COMM 120: Sugar Bowl Case Analysis - Strategy & Recommendations, UBC

This case study provides an analysis of the Sugar Bowl business, focusing on the challenges faced by Givens in turning around her grandfather's bowling business. It includes a SWOT analysis, PEST analysis, and Porter's Five Forces analysis to assess the company's internal and external environment. The analysis identifies strengths like no direct competitors and customer loyalty, weaknesses such as debt financing and employee resistance, opportunities for expansion and diversification, and threats from increasing costs and competition. The study also offers recommendations, including cost reduction, implementing total quality management, partnering with reliable suppliers, or selling the business. Ultimately, it questions the viability of Sugar Bowl under Givens' leadership and suggests alternative career paths.

Running head: Sugar Bowl 1
SUGAR BOWL CASE MEMO
Course title
Institution affiliated
Student number
Date

Sugar Bowl case memo 2
To:
From:
Date:
Re: Analysis Sugar Bowl
Sugar Bowl was a promising business when Givens took it from her grandfather. The entrepreneurial spirit coupled with
an interest in management enabled Givens to tighten the company’s cost and streamline its operation which thus, yielded
fruits. However, it was very difficult for Givens to sustain healthy profits in the companies due to several challenges and
shortcomings as discussed. The company had to go through a series of problems and recoveries while Givens tried her
best to improve the company and ensure profits are earned.
SWOT analysis
Strengths
 There are no direct competitors facing Sugar Bowl
 The company has gained customer loyalty.
 Use of advanced technology in its operations
 Strong company management
 The company has a large customer base
Weaknesses
 The company’s operation is being financed by debt capital
 Employees’ resistance to transformation
 The company has a problem of staff shortages
 Delay of material delivery which delays company’s operation.
 Fault in internal processes- malfunctioning of machinery for two lanes
Opportunities
 The company has the chance to expand to other countries due to a large customer base.
 The company can diversify its services and win more customers.
 It can partner with other companies and reduce its debt burden and reduce competition.
Threats
 A continuous increase in utility and healthcare costs which increases its expenditures.
 The regulars aging population is increasing which is a sign of reduction in future demand and skilled employees.
 A decline in the popularity of bowling teams
 Increasing competition from family entertainment thus posing a threat to this company which focuses on
expanding and winning more customers.
PEST
This describes the external environment affecting the company.
Political factors
The company has been facing a delay in permits from the authorities. This problem made it difficult for the company to
open in a timely manner but instead, the business was opened later than planned. Additionally, failed in the standards of
the city council concerning some of its structures. Its pipe busted and because its design was not as per the required
standards leading to its failure.

Sugar Bowl case memo 3
Economic factors
The cost of labour in sugar bowl is very low causing most employees to quit. The employees’ salaries has been kept low
by the company with the aim of reducing expenses and increasing the revenue earned. However, the company provided
wage compensation to its employees which enabled them sustain themselves.
Social factors
The company values good relationship among its employees, friends and other professional bodies and often consult them
in case of any problem. It also valued and respected its employee’s opinions and therefore liaised with them in case there
were any kind of changes to be done on the company. However, most of the company’s employees are resistance to
change and prefer quitting than embracing the new changes.
Technological factors
The company uses advanced technology in tis operations. This leads to an increase in production and improves the quality
of products and services being offered.
Porters’ five forces
This helps in understanding the factors affecting company’s profitability.
Threat of new entrants- new competitors may enter the market who may be offering undifferentiated products like that of
Bowl Sugar thus posing a big threat.
Suppliers’ bargaining power- the suppliers have a do not have a strong bargaining power. However. Most of them delay
in the submission of the raw material in time.
Buyers bargaining power –the buyers of this company do not have a large bargaining power as they don’t often influence
the prices. Most of like the company products at whichever prices it is being sold and rate the products as very
favourable.
Threat of substitute products –since there is a high demand for the company’s products, other investors may enter the
market thus increasing competiton.
Recommendation
1. The company should cut down unnecessary costs to help in offsetting the amount of debt borrowed. This will help in
improving the company’s financial position and reduce it borrowing.
2. The company should implement total quality management/six Sigma/continuous improvements. This will help in
eliminating any limitations that may occur in the internal processes.
3. The company should partner with reliable suppliers to eliminate the problem of supplier’s delays. This will ensure
the company’s processes is conducted in a timely manner.
4. Givens can also decide to sell Sugar Bowl to the local investor. Sugar Bowls analysis portrays that, its shortcomings
outweighs its benefits. Selling the company could enable him to pay off her student loans and be in a position to
invest in any new venture.
Therefore, Sugar Bowl is not a viable business and Givens should consider leading the group which is focused on
small groups operations. As this has always been her passion, it pays handsomely and has a huge bonus which he can
utilise to invest in another business.