short essay

Based on Case 3, examine The Pub's competitive environment using Five Forces analysis. Which Force has the greatest influence on The Pub at the end of the case? Why?

The Pub: Survive, Thrive, or Die?

3

Council (SAC) and had its own insurance and financial reporting. Over the years,

The Pub and SAC organized joint events and benefitted from cross marketing but in

general,income generated byThe Pub rested with the management of The Pub.The

Pub's netprofits were re-invested into operations andfacilities or held assavings.

The university signed aformal agreement with The Pub in 1984 tomore clearly out-

line the relationship between the two organizations. The university appointed a senior

administrative official to The Pub board. The director of administrative services,

Michelle Strain, assumed this responsibility. Strain indicated, "The Pub does not oper-

ate fully at arm's length. The University has some input into decisions of The Pub." The

university's lease agreement with The Pub read, "The university has a vital interest in

ensuring that the operations of the club within the premises will not create aan adverse

reflection of theuniversity." The Pub existedat thediscretion of theuniversity. The uni-

versity dictated whether or not The Pub was to purchase new appliances or engage in

other upgrades to reflect the university's intended image to potential students, visitors,

and the public at large. The Pub's lease could be terminated if its management did not

comply with the requirements set by Mount A's administrators and board of regents.

Within a year of opening,the directors of The Pub employed a full-time managerto

handle all operational issues. The manager's duties included, staffing, inventory control,

cash reconciliations, bank deposits, liquor purchasing and pickup, security, mainte-

nance, cleaning and equipment maintenance, payroll, accounting assistance, record-

keeping, public relations, promotions andadvertising, music/entertainment control, and

regular operational maintenance of the third-party ATM machine. The manager acted

in a similar fashion asan owner/operator would in such a small organization of approx-

imately twenty-two employees, twenty of whom were part-time student employees.

A W

ORNBUT

A

DORED

P

LACE

The Pub was located in the basement of the University Centre on the north side of

campus. Access via a treacherous staircase meant that students with disabilities had

difficultyentering The Pub. No signage appeared on the exterior ofthe building, but

most individuals on campus knew exactly where to find it. The Pub symbolized tradi-

tion and for former and current students it was a nostalgic place. A vibrant overhead

mural on the entrance staircase corresponded with the interior dcor. Walls were also

painted with colorful murals depicting political and social scenes. Small round tables,

painted like the rest of the facility, dotted the premises in no real order or form. A small

coat check was at the entrance, covered with pictures of patrons from years gone by. A

long, thin, cramped bar stretched the length of the room, with clear signsstating, "Order

in this Area." There was one cashregister and this slowed down ordering, despite the best

efforts of the employees. A maximum of two bartenders served customers. On some

nights The Pub set up a second bar in another corner of the club as a remedy to address

slow service.

ADJboothoverlookedadancefloortotheleftaspatronsenteredthefacility.

Speakers surrounded the DJ booth and pool tables were located in the back area. The

ceiling was exposed, allowing all who entered to notice the piping and ventilation sys-

tems. The majority of the floors were covered with old, stained carpet and the rest with

bland tile. This was The Pub, and despite its run-down appearance, it had been the

adored hangout of Mount A students fordecades.

This document is authorized for use only in International Strategic Management 2014 by Dr Ioannis Thanosat University of Glasgow from September 2014 to March 2015.

4

CaseResearchJournalVolume30Issue1Winter2010

Fire regulations limited The Pub's maximum capacity to 175 patrons. Long lines

werecommon onnights withspecial entertainment, and on Fridayand Saturday nights

in general. Customers' most frequent complaint waswaiting in lineat The Pub.

The development of a new University Centre on campus meant The Pub would

move to a new location later in 2008. Strain indicated, "there was a campus facility

master plan done in 2001 and the decision was made to move all student-related func-

tions over to one student centre. So, all non-academic services including the radio sta-

tion, bookstore, cafe, pub, and registrar's office will be located there. As a part of that

plan, a building on campus, Trueman House, was selected to be renovated because it is

in the student services zone with the athletics building." Scooterindicated that moving

The Pub would be bittersweet for staff as there was both anxiety and anticipation.

There were still uncertainties with the new location. There would be a new layout and

employees were concerned about the size of The Pub and the absence of a permanent

DJ booth. They also worried that the culture and working environment would change

with thenew location. Strain noted, "People areapprehensive. The oldPub isfalling

apart. There are leaking pipes, electrical issues, sewage back-ups and a few things not up

to building code. On the one hand, students know it hasto move to a new building with

new facilities. One bigfactor in people's minds isthe size. The Pub isnow 3,300 square

feet and the new Pub will be 2,800 square feet. And so, that 500 feet has become a big

issue for quite a few people." However, the new Pub did provide new opportunities.

Scooter stated, "It will certainly take a bit of time for us to become accustomed to a dif-

ferent bar layout, but the new bar presents an opportunity for greater efficiencies in serv-

ing customers, especially since we will be able to have more serving stations in place."

T

HE

M

OST

S

OCIAL

W

ORKPLACEON

C

AMPUS

AllemployeesofThePubwerestudents,except Scooterandthedoorman.Thestaffcon-

sidered The Pub to be the mostsocial workplace on campus. Promotions manager Chris

Grove pointed out, "it helps build another sideof students' education here at Mount A."

Employees were offered drink discounts on nights they were not working, were allowed

to walk past lines, and shared tips equally (regardless of position) amounting to $300 or

$400 per individual annually. Scooter donated his share of the tips to charity. Most

employees moved between positions depending on what neededto get done.No formal

job descriptions existed. Generally, hiring occurredin early September and January, fol-

lowed by several weeks of training for newcomers. If the Pub needed more staff during

the year, further employees would be hired. Scooter expressed, "we've always tried to

purposefully aim for the broadest possible selection of students during the hiring

process. In terms of gender, the split is fairly equal. In terms of academic standing,

there is a heavier emphasis on upper-year students, although we try to hire students

in their second year tominimize turnover. We try to have atleast one member ofeach

of the four or five biggest varsity sports teams and rugby clubs, at least one student

from each of the dozen most popular areas of study, members of most of the biggest

campus extra-curricular bodies and charities, several students who speak multiple lan-

guages, a few international students, and a few students with diverse sexual orienta-

tions."

The full-time management and DJ positions required extensive trainingof at least

one year and replacement was difficult, as individuals graduated and left the univer-

sity. Scooter indicated that retention was the biggest challenge to The Pub given its

This document is authorized for use only in International Strategic Management 2014 by Dr Ioannis Thanosat University of Glasgow from September 2014 to March 2015.

employeestructure. As a partialremedy, the board was considering hiring another non-

student full-time employee in the future.

Staff described the working environment at The Pub as informal and fun, despite the

fact that almost all positions paid minimum wage. Employees joked around and every-

one was easy to get along with. At the same time, one bartender pointed out that

employees "recognize there is a job to do aand they get it done." On busy nights, partic-

ularly weekends, it was ademanding working environment, often with late nights. Once

clean-up was finished at around four in the morning, employees sat down for half an

hour, had a drink, and relaxed. The board expected staff members to be role models to

other students. Unruly behavior and excessive drinking were reprimanded by bans from

The Pub, the elimination of discounts, or reduced hours, but almost never a notice to

leave employment forever. Underperformance on the job, such as slow service as a bar-

tender, was discussed by Scooter and Grove. The managers frequently worked as bar-

tenders on busy nights. In general, less experienced staff members were scheduled to

work on slower nights during the week.

D

ECISION

M

AKINGAND

G

OVERNANCE

The Pub had a clear, but not necessarily strict hierarchy (see

Exhibit 1

). This hierarchy,

although informal, was clearly understood by employees. One bartender noted, "roles

are not entrenched or established within contracts or job descriptions." Seniority and

experience played a significant role and best described the structure of The Pub. Staff

members who had been employed at The Pub for a number of yearsusually two or

morewere given added responsibilities such as key accessso that theycould open The

Pub on nights they were working