Reference no: EM132276883

THE SLEEP WELL MOTELCASE STUDYPRESENTED BY: S. FAIZAN ABBAS ARSLAN HAIDERThe Sleep Well MotelIn April 1990

Will Shelton was evaluating information received from the owner of a motel that was for sale in Fort Morgan, Colorado. Will had answered an ad in the Wall Street Journal under the heading Business for Sale. To Wills surprise, he received a call directly from Hank Bennington, the owner of the Sleep Well Motel of Fort Morgan, Colorado.

During the conversation, Mr. Bennington described his motel and his reason for wanting to sell. He also described the many advantages of living in Colorado and promised to send Will more information on his company. The next day an overnight package of information arrived at Wills home.

Background on Will Shelton

At 44 years of age, Will felt that he had climbed the corporate ladder about as high as he was likely to go. He also had doubts about remaining in a large corporation for the rest of his working life. The present position Will held was director of marketing research for a large electronics corporation located in Houston, Texas. Despite the title, Will felt his position was not satisfying. Marketing research in an industrial company just isnt very exciting or personally rewarding; in fact, its downright dull. This statement pretty well summarized Wills feelings. Although Will had been trained as an engineer, he discovered that engineering wasnt his primary interest and began to move into marketing. When the position of marketing research director opened in his company, Will applied and was elated when he learned he had received the position. In reviewing this move, Will stated that he believed the fact that he had recently completed an MBA during part-time studies had helped him to obtain the position. In his earlier years, Will has studied and worked in New Mexico. He had learned to ski and also enjoyed hunting and fishing in that state. Will felt the people in that part of the United States were somehow more genuine and that life was better in many ways than his present life in Houston. As a result, when he read about a motel for sale in Colorado, Will had an automatic interest.

Background on the sleep well motel

As will began to pill his thoughts together, he reviewed what he had already learned about the sleep well motel. This information had been gained through a telephone conversation with Mr. Benningtion plus sales literature and a brief historical sketch that had been included with data sent by Mr. Bennington.

The motel had eighty rooms and had been affiliated with a chain several years ago but was no longer associated with this company. The property was located off U.S. Highway 76, which carried traffic between Denver and Nebraska. Mr. Bennington did not have data concerning the profile characteristics of his customers but told Will that his customers were commercial travelers such as repair crews, independent sales reps, middle-aged couples and young budget minded-travelers. The Motel did not have an attached restaurant, but there was a café about two blocks away. There was also a laundromat that was frequently used by his guests. The property was seventeen years old and was described as clean and comfortable but in need of cosmetics and new carpeting. Mr. Bennington said he had a dependable might clerk but served as the manager/front desk clerk himself during the day, he said that dependable maid service was a problem for all the motels in the area, and his wife was no exception.

Reasons for selling

In the telephone conversation Mr. bennington stated he had recently lost his wife in a tragic car accident. Since that time he had been unable to concentrate on the business and now wanted to return to his home state of Illinois to be near his sons family. In addition, Mr. bennington said he wanted to be perfectly candid. He said that after the car accident he failed to keep as close a watch on the business as he should have. Mr. Bennigton admitted that he felt ill at ease in the field of marketing and felt the company would need strong direction in that area. He went on to say that Will should be a natural to manage this type of business.

After skimming the material, Will became increasingly enthusiastic about the possibility of owning and managing this motel. He knew there were many additional questions he would need to ask in his next phone conversation. At the moment, the most exciting part was the possibility of living in Colorado and being his own boss. Will knew he would have to develop a list of penetrating questions to ask Mr. Bennington and also knew he needed to study the financial sheets in detail. That could come later. For the moment, Will was picturing himself on the slopes of Colorado’s beautiful mountains gracefully skinning down the snow.

1. Discuss the pros and cons of will Shelton owing and operating the sleep well motel?

2. Do you believe that wills marketing/marketing research background will be of great assistance to him in running this motel? Discuss

3. Why do you suppose mr. bennington said that wills marketing background would be a real benefit? Discuss

4. What kind of marketing/sales tactics are best suited for a motel such as the sleep well motel? Discuss