This shows a Case Model applied at my most recent work during the covid season. This branch offers both electronic bingo ("EBG") and the traditional card/paper bingo game. But during covid season, only EBG was allowed to operate. So we had to negotiate for rent waives (while temporarily closed) and discounts (while operational) since sales would definitely be lower than provide levels. My (MS) team ran this analysis and presented to the Area Manager (Sales & Ops) for his decision-making on what to do for this particular branch, given that the lessor will already charge us rent even if we do not operate. Which scenario do you think happened in the real-world (post-study)?

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Branch Resumption Evaluation during Covid Season Scenario 2 Open 50% Discount on Full Areal 40% of precovid GGR 2,108,274 Precovid GGR % of precovid GGR Covid GGR 26.6% GP Less: Rent Less: CUSA, Aircon Less: Pest Control, Advertising Less: Electricity GP minus Rent & Utilities Less: Communication (2019 Data - GP minus Rent, Utilities, Comm - Notes For me, the first option is to negotiate full waive while we are not operating. If lessor won't allow, then your current request is better na rin. Effective total rent discount Scenario 1 Open No Rent Discount 40% of precovid GGR 2,108,274 40% 843,309 224,320 797,247 278,383 9,697 113,691 974,697 36,111 1,010,808 - 40% 843,309 224,320 398,624- 139,191 4,849 113,691 432,034 - - 36,111 468,144 - 50% Scenario 3 Open Charged for EBG area only, at full cost 40% of precavid GGR 2,108,274 40% 843,309 224,320 216,314 75,533- 2,631 113.691 - 183,848 - 36,111 - 219,959 Scenario 4 Open Charged for EBG area only, at 50% cost 40% of precovid GGR 2,108,274 40% 843,309 224,320 108,157 37,766 1,316 113,691 36,609 73% 36,111 72,720 . 86% Scenario 5 Open Charged for EBG area only, at 30% cost 40% of precovid GGR 2,108,274 40% 843,309 224,320 64,894 22,660 789 113,691 36,111 13,824 Scenario 6 Keep closed Pay CUSA & Aircon only 22,286- - 92% Definitely don't operate if Definitely don't operate if I think, if I were the mall, This was the requested This is the best case, but Cant we really nego full no rent discount mall gave only 50% rent this would be the most discount, still negative think highly unlikely waive while closed? discount workable discount...since at 40% of precovid GGR (almost-free) lessor will get almost the same amount as what you're currently paying. On our end, still negative albeit better than current. precovid to be positive. albeit better than current (Scenario 6 charges). Target GGR should be 55% of Target GGR should be 80% of precovid to be positive. 278,383 278,383 278,383 74% Branch Resumption Evaluation during Covid Season Scenario 2 Open 50% Discount on Full Areal 40% of precovid GGR 2,108,274 Precovid GGR % of precovid GGR Covid GGR 26.6% GP Less: Rent Less: CUSA, Aircon Less: Pest Control, Advertising Less: Electricity GP minus Rent & Utilities Less: Communication (2019 Data - GP minus Rent, Utilities, Comm - Notes For me, the first option is to negotiate full waive while we are not operating. If lessor won't allow, then your current request is better na rin. Effective total rent discount Scenario 1 Open No Rent Discount 40% of precovid GGR 2,108,274 40% 843,309 224,320 797,247 278,383 9,697 113,691 974,697 36,111 1,010,808 - 40% 843,309 224,320 398,624- 139,191 4,849 113,691 432,034 - - 36,111 468,144 - 50% Scenario 3 Open Charged for EBG area only, at full cost 40% of precavid GGR 2,108,274 40% 843,309 224,320 216,314 75,533- 2,631 113.691 - 183,848 - 36,111 - 219,959 Scenario 4 Open Charged for EBG area only, at 50% cost 40% of precovid GGR 2,108,274 40% 843,309 224,320 108,157 37,766 1,316 113,691 36,609 73% 36,111 72,720 . 86% Scenario 5 Open Charged for EBG area only, at 30% cost 40% of precovid GGR 2,108,274 40% 843,309 224,320 64,894 22,660 789 113,691 36,111 13,824 Scenario 6 Keep closed Pay CUSA & Aircon only 22,286- - 92% Definitely don't operate if Definitely don't operate if I think, if I were the mall, This was the requested This is the best case, but Cant we really nego full no rent discount mall gave only 50% rent this would be the most discount, still negative think highly unlikely waive while closed? discount workable discount...since at 40% of precovid GGR (almost-free) lessor will get almost the same amount as what you're currently paying. On our end, still negative albeit better than current. precovid to be positive. albeit better than current (Scenario 6 charges). Target GGR should be 55% of Target GGR should be 80% of precovid to be positive. 278,383 278,383 278,383 74%

Answer rating: 100% (QA)

Based on the information provided in the table Scenario 2 is the most likely scenario that happened ... View the full answer