

❍ Under 36 ❍ 46–55 ❍ 66–75

❍ 36–45 ❍ 56–65 ❍ Over 75

28. How many miles is your home from the Club?

❍ 0 to 3 miles ❍ 8 to 15 miles

❍ 4 to 7 miles ❍ More than 15 miles

29. How many miles is your business from the Club?

❍ 0 to 3 miles ❍ 8 to 15 miles

❍ 4 to 7 miles ❍ More than 15 miles

30. When did you first become a member of NCR Country Club?

❍ 1970 or before ❍ 1981–1985 ❍ 1991–1994

❍ 1971–1980 ❍ 1986–1990 ❍ 1995–present

31. Do you have any children age 21 or younger living in your home?

❍ Yes ❍ No

32. What other types of clubs do you belong to in the Dayton area? (Please mark all that apply.)

❍ Another Golf/Country Club ❍ City/Dining Club ❍ Fitness/Health Club

❍ Swim/Tennis Club ❍ Fraternal Club ❍ None

33. How much of the year do you reside in the Dayton area?

❍ Year round ❍ 6 to 8 months

❍ 9 to 11 months ❍ Less than 6 months

744 CASES

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CASES 745

Written Comments and Suggestions Please provide any comments and suggestions you may have regarding the FUTURE DIRECTION OF THE CLUB:

If you could improve EXISTING OPERATIONS OR SERVICES at the Club, what would you improve?

What do you feel NCR Country Club needs to do to ATTRACT MORE MEMBERS?

The Board of Trustees thanks you for helping us in the evaluation of your Club. Please send the survey back to the McMahon Group in the enclosed envelope.

Very truly yours,

McMahon Group, Inc.

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EXHIBIT C-NCR 1–1 Importance of Future Facility Additions to New Strategic Direction

Age Gender Member Children? Member Tenure Membership Status Membership Class

1990– 1991– 1995– NCR NCR Total Under 46–55 56–65 Over Male Female MBR Spouse Yes No prior 1994 now emp Ret or Assoc. Family Single Other

% 46% % % 65% % % % % % % % % % % RIFd MBR % % % % Mean

Swimming Pool Very important 14 37 16 7 5 13 16 13 16 35 8 6 20 27 23 6 17 15 9 18 Important 16 23 16 17 11 14 18 15 18 24 13 11 18 26 15 12 22 15 10 24 Neutral 13 9 13 12 15 13 1 12 13 10 13 13 7 14 9 14 14 11 12 15 Unimportant 11 7 11 11 13 12 11 11 10 8 12 11 15 8 10 13 8 10 12 12 Very unimportant 46 25 43 53 56 48 77 49 43 23 53 58 39 24 42 55 38 49 57 31

TOTAL Count 797 149 183 209 245 421 326 475 322 175 594 468 94 213 181 309 259 375 207 204 2.40

Tennis Courts Very important 8 20 9 4 3 7 9 8 8 20 4 4 7 17 12 4 10 8 5 11 Important 14 16 18 12 12 14 14 13 15 17 13 1 17 21 14 12 17 12 6 24 Neutral 18 22 14 17 19 17 18 18 19 22 16 14 23 23 18 15 20 14 17 26 Unimportant 13 14 13 14 12 12 15 12 14 12 13 13 12 12 13 12 14 11 15 11 Very unimportant 47 28 46 53 55 49 45 49 44 29 53 58 41 26 44 54 41 50 61 28

TOTAL Count 777 146 185 206 230 412 320 459 318 171 581 455 92 207 179 295 258 366 201 198 2.23

Health/Fitness Very important 12 21 15 9 6 10 13 11 13 22 9 7 14 12 13 6 19 11 12 14 Important 19 28 21 20 10 18 21 19 20 23 18 14 28 26 24 15 21 20 17 21 Neutral 20 18 23 19 19 20 21 20 21 21 19 20 18 21 16 18 24 17 15 30 Unimportant 14 11 13 11 21 16 13 16 13 14 15 17 13 11 14 20 9 17 11 15 Very unimportant 34 22 28 41 43 37 32 35 34 20 39 43 26 20 33 42 28 36 45 21

TOTAL Count 769 148 179 198 229 410 312 463 306 173 569 454 92 203 176 297 253 368 196 193 2.59 Enlarge Bar/Lounge

Very important 14 23 17 14 6 16 10 16 11 15 14 13 19 14 22 7 18 15 17 8 Important 27 30 32 27 22 28 24 28 26 30 26 25 34 28 34 27 22 30 27 22 Neutral 27 23 23 27 32 25 30 25 31 24 28 25 25 34 20 30 30 23 20 43 Unimportant 19 19 20 18 21 19 22 18 20 22 19 21 15 17 17 21 2 20 22 16 Very unimportant 13 4 8 14 19 11 15 12 13 9 14 16 7 6 7 16 10 13 14 10

TOTAL Count 847 158 189 219 264 437 344 510 337 182 629 507 97 219 187 334 274 400 221 214 3.11

Improve Driving Range Very important 14 20 18 15 5 18 9 15 11 21 12 11 24 17 17 8 19 15 19 5 Important 22 33 24 23 13 23 20 24 19 25 21 19 22 28 27 16 25 29 19 10 Neutral 40 30 34 42 51 36 46 38 45 32 42 42 40 35 34 49 36 34 38 58 Unimportant 14 13 15 12 16 13 16 13 16 12 15 15 10 13 17 14 11 14 13 13 Very unimportant 10 4 9 8 15 11 9 11 9 9 11 12 4 6 5 13 9 8 11 13

TOTAL Count 815 155 191 212 240 432 314 501 314 178 6 490 92 209 186 316 264 395 220 183 3.15

Very Very Important Important N Unimportant Unimportant Mean

Short game practice area 13/17 27/31 38/35 14/12 8/4 3.21 Percent of Year-round driving range 11/22 28/35 29/24 15/12 17/8 3.00 sample/percent of Add spa 10/25 20/33 22/17 15/11 33/13 2.60 under 46

c o o 9 8 7 0 6 _ c a s e s . q x d 6 / 9 / 0 2 2 : 0 5 P M P a g e 7 3 4

 
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