Question: a. How did the bargaining power between the bars and the suppliers mentioned in The Pub case change during the case? b. How did the

a. How did the bargaining power between the bars and the suppliers mentioned in The Pub case change during the case?

b. How did the bargaining power between the bars and the buyers mentioned in The Pub case change during the case?

c. How did the bargaining power between the bars and substitutes mentioned in The Pub case change during the case?

d. How did the bargaining power between the bars and potential entrants mentioned in The Pub case change during the case?

e. How did the bargaining power between the competitors mentioned in The Pub case change during the case?

It was midnight on a Friday night in the middle of April 2008, and Mount AllisonUniversity campus was alive. The Pub was filling up. Patrons waited in line for twen-ty minutes, had their identification cards thoroughly checked, and entered into thebasement-level facility. The music was pumping, the strobe lights were moving, and thedance floor was crammed. It was going to be another entertaining night at The Pub.Behind the bar was a familiar faceJonathan Clarkknown to everyone in town asScooter. Scooter had been The Pubs regular manager since 1993. Students and alumni would remember him long after they had forgotten their grade point average. On thatparticular night, Scooters thoughts were elsewhere. He was thinking about the boardmeeting held earlier that week. The board talked at length about The Pubs financial sit-uation and the need to change how it did business.The Pub had experienced financial difficulties for several years, although the currentyear had been financially sound. The likelihood of The Pub remaining profitable in thefuture was unclear. Competition among bars had increased as alcohol consumption pat-terns in Canada changed. The Pub had a special connection with the student base astheir campus pub, but students were fickle and quick to move on to a different bar if itoffered something more appealing. The Pub was set to move to a new location on cam-pus in August 2008, and the board and Scooter needed to determine the most appro-priate business model to ensure its survival. Scooter needed a plan to bring back to theboard at the end of the summer. Officially known as The Tantramarsh Club, The Pub was formed in 1974 at Mount Allison University (Mount A) in Sackville, New Brunswick, Canada. The town of Sackville was located in southeastern New Brunswick, in the middle of the Maritimeprovinces of Canada. The town bordered the province of Nova Scotia. Sackvilles econ-omy was driven by tourism and the staff, students, and visitors of Mount A. Sackvilles The Pub: Survive, Thrive, or Die? Gina Grandy, Mount Allison University Moritz P. Gunther, Mount Allison University Andrew Couturier, Mount Allison University Ben Goldberg, Mount Allison University Iain MacLeod, Mount Allison University Trevor Steeves, Mount Allison University and by G. Grandy, M.P. Gunther, A. Couturier, B.Goldberg, I. MacLeod and T. Steeves. The authors would like to acknowledge the help of Tupper Cawsey and three reviewers. An earlier version of this case was presented at the Atlantic Schools of BusinessConference held in St. Johns, Newfoundland, Canada in 2008. This document is authorized for use only in International Strategic Management 2014 by Dr Ioannis Thanos at University of Glasgow from September 2014 to March 2015. 2 Case Research Journal Volume 30 Issue 1 Winter 2010 population was comprised of approximately 5,000 residents and a university studentbase of an additional 2,000 people.Mount A was a public university and employed approximately 180 faculty (30part-time and 150 full-time) and 340 staff (50 part-time and 290 full-time) 1 . Theuniversitys target enrollment level was 2,275 students. The university administrationdeliberately controlled enrollment at this target number to ensure students benefitedfrom the close-knit nature of relationships with students, staff, and faculty. The univer-sity experienced a decline in enrollments in 20042005 that took four years to work through the system. Enrollment levels were approximately 2,200 in 20072008.National trends indicated that between 2001 and 2011, undergraduate enrollment would increase by 34 percent. Data showed that 85 percent of all full-time students wereenrolled in undergraduate programs. These rising participation rates were attributed to(1) an increasing number of university-educated parents influencing their children toattend university, and (2) students perceptions that a university degree would result ina higher paying and more rewarding career. 2 National trends also indicated that malesrepresented 42 percent of total enrollment at universities. 3 This national pattern was alsoevident at Mount A where female enrollment made up 61 to 64 percent of total enroll-ment in any given year. Mount A was primarily an undergraduate university with morethan forty distinct programs. The university offered bachelors degrees in arts, science,commerce, fine arts, and music, as well as master of science (biology and chemistry) anda certificate in bilingualism. Mount A ranked as the number one undergraduate univer-sity in 2007 by Macleans magazine. The university achieved this number one positiontwelve times over a seventeen-year period. 4 Founded in 1839, the university was known for excellence in liberal arts education.There were more than 140 clubs and societies (e.g., Bio-Med Society, CommerceSociety, Coalition for Social Justice, Garnet and Gold Musical Theatre Society, JudoClub), a campus theatre, a visiting performing arts series, and numerous concerts (oftenperformed by students and faculty of the music department). University constituents were also actively involved in community-based activities in Sackville. The university had a strong alumni base and there were more than thirty chapter locations across the world. The university held two significant on-campus events annually: the reunion weekend in May and the homecoming weekend in September. The university established regulations in 1968 that permitted students to consume alco-hol on campus. Mount As governing body approved the formation of a campus pub in1973 but it would operate as a separate entity from the university. The Pubs financialyear did coincide with the universitys financial reporting year (May 1 through to April30). The Constitution, originally approved on November 2, 1973, outlined the purposeof The Pub as: . . . fostering and promoting artistic, literary, educational, social, recreational, and sport-ing activities for the advancement of the interests of its members and others; providing a club room and other conveniences and facilities for members and guests; promoting social and friendly intercourse among its members and guests; and, affording opportuni-ties for informal conferences on all matters of common interest. 5 Most campus pubs were non-profit entities operated through university studentunions. The Pub at Mount A operated separately from the Student Administrative This document is authorized for use only in International Strategic Management 2014 by Dr Ioannis Thanos at University of Glasgow from September 2014 to March 2015. The Pub: Survive, Thrive, or Die? Council (SAC) and had its own insurance and financial reporting. Over the years,The Pub and SAC organized joint events and benefitted from cross marketing but ingeneral,income generated by The Pub rested with the management of The Pub. ThePubs net profits were re-invested into operations and facilities or held as savings.The university signed a formal agreement with The Pub in 1984 to more clearly out-line the relationship between the two organizations. The university appointed a senioradministrative official to The Pub board. The director of administrative services,Michelle Strain, assumed this responsibility. Strain indicated, The Pub does not oper-ate fully at arms length. The University has some input into decisions of The Pub. Theuniversitys lease agreement with The Pub read, The university has a vital interest inensuring that the operations of the club within the premises will not create an adversereflection of the university. The Pub existed at the discretion of the university. The uni-versity dictated whether or not The Pub was to purchase new appliances or engage inother upgrades to reflect the universitys intended image to potential students, visitors,and the public at large. The Pubs lease could be terminated if its management did notcomply with the requirements set by Mount As administrators and board of regents. Within a year of opening, the directors of The Pub employed a full-time manager tohandle all operational issues. The managers duties included, staffing, inventory control,cash reconciliations, bank deposits, liquor purchasing and pickup, security, mainte-nance, cleaning and equipment maintenance, payroll, accounting assistance, record-keeping, public relations, promotions and advertising, music/entertainment control, andregular operational maintenance of the third-party ATM machine. The manager actedin a similar fashion as an owner/operator would in such a small organization of approx-imately twenty-two employees, twenty of whom were part-time student employees. The Pub was located in the basement of the University Centre on the north side of campus. Access via a treacherous staircase meant that students with disabilities haddifficultyentering The Pub. No signage appeared on the exterior of the building, butmost individuals on campus knew exactly where to find it. The Pub symbolized tradi-tion and for former and current students it was a nostalgic place. A vibrant overheadmural on the entrance staircase corresponded with the interior dcor. Walls were alsopainted with colorful murals depicting political and social scenes. Small round tables,painted like the rest of the facility, dotted the premises in no real order or form. A smallcoat check was at the entrance, covered with pictures of patrons from years gone by. A long, thin, cramped bar stretched the length of the room, with clear signs stating, Orderin this Area. There was one cash register and this slowed down ordering, despite the bestefforts of the employees. A maximum of two bartenders served customers. On somenights The Pub set up a second bar in another corner of the club as a remedy to addressslow service. A DJ booth overlooked a dance floor to the left as patrons entered the facility.Speakers surrounded the DJ booth and pool tables were located in the back area. Theceiling was exposed, allowing all who entered to notice the piping and ventilation sys-tems. The majority of the floors were covered with old, stained carpet and the rest withbland tile. This was The Pub, and despite its run-down appearance, it had been theadored hangout of Mount A students for decades

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