Case Study Jack's Beach Service

Submitted By gashen
Words: 1904
Pages: 8
Open Document
Jack’s Beach Service - Case Study
Kamma Andersen, Gary Shen
Mr. Dodge
BOH 4M1
26 February 2015
Background Information
Jack’s Beach Service is entering it’s 86th year of operation on Fort Lauderdale beach. However, even with its history on the beach, the owner, Joe Broward is not satisfied with the company’s profitability. Next month is the beginning of the peak season for the company where rentals often reach 80-90% of capacity and Joe would like to explore methods of generating more success and ultimately profits. The service that Jack’s Beach Service provides is the rental of a raised wooden platform for tanning purposes. This platform can be used for one or two people and can be adjusted for individual preferences. Currently, Joe has 13 locations on the beach, with 7 major locations staffed by multiple attendants and 6 smaller locations staffed by only one attendant. The attendants are paid $95.00 for every day of work and are responsible for raising the awnings and placing the cushions at 8:00 AM, collecting rental fees throughout the day and locking the platform’s cushions away, folding the platforms and collapsing the awnings at 5:00 PM. The attendants often are faced with surprised sunbathers when they explain that the platforms are provided by a private company and have a rental fee. While their are opportunities for increasing the awareness to avoid this problem, Joe uses very little advertising. Overall the company runs smoothly, yet the previous year, the company’s revenue was $340,940 but the net income was only $10,615. Joe would like this number to increase and is looking for ideas to help his business become more successful.
Primary Problem
Immediate Problem: Jack’s Beach Service is not profitable enough.
Root Problem: The management responsible for various aspects of Jack’s Beach Service is inadequate.
Secondary Problems
1. The full day fee for using the service is not flexible and is causing the loss of potential consumers.
2. Insufficient advertising has resulted in low awareness for the service provided by Jack’s Beach Service.
3. Attendant wages do not vary to reflect changes in consumer traffic during peak and off-seasons.
4. Vandalism costs are causing Jack’s Beach Service expenses that do not maximize profits.
Criteria for an Effective Solution
1. Increase sales/revenue from wooden platform rental service.
2. Decrease proportion of revenue lost to labour expense, particularly in the off-season.
3. Improve brand image and awareness.
4. Increase customer relations.
5. Enhances management within company.
6. Minimize expenses associated with vandalism.
Alternative Solutions
1. Change the pricing to an hourly fee instead of the full day fee.
$2.00 for 1 hour of use
Pros
Cons
Won’t scare away customers and will increase the number of sales.
Platform must be rented for 6 hours in total during the day to make the same revenue as the full day fee.
Potential revenue if the platform is used for the whole day increases from $12.00 to $18.00.
More work for attendants since they have to keep checking for new customers more frequently.

2. Introduce a half day fee along with the full day fee.
$6.00 for half day (4.5 hours)
Still $12.00 for full day
Pros
Cons
Offers varied pricing so customers wont be scared away.
Moderately more work for attendants since they have to keep checking for new customers more frequently.

3. Change the pricing to a per person fee.
For a group, prices per person could decrease depending on the number of rentals/customers.
Pros
Cons
Increase revenue if customer has family or friends who want to share the platform.
Increased price for a group could decrease the number of rentals.

4. Advertise service in beachfront hotels.
Pros
Cons
Increases awareness for business, particularly for tourists.
Increased expenses for brochures, signs, possibly a fee from hotel.

5. Put signs and other advertisements on the beach so that customers are aware that the service is not free.
Pros
Cons
Increases
Show More

Related Documents: Case Study Jack's Beach Service

Term Limits Pros And Cons

“Without term limits every man in power becomes a ravenous beast of prey” -john adams The supreme court has been cuffed by political fighting. Term limits are a good idea because the founding fathers never intended to live as long as they do today.The founding fathers never intended politics to become a lifetime career for an individual. The current debate in washington is an example of the court being incapacitated by other branches of governments. The fight between democrats and republicans…

Words 373 - Pages 2

Pros And Cons Of Congressional Term Limits

Term limits for Congressional representatives and Senators have been hotly debated for some time now. Even political experts tend to be divided on this important issue. There are some who believe that Congress and Senate benefits from “fresh blood”, while there are others out there who see the value in government continuity. Each side of the debate has points to make, so with that in mind, let’s take a deeper look into the Pros and Cons of Congressional term limits. The first pro for term limits…

Words 249 - Pages 1

Pros And Cons Of Short Term Lincoln

What would the world be like today if one of the nation’s greatest presidents had not been assassinated? Would he have a second-term or not run a campaign again? There are many that are questioning the same thing.Historians say that in short term Lincoln would have managed the civil war aftermath better. Who really knows what would happen? He would have face second-term challenges as well such as post war depression and Native American’s and settlers arguing on the new frontier. Lincoln was northern…

Words 383 - Pages 2

Should The Pros And Cons Of Congress Have Term Limits?

House and Senate member. Term limits would not allow Congressmen to run for as long as they want. We already do this with the president, so the same should be done with members. Members of Congress require term limits because our country is continuously evolving with a more diverse community wanting a true and accurate representation, it would reduce the chance of corruption, and finally make more room for fresh ideas and the energy to make it come true. By not having term limits, imagine someone…

Words 493 - Pages 2

Kara LeBel Essay

Kara LeBel 3/3/2015 English 110 Professor Martins Compare and Contrast Pros and Cons of Social Welfare The argument about welfare will continue for as long as welfare is around. As long as there is poverty and people in need, welfare will exist. Many people are for welfare and believe that we have a moral responsibility to help those that are in need, especially when it is a single mother who needs to get back on her feet to take care of her children. There are also many who are against…

Words 490 - Pages 2

Essay about HUM 176 Week 3 DQs

Evaluating the Pros and Cons of Different Social Media Sites Identify the pros and cons for each site. Blogger Con: Security - possible transmission of untrustworthy links Blogger Pro: Ability to filter comments via an approval mechanism Blogger Pro: Ability to filter comments via an approval mechanism Blogger Pro: Mass customization - widespread use among target audience Blogger Pro: Ability to…

Words 564 - Pages 3

Env12 Writing 101 Essay

Select a topic • • • • • • • • • • • • Alt energy: pros and cons Earthquakes (building safety) Comparison of alternative energies Rooftop solar panels BP oil spill- environmental effects Freshwater usage and conservation Japan earthquake & tsunami- env effects China's air pollution- problems & solutions Solar energy- env effects and its future Hurricane Katrina- env effects Biofuel vs. alt energies for transportation Alt energy: pros and cons Select a topic • • • • • • • • • • • • POPs- env effects…

Words 438 - Pages 2

Essay on Time Series Analysis and Average Forecasting Pros

Which forecasting technique (and resulting forecast) is the best technique to use? Why? Answer: Weighted Moving Average The pros and cons of moving average forecasting Pros It is s simple forecasting tool if you are going one time period period into the future. Ease of use, and not consuming great amounts of time Very good for short-run forecasts Cons The moving average is usually used to track the actual data, but it is like a trailer of a truck always behind the data. The moving average will…

Words 479 - Pages 2

Rowen: Marketing and Plastic Frames Cons Essay

Alternative and evaluation 1. Expand target markets to women and children Pros: • Larger target market • Better odds that a profit will be reached • The metal frames more susceptible damaged and children are rough on glasses so more parents will want their plastic frames Cons: • Different advertising would be required • More money into different designs • Possible character licensing fees 2. Switch to sunglasses Pros: • Be able to use same machinery • Huge increase in market • Very few…

Words 473 - Pages 2

Endeca (A) Essay

different term sheets that each of them contains some pros and cons putting in front of Papa to let him choose. Overall, Papa should choose the first term sheet because the benefits in that term sheet are more than the second term sheet, and at the same time it has less cons. Does…

Words 946 - Pages 4