The Grizzly Bear Lodge Case Summary: Diane and Rudy Conrad o
The Grizzly Bear Lodge Case Summary: Diane and Rudy Conrad own a small lodge outside Yellowstone National Park. The lodge can accommodate up to 40 guests in 15 rooms, and is open April through Thanksgiving, with the busy season from May to September. They employ one cook and two waitpersons on the weekends, and several housekeeping staff members, a groundskeeper, and a front-desk employee. The employees are empowered to do whatever guests need, and the Conrads attribute the efficiency of their operation to clan control.Now the Conrads are thinking about expanding the business. The property next door is available, and it would give them space for 20 more rooms. Currently their annual sales total $300,000, with all expenses (mortgage, payroll, maintenance, etc.) running at $230,000, leaving an annual income of $70,000 per year. They want to make several other improvements as well, working with local businesses to offer guided rafting, fishing, hiking, and horseback riding trips, and expanding their restaurant. Eventually, they would like to be open year round.Chapter Topics Related to the Case:Discuss the concept of controlIdentify the control cycleDiscuss the purpose of budgetary and financial controls such as those needed by Diane and Rudy’s operationsDescribe how managers such as Diane and Rudy can implement effective control systems within organizationsDiscuss the concept of market controlsCase Discussion Questions: 1. Discuss how Rudy and Diane can use feedforward, concurrent, and feedback controls both now and in the future at the Grizzly Bear Lodge to ensure their guests’ satisfaction. 2. What might be some of the fundamental budgetary considerations the Conrads would have as they plan the expansion of their lodge?3. Describe how the Conrads could use market controls to plan and implement their expansion.
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