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BY B.RANADHEER REDDY
PGDBA
Introduction to the case
The Given case is regarding harbour dunes golf course and its proposal to increase
sale time in afternoon tees by considering the proposal options.
Harbor Dunes targets the upper end of the golf market and, in the peak spring golfing
season, charges green fees of $160 per person and golf cart fees of $20 per person.
Under the present plan, Harbor Dunes can sell a maximum of 20 afternoon tee times.
Harbor Dunes averaged selling approximately14 of the 20 available afternoon tee
times. The average income from afternoon green fees and cart fees has been $10,240.
Harbor Dunes is considering two replay options:
(1) a green fee of $25 per player plus a cart fee of $20 per player;
(2) a green fee of $50 per player plus a cart fee of $20 per player.
Questions?
To find out Statistical summaries of the revenue expected under each replay
option
Assuming a 90-day spring golf season, an estimate of the added revenue using
your recommendation.
Any other recommendations you have that might improve the income for Harbor
Dunes Golf Course.
Analysis of the case
Using the mean, the options are similar, but Proposal-2 is preferred
with a daily revenue advantage of $11,173 - $11,062 = $111.
The Harbor Dunes Golf course has to consider the second proposal
since it is more profitable than the first proposal.
Without the replay option, Harbor Dunes reported $10,240 daily
revenue.