Leisure Gardens: Expanding a Tourism Business in Ghana
(6 pages of text)
The owner of Leisure Gardens, a restaurant and accommodation business in a small town in Ghana, faced problems with his business. Approximately 40 per cent of his restaurant customers were paying on credit and not paying on time, causing cash flow problems. His sole employee was unreliable, often absent when the restaurant was busy. This two-part problem hindered the restaurant's success and owner’s ability to expand the business. Moreover, the owner faced external pressures from competitors in the restaurant market. The owner was considering three options to sustainably reduce bad-debt accounts and ensure profitability in the future: implementing an employee contract, changing the payment options, and expanding the business to generate more revenue. Which option would be the best course of action for the future of Leisure Gardens?
The case is suitable for a strategy course at the undergraduate level. After completion of this case, students will be able to
- make strategic decisions about future growth for a business in Africa;
- analyze the limitations of businesses in rural towns with little infrastructure;
- strategically identify all aspects of each alternative a business is considering, including the strengths and risks of each; and
- realistically define an action plan with a clear time frame for each actionable item.
Ghana, Small, 2017
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