Hickory Ridge Golf Club Case Study
Overview:
Greg Hamilton purchased the Hickory Ridge Golf Club in 1988. This publicly nine-hole golf course was located in Columbia, South Carolina. HRGC initially opened in 1957 as an 18-hole, par-71 golf course by a family who go by the name Williams and who also owned the land it sat upon. Williams’s family sold the course in 1964; the business had been exchanged between many purchasers before getting cut back to a nine-hole 35-par course by the McAlister’s. The McAlister’s who were in the construction business brought the golf course in 1978 making major renovations to the course. McAlister had not sufficiently maintained the clubhouse or the course adequately while in ownership of the land; he took…show more content… The loan will provide efficient and safe carts and the ability to accommodate more customers. Cart rental brought in second highest revenue for HRGC which means it is crucial to operation. After reviewing Mr. Hamilton options it is preferred to go with E-Z-GO Company for the golf carts. The company has 35 years of experience, reasonable purchasing price at 2,680$ for electric carts, competitive leasing price of 59$ a month with a residual value of 675$. The beneficial assets of this company is the carts are very sturdy with full sheet metal body with tubular frame designed to bear wear and tear, electric modes held their battery charge longer than the other three companies, corrosion resistant and last but not least the carts and parts are manufactured in nearby Augusta, Georgia
Secondly it is advised to buy new adequate course machinery and equipment because it is essential to pleasurable purpose. Major course equipment that needs to be address such as mowers, irrigation system, tractor and rotivators will be calculated into the loan. These components are what keep the business occupied; being able to improve these problems would heighten the golfing experience as well cosmetically appealing. Mr. Hamilton will need to take a 40,000$ loan out and purchase five carts of his own while leasing 20 carts to safeguard demand. He will also purchase all course machinery and equipment to maintain a high functional course. A
