This Powerpoint presentation is the work of Patrick McHugo, student at Bridgewater State University, along with myself, Brendan Cronin. McHugo and I presented this slideshow in our Strategic Management course, to show the steps in the corporate decision-making process. While the details in this document are specific to this music venue idea, the process can be used in determining whether or not to start up any kind of business. This includes: Thorough Environmental Scanning, Strategy Formulation, and Strategy Implementation. If this were an existing business or evaluation criteria were in place, there would also be Strategy Evaluation. This slideshow shows, in detail, the specific charts & steps in making any large, strategic decision. *While I do claim ownership to the Excel-generated diagrams in this slideshow, I do not claim ownership to the other images found in this presentation.

1. The Bear Cave
A Business Strategy Analysis by Patrick McHugo and Brendan Cronin

2. History
• Experience/Background
• Discussion
• Proposition

3. Industry Matrix
Price
Strength

4. Issues Priority Matrix
Probability of Impact
Probability of Occurrence

5. Competitive Analysis
• Risk
• Bear Cave
• Differentiation

6. Bogarts

7. Broad Street

8. Charlie Horse

9. The Bear Cave
• Stage 1 Company, Bridgewater, MA
• Partnership, Centralized Decision-Making
• Operations performed based on
communication and observation
• Performance Criteria- +Sales, -Costs, Progress
towards company goals
• Reward-Punishment system- Based on
employee evaluations conducted by owners

10. Value Chain Analysis
Firm Infrastructure
Partnership, Management Team Consists of Owners, Located in Bridgewater, Massachusetts
Human Resource Management
10 employees- 6 bartenders, 2 cocktail waitresses, 2 bouncers
Technology Development
Third Party Transaction Software, Sound System, Administrative Software Tools
Procurement
Third Party Contract Manufacturers
Inbound Logistics Operations Outbound Logistics Marketing & Sales Service
Storage of incoming
Obtain Resources from In-house transaction sales
inventory, maintenance of Advertising via local print
third party contract performed by employees, Walk-in service, telephone
current inventory levels, ads, local radio & BSU
manufacturers, Seek out discounted items for service, online service via
installation and radio, online using
new bands and obtain new visiting bands, discounted email available
maintenance of sound Facebook
bands via walk-ins items for promotions
equipment

11. External Factor Analysis Summary
External Factors Weight Rating Weighted Score Comments
Opportunities
Customers who seek out Live Music at
Untapped Local Niche Market 0.12 3.3 0.40
a bar can be considered a niche market
College Campus Close in Bears Cave is within walking distance
0.14 4.6 0.64
Proximity to University campus
Few Strong Competitors 0.04 3.1 0.12 2-3 Local Competitors
Several Business Located Local businesses can be used in
0.08 4.5 0.36
Close in Proximity advertising, joint promotions, etc.
Threats
Sales are high in Fall and Spring, low in
Fluctuating Buying Cycle 0.15 4.3 0.65
Winter and Summer
Organizations (MADD, Robert Wood
Activist Groups Against
0.07 2.2 0.15 Johnson Foundation, CSAP) stigmatize
Alcohol Consumption
alcohol consumption
If bands are not forming locally then
Local Band Presence 0.17 3.5 0.60
Bears Cave can lose its niche market
Poor Restaurant Industry 25% Close or change ownership within
0.12 4.7 0.56
Success Rate year 1 (Bloomberg)
Restaurants have low barriers to entry
Low Barriers to Entry 0.11 3.6 0.40 (start-up capital, consumer skepticism,
location, marketing)
Total 1.00 3.88

12. Internal Factor Analysis Summary
Internal Factors Weight Rating Weighted Score Comments
Strengths
Well-Suited to Supply Niche Bears Cave supplies live music instead
0.14 4.2 0.59
Market of radio, jukebox, etc.
Simple Corporate Structure 0.06 3.8 0.23 Partnership that manages the company
Current Ownership of Liquor Company has obtained a liquor license
0.04 5.0 0.20
License already
Employees make customers feel
Friendly, Effective Employees 0.12 4.6 0.55 welcome and result in repeat
customers
Strong Relationship with Ownership has a strong history with
0.16 4.2 0.67
Nearby University local Bridgewater State University
Weaknesses
Business is new and has not generated
New Business 0.12 4.4 0.53
sufficient brand awareness
This is the first business either two
Inexperienced Management 0.13 4.2 0.55 partners have been reponsible for
operating
Low amount of reserve capital for
Low Capital 0.16 2.7 0.43
economic dips
Located in a Low-Populated Surrounding area is low-populated
0.07 3.2 0.22
Area during summer or 1/4 of the year
Total 1.00 3.97

13. Strategic Factor Analysis Summary
Weighted
Strategic Factors Weight Rating Short Intermediate Long Comments
Score
Strong Ownership has a strong
Relationship with 0.16 4.2 0.67 X history with local Bridgewater
Nearby University State University
Well-Suited to Bears Cave supplies live
Supply Niche 0.11 4.2 0.46 X music instead of radio,
Market jukebox, etc.
This is the first business
Inexperienced
0.09 4.2 0.38 X either two partners have been
Management
reponsible for operating
Business is new and has not
New Business 0.10 4.4 0.44 X generated sufficient brand
awareness
College Campus Bears Cave is within walking
0.14 4.6 0.644 X
Close in Proximity distance to University campus
Customers who seek out Live
Untapped Local
0.13 3.3 0.429 X Music at a bar can be
Niche Market
considered a niche market
Sales are high in Fall and
Fluctuating Buying
0.15 4.3 0.645 X Spring, low in Winter and
Cycle
Summer
If bands are not forming
Local Band
0.12 3.5 0.42 X locally then Bears Cave can
Presence
lose its niche market

14. TOWS Matrix Internal
Strengths- Strong Relationship with Nearby
Weaknesses- Inexperienced Management, New
University, Well-Suited to Supply Niche
Business
Market
1.) Use the strong relationship with
1.) This untapped local niche market will respond
Bridgewater State University to arrange a
well to a company that is less aggressive in sales
deal between the school and Bears Cave.
and management as it is with customer
This can include shuttling from the school
satisfaction. Lacking experience and a corporate
to the bar, coupons, vouchers, etc., and
Opportunities- College Campus feel in a company can allow the customer to feel
will build customer base in the school.
Close in Proximity, Untapped less like a customer and more as a guest.
2.) Use the bar's strength of being well-
Local Niche Market 2.) Having a weakness of being a new business
suited to supply the niche market of people
means there's plenty of room for growth. Turn the
who go to bars to see live music to tap into
weakness of being a new business into an
this relatively untapped niche market.
opportunity by capitalizing on marketing and
Advertising this strength will gain market
advertising tools on the nearby college campus.
share in this niche market.
External
1.) Use the strong relationship with the
nearby University to capitalize on peak 1.) Shorten business operating hours during
buying times. Use promotions and periods of low economic activity. This will decrease
advertising heavily during these peak times the fixed costs and variable costs for that time
to increase sales, which can account for while allowing management management the time
the loss in slow economic times. 2.) to analyze past business strategies and formulate
Threats- Fluctuating Buying
Advertise the strength of being well-suited new strategies. 2.) Offer discounted
Cycle, Local Band Presence
to supply a niche market across the products and services to bands that play the venue.
Bridgewater and Boston area. If local This will minimize the weakness of being a new
bands become scarce, there is a greater business by increasing the use of the facilities and
chance of new bands inquiring about avoid the threat of scarce local bands by increasing
playing at the Bears Cave if this strength overall satisfaction from prior bands.
has been communicated properly.

15. Recommendations
• Stay Ahead of Competition
• Advertisements
• Differentiation- Shuttle Service

16. Implementation
Market Penetration Strategy
Brendan Cronin Patrick McHugo
• Develop promotional offers • Organize shuttle service
geared towards students of schedule in coordination
Bridgewater State with BSU transportation
University department
• Launch advertisement • Differentiate actual
campaign that covers Bridgewater location by
Bridgewater to Boston area. layout of bar and live music
scheduling

17. Action Plan
• Patrick- Begin coordination with Bridgewater State
University transportation department immediately.
Contracts and set scheduling must be completed no
later than 8/31/2012 (4 months). Contingency plan-
hire 3rd-party transportation service for Fri/Sat nights
until solid plan can be worked out with school system.
• Patrick- 3 months of live music must be scheduled in
advance of beginning of academic year, 8/31/2012 (4
months). Contingency plan- Cut live music times down
to 1 weekend night until more acts are hired.

18. Action Plan (cont.)
• Brendan- Promotional advertising campaign
begins on 6/31/2012 (2 months), exact
advertising copy and promotional offers ready
by then. Contingency plan- coordinate with
BSU marketing department to develop
advertising campaign for Bear Cave in return
for student credit/monetary compensation to
Bridgewater State University.