In order for The Rotary Cove Beach to continue to operate at above breakeven they must address: How to unite the mission statement with a financial strategy so that there is maximum excess revenue. How to reduce the risk for stalk holders so that they continue to invest their time and money.
The people of Goderich1 are categorized as “Lunch at Tim’s” they are lower-middle class with an average income of $62,010. They are mature and young, living in an industrial community. They are tight-knit community that enjoys socializing at local venues. As we can see from the SWOT analysis2 the Cove a family- friendly beach that is enjoyed by tourist and residence. The Cove has become a part of tradition in the community. It lacks revenue to continue to strive. There is a lot of competition since there are other beaches in the area that people can go to or they can do other activates3 such as the heritage tours, going to the Huron County museum, the Co-Op art gallery, or the farmer’s market. The Cove is part of YMCA, which believes in “Building healthy comminutes4”. There are many people that the Cove benefits, such as the:
board of members,
residence of Goderich,
vendors such as food and equipment.
The current situation of the cove is not as bad as it seems. The loss of 14,043 in 2009 is not current since they had earnings of $1,296.675. The error occurred due to the lack of recording the proportionate revenue from donations6 and government grants7 that the YMCA receives. So the Cove is breaking even in 2009.
The optimal solution for The Rotary Cove Beach would:
Increase total revenue
Unite the Mission Statement with a financial strategy
Reduce risk for stalk holders
There are a few options that the Cove can implement. The first option is to hand over the operations to an entrepreneurial student each year. This option will increase revenue by $7,617. This option unites the mission statement because it will give the change for a student to grow in the community. The risk is however increased since there will be a new student each year and the stalk holders may not trust the opinions of student.
The second option is hand over the operations to a private firm. This option generates at least $7,383 dollars. However, it goes against the mission statement to work within the community to make it stronger and it may not be likely by some of the stakeholders.
The third option is to start charging admission fees. This option increase revenue by $64,504.09. Plus it works with the mission statement since it will increase the number of employees and they will be able to help more people. The risk of stalk holders is also decreased since they will have more jobs available, more vendors will be needed and it will reduce the pressure on the town to bail out the Cove when it does not break even. The fourth option is to stay at status quo. This option reduces revenue by $2,803. It does not work with the mission statement since it will increase strain the community rather than making it healthier. The stalk holders will all be in disagreement since increase the burden on the council for the grants and bailout.
The Cove should start charging admission fees at the beginning of the summer. First they need to start advertising the Cove, through different mediums, such as the internet, TV and radio. Next will need to interview candidates to hire, this should be done within the next month. While the interviews are going on the booth should be installed, where the employee will work. The price change should be made and adverted to everyone. So that they are ready at the beginning on the summer.