Club Management Case StudyLINGAER
The Case and the problem ----Page 265 Fred Lee’s Club
1. The drop of membership in Fred’s club.
2. Fred didn’t pay attention to the new country club on the south side of the city,
which means he failed to realize the competition.
3. The club’s board tend to make as little change as possible year to year in order to
cater for the current members. They consider only their current members as its
market target while ignoring other elite people beside their current members,
especially some young professionals.
4. The food and beverage revenues had been falling at a faster rate than the
member dues revenues. They can’t have the older and more loyal members
spend much time in their dining room and casual grill room. Besides, the snack
bar revenue drops 50% compared to ten years ago.
5. The pool and tennis courts were not as crowded as that of fifteen years ago,
especially at the time when school was out in summer.
6. The wedding business goes down significantly.
As listed above, problem 1, 3, 5, 6 are basically caused by the same factor that Fred’s
club didn’t pay attention to those young professionals with young families. Their
market target was totally wrong. That’s why their membership drops because they
failed to attract new young professionals, their board wants to be conservative because
they didn’t realize the right market target. There weren’t many families in the summer
because some of their older members’ kids have grown up and they failed to young
professionals with kids. The wedding was also due to the lack of young professionals.
About problem 2, I would like to believe it is because the manager did not consider the
external threat and ignored the surrounding competition. Therefore, I think this is also
a major reason for the reduction of club members. Besides, for the problem 4, the
reason why the food and beverage revenues had been falling at a faster rate than the
member dues revenues is because it does not take into account the ageing of club
members. As the age of club members increases, the food that was previously popular
with club members is not what they like now. I think that members of the club now pay
more attention to the health of the food. They are more willing to eat some foods that
are good for the body rather than the snack bar. I think this is the reason why its
income is falling rapidly.
So, I think the most serious problem facing the club now is to solve the problem of
falling food and beverage income, because it is falling faster than the member, which is
why I have to put this problem in our primary position. Secondly, I think the problem
we should pay attention to is to solve the problem of member loss, because this will
directly affect the direct income of the club. Finally, let's solve the problems related to
swimming pools and tennis courts as well as weddings.