Case Study #3 Final Project
BMGT 364
Mike Davis worked for one of the big outdoor sporting goods stores for more than
seven years. Although he never completed his degree, Mike took some
management courses at the local community college. The knowledge he gained
from his coursework along with his own tenacity enabled him to rise into entry-level
management. Although Mike enjoyed his job, he couldn’t help wondering if there
was more to life. Mike always wanted to open his own business because he wanted
to be his own boss and thought he might be able to earn a decent living.
Recently, retired from a career with the school system as a PE teacher and sports
coach, Mike’s Aunt Daisy was looking to fulfill her dream of having an outdoor
adventure business. She had inherited some property years back but had not done
anything with the land to this point. When Aunt Daisy learned that Mike was
thinking along the same lines, she determined it was time to start a business. The
two decided to go into business together and brought in Mike’s younger brother,
Ethan, who was working part-time as an athletic trainer. The trio combined their
savings and started hashing out a plan to use the five acres of land that Aunt Daisy
had inherited.
The concept was simple…to open a business where teenagers, young adults, and
work teams from local businesses could enjoy hours of outdoor fun and
entertainment. There was limited sports and entertainment for the target audience
so the family decided to open a themed outdoor paint ball park, which they called
Outdoor Adventure Paintball Park. Outdoor Adventure offers customers a choice of
five battlefields, each offering a different level of play.
Each field provides a unique experience for hours of enjoyment. There is the civil
war field with a simulated headquarters and trenches; an old castle, which is made
of multiple levels and a tower; the woods, which offers a true woodsy battle with
placement of several man-made buildings for additional cover; the village, which is
a large field with a wooded section running down one side, a two story building and
bunkers in the middle, with a creek running down the other side; and the hill, which
contains a wooded section and a number of bunkers on a steep incline. A small
store is strategically placed in a location central to the fields to eliminate the need
for guests to leave the playing area.
The costs to customers vary, with rental packages starting at $25 per person.
Customers may also purchase a la carte based on their individual needs.
Additionally, season passes are available for a cost of $150 and birthday party
packages are available for $300. The minimum age to participate in a paint ball
event is 10 years.
In addition to the five battle fields, there are six air ball fields that are formatted for
3, 5 and 7-man tournament play. Air ball fields offer a variety of layouts that are
constantly changed to keep up with the latest craze in tournament play. Many of
the fields have dedicated fill stations to eliminate the need for players to leave the
field to reload.
The facility also includes a shooting gallery designed to allow individuals to sharpen
their shooting skills. The gallery contains high velocity paint guns and a variety of
still and moving targets. Players may practice aiming, have shootouts or just blast
away at targets for sheer enjoyment.
Mike manages the business and spends most of his time in his office with the door
closed, Ethan trains new employees and supervises paint ball events, and Aunt
Daisy has oversight of the shooting gallery. The business started with three
employees but has grown quickly to a staff of 20.
The venture seemed like a good idea. The family’s passion for sports and working
with youth appeared to be paying off. There are loyal repeat customers who
purchase expensive equipment and supplies from Ethan. These customers also
enjoy attending extra training and information sessions. The tournaments have
become popular and the local news has been covering the events. Moreover, the
business has a reputation for being a safe family friendly environment.
However, recently, Outdoor Adventure has been experiencing growing pains.
Scheduling is becoming more challenging as the activities on the field increase.
Staff is pulled from one area of the park to provide coverage in another. Employees
are starting to complain that they do not understand their job duties outside of the
paint ball fields and feel they need additional training and procedures. Additionally,
a major event was missed due to double-booking. A number of customers have
expressed their displeasure with the service and, as a result, spending less time on
the field. Local businesses are not responding to special discounts for employee
events. There has been an increase in workplace mistakes but fortunately these
have not resulted in serious accidents. Customers and employees are starting to
question the leadership and often ask, “How long can a business like this one last?”
or “Who’s running the show?”
Mike has noticed a dip in sales and is now starting to feel they are losing control of
the business. While the two closest competitors are 30 – 45 miles away and do not
offer nearly the same amenities, Mike understands that if they do not do something
quickly, their customer base may decide travel to the competition. Moreover, his
passion for owning a sports-oriented business is waning. He is concerned about the
continued success of the business but the work no longer seems fun or interesting.
Aunt Daisy, on the other hand, is not interested in discussing the books and does
not see any need to worry. She is not concerned about what Mike calls “a few
random incidents” and sees the dip in sales as an indication that it would be a good
idea to expand the offering. In fact, she has been presented with the possibility of
forming a paint ball competing team. She feels this opportunity is too big to pass
up and wants to convince the others that it’s a good time to pursue.
