Drowling Mountain –Analysis and Strategic Recommendation Essay

966 Words Jun 21st, 2013 4 Pages
Case Analysis MEMO

Subject: Drowling Mountain –Analysis and Strategic Recommendation
Drowling Mountain non-profit Ski Resort was the popular choice among Syracuse residents, New York. However, the company has experienced loess for the past two years. Due to the fact that too many competitors with lowers prices and current state of economic recession (appendix 1), in addition, the company is debt heavy (appendix 2) to an extent that impacting its profitability. Based on those reasons, the company needs to be reactive and proactive in order to survival in the changing internal and external environments. Based on the analysis undertaken and the trade-offs considered (Appendix 3), it is recommended that Drownling Mountain, reducing its
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Attempting to advertise around neighbouring cities * Justified pricing strategy to attract more customers | Value Proposition | * Highest ski hills in the state * Non-profit resort was popular choice among its target market (Syracuse) * Positive relationship with the city |

Appendix 5 Sensitivity Analysis
Towards Labour costs - 2010 $ Decrease in cost of labour | 0% | 2% | Revenue | 2,844,941 | 2,844,941 | Labour Costs | 432,667 | 424,013 | Gross Profit | 1949105 | 1957759 | EBITDA | 120,662 | 129,318 | Decrease in loss | - | 7.2% | Appendix 6 Stakeholders Analysis Stakeholder's

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