Cwc Case Diagnostic

ClubWest Canada. (CWC) Case Diagnostic

Role

• Jack Trevino, President and CEO of CWC since 2001 and the driving force behind the aggressive growth strategy. CWC has issued shares to private investors but he and his four friends, who founded the company, retain control. Thus, Jack is accountable to the investors and other stakeholders for his decisions, and strategy creation and monitoring.

• Present: shortly after March 2012, CWC has been running for 11 years, so Trevino retains the current vision of providing every member and guest the best possible experience.

Current Situation

• Positive organizational health (Appendix 1) and positive operating performance (Appendix 2). However, although the company is profitable and can meet its debt obligations, it may witness revenue declines in the future. Its customer, employees and key business processes are positive with high investor confidence. Overall, the firm is in a desired state and must be able to leverage its debt and sustain future growth as the firm continues to expand through acquisitions and developments

• Business strategy (Appendix 3). CWC’s primary goal of revenue growth and maintaining 15% return on equity aligns to its strategy components: (1) Generate off-peak ancillary revenue such as hosting events to cover periods of slowing revenue growth (2) Continuously looking for opportunities to expand and develop golf courses and enter new markets such as ski resorts

• Competitive Position (Appendix 4): CWC has pursued differentiation primarily through exclusivity, convenience, and branding, so CWC has successfully achieved a competitive edge compared to its competitors.

• So what: Current operating performance may not be sustainable in the future and align with its goal of revenue growth. CWC’s competitive position allows it to reduce costs