Westlake Lanes case study

1. What problems does Shelby Givens face when she began her work at Westlake Lanes in March 2010?

Shelvy Givens faces many challenges as she begins her work at Westlake Lanes in 2010. Some of the problems she faced include the unfavorable decisions by the company’s board that if the company does not meet its profitability by mid-2010, it would be closed. This way, Shelvy would only remain unemployed and unable to repay her college loans considering that she was a fresh graduate. Additionally, Givens experiences several financial problems as she begins to work for the company ranging from the repayment of the loans to the unpaid invoices that exceed 50% of the money given to her by the board.

2. By the end of the case, what actions has Givens taken to address the problems outlined in Question (1)?

To begin with, Givens has estimated the future cost of the company by assessing the cost of expanding the business. This is aimed at helping her to budget for the financial crisis facing the company. Additionally, she can do this by estimating the future costs of the risk of the investment. She also makes sure that the profits do not outweigh the costs.

3. Which of Givens actions were appropriate? Were any of her actions inappropriate?

Givens approaches this case by tackling the two major critical issues in the company. First, she begins by finding a way of exhibiting maximum productivity by the employees by finding ways to reduce costs by and creating morale among the employees. According to me, nothing seems inappropriate in this case since Givens manages to make the company profitable again after only nine working months.

4. What other actions might she have taken?

She should also have ensured that the employees are well trained in the latest production methods by asking the company to come up with a training plan.

5. Do you agree with Givens prioritization of Westlake’s financial, organizational, and marketing challenges?

I strongly agree with Givens decision to prioritize on the economic organization and commercialization challenges since they were the biggest problems facing the company. Her decision to restructure the financial organization in the first place was the best move. Secondly, addressing the company’s marketing challenges would ensure that the business is financially stable, and it would not require other sources of finance to fund its projects.

6. Is Westlake Lanes a viable business (what are the positives and negatives associated with the firm)?

Despite the fact that the board is so impatient, it is fair to say that Westlake Lanes is a viable business if only it has the right management. The positive side of this business is that it gives a second chance to the employees under new management. The downside is that the board has little trust to the management.

7. By the end of the case, the business is cash flow positive. How should Givens evaluate whether to build/sell/liquidate the business?  What is your assessment of alternative opportunities?

First, if the business has begun making profits, there is no need to liquidate the assets. Givens should come up with more ways to increase the production and the benefits considering that she has fulfilled the ultimatum set by the board that the company will be abruptly closed if it does not make profits.