2. Table Of Contents
I. Executive Summary………….………………………………...……………………………..3
II. Agency Description………………………………………...……………………………........3
A. Legal Name and Type of Organization
B. Statement of Recognition
C. Mission Statement
D. Services/Products
III. Agency Data…………………………...……………………………………………………....4
A. Community Base
B. Community Needs
C. Level of Competition
D. Size, Growth, & Maturity of agency
E. Agency Milestones
IV. Market Data……………………………………………………………………....…………….5
A. Market Segmentation
B. Market Strategies
C. Market Dynamics
V. Financial Data……………………………………………………………....………………….6
A. Budget
B. Plan for Staying Solvent
C. Pricing Strategies
D. Sales Projections
E. Profit Margin Expected
F. Vulnerability to Economic Factors
G. Economic Generators
H. Effect of Seasonal Factors
I. Regulatory Issues
VI. Management Analysis………………………………………………………....……………...7
A. LongTerm Goals
B. ShortTerm Goals
C. Action Steps
D. Timeline for Implementation
E. Plan Assumptions
F. Red Flags
G. Opportunities
H. Strengths
I. Weaknesses
J. Risk Analysis
K. Organizational Structure
VII. Appendix……………………………………………………………………………………….10
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4. which will provide an opportunity for social fellowship among its members and
their families, and including the serving of food and beverages; to acquire
property, real or personal, as may be desirable for the achievement and
furtherance thereof; and to carry out these activities in compliance with both the
laws of the State of North Carolina and the powers conferred upon nonprofit
corporations by the State of North Carolina.
D. Services and/or Products: The University Club was dedicated in 1965 to
provide NC State staff, faculty, alumni, and their friends and family with a venue
to relax, unwind, and network. The 90 acres of land was donated by the
Reynolds family in Raleigh, North Carolina just a few miles from NC State main
campus. The University Club prides itself in being a family oriented facility.
Faculty, staff, and alumni enjoy their membership by paying monthly dues which
provides them access to dining/banquet facilities, a ninehole three par golf
course, swimming pools, tennis courts, nature park, fitness center, and picnic
area.
3. Agency Data
A. Community Base The University Club is situated right off its intended target
population NC State’s campus at 4200 Hillsborough St, Raleigh, NC 27606
B. Community Needs The Club exists to meet social needs of the Wolfpack
community. It provides leisure to NC State Alumni as well as faculty. In order to
expand and grow the Club tries to get memberships to help pay for the facility
and programs.
C. Level of Competition The Club offers membership to N.C State faculty,and
alumni which makes it unique when compared to other organizations with similar
amenities. They do however have a competition with the State Club,
Cardinal/Capital Club, Raleigh Racquet Club and North Hills Club. Figure 1 in
the appendix represents top competitors of the University Club, with an overview
of membership categories, initiation fee, and member dues. If you refer to figure
2, you will see the amenities available at the various clubs that present
competition to the University Club. The Raleigh Racquet Club and North Hills
Club offer many of the same amenities as the University Club, which causes
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5. issues with user activity. They may utilize these other organizations instead due
to proximity or pricing of membership dues.
D. Size, growth and maturity of agency The club is currently in the middle of it’s
“Bright Future Ahead” campaign which involves renovations and new and
improved opportunities for leisure. Some of these amenities include new tennis
courts, new lap pool and snack bar, a larger and more modern kitchen, a
clubhouse for out back, new lobby and a new and larger bar. These renovations
will allow for a larger clientele and will fit the needs of a wider target market.
The University Club’s members tend to fluctuate monthly; however, faculty and
staff memberships have risen over the years. There were a few years where the faculty
and staff memberships remained stagnant, but within the last couple years it has
increased. You can see this growth in Figure 5 of the appendix.
E. Agency Milestone The University Club is a member of the Association of
College and University Clubs (ACUC). The associationis a nonprofit
organization of campusbased members in North America, Europe, and
Australia. Each club within the association is a unique reflection of the University
community it serves. The N.C. State University Club is the only member club in
Raleigh, and one of two clubs in North Carolina with the Carolina Club in Chapel
hill being the other one. The Club’s membership has also increase drastically in
5 out of the last 6 years, which has also led to an increase in banquet Revenue.
4. Market Data
A. Market Segmentation The North Carolina State University Club primarily aims
to target the faculty, staff, and alumni of North Carolina State University and their
families. While these are the basic requirements for becoming a member, it is
possible to apply for membership even if an individual did not attend or was
never employed by North Carolina State University. Because of these basic
requirements, nearly all the members are over the age of 22, with the majority of
them being over the age of 40 according to the general manager. The North
Carolina State University Club fills a niche market by acting almost as a country
club that specifically targets individuals with attachment to North Carolina State
University.
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6. B. Market Strategies The marketing communication plan has three different
influences. The influences are internal, external, and public. Each play a role with
communicating to recruits and to retain faculty and staff of NC State University.
The promotional mix is used to determine the best method of communication with
the combination of the influencers. The strategies are in place to reach the goal
of one hundred new faculty and staff members in two years and retention
program. The target market of the University Club is NC State faculty, staff and
alumni. In an attempt to gain memberships it uses several marketing techniques.
Examples they use are ad placement in the NC State campus directory, direct
mailings to members regarding specific events and promotions, and word of
mouth. Their website is impeccably maintained and uptodate which keeps the
members or future clients aware and informed of the many events and programs
they have to offer.
C. Market Dynamics There are four packages for the University Club membership,
which consist of the Legacy, Alumni, Friends of the University, and Friends of the
University Club. Alumni and Friends of the University have initiation fees of $1,500 and
membership dues of $149. The Legacy package has an initiation fee of $2,000 and
membership dues of $149, and the last available package Friends of the Alumni has an
initiation fee of $4,500 and dues of $149. Figure 1 in our appendix will show how the
cost of the Club will compare to the competition. As we can see, University Club has
initiation fees that are more expensive than most of their competition. During tough
economic times, such as a recession, having initiation prices this high may limit the
University Club’s ability to grow as the alumni pool grow.
5. Financial Data
A. Budget The Club adjusts its budget monthly based on the number of members,
which varies from about 900 950 members each month. The majority of the
Club’s revenue comes from their membership fees, dining facilities, and food and
beverage. The major expenses include maintenance on facilities, specifically
their golf course, followed by wages and salary, then general and administrative
costs. The University Club will continue to increase their revenue as the alumni
pool grows while also maintaining the community base they currently have.
See Figure 3 in Appendix to view a full breakdown of the Club’s budget.
B. Expected Revenues The University Club projects to earn most of their revenue
from membership dues and their facilities. At the moment their highest grossing
sector comes from the General and Administrative Golf Operations followed by
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7. Food and Beverage. After the 2013 fiscal year the Golf sector had grossed
$1,041,632.40 with a yearly income of $2,011,511.9 and expenses that equaled
$969,879.89. Having a profit this large will help “spillover” to other sectors that
are not as profitable. This will help keep facilities such as the pool, tennis courts,
and fitness facilities in operation since they do not profit as well and are generally
seasonal. The University Club projects 2014 and 2015 numbers to increase with
the addition of new members as the alumni pool is growing.
C. Strategies utilized for pricing Prices are comparable to other highend private
clubs, with membership fees varying depending on the person’s tie to the
university. Alumni and faculty gets a much reduced entrance rate than others.
D. Sales projections see figure 3 in appendix
E. Profit margin Expected see figure 3 in appendix
F. Vulnerability to economic factors The Club runs strictly on memberships. As
long as the members pay their dues the facility will not be vulnerable to economic
factors.
G. Effect of seasonal factors There are services offered by the Club that are
affected by the seasons. Luckily, Golf their most profitable service is a year round
sport that does tail of a minimal amount in January and February. Other services
such as the pool and tennis courts hit major drop offs beginning in November and
lasts until January. One advantage to having these be seasonal is that they do
not have to use their budget on maintaining these facilities for the months that
they are not in use.
H. Regulatory issues The NC State University Club is a private membership,
nonprofit organization, and all membership dues and donations go back into the
facility and its programs. Being a notforprofit organization, the University Club is
able to operate freely from some of the restrictive laws that tend to encumber
public and commercial operations. The University Club enjoys a taxfree status.
In addition to this, federal and state income tax laws encourage its members to
donate to the club by recognizing tax deductions and offering tax credits. The
hierarchy of the University Club goes from its members to its faculty and staff,
depicted in the organizational chart below.
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8.
6. Management Analysis
A. short/long term goals Bright future Ahead Phases 1 and 2 There are two
developmental phases at the club phase I has already been completed, so the
main focus is now on Phase II. It will include a 3,825 square foot addition behind
the already existing building. This new addition will house approximately 60 seats
and 1450 square feet of a more casual, sports themed dining area that includes
flat screen televisions. It will also include a 1450 square feet “Members Only” bar
that will accommodate an additional 70 seat for dinner or drinks. The bar will also
have plenty of flat screen TVs and NC State memorabilia. The addition will also
create more outside dining, casual porches, and patios. Phase II will also include
a 3400 square feet pavilion that will include a snack bar kitchen to service the
pool, tennis and golfers. It also includes a tennis office, outside accessible
bathrooms, an outdoor fireplace and 1200 square feet of covered outdoor living
space. Additionally, Woodrow’s Tavern will be transformed into a state of the art
conference room.
B. Opportunities Although the University Club is at an alltime high membership
numbers there is still more room for growth. The creation of new membership
categories with discounts would allow for more opportunity to attract future
members. A single member category with discounted dues and lower food
minimum would help those individuals who are interested in a club but unable to
afford the full dues. Because of the lack of faculty and staff membership the
opportunity is there to develop additional discount for this specific category. Even
though the University Club was established by the NC State University, the club
is a separate entity and the relationship between them has the opportunity to
strengthen. A stronger relationship would create a greater interest of membership
in the club and the university increasing the use of the club for events and
functions. Members at the club enjoy fine dining and a bar that currently is too
small. Expansion of a new member bar and casual dining area would enhance
social opportunities and accommodate the growing number of families. The new
facility would allow for members to enjoy themselves and provide a festive sports
atmosphere to celebrate university athletics. Currently the snack bar for the pool
is too small to support the number of families at the club. The expansion of a new
outdoor pavilion would not only benefit the pool area but also tennis and golf. A
new pavilion would support the demand for refreshments to the growing
members and the increase of outdoor activity. The University Club is popular for
holding small and large meetings and often must turn groups away because of
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9. lack of space. A new conference room would increase banquet profits and please
current and future clients.
C. Strengths The University Club’s strongest attribute is the growth in
membership throughout the history of the organization. There has been an
increase in membership each year in the last 5 out of 6 years. The casual,
familyfriendly atmosphere of collegial members has contributed to the growth of
the club, and will continue to be an attractive appeal for prospective members.
Another, strength of the University Club is the superior facility amenities. In 2008,
Phase I renovation took place rejuvenating the organization and meeting the
needs of the growing number of members. The facility includes three pools, eight
tennis courts, a walkable golf course, and fine member dining. The University
Club has outstanding management and staff who continually make members and
guest feel welcomed and accommodated. The adoption of an online system
called ClubLinks has created an online community that has strengthened
communication between management and members. With this online feature
members can make reservations for dining, events, and activities, pay their bill,
and stay upto date with all club activity. Lastly, banquet revenue continues to
increase yearly which allows the University Club to create a better value for the
members of the club by having lower good prices and keeping dues down.
D. Weaknesses The University Club’s greatest weakness is the lack of faculty and
staff memberships. The club initially began as a social gathering for faculty and
staff members. However, with the increase of prices faculty and staff
memberships have stayed stagnant. If the numbers decrease below 30% the
University could potentially take away the organization. Another weakness for
the University Club is location. The organization is located off NC State
University campus hindering faculty and staff from easy access to the club.
Another major weakness the club faces is member categories. The University
Club only has four membership categories; faculty and staff, alumni, friends, and
out of area. The club does not have a membership category for single
individuals. Single members are paying the exact same dues, construction fee,
and minimum dining rates as family memberships. This policy has hindered
prospective single members from joining the club. Another membership category
weakness are senior memberships. A discount in dues and construction fee is in
place and is determined by age and the amount of years having membership at
the club. However, for many of the senior members this discount is not
aggressive enough and members still resign their membership due to finances.
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12. Pool
X X X
Fitness Center
X X X
Special
Features
X X
Figure 3: Budget
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