Case Name :      Smith Commercial Developments

Authors :           Elizabeth M.A. Grasby, Brian Langen

Source :              Ivey Publishing

Case ID :           9B16B001 / W16088

Discipline :        Accounting

Case Length :    06 pages

Plagiarism : NO (100% Original work)

The associate director of hospitality services at a large university had to address overcapacity at an on-campus eatery. The eatery was experiencing long lineups and severe bottlenecks, especially at its full-service coffee outlet. Seating capacity was also short of demand, and no additional space was available. The associate director also faced pressure from university administration to consider closing a nearby eatery as a result of its poor profitability, but doing so would put additional strain on the already overcapacity eatery. After examining profitability and completing a corporate assessment, the associate director expected to have a better idea of how to tackle the current capacity and profitability issues.