tC\

\.-Al
. / l (-r
> 2*., . LoKo'
CurrentMission \
profitabilityandgaina competitive .." a1_r
Windscurrentmissionisto increase
Whispering
to the marina'
\-,"i\ \'/iY:J
'^
a{L c
that couldbe substitutes
activities
overotherentertainment
advantage -t
,.q{)
\(\
CurrentVision
Thereis no specificvisionmentionedin the case,but from the openingletterwrittenby
EddieCollins, hisvisionfor the companyappearsto bethe abilityof the company to
growandadaptto an incrTsinglycompetitive environment and becomemore
profitablein the future.V

CurrentStrategv
1. Goals
a. Hardgoals:
i. Whispering Windsmanager, EddieCollins, specified that he wantedto
the overallprgfildlilLof the marina.Hesaysthat to makeit
^ilrgrease
profitable,the marinaneedsto figureout how it canform a competitive
advantage overotheractivities.y'
ii. EddieCollinsstatedthat he wantedthe marinato-finda defendable nichQ
!q_market lowards,. Currently,Whispering Winds markets to anybody that
patronsthe marina.Theydo not concentrate theireffortson a groupthat
wouldbringthe most profitability.'/
b. Soft goals
i. SandySimmons, presidentof the corporation that ownsWhispering
Winds,believes that partof the financialproblemthe marinais facing
wasdueto the lackof qualified andproperlytrainedmanagers. Hisgoal
for the marinais to retraincurrentmanagers andhirequalifiedmanagers
to keepproperaccounting numberslHebelieves that the new manager
hastakennecessary stepsin correctingthis problemandachieving his
goal.
Orientation
Strategic
a. Product-marketfocus
i. whisperingwinds hasa lglr o,pdrrctfocr,rsbecauseof the varietyof
servicesavailableto peoplevisitingthe marina.Themarinadoesnot .v/
specialize service
in onespecific or product.lt isthe Wal-Martof marinas.
ii.Theya|sohavea]gj0lglglketfocusduetothefactthattheydonot
marketto anyparticular group.whispering windsis opento anybody
andmaintains that imagecurrently with the public.In that senseit is also
the Wal-Martof the marinaindustry' /
iii. Whispering Windsisthe Wal-Martof the marinaindustrybecause it
carriesa widevarietyof productsandservices andallowsanybodyto
comeandshopthere.currently, theydo not havea nichertheY market
towardsandthe marinadoesnot specialize in anything'tz
 b. Valueproposition
i. Whispering Windscurre lue tion because it
offerscompetitive pricingfo
offersa onestopshope customers by offeringthe entire
rangeof criticalsupplies for a satisfying marinaouting,includingexclusive
accommodations for largeboatdocking.Dueto upwardpressure on
costsby the IndianaDepartment of NaturalResources, it makesachieving
the low pricevalueproposition increasinglydifficult./
c. CoreActivities
i.jperatj-qns- Operations is a coreactivityfor Whispering Windsmarina
because allof theirbusiness
literally is comprised of operations. Under
the umbrellaof operations there are severalcore capabilities that allow
Whispering Windsto bethe marinathat it currentlyis.
1. -[enlals- Rentals is a corecapabilityof the marinabecause it
producesmostof the revenuefor the marina.Whispering Winds
\ \l CC, hasseveraldifferent typesof rentals availableandtheyinclude
\ -
\ \ \ \t- boatrentals,
sliprentals, andbuoyrentals. Sliprentalsbringin the
^n\)\JUt'" \\,ft-a(;he , most revenue for the marina so theycreate monetary value for
,,fN l,- ^hS marina.Boatrentals arealsoanimportant partof themarina,
r r n \'\X v -(aY rf \a,en thoughthe marina only makes 2/3 of thetotalprofitsfrom
\ \ f,1, t\,''q \ .d\X'the rentals. Buoyrentals areanother formof sliprentals because
' people cantietheirboatsupandthen be shuttled backforthbya
\Ji -\r0\ ,. ,i1\"
t -'
(. ....[*1t" \r\ shuttleboat./
t-
\Uf /p;'" z. sjsrage-Storageisa corecapability because it isa majorservice
'
provlded bythemarina. People expectto beableto storetheir
_ ".f[J.;"
\) boatat themarina, soit isvitalthatthemarinaliveupto the
expectations of their customers. y'
ii. S9IV|EC- Service is a coreactivitybecause manyof the optionsat
-'_
Whispering Windsareserviceoriented.Alongwith operations serviceis
the onlyothercoreactivitythat Whispering
basically Windscurrentlyhas.
Theyprovideseveralservices to their customers that areessentialfor the
customer to beableto enjoytheirdayat the marina.
1. Shuttleboatservice- Themarinaspecifically statesthat the
shuttleboatis a servicethat theyofferto customers. Theshuttle
boatserviceis available to the customers who haverenteda buoy
to tie their boatup to outsideof the basicdocks.Buoysare less
expensive to the customerandthe marinaoffersa 24 houra day
shuttleserviceto transportthe customers to their boats.
2. &epairshoq-Therepairshopis alsoanothercorecapability for
Whispering Winds.Therepairshopallowscustomers to have
everything they needat theirfingertips.lf theydid not havea
repairshop,customers who haveto loadup theirboatsandtake
themsomewhere elseto getthemfixed,whichcouldcause
Whispering Windsto losebusiness. lt wassmarton theirpartto
 includea repairshop.Therepairshopservices alltypesof boats
socustomers do not haveto worryaboutif their boatcanbe
fixed.
3. Fbbling-p-roceslThebubblingprocessis a serviceofferedby the
marinafor winterstorage.lt allowscustomers to storetheir boats
in the waterduringthe wintermonthswithouthavingto worry
aboutthe waterfreezingto the hull.Theserviceis installedon all
of the docksandis includedin the priceof rentinga winterslip.
Thewayit worksisthat longtubeshavebeeninstalledon the
bottomof the lakeunderneath the docksandlow horsepower
O motorspumpair throughthem.Thehoseshavesmallholesin
themandthat allowstiny air bubblesto escapepushingthe
warmerwaterfrom the bottomto the top, keepingthe top water

t. Betweenbuoyrentalandshuttleboatservice
a. Themarinarequiresthesetwo corecapabilities to work
seamlessly togetherto insurethat the buoysfunction
properlyfor the marina.lf the shuttleservicedidn'twork
the buoyrentalratewoulddropdrastically because no
onewouldbe ableto getto their boat.lf for somereason
the buoyswerenot properlyholdingthe boats,the shuttle
servicewouldbe obsoletebecause no onewouldbe able
to rent a buoy.
Performance
Analvsis
Theoretical
Construct
and Dimensions Measures . Firm Benchmarks
Chosen? Performance
External lnternal

Financial CurrentRatior -0.21 L.20

Financial Position BAD
Performance
Profitability Returnon y' -.tL .04
Assets BAD
Operating
Performance $ 4,568,042
MarketPerformance SalesLevel/ G o o d{ e q u a l s S 3,891,000
(absolute) industry
perl()rmance)
Organizational
Health Employment 01.)1' 63%
Turnover

\ -,1
\ [-"
t ] _ / ,f,
7_\ -/
J{-
,a
' !
 Sinceonlyoneyearof Whispering Windsfinancialdatais availableit is appropriateto compare
absolutesaleslevelsto the industry.Analysis wouldbe mole meaningful with a g1olglhralgfor
sales,but that is not+ossiblewith the informationat handYWefindthat firmswith similar
levelsof assetsaregenerating aboutthe samelevelof sales.Thisis a promisingstatisticfor a
companythat is havingdifficulties managing itsfinanceson the balancesheetspecifically with
regardto its currentliabilities.

In plainEnglish, Whispering Windshasonly20 centsin currentassets to covereachdollarof currentdebt.

Liquiditymeasures the firm'sabilityto keepup with itsshortterm debt.Typically a ratioof 1 or higheris a
minimumbenchmark for a company to be considered youapproach a currentratioof less
ftalthy.3l
than .5,yourfirm is dangerously closeto bankrupt".
L'CAI
Here,Whispering Windsshowsa profitability that is far belowthe averagein the market.
It showsthat the assetsof the companyare not beingmanaged in a waythat generates reasonable
profits.We areonlyconsidering one yearof financialdatain thisanalysis, but it is stillveryconcerning
that the firm is generatingnegativeearnings.Almost7o % of the firm'scoststhisyearwerefixeQ
q.xPgnsef ThismeansWhispering Windswill probablyhavea similaramountof fixedexpenses nextyear
to dealwith astheystruggleto findwaysto makeprofit(i.e.- by cuttingcosts,or boostingrevenue.)
Thefirm mustcreatea strategyto lowerthe enormousfixedcostsor elseit will likelynot survive.y'

. rc\ \ [ Eachmarinaisactually a collection

of smaller
business.
Sincenoteverymarinahasthesamecollection of ) ],{
A1o W ' \ businesses,measuring something likethe number
of boats
sold or the amount of gas isn't
i!-s-qlls l^nUW
U-. annropriatefor everymarina.onl wav to measure
marketperformance isbyth(Gl sales)when il,e
$$k ^
llftt'S
. (

/
)
marina'stotalsA!-eS
theirSfi-are
3lg{oyparedwiththe industrytotalsales,
oJthgmarketlhisshowseachmarina,
the firm isgivena f,iettyclearpictureof
whetheritssalesaredueto retailor rentals, exactly
{rtv1,j$r
r-l
WVC, ,\ \how muchof theindustry's marketit hascaptured. /
to
\$ffi;;;il;;:;;.,emp|oyeeturnover.Amarinas,mainassetisitsrC(
a>\ n
qr
" "t^/- /.
\D{}
V*'
\,/-
€mployees.
respectand
r6ch6.+ rnrl
Employee
valueftheir
rral,,a lrair
turnoveris a reliableandtrustedmeasureof organizational
employees
amnlarraac
typicallyhhave
irrninall., ^.,^
low turnover.tWhispering
lar., +,.rna.,^- ArL:-^^-i--
health.Firmsthat
Winds,.which
llr:^-t- .,L:^L
tries+to
+-i^-
keepiits
^ Laan +a
l$S
r\ '

..V,;
:V' employees yearroundeventhoughit is a seasonal business, certainlycaresaboutits employees. Thishas
'/
resultedin their low turnover.Nationally, the rateis muchhigher.Theorganizational health'sindustry
benchmark wastakenfromthe USDepartment of Labo/sBureauof LaborStatistics. Thenumberisthe
2008averageof the leisureand hospitality industries, andit showsthat Whispering Winds'employees are
happierwith theirjobswhencomparedto the nationalaverage.(

Comparison
of FirmandIndustrv
L. Financialperformance of the firm
a. lt is clearthat Whispering WindsMarina's positionisfar belowthe
financial
industryaveragecurrentratio.Thisis a resultof the firm havinghighcurrent
debt relativeto its currentassets, with only20 percentof that debt being
coveredby assets. Theindustryshowsusthatthe currentratioaverage is 1.20.
Thistellsusthat mostfirmsin the industryhavemorecurrentassets than
currentdebt.Thisscenario is referredto asbeingliquid.lf a firm is liquid,it
 meansthat it couldcoverits debt if it all becamedueat once. With a current
ratioof .2,the firm is illiquid,andis in dangerous positionwith regardto its
creditrating,whichcouldresultin banksbeingunwilling to lendin a crisis.Banks
will rejectlending to Whispering WindsMarinabecause it appears, andactually
is,highlyriskycomparedto the restof the industry.We chosethe currentratio . 19f
asa basisfor analysis because it provides an accuratg
accura.tp measurefor the unique
\U
ffinancial
inrncirf rriskiness
i<lzinocc of the firm withinthe shorttermlWe hbelieve
n f f h o f i r m r r r i l h i n t h a c h n r l + o . ^ y ' V r t o aliarra fthis
h i c cshould be
hnr rlr{ h r

the first placeto startanalysis on anyfirm. We calculated the ratioby taking

theircurrentassetsof 51,578,598 anddividingit intotheir currentliabilities of
57,550,829 (=.21). Typically we look for a ratio ovetat least L.00 to be healthy.
A ratioof .5 andbelowmeansbankruptcy is near.Z
2. Profitability of the firm
a. Theprofitability measure, Returnon Assets(ROA), is an indicatorof how
profitableWhispering WindsMarinais relativeto itstotal assets.lt showsus
that its performance is not on targetwith the marina'sindustry.We took
Whispering WindsMarinasnet incomeof - 5525,398 anddividedthat intotheir
total assetsof $4,583,627 andcameto a returnon assetof -.1.1or -11%.After
findingthe industrystandardreturnon assetof .04or 4%in RMA'sFinancial
RatioBenchmarks. Thisshowsthat Whispering WindsMarinaisfar belowthe
averagewith its returnon assets.Rp.! is 9 qgag_g.re of profitability,bq! the
reasonwe selectedit is because
ROAratioindicates how well uppermanagement
it alsohasa relationship with manage_qplt.
is employingits expensjv_e
C"dI
IJre

assetdThefirm hasnegativenet income,sothisdemonstrates poorusageof

the assetsthe firm hasinvestednrillions of dollarsin. Expenses outweighthe
revenues that the companyis tryingto produce.In our KeyRatio'sExcelFilewe
reference an importantadditionalstatisticto consider.We foundthat certain
activities of Whispering Windsweregenerating muchhigherprofitsthanothers.
.Nan1ely, the BoatSalessegmentof Whispering Windsincorygisgenerating only
L3o/qgf profitper salesdollar.All otherincomegeneratef65@profitper sales
dollar.Onemustconcludethe onlyrchoicefsdhe'firm-itlo.G more,if not all,of
its resources on all of the other incomegenerating activitiesbesidesBoatSales.
Whileit wouldinitiallylowerWhispering WindsoverallSales, thiswouldserveto
boostthe profitmalginof the firm andgiveit a chanceto operateat a positive
net incomeagain."/
3. Marketperformance of the firm
a. Themarket performance of Whispering WindsMarinawhenmeasured by Sales
Levelisgoodcompared to the industry. Whispering WindsMarinaperformed
about17.4%higherthanthe industryaveragein termsof SalesLevels. The
Profit-loss statementonlyshowsthe datafor oneyearso a growthrateof those
salesis indeterminable.V
b. TheSalesLevelis concluded fromthe revenue from boatsales, sliprentals, boat
rentals, service andrepair,shipstore,gasoline andoil,andwinterstoragein
orderof magnitude aswellasotherincome.Sinceboatsalescomprised the
largestcontribution to sales,it is noteworthy to mentionthat thisyear;the boat
 inventoryhasbeenreduced,removingsomelineswhileconcentrating on others
that offerhigherprofiton sales.lf thisiseffectivgtheoverallsalesfrom boats
maydecrease slightlybut profitsfrom boatsalesihouldincrease.y'
health
4. Organizational
a. Theorganizational healthof the marina,basedon the statementthat the marina
its
strivesto keep employees full timethroughoutthe year,is good.However,
employees cansensewhena business andlackof
is not doingwellfinancially,
communication on these issuescancause worry and confusionamongst the
team.Whilemanymarinashavefulltimeemployees, a largepercentageof the
workersareseasonal, sothe factthat Whispering Winds its employeesall
|eeRs
yearwill increase the employee's loyaltyto the marina.l/

Financial
Statements

5 Yr Pro-Forma Financial
Statements:
Whispering -
Winds Balance Sheet
*Projections arebasedon an overallindustry5 yeargrowthratefigureof 6.3% peryear. ( 6.3
% calculated by Reuters.com)
We find thisfigureto be reasonable the yearspriorto andincluding
sinceit includes the global
financialcrisis.
So,if thereis a skewingeffecton the datafrom the financialmeltdown,it will be counteredby
the averagewhichincludes the 3 yearsleadingup to it.
CurrentAssets 2009 20t4

Cash s 89,202.00 s L2L,O7L.22

AccountsRec. s L97,770.OO 5 268,427.33
NewBoats S 957,28L:00 s t,299,289.00
UsedBoats S 170,092.00 5 230,860.81
Parts 5 L49,226.OO 5 202,540.01
ShipStore S 7,675.00 s 10,417.05
Gas/Oil s 7,353.00 s 9,980.01
TotalCurrentAssets s 1,578,598.00 s 2,L42,584.07

FixedAssets

Buovsand Docks s 1,872,682.00 5 z,s4L,73s.s2

Perm.Bldgs S 515,460.00 s 699,518.51
OfficeFurniture s 7,157.00 S 9,713.98
HouseBoats s 345,811.00 s 469,358.97
WorkBoats s 9L,890.00 5 L24,7L9.56
Equip S 94,298.00 5 L27,987.87
Other:
 PrepaidExo s 6,832.00 5 9,272.87
DeferredInt Exp s 70,899.00 S 96,229.10
Lons- TermAssets S 3,oo5,o29.oo s 4,079,536.39

Total Assets 5 4,583,627.00 S 6,221,220.46

Currentliabilities

AccountsPavable s 250,412.00 s 339,876.75

TradePayable 5 520,055.00 S zos,gss.tz
SalaryExp s 24,934.00 5 33,842.L8
Int Exp S sz,ozz.oo 5 77,462.L3
TaxExp 5 L22,4L3.0O 5 L66,I47.52
LeaseExp 5 101,332.00 S 137,534.91
PrepaidDockRental S 499,705.00 5 678,234.72
BoatDeoosits s 12,006.00 s 16,295.39
CurrentBankNotes 5 497,280.00 5 674,943.34
Mortgage 5 2,7sz,Lzo.oo S 3,735,370.54
NotePayable(floorplan) s 1,031,540.00 s 1,400,078.53
NotePavable(rentalhouseboats) s 200,550.00 5 272,200.54
NotePayable(to Stockholder) 5 L,442,420.00 S L,g57,7s}.7z
DealerServiceLiability s 38,990.00 S s2,9t9.92
TotalCurrentLiabilities S 7,550,829.00 S 10,248,515.39

LongTermLiabilities

L-TNotes"L-TDebt" s 329,490.00 5 447,206.97

OtherL-TLiabilities'

- "Net Worth"
RetainedEarnines 5 Q,772,294.00\ 5 8,762,752.L11

TotalLiabilities'
and Net Worth s 4,583,627.00 5 6,22t,22O.46

growby5.3% peryear,Whispering
ff allaccounts Windswillbeoperating at anevengreater
loss.
54- 55million
It willloseanadditional overthenext5 yearsat itscurrent
pace.

* F,r,{r}rna soirwloz ,
Add {rrhb+c=1c d.tru
D}'-'creW, ore ry++'nq
Lhmoib
5 Yr Pro-Forma Financial
Statements:
Whispering -
Winds IncomeStatement
*Projections arebasedon an overallindustry5 yeargrowthratefigureof 6.3% peryear. ( 6.3
% calculated by Reuters.com)
We findthisfigureto be reasonable the yearspriorto andincluding
sinceit includes the global
financialcrisis.
So,if thereis a skewingeffecton the datafrom the financialmeltdown,it will be counteredby
the average whichincludes the 3 yearsleadingupto it.
Revenue 2009 *(1.0631n5 20L4

Saleof newboats s 2,548,704.00 s 3,459,280.06

Saleof usedboats S gsg,zgo.oo S 487,653.62
Saleof rentalboats S g4roz.oo s 46,285.63
s 2,942,096.00 S 3,993,219.31
OtherIncome:
Serviceand reoair 5 257,374.00 5 349,326.07
Gasoline S 162,658.00 5 220,770.86
Shipstore S 182,428.00 s 247,604.09
Sliprental s 546,342.00 5 74L,533.73
Winterstorase 5 64,354.00 5 87,345.77
Boatrental S 4Lz,79o.oo s 560,267.58
TotalOther s 1,625,946.00 S 2,206,848.t0
Totallncome S 4,568,042.00 S 6,200,067.40

Expenses

Fixed:
Costof boats S 2,s96,246.oo 5 3,523,807.40
Costof repairequip. s 113,396.00 S tsg,gog.ot
Shipstorecosts 5 128,810.00 5 L74,829.98
Costof Gasoline S 103,764.00 S 140,835.79
Boatrenalcosts s 365,902.00 5 496,627.89
Total Fixed s 3,308,118.00 s 4,490,010.07

Operatingexpenses:
Wagesandsalaries s 656,308.00 5 890,787.3L
Taxes S az,+so.oo 5 6q,4oz.q7
Buildine
Rent s 116,232.00 5 757,758.23
Equipment rent S tz,gso.oo 5 24,363.00
Utilities 5 37,432.00 s 50,805.34
Insurance s s0,000.00 S 62,863.5t
 Intereston loans S +tg,ozo.oo s 568,180.46
Advertisins S oo,goo.oo S 81,843.39
Legalexpenses S 38,9oo.oo 5 52,797.8L
Baddebtexpense 5 tt,+6z.oo 5 23,700.65
Misc s 79,988.00 s 108,565.33
Totaloperatine S 1,540,642.00 5 2,O9L,O67.52
Totalcosts s 4,848,760.00 S 6,58t,072.59

Income(loss)
Operating 5 (280,71"8.00) $ (381,010.18)
Depreciation $ z++,ogo.oo s 332,096.88

Total lncome(loss) 5 (525,398.00) s {713,107.06)

X rlo+QoX
FirmPerformance
At Whispering Windscurrentpacetheyaregoingto be in a diresituationin the next5
years.According to our projected5 yearBalance Sheet,the marinawill losean additionalSa-S5
milliondollarsoverthe next5 years.BywhatSandySimmons says,the marinacannotafford
that kindof performance
obviouslynot producing
and I expectthe marinawouldcloseits doors.Thecurrentstrategyis
the kindof resultsthat are necessary

its currentsituation.Poormanagement
recordsandexcessive
to bringthis marinato a
profitablestage.Thereareseveralproblemsthat havehadeffectsthat ledWhispering
hadcausedthe marinato haveinaccurate
Windsto
accounting
inventorythat costthe marinaextramoneyto hold.Lackof largeboat
slipshaveledto the lossof largeboatsalesandpotentialincomefrom thoseclients.
t,d
lnadequate nightandwinterrepairfacilities havecausedpotential clientsto do business'
elsewhere. A lackof a solidmarketingplanhasledto no nicheto markettowards.Fixedslip
rentalratesand inefficientbuoysystemshavecausedthe marinato loseprofit.

5 veargoals
1. FinancialGoals:
a. Profitability- In the nextfiveyears,have-25%retainedearningswhichis a 35%
improvement from currentretainedearnings.
b. Financial position- Bythe end ofthe nextthreeyears,reducetotal percentage
of currentliabilities to 100%insteadof L65o/o
MarketPosition: In two years,lease50 boatslipsto the ownersof the condominiums
from the VistaRidgedevelopment.
alHea eachemployee to theirjob,and
that is specific
determineif it is achieved in six or eachgoalthey meet,award5200-5400 as

w'
\q
,7
r bonus.Have80%of teamachieving theirgoalseveryyear.
 Sl6JeeicOrientations
1. Thefirst newstrategic orientationthat Whispering Windsshouldconsideris letting.
of the buoy andconcentrating efforts9g expanOine the laree
Whenthe marinaranout of large
boatslips,the salesof largeboatsbasically disappeared. Thebuoysystemis more
Byel that wouldallowfor the 24 hour
shuttletransportto nd keepingthat boatup and

w3"
runnina g t a l l t i m e sB. u i fixedassetsandcreate
morerevenuefor the marina,sincesliprental the marina'sgreatestpercentage
is of
incomebasedon cost.Thecurrentmaintenance crewwouldbe ableto takecareof
the to hire
couldbe soldto others cash.
wouldrequireraising capitalwhich couldbevery
. \ Qfinancial position that the marina facey{f theyareableto securethe financing, the
f \1D N\\'suilding of the dockswouldb\\+WiGasy andwouldnot requireextensive
marketing to getthe slipsfilledl$is wBuldcausethe marinato focusits marketon
\avXtW
'
\ \" largeboatownerssincethat is-a-position that it is uniquein. lt wouldalsomakethe
productfocusnarrowerallowingthe marinato focuson makingthe few productsit
wouldkeepthe bestthat theycouldbe.
2. Thesecondstrategicorientationthat Whispering Windscouldconsideris simply
-makingthe inn partof the marina.Thiswouldbe relativelyeasysincethe inn and
the marinaareownedby the samecorporation. pfjoininethe two b
marinacouldmarketitself a as recrpation dp<tinatinn. Themarinaalreadyhasboats
for rent,a restaurant, anda retailstore.Byaddingthe hotelto its lineup,the marina
is ableto offerits customers a weekenddestination option.Thehotelwouldoffer
marinacustomers the onlythingthat'snot otherwiseofferEd,andthat'sa shower
and placeto sleep.Themarinacoulddo marketing with discountpackages for
rentingboatsandstayingat the hotelat the sametime.Sincewe were not provided
with the inn'sfinancialstatements we are not exactlysurehowthis wouldimpact
the marinasfinancialpositionfrom the verybeginning. We canonlyassumethat
incorporating the inn with the marinawouldbringthe marinamorebusiness,
includingrentalsand purchasing of goodsfrom the convenience store.Themarina
couldincludea smalldiscount for innclientsandthat couldincrease the overnight
stayrateat the inn whichwouldimprovethe marina'soverallposition.Thiswould
increase the marina'sdifferentiation policybecause theywouldnow have
somewhere for customers to stayotherthan a rentedhouseboat. lt wouldalso
lowerthe marina's product-market focusbecau;eaddingthe marinawouldbe
increasing the products offeredto customers.l/
 ValueProposition
Differentiation CostLeadership

Product HighFocus
Market
I
Focus 3
LowFocus I
9
Purple=currentposition
Green=expansion of largeboatslips
Orange= combining innandmarina

Revenue
lmplications . :\
1.^lf Whispering Windseliminatesthebuoysystem asournewstrategic orientation,\ Aa6\\
.Jftfrisgi!9rgse;eyenlqUut wiltconcurrently decrease expensesby a similar A^'-.l{\
^ Cft\ Ulnflrnt dueto thefactthatthe buoysystemisnotveryprofitable. Thiswill resultin/! \ \ q< - d),
t- '
tJJ aninitialnetincome thathasdecreasing veryslightlybaseduponwhatthe profit < ^"r\\ U-\
marginof thebuoysystem wasproducing. Withthiselimination, Whispering Winds \ (..!}/- \
\ -
canexpand onthedevelopment of largeboatslipswhichhave provento increase I nnD \ ^,^.
revenue in boatsaleswhichwillresulta highernetincome thanwasprevious being / \ \ Y\nil - \,1'
produced fromthe buoyservice.Thisshiftof focuswillresultin WhisperineWinds \
/ CnL\
moving higherproduct/market
intoa slightly focus.
Windsadoptsthe secondstrategic
lf Whispering orientationof combining the
marinafinancials asthe inn hasshownthe abilityto
with the inn'sfinancials,
performwell in the summermonths.Thiswouldresultin the attractionof additional
marketsegmentation to the marinaindustrydueto the discounts that customers
havegainfrom stayingat the inn allowingWhispering Windsto gaina highermarket
 Underlying
Core Adequacy of the Recommend specific
Capabilities underlying core changes to the core
CoreActivities capability for the so that it
capability
(getfrom previous adjusted
strategic is alignedwith the
assignment) orientation adjustedstrategic
orientation
Veryadequate, Byaddingmore
rentalswill actually rentalslips,the core
CoreActivity1: be increased by of rentals
capability
Operations expanding the large is beingre-targeted
boatslipswhichwill to achieve the
be rentedby higher
ownersof large goals
differentiation
boatscreatingmore by focusingon
revenuefor the biggerboats
marina
Veryadequate. This Reconfigure storage
corecapability of areasto be more
the marinawill be accessibleby large
everfurther boats. ^A
*,@*y
realizedby the

a.w
additionalboats
storedthere.
ShuttleBoatservice Inadequate, shuttle Putthe manpower
servicepotentially from the shuttle
CoreActivity2:
Service
eliminatedby
closingthe buoy
serviceinto a
differentareaof the l,t$'q*
'Se€
RepairShop Adequate. lf
additional boatsare mechanic that is
storedthere,the experienced with
repairshopwill be biggerboatsand
busierwith their specificissues.
maintenance.
Bubbling
Process Adequate, will need Expand the bubbling
to be enlargedto systemto coverall
includenewdocks of the newdocks,
that will possiblybe shouldcome
built standard on all
docks

:m$s 7
 CommonSizeStatement
WhisperinsWinds Industrv
CurrentAssets CommonSize CommonSize

Cash S 89,zoz.oo
2% 9%
AccountsRec. 5 L97,770f/O 4% s%
NewBoats s 957,281.002L% L4%
UsedBoats s 170,092.004%
Parts s 149,226.003o/o
ShipStore s 7,675.00o% 3%
s 7,353.00
Gas/Oil Oo/o
TotalCurrentAssets s 1,579,598.00
34To 3r%

FixedAssets

Bouysand Docks 5 2,755,942.00S 883,zoo.oo

s 1,872,682.00
4 t%
Perm.Bldes S so,ozo.oo
S s6s,sgo.oo S 5t5,+6o.ooLL% 57%
OfficeFurniture 5 9,128.00 s 1,971.00 5 7,L57.00o%
HouseBoats s 389.578.005 43,761.oo S g+s,8tt.oo8o/o
WorkBoats s 114,254.00s 22,364.00s 91,890.002%
Eouio 5 202,776.00s 108,478.00s 94.298.002% 5%
Other:
PrepaidExp 5 6,832.00o%
s 70,899.00
DeferredInt Exp 2% 7%
Long- TermAssets 5 3,005,029.0066% 69%

TotalAssets s 4,583,627.00LOO% LOO%

CurrentLiabilities

AccountsPayable 5 250,412.005% 7%
TradePavable S s2o,oss.oo
tL% 2o/o
SalaryExp s 24,934.00
L o/o
lnt Exp 5 57,O72.OOL%
TaxExp 5 L22,4L3.OO3 % L%
LeaseExo s 101,332.002o/o
PrepaidDockRental 5 499,705.00 L7%
BoatDeoosits s L2,006.00o%
CurrentBankNotes s 497,280.00Ilo/o 7%
 TermLiabilitles

L-TNotes"L-TDebt"
Other[-T Liab's

TotalLlab'sandNetWorth

tOnly KeyFiguresare colorcoded

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