• You will hear Sophie Garland, the General Manager of Daylong Leisure Centres,

Woman: Hello, James, do sit down. Right, as you know, our Nottingham centre has had a significant drop in income over the last few months. In fact, it’s doing much worse than our other British centres, for reasons we haven’t really been able to get to the bottom of. The situation is now pretty worrying, and even if immediate action is taken, I don’t expect Nottingham to return to profitability this year. Now, it seems to me we have two options facing us: the first is to see if we can create a strategy to keep the operation going, and the second is to close it down completely. What’s your feeling about it?
Man: Closing it down would be a disaster. You know, when there was a situation like this in the European division, they turned it around with a special promotion which worked very well. Do you remember this time last year, when we thought we’d have to sell some of the French centres? Well, now they’re doing well and we didn’t even have to spend any extra money on them, either.
Woman: Yes, that’s true. But Nottingham has lost nearly a million in the six months and we can’t afford to keep absorbing that kind of loss. I really think we should close it down as soon as possible and liquidise our assets. It’s on a prime site, which would be worth a lot to developers. I don’t even think it’s worth trying to sell it as a going concern to one of our competitors.
Man: Isn’t that rather short-sighted? The same thing’s happening everywhere. It’s always the service industries which are hit first when people are worried about job security. And before you say that the centres are looking outdated and that consumer tastes and fashions have changed, I’ve done my homework and the consumer surveys show that people would still come if they had the money.
Woman: That’s not the only reason, James. And the bottom line is, the Board are pushing me to improve figures now. We’re falling behind the competition, and if we keep Nottingham open, we’ll need a major change in our image. A good advertising campaign might bring in more customers while we’re running it, but at best it’d just be a short-term solution.
Man: I don’t agree with you, Sophie. However, I’ve got another idea. Why don’t we run the centre with minimum staff, no more expensive recruiting, and think about closing during the quiet times of day until the situation improves? We could go on with the special offers we’re running, because they bring in a few new customers, and don’t cost us anything.
Woman: It’s a thought, but I’m not sure the Board will go for it. They’re really keen to sell the Nottingham centre. That way they could cover their deficit and make the shareholders happy at the same time. It’s an attractive solution.
Man: Even if they decide to sell, they’re not likely to get very much for it, are they? Not at the moment. Property values are at an all time low. Can’t we at least try to keep the Nottingham centre operational?
Woman: Well, it’s not going to be possible to keep it running as it is now, but your idea for making savings might work. Do you think you’d be able to get the centre to break even within say six months? But remember, there’s no extra money for major promotions.
Man: I’d like to have the chance to try, Sophie. I think I can do it, with minimal promotions. Yes.
Woman: Then let me have a written proposal in time for next week’s Board meeting, will you?