For Kim

Overview

Split & Strike located in Cave Creek, Arizona, is a state of the art bowling alley offering a full-service bar and extensive dining options. Setting our company apart from competitors, Split & Strike also offers touch screen score monitors, large screen TV projectors, stereo-surround sound and glow-in-the-dark bowling just to name a few fine details.  Split & Strike provides creative event planning services and is the perfect solution for family, friend and corporate gatherings. Split & Strike is the sole option for this type of entertainment in the community.

In addition, being in a diversely populated area, Split & Strike offers a place of fun for all individuals to come together to celebrate and appreciate the community. Split & Strike believes that giving back to the community is important; therefore, fulfills the requirement within the Cave Creek’s community. As a matter of fact, community events and fundraisers will find Split & Strike to be the perfect location, offering special packages and pricing at for occurring events.

Split & Strike creates plenty of fun for singles, families, young and old. This facility will appeal to all fun-seekers!

Mission and Vision

           Our vision as Split & Strike is to be the ultimate and extraordinary place for family, friends and individuals to experience state of the art bowling that will have you striking back to play more! Our mission in developing Split & Strike is creating an outstanding bowling alley in order to increase the variety of entertainment within our community. Our main goal is to have individuals in the surrounding area and beyond, of all ages to a place to indulge in our ultimate fun and entertainment.

Split & Strikes strategy is to create an entertainment place that has never been seen before. Due to the upgraded technology we offer additional arcade rooms and deliver outstanding customer service. The key component to our strategy is offering exceptional customer service. Split & Strike has developed a customer service policy that requires all employees to remain positive and obtain a sense of urgency to servicing people and machines throughout the building.

We understand that it is more enjoyable when an employee is willing to help with a positive attitude. Our technology will remain updated to the most current software to ensure our customers are offered the most recent products. Split & Strike will also acquire arcade machines from the old and new, offering fun and entertainment for all ages. These attributes will support our business strategy and help our company achieve the mission we wish to provide to the community.

Business Opportunity

           As an established company, Split & Strike is also looking to expand further in the state of Arizona and if successful farther into the West coast. Split & Strikes demographic is broad because it is a friendly, family and corporate focused organization offering many different options of entertainment. The demand for our products is also stable, as mentioned previously our technology is frequently being updated and offered to our customers. Furthermore, customers are capable of downloading our free application onto their mobile device, which allows individuals to reserve rooms, bowling lanes, order food and communicate with our staff.

Environmental Scan

Five Forces

Threats of New Entrants

Split & Strike is considered an attractive industry. The threat of a new entrant is high, as it requires a small investment to start such business; furthermore, Split & Strike currently is the only entertainment and bowling organization within the Cave Creek community. To reduce Split & Strikes threats, we are looking to gain customer loyalty with membership incentives, group discounts, and daily deals. Additionally our products are advanced in technology offering mobile applications to reserve lanes, tables and assistance in event planning by communicating with our staff. Split & Strike will remain focused on fostering brand identification as well as production, distribution, and little marketing.

Bargaining power of suppliers

    Split & Strikes suppliers do not have an advantage, due to the fact there are substitute materials for our organization. Since the suppliers do not hold the scarce resources they do not have the bargaining power. Additionally there are multiple suppliers for our products and with our company and the surrounding competitors; suppliers would not have the advantage (Staff, 2016). Although still in our beginning phase, Split & Strike will remain researching a supplier that will allow our margins to increase and we will find an international option for substitution and possible lower costs (Porter, 2015).

Bargaining Power of Buyers

Split & Strike is welcoming to our customers because we offer favorable prices and purchase selectively. As previously mentioned, Split & Strike receives generous profits and is able to create a great incentive to lower our purchasing costs; however, we still offer various entertainment options, so we remain competitive (Porter, 2015).

Rivalry and Competitive Firms

    Split & Strikes rivalry competition is high because there are a few similar organizations within the surrounding area. Dave and Busters and AMF are roughly thirty minutes away from Split & Strike and reside in the Northern Phoenix, Arizona area. Dave & Buster’s is known for their food and entertainment atmosphere involving arcades and games; however, Dave & Buster’s does not offer bowling as an option of entertainment. Secondly AMF Bowling is also thirty minutes away and only offers bowling. Split & Strike has combined multiple options for entertainment, offering bowling, arcade, food, drinks, parties and memberships.  

Competitive Advantage

Split and Strike has many different sources of competitive advantages that strive against all others. Firstly, the quality of the machines and technology serves as a huge upgrade compared to competitors. Split & Strike wants to relieve the stress of consumers waiting around for machines to load or malfunctions to occur that can ruin their time, but not at Split & Strike. Split & Strike has top of the line new and improved machines that are constantly being updated to the most recent software to reduce the room of errors. Many competitors don’t have the capability to upgrade their machines due to costs but Split & Strike do.

Secondly, the customer service that is being offered is not comparable to other competitors. Split & Strike has developed a customer service policy that all employees must obey by in order to accept the job. Our employees must always have a positive attitude and a sense of urgency to respond to our consumers in need of help. Due to our employees being on top by being friendly, positive and willing to make the customer the number priority has catch the eye of our consumers to come back for more.

Lastly, Split & Strike is all about giving our consumers a deal no matter what time or day of the week it is. A loyalty program has been set up to where consumer can sign up for free to receive promotions through emails or texts. These promotions act as a way to connect to our consumers by updating them on the latest news and events. Split & Strike gives daily deals and a chance for consumers to obtain discounts/rewards. These discounts/rewards can include a free one game of bowling, a free meal from the restaurant, 50% off of shoes and drinks, etc. Split & Strike definitely has a competitive advantage with their loyalty programs because this is letting our customers know we appreciate their business by giving back to them to enjoy more.

Modes of Entry

In order for Split & Strike to expand the modes of entry that would be utilized to expand our business would be new wholly owned subsidiary.  Being that we would be located in a foreign country, it would be beneficial to the Split & Strike if there “is an entry mode through which a firm invests directly in another country or market by establishing a new wholly subsidiary” (Hitt, Ireland and Hoskisson, 2014).   Although it may be a little expensive or pricey it would work well for the company in ways that would contribute in the future to help to keep our competitive advantage with the increased growth of technology.  It will also help with executing international strategies when needed.  When it comes to foreign markets there is an advantage to having additional control over operations when proprietary technology is involved.  Due to the fact that parts of Canada has a various amount of places for their residents and visitors to seek entertainment, it would work well for Split & Strike to enter or consider entering with joint ventures to help support our success in the country.  “Joint ventures are used when firms want to establish a strong presence in an international market” (Hitt, Ireland and Hoskisson, 2014), this is exactly what Split & Strike needs to help with any competition and to gain the attention of customers.

    When exploring parts of Canada, as a location to expand our business, Clifton Hill, Niagara Falls is a great location that has many visitors and tourist from all around.  This area is a high traffic area where locals and visitors seek fun and entertainment.  Although there is another bowling alley located within the vicinity, being that Split & Strike is a state of the art one of a kind we are sure to be a success.  There aren’t any bowling alleys in the immediate area that offer a full-service bar and extensive dining options, touch screen score monitors, large screen TV projectors, stereo-surround sound and glow-in-the-dark bowling just to name a few fine details.  Canada main languages spoken are French and English so there wouldn’t be much of a language barrier that would impact our entry.  

Outlook, Forecast, Trends

Marketing Plan

Target Market and Size

Although Split & Strike is considered a fun, family-friendly, yet corporate oriented organization our main target market is young adults, male and female ages eighteen to thirty. Split & Strike has decided to focus on this targeted group specifically because our marketing tactics and, by extension, our brand will be delivered more efficiently. We are focused on generating potential customers as well as providing business growth. The young adults are available online through social media which allows Split & Strike to offer promotions on platforms such as: Groupon, Facebook, Instagram, and Twitter. However, as previously mentioned, Split & Strike will appeal to all ages and groups for fun and entertainment by offering bowling leagues and championships for our older customers, “date night” packages for singles and couples, as well as family fun nights.

The Cave Creek areas we have selected for our initial location is widely know for being a tight knit community. Thriving on their local businesses, they are known for championship golf, nightly live entertainment, saloons, poker tournaments, trivia, and casino events. The crowds are diverse, with visitors and residents alike, enjoying all that Cave Creek has to offer. Split & Strike will fill a hole that the area’s entertainment industry has lacked thus far. The area consists of four zip codes: 85087, 85086, 85331 and 85337. Although the area may be considered rural to some, our target market population is more than eighty thousand potential customers, who all would have to drive at least 30 minutes to find a similar entertainment without Split & Strike ("Phoenix Population and Demographics (Phoenix, AZ)," 2000).

Market Size and Market Share Estimate

SWOT (use two by two table)

Product, pricing, place, and promotion are crucial elements or any marketing strategy. Split & Strike will offer a product that will go a long way in ensuring that we outdo any competition. The focus of our products will be state of the art technology and bowling facilities. When it comes to pricing, it is very imperative that we price the shoe rental, games, food and drinks in an affordable but competitive way where customers are happy and profits are being made. The place Split and Strike is located is in a diversely populated area, as previously mentioned, where families and friends come together to celebrate and appreciate the community.  This will be the perfect location for community events and fundraisers. Eye catching facility exteriors, signage and visual ads will be an absolute must.  As a way of promoting Split & Strike, customers will have access to take virtual tours of our facilities and make party reservations via our website. Promotions will also form the better part of our marketing strategy, which will go a long way to creating/increase awareness of the superb entertainment Split & Strike has to offer.

Organizational Plan

Management Team

Split & Strike strives to build the management team based on strengths and skills; therefore, these responsibilities are according to corresponding partner skill levels.  Split & Strike believes in furthering the value beyond our individual talents. Which will create an environment, in which growth and development are key. As Split & Strike begins to grow, the management team will place much importance on delegating leadership responsibility.

McKinsey 7-S Assessment

- Strategy: The focus on social and technological relevance, consistent community connection and involvement, as well as targeted marketing strategies, will ensure successful enterprise over the competition.

- Structure: Split & Strike will have a team-oriented environment. All employees ideas will be heard and appreciated, creating a sense of value and appreciation. The management team, comprised of traditional roles, will evenly divide tasks and personal management tasks as presented above.

- Systems: Many daily activities will take place within the organization to maintain operation. Staff will be divided into four categories, each categorical team reporting to their corresponding management team member. Each categorical team will have set goals that will be set in team meetings, and then addressed periodically. There will be monthly, quarterly and yearly goals. Weekly meetings with will take place for each categorical team, led by their management team member. Goals, and progress toward them will be addressed in the weekly meetings. The management team will meet monthly for the larger picture goals and tasks, as well as to address any glaring problems.

- Shared Vales: The organization will pride itself in superior customer service, creative marketing, community attachment, and a first class environment. A family oriented and flexible environment for the staff will create a work environment that fosters employee longevity and loyalty. Good work will not go unnoticed, and loyalty will be rewarded.

- Style: A highly communicative leadership style will be adopted and acted upon. Efficiency will always be the priority, but not at the sacrifice of flexibility and an enjoyable working environment. Teamwork and delegation will be highly encouraged, the management team leading by example.

- Staff: The employee demographic will illustrate to the community that Split & Strike encourages integration and diversity. Attitude and personality will be more important, from a staffing perspective, than related experience. Split & Strike will invest in employee’s education and training, adding to the likelihood of employee loyalty. A system will be set in place, as it pertains to each role and department, for employee’s opportunity to earn a higher income and/or advance within the company. Growth and internal promotion will be the corner stone of the staffing structure.

- Skills: Creativity will be an essential skill of the staff at Split & Strike, employees with bright minds, who have fresh and enticing ideas to bring to the table. While some experience will be preferred (specific skills to depend on the position), imagination and an outgoing attitude will be essential to obtain work. If Split & Strike is to be always relevant and engaging, that must start with the people involved in working activity (Hitt, 2014).

Business Level Strategy

Split and Strike`s business strategy is about differentiating its products and services from that of its competitors, at a reasonable price. Any company can offer the same products at a lower price, but those companies stop appealing to their consumers very quickly. That is why Split & Strike will offer more than just a bowling alley in order to appeal to a broader market, which will allow many people from different age groups and demographics to enjoy. Split & Strike will offer arcade games, glow-in-the-dark bowling, HD TV monitors, music, and even a bar/restaurant. Split & Strike will continuously look for new technology that is more appealing to customer’s preferences, in order to keep their interest with us. In order for Split & Strike to achieve success, “the firm must consistently upgrade differentiated features that customers value and/or create new valuable features (innovate) without significant cost increases” (Hitt, Ireland, & Hoskisson, 2014, p.117). Split & Strike will always upgrade their technology to the latest software available, ensuring their machines run smoothly and free of errors. The idea is to offer customers appealing products at comparable prices, to the competition, in order to achieve above average returns.

Corporate Level Strategy

Split & Strikes differentiation strategy goes along with the corporate level strategy of having moderate diversification in order to gain value. Split & Strike isn’t just a place to bowl, but has other means of entertainment as well. The range of products within Split & Strike, together, will gain consumers through the resources provided. For example, Split & Strike uses the value-creating of economies of scope to share its primary activities, resources, and core competencies such as, the bowling facility, games, food, and updated technology to gain a competitive advantage. Our events/catering services are sharing the facility and restaurant resources in order to increase returns by lowering costs and adding value to the business. The restaurant has the means of using the updated technology to order through an app to increase the value of the service provided. The more diverse products that Split & Strike offers, the more the business is creating value and expanding as a whole.

Organizational Plan

Supply Chain

The supply chain Split & Strike utilizes will be one of integrity. Without much negative impact on cost figures, local suppliers and businesses will be utilized for the majority of purchases. Since involvement in the local community will be high, we will promote investing in other local businesses by purchasing as much product from such businesses as possible. For example: high quality meats, to serve in the restaurant, will be purchased from a local and family-owned butcher shop whom sources all of their product from local farms and ranches. These ideals and practices will be publicized. Making it known to the public that Split & Strike invests in the community. The bowling alley and event planning vendors will be selected on a case-by-case basis, as they will not be regularly purchased from. Restaurant products will be purchased, from the following primary local vendors:

Meat – The Meat Market Butcher Shop

Produce – McLellan Family Farms

Bread Products – Cave Creek Bakery and Market

Miscellaneous – Phoenix Restaurant Supplies

In the event of a supply shortage, service error, or other event that may result in a product delay or related issue, the products reference above will be sourced from another similarly priced vendor. Vendors will be searched for locally first, and then outsourced farther if necessary. An operations team within the restaurant staff will manage inventory.

Operational Effectiveness

As a middle and moderate market corporation, Split & Strike understands how crucial effectiveness and efficiency is. Therefore to optimize our operational effectiveness in our organization we will continue to improve and focus on delivering the best products and services to our customers, both internally and externally. As previously mentioned, we offer the newest electronics and technology as well as the opportunity to reserve bowling lanes, tables in our dining and event area and much more. Additionally to maintain an effective operational organization Split & Strike continues to strive on improving our forecasting technique. We focus on our products, services, managing inventory, controlling our supply chain, staffing properly, and forecasting our demand and capabilities. Split & Strike remains prepared to meet the market demand and save money. Lastly, Split & Strike strives on researching ways to improve the customer's experience by focusing on quality using the six-sigma method. Split & Strike defines, measures, analyzes, improves, and controls within our firm to sustain business products and services (Sherman, 2017).

Primary and Support Activities

Split & Strike has developed a business differentiation strategy that has key value chain support and activities that are used to help set us apart from competition. Pertaining to the finance support function Split & Strike is willing to invest as necessary, to update their machines and software in order to stay ahead of competitors. Split and Strike will also invest in ways to innovate customer relationships, by creating membership loyalty programs and corresponding app features, creating the ability to connect one on one with our customers. Human Resources will implement a policy, stating employees must offer exceptional service to our customers and always do so with a sense of urgency. Continual employee will ensure a thorough knowledge of the various offered products and technology. Split & Strike will “acquire and develop excellent information systems that provide up-to-date market intelligence and real-time information in all areas relevant for strategic and major operational decisions” (Hitt, Ireland, Hoskisson, 2014, p. 120). This will include, but is not limited to, acquiring financial and performance reports to managers about sales of different products provided. Also, these reports will provide valuable information to managers, showing any areas needing improvement or reduction. With those finance, human resources and management information systems our business has acquired different ways to support our operational plan.

 References