Business Golf Islington Golf Club Case Study Marketing

Definition of Success

In order to succeed in sustaining the operation of a private golf course to the satisfaction of current and prospective members, Islington Golf and Country Club must address the following.

Critical Issues

• How to define the mission and long term strategy of the club so that consensus of the members is gained.
• How to improve the financial stability of the club so that Islington can remain competitive.
• How to target prospective members in the new market place so optimal membership levels can be sustained

Analysis

Decisions regarding the club’s direction are decided upon by shareholding members. This membership is made up of a very diverse group with many differing and conflicting

interests (Swot). Meanwhile, there is no clear direction or goal for the club which has yet been defined (Swot). As the club does not operate for profit, it is pivotal that a clear mission/vision for the club exist. Without such a goal, the club will not be effective in fulfilling any specific purpose, especially given its complex decision making structure. Consequently, the club is unable to make and implement meaningful strategic decisions. This poses a problem for Islington because it prevents it from satisfying its core membership in the long term. It also prevents it from targeting prospective members or making decisions swiftly. For these reasons, a specific mission and vision for the club must be defined and agreed upon by current shareholding members.

Currently the financial stability of the club is of major concern.The poor economic situation and fluctuating weather climates (See Pest analysis) has led to a decline in golf rounds, a 7% decrease in guest fees and an 11% decline in cart fees which led to reductions in the operating revenues which currently composes 48% of the clubs revenues (See financial exhibit and PEST analysis). The club’s food and beverage operations contribute 35% of the operating revenues (See financial analysis) and yet report a loss of $50,000 to $100,000 (See exhibitX). Contributing factors of this loss is due to flat sales in food and declining sales in beverages as well as the decline in hosting outside events, such as weddings, which contributed 40% of the food and beverage operation revenues. Together with the lack of revenue the food and beverage operation has the highest operating cost at 36% (See financial exhibits).

In addition to decreasing revenue and increasing operational cost, Islington has an insufficient capital allocation as the expenses are higher than our revenue leading into deficit and forcing allocation from the capital contingency fund. This has led to a financial situation resulting in a lack of funds to be reinvested into the club.

Toronto has 30 courses within 30 minutes from Islington, many of which have recently upgraded their facilities and offer other amenities. With major competition for new members, green fee revenues and other revenue events, Islington is finding it hard to maintain members (Porters).  Also, the downturn of the economy resulted in a diminished market of people who can afford a membership at a private country club (Pest). There have also been demographic changes in the median age, male to female ratios and cultural diversification in the surrounding area (Pest). A perceived social shift also presents a concern where young professionals may not have the time to enjoy a full time membership (Pest). Given that competition in the area is fierce, and the market for club membership has shrunken, it is especially important for Islington to position itself in a way which is attractive to potential members. (exhibitX)