The Rotary Cove Beach Essay Example

there may be no funding at all depending on the outcome of the upcoming election. Thomson and The Cove must demonstrate to the Council that the beach has the potential to generate a reliable and consistent source of profit to ensure future funding.

If The Cove cannot identify its direct competition in Goderich, it will be difficult for them to distinguish themselves and succeed. There are many public and private beaches in Goderich and even around Lake Huron. However, The Cove Beach has several advantages over other public beaches nearby. Their strongest asset is their well-known and trusted lifeguards. They have high hiring standards, ensuring that they employ the best and most experienced lifeguards, which attracts both tourists and locals. Unlike other beaches that cater to adults and focus on nightlife, The Cove Beach has a monopoly on the family-friendly market segment.

Decision Criteria:

Will the proposed action align with the YMCA Mission Statement and prevent financial losses at The Cove? Additionally, how will it affect beach attendance and differentiate The Cove from its competitors?

One potential option for the company to generate additional revenue is by implementing admission fees. Given the significant annual attendance at the beach, a small fee could be charged to each guest. According to Exhibit 2, this strategy would result in a revenue increase of $60,000 (as shown in Exhibit 3). The break-even point for this project occurs when 6,417 guests are charged, which has been reached during the third week of summer based on past years' data (Exhibit 5).

Despite the risk of missing charges due to multiple accessibility points along the beach coastline,

the estimated attendance of 25,000 is considered conservative and will result in a significant net income of over $24,500 at the end of the year (Exhibit 3). After admitting its 14,778th attendee (Exhibit 6), the Cove will cover all operational costs. However, it is important to note that charging patrons a fee goes against YMCA's values and mission statement (Exhibit 1).

2) The installation of volleyball courts at beaches is a highly attractive feature for the public and the benefits outweigh the costs. The construction cost of $2,282 is inexpensive and the project can be completed within 2 days. Given that families in town lead active lifestyles, especially during the summer when schools are closed, it will be easy to attract attendees for summer camps. Children are more likely to participate in activities that their friends are also engaged in, increasing the likelihood of group sign-ups for the camps. The Cove will breakeven by enrolling approximately 10 kids per camp to cover the construction costs (Exhibit 7).

Exhibit 8 displays the profit level that The Cove will receive at each of the three volumes of enrollment mentioned in the case. Instead of hiring two additional counselors, a recommendation could be made to use extra volunteers for the larger camp sizes, resulting in a saving of $2,520. Considering the entire operations, the volleyball summer camps, with a capacity of 150 kids, only generate a net income of $4,133. This is significantly higher than the income earned in 2009, with a difference of over $28,000. However, this option aligns better with the YMCA mission statement and values. While the camps are not utilizing the courts,

The Cove has the potential to establish a summer league to generate additional revenue, as explained in Exhibit 9. This would contribute to an increase in net income. The maintenance of nets is minimal and they would likely only need to be replaced every other year. On the other hand, the frequency of volleyball replacement is uncertain.

3) The YMCA should consider selling the operations of The Cove if they cannot find funds. Maintaining the YMCA mission statement is crucial for The Cove, and it's challenging to find a source of revenue that aligns with the mission statement. The current instability indicates that the YMCA may not be capable of managing The Cove. The uncertainty surrounding the Council's actions regarding funding cuts and the upcoming election could result in The Cove facing greater financial losses than in previous years.

Here are the recommendations and action plan:

Looking at all the information above, constructing and installing volleyball courts aligns with the YMCA's mission and values. It is also consistent with The Cove's family-friendly atmosphere, setting it apart from competitors. This option will bring The Cove out of its financial deficit and into profitability, which it has struggled with for the past three years. The profit generated from camps and a potential summer volleyball league will demonstrate to the Council that The Cove can operate as a financially stable facility, securing funding for the foreseeable future.

The Cove needs to urgently reach out to the contractor to initiate excavation work for the completion of the courts within two days. Simultaneously, immediate action is required to commence the organization of summer camps. A roster of

counselors and volunteers should be prepared and the potential candidates should be contacted promptly. Additionally, the exhibits are also of importance.