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Transcription of this question: 5.Matchpoint Tennis Club (MTC)Matchpoint Tennis Club (MTC) is a famous members-only club. MTC owns tennis courts, changingrooms and a restaurant. The majority Of members are between 30 and 50 years Old. Most membershave high incomes and successful careers. However, MTC faces increasing competition fromBest Sports, a multinational provider Of sports centres. An economic downturn has also reducedMTC’s profits. Until recently, the restaurant made a valuable contribution to fixed costs but this hasfallen significantly in the last 12 months.Last year, Seb, a former successful tennis player, became the new Managing Director of MTC Withthe objective to increase revenue, he wrote a five-year plan with the following strategies:• double membership Of MTCopen the restaurant to the general publicopen a sports equipment and clothes shop under the family brand ‘Matchpoint”• employ professional tennis coaches (teachers).Tina, the Marketing Director, agreed with Seb about the strategies. In order to achieve the first strategicobjective (double membership), she prepared a marketing budget and proposed the following tactics:overall reduction in membership fees Of 10 %• discounts for people aged below 1 8 and over 60 years oldadvertisements in local newspapers and on social networking sitesa new range Of club branded merchandise such as T-shirts and coffee mugs.Alex, the Human Resources (HR) Manager is concerned about the impact the five-year plan willhave on employees. Employees already argue that they work too hard for low pay. An increase inthe number Of members would increase their workload and responsibilities further Alex tried toconvince Seb that membership Of AITC was already at saturation point on the product life cycle andthat existing members would not like some Of the proposed changes to the club.Alex also stated that since Seb joined the business last year, the friendly atmosphere at the tennisclub has disappeared. That atmosphere has been replaced with a focus solely on profit making. Alexwould prefer a focus on providing a good quality service for existing members.(This question continues on the following page)(a)(b)(c)(d)Define the following terms:(i) family branding(ii) contribution to fixed costs.With reference to MTC, explain the difference between objectives, strategies andtactics.With reference to MTC, examine the dynamic nature Of organizations and therelative importance Of driving and restraining forces.Discuss the likely success Of Seb’s five-year plan to achieve an increase inrevenue for MTC.[2 marks][2 marks][6 marks][6 marks][9 marks]

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