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“Rocky Soccer Academy” Case

Management Dilemma
Henning would like to build a training facility for his rocky soccer academy because the space he currently rents is not always well- suited to soccer.

Situation Analysis
It is a fact that he would need to double his business to be able to meet the cost of the soccer complex he ambitiously wants to build. However he does not know how to grow his business to help him meet his ambition.

His soccer program awareness is almost 100 percent among competitive soccer players of age 11 to 14years however it is about 40 percent among families with soccer-playing children of age 6- 10 years. Most of his customers are 10 t0 13 years old and enroll in two to three rocky programs per year. When the kids reach 14 or 15 years old other high school sports and activities make them less interested in soccer training thus affecting his customer retention rate.

In addition his programs in Boulder and Northglenn, though successful, are currently limited. He has run a few camps in these locations that are 5o miles from Fort Collins and where successful.

Loveland, Greeley and Longmont are potential business expansion sites but are a distance away from Fort Collins where his soccer program is located. The areas have limited soccer training programs but awareness of Rocky academy philosophies and programs is low. Henning is not sure if the parents in these cities are willing to drive their kids to Fort Collins for training or if they would rather have him run his programs there.

Decision Point
How can Henning work on his potential business growing opportunities to double his business to enable him meet the cost of building a soccer complex?
Identification of Alternatives
Henning has three main option of growing his business to enable building of the soccer complex:
Alternative 1:
Increase retention of children of 14 years and above by developing programs that target this age group. This could be programs like building an acquaintance with national soccer teams to in cooperate them in the team at a given age so as to ensure continuity of the passion for soccer.

Alternative 2:
Henning could try to grow the business by entering new markets and acquiring new customers. He could increase his age limit to get more children from both below the lower limit and above the upper limit. He could also serve more children from Loveland, Longmont and Greeley by increasing their awareness about Rocky soccer academy and by establishing the programs there.

Alternative 3:
He can also develop a market a strategy that could encourage his current customers to buy more. He may include other needs such as hiking; camping and counseling in the academy to enable him serve his customers better. He may also develop programs that serve his customers better.

Decision Criteria
The main criteria are how fast the alternative will give the desired outcome; what is the cost required in the implementation of each alternative and how effective are the alternatives towards achieving doubling of the business.

Analysis of Alternatives and Decision
Increase retention of children of 14 years and above by developing programs that target this age group. This alternative will give a very fast outcome owing to the fact that the academy is already as established and thus have potential customers for the new program. The program will increase income since the children will enroll for more programs and hence increase the income with minimal cost. However the alternative cannot double his business despite increasing the income therefore will not effectively meet his goal.

Entering new markets and acquiring new customers is the second alternative which will give an outcome after a long period of time since it would require increased awareness of the new market about the academy’s philosophy and programs. The parents and children may take sometime before absorbing the idea and hence the time lag. In addition the program will incur some expenses that due to travelling but once established the costs of implementation will be met effectively. The alternative effectively enables Henning’s Goal of doubling the business assuming that the response at the three cities is 100 percent as it is in Fort Collins. Moreover the three cities have a bigger population in total as compared to Fort Collins.

Alternative three on the other hand, suggests that he can develop a market strategy that could encourage his current customers to buy more. The outcomes of this alternative may have a short time lag depending on how long he takes to develop the market strategy. It is expected that immediately he launches that market strategy outcomes to start being observed. This is a cost effective alternative with little or no expenses incurred. However the effectiveness of meeting the desired goal is not assured since it depends on the customer preferences.

According to the analysis above, alternative 2 is the best choice. If Henning chooses this alternative he should be more enthusiastic with marketing of the academy to the new market and patient enough to await for the results that my take sometime to surface. He would however be assured of doubling his business profit.

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