Submitted by: Submitted by pipsqueak38
Views: 442
Words: 2212
Pages: 9
Category: Business and Industry
Date Submitted: 10/02/2012 04:06 PM
RUNNING HEAD: A-1 LANES CASE ANALYSIS
A-1 Lanes Case Analysis
Karyne Jackson
Davenport University
BUSN 495 Business Planning Capstone
January 23, 2011
Introduction
This case analysis will show what types of decision-making styles are most and least effective in order for A-1 Lanes to remain a competitive global manufacturer. A-1 lanes, a manufacturer of bowling lanes, has grown and expanded greatly since its beginning in 1985. Rick Baker, the president and founder of A-1 Lanes and two investors found A-1 Lanes in a chicken house and barn in Rusk, Texas (Allen, 2009). The company’s main products were high grade wood and technologically advanced synthetic bowling lanes for domestic and international markets. The company is now forced to reevaluate based on the economy in its overseas countries, particularly the baht being devalued by 11% in 1997.
80% of A-1’s sales are from countries in and around the Asian Pacific Rim. The company has more than $1 million in accounts receivable from this region. In 1996 the company took out a loan for $500,000 on a new manufacturing facility to sustain its recent growth in Korea, China, and Taiwan. In July of 1997, Thailand devalued the baht by 11%.
Because of these issues, A-1 has to make a decision on the future of the company. Management is considering three options: (1) liquidate A-1 Lanes, (2) sell the company or (3) stay in business and try weather the impending storm (Allen, 2009).
During this reevaluation, A-1 must look at many important aspects of the company in order to make the correct move towards the future. They need to look at the external and internal environment to discover what potential and options that they have. Being mainly in the Asian market, they need to discover the risks and the proactive measures that they can take.
Relevant Facts
The company had sales of $12.4 million in 1996, which was a 33% increase from the previous year. Only 20% of sales were domestic in 1996...