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Strategic Management- New Music Venue in Bridgewater, MA
 

Strategic Management- New Music Venue in Bridgewater, MA

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This Powerpoint presentation is the work of Patrick McHugo, student at Bridgewater State University, along with myself, Brendan Cronin. McHugo and I presented this slideshow in our Strategic ...

This Powerpoint presentation is the work of Patrick McHugo, student at Bridgewater State University, along with myself, Brendan Cronin. McHugo and I presented this slideshow in our Strategic Management course, to show the steps in the corporate decision-making process.

While the details in this document are specific to this music venue idea, the process can be used in determining whether or not to start up any kind of business. This includes: Thorough Environmental Scanning, Strategy Formulation, and Strategy Implementation. If this were an existing business or evaluation criteria were in place, there would also be Strategy Evaluation.

This slideshow shows, in detail, the specific charts & steps in making any large, strategic decision.

*While I do claim ownership to the Excel-generated diagrams in this slideshow, I do not claim ownership to the other images found in this presentation.

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  • Patrick McHugo and Brendan Cronin have been in the restaurant/club industry for many years. We have taken our expertise/experiences to open a venue in downtown Bridgewater in close proximity of the campus. The idea for the Bears Cave came about a conversation about the different problems facing the college students at Bridgewater. We came to a mutual consensus that there lacked an establishment worthy of providing students a safe, fun, desirable location to hear music, socialize, and unwind.
  • It is clear that starting any kind of business is a risky venture regardless of the idea or the individuals behind it. However, the Bear Cave offers students and residents a unique opportunity to witness live music in an enjoyable environment with plenty of space to socialize and even a V.I.P section to escape the noise and view the scene from above the stage. There is no establishment in Bridgewater that is able to offer all of these things.
  • Our first competitor is Bogarts. This renovated house is the usual spot for many college students on Wednesday nights. With a dance floor, two places to buy drinks, and a poolroom, this single floor is often crowded with students standing on top of each other, trying to get a drink or use the restroom. While the location is ideal, the space is a serious area of concern.
  • The second bar competing with the Bear Cave is Broad Street. Once again, the location is ideal, but the space is an issue. Broad Street is simply one open room with one bar and a small dance area. The line is often out the door and down the street. It cannot hold nearly as many people as Bogarts, but the scene is often crowded with townies and older individuals.
  • The third and final competitor is The Charlie Horse. This is our biggest competitor, the two advantages we have over them is our location and age restriction. The Bear Cave will be able to accommodate live music, and a college crowd in which we hope to attract with our discounted rates at the door for college students who present a Bridgewater ID. Also, a service we plan on promoting heavily is our shuttle bus to and from campus. This is to simply cut down on the dangers of drinking and driving.

Strategic Management- New Music Venue in Bridgewater, MA Strategic Management- New Music Venue in Bridgewater, MA Presentation Transcript

  • The Bear CaveA Business Strategy Analysis by Patrick McHugo and Brendan Cronin
  • History• Experience/Background• Discussion• Proposition
  • Industry MatrixPrice Strength
  • Issues Priority Matrix Probability of ImpactProbability of Occurrence
  • Competitive Analysis• Risk• Bear Cave• Differentiation
  • Bogarts
  • Broad Street
  • Charlie Horse
  • The Bear Cave• Stage 1 Company, Bridgewater, MA• Partnership, Centralized Decision-Making• Operations performed based on communication and observation• Performance Criteria- +Sales, -Costs, Progress towards company goals• Reward-Punishment system- Based on employee evaluations conducted by owners
  • Value Chain Analysis Firm Infrastructure Partnership, Management Team Consists of Owners, Located in Bridgewater, Massachusetts Human Resource Management 10 employees- 6 bartenders, 2 cocktail waitresses, 2 bouncers Technology Development Third Party Transaction Software, Sound System, Administrative Software Tools Procurement Third Party Contract Manufacturers Inbound Logistics Operations Outbound Logistics Marketing & Sales Service Storage of incomingObtain Resources from In-house transaction sales inventory, maintenance of Advertising via local printthird party contract performed by employees, Walk-in service, telephone current inventory levels, ads, local radio & BSUmanufacturers, Seek out discounted items for service, online service via installation and radio, online usingnew bands and obtain new visiting bands, discounted email available maintenance of sound Facebookbands via walk-ins items for promotions equipment
  • External Factor Analysis Summary External Factors Weight Rating Weighted Score Comments Opportunities Customers who seek out Live Music atUntapped Local Niche Market 0.12 3.3 0.40 a bar can be considered a niche market College Campus Close in Bears Cave is within walking distance 0.14 4.6 0.64 Proximity to University campus Few Strong Competitors 0.04 3.1 0.12 2-3 Local Competitors Several Business Located Local businesses can be used in 0.08 4.5 0.36 Close in Proximity advertising, joint promotions, etc. Threats Sales are high in Fall and Spring, low in Fluctuating Buying Cycle 0.15 4.3 0.65 Winter and Summer Organizations (MADD, Robert Wood Activist Groups Against 0.07 2.2 0.15 Johnson Foundation, CSAP) stigmatize Alcohol Consumption alcohol consumption If bands are not forming locally then Local Band Presence 0.17 3.5 0.60 Bears Cave can lose its niche market Poor Restaurant Industry 25% Close or change ownership within 0.12 4.7 0.56 Success Rate year 1 (Bloomberg) Restaurants have low barriers to entry Low Barriers to Entry 0.11 3.6 0.40 (start-up capital, consumer skepticism, location, marketing) Total 1.00 3.88
  • Internal Factor Analysis Summary Internal Factors Weight Rating Weighted Score Comments StrengthsWell-Suited to Supply Niche Bears Cave supplies live music instead 0.14 4.2 0.59 Market of radio, jukebox, etc.Simple Corporate Structure 0.06 3.8 0.23 Partnership that manages the companyCurrent Ownership of Liquor Company has obtained a liquor license 0.04 5.0 0.20 License already Employees make customers feelFriendly, Effective Employees 0.12 4.6 0.55 welcome and result in repeat customers Strong Relationship with Ownership has a strong history with 0.16 4.2 0.67 Nearby University local Bridgewater State University Weaknesses Business is new and has not generated New Business 0.12 4.4 0.53 sufficient brand awareness This is the first business either twoInexperienced Management 0.13 4.2 0.55 partners have been reponsible for operating Low amount of reserve capital for Low Capital 0.16 2.7 0.43 economic dipsLocated in a Low-Populated Surrounding area is low-populated 0.07 3.2 0.22 Area during summer or 1/4 of the year Total 1.00 3.97
  • Strategic Factor Analysis Summary Weighted Strategic Factors Weight Rating Short Intermediate Long Comments Score Strong Ownership has a strongRelationship with 0.16 4.2 0.67 X history with local BridgewaterNearby University State University Well-Suited to Bears Cave supplies live Supply Niche 0.11 4.2 0.46 X music instead of radio, Market jukebox, etc. This is the first business Inexperienced 0.09 4.2 0.38 X either two partners have been Management reponsible for operating Business is new and has not New Business 0.10 4.4 0.44 X generated sufficient brand awareness College Campus Bears Cave is within walking 0.14 4.6 0.644 XClose in Proximity distance to University campus Customers who seek out Live Untapped Local 0.13 3.3 0.429 X Music at a bar can be Niche Market considered a niche market Sales are high in Fall andFluctuating Buying 0.15 4.3 0.645 X Spring, low in Winter and Cycle Summer If bands are not forming Local Band 0.12 3.5 0.42 X locally then Bears Cave can Presence lose its niche market
  • TOWS Matrix Internal Strengths- Strong Relationship with Nearby Weaknesses- Inexperienced Management, New University, Well-Suited to Supply Niche Business Market 1.) Use the strong relationship with 1.) This untapped local niche market will respond Bridgewater State University to arrange a well to a company that is less aggressive in sales deal between the school and Bears Cave. and management as it is with customer This can include shuttling from the school satisfaction. Lacking experience and a corporate to the bar, coupons, vouchers, etc., and Opportunities- College Campus feel in a company can allow the customer to feel will build customer base in the school. Close in Proximity, Untapped less like a customer and more as a guest. 2.) Use the bars strength of being well- Local Niche Market 2.) Having a weakness of being a new business suited to supply the niche market of people means theres plenty of room for growth. Turn the who go to bars to see live music to tap into weakness of being a new business into an this relatively untapped niche market. opportunity by capitalizing on marketing and Advertising this strength will gain market advertising tools on the nearby college campus. share in this niche market.External 1.) Use the strong relationship with the nearby University to capitalize on peak 1.) Shorten business operating hours during buying times. Use promotions and periods of low economic activity. This will decrease advertising heavily during these peak times the fixed costs and variable costs for that time to increase sales, which can account for while allowing management management the time the loss in slow economic times. 2.) to analyze past business strategies and formulate Threats- Fluctuating Buying Advertise the strength of being well-suited new strategies. 2.) Offer discounted Cycle, Local Band Presence to supply a niche market across the products and services to bands that play the venue. Bridgewater and Boston area. If local This will minimize the weakness of being a new bands become scarce, there is a greater business by increasing the use of the facilities and chance of new bands inquiring about avoid the threat of scarce local bands by increasing playing at the Bears Cave if this strength overall satisfaction from prior bands. has been communicated properly.
  • Recommendations• Stay Ahead of Competition• Advertisements• Differentiation- Shuttle Service
  • Implementation Market Penetration StrategyBrendan Cronin Patrick McHugo• Develop promotional offers • Organize shuttle service geared towards students of schedule in coordination Bridgewater State with BSU transportation University department• Launch advertisement • Differentiate actual campaign that covers Bridgewater location by Bridgewater to Boston area. layout of bar and live music scheduling
  • Action Plan• Patrick- Begin coordination with Bridgewater State University transportation department immediately. Contracts and set scheduling must be completed no later than 8/31/2012 (4 months). Contingency plan- hire 3rd-party transportation service for Fri/Sat nights until solid plan can be worked out with school system.• Patrick- 3 months of live music must be scheduled in advance of beginning of academic year, 8/31/2012 (4 months). Contingency plan- Cut live music times down to 1 weekend night until more acts are hired.
  • Action Plan (cont.)• Brendan- Promotional advertising campaign begins on 6/31/2012 (2 months), exact advertising copy and promotional offers ready by then. Contingency plan- coordinate with BSU marketing department to develop advertising campaign for Bear Cave in return for student credit/monetary compensation to Bridgewater State University.