2-48    Strategy; Critical Success Factors; Martial Arts Training Martial Arts of Cincinnati (MAC) pro- vides karate training and practice services in three locations in Cincinnati, Ohio. MAC is known for its quality of training and has grown rapidly in recent years due to its solid reputation and the growing interest in martial arts, particularly karate. George Moody, the owner of MAC, is a retired police officer who has been training and teaching martial arts for almost 20 years. He has a plan to grow his business to 10 locations in the Cincinnati area in the coming 5 to 10 years. George thinks that by careful attention to customer service, and by choosing his locations wisely, he can achieve this goal. He plans to locate his new studios in strip malls where rental costs are relatively low. This way he can keep his prices down, perhaps lower than other competitors, and thereby attract more customers.

George has developed a list of indicators that he uses to manage the business. The indicators are targeted to George’s two key concerns—sales growth and teacher performance.

 

 

 

 

 

Sales Indicators

Number of introductory lessons Number of new students

Number of students attending classes Total Number of enrolled students Class Size by teacher and age group

 

 

The first four indicators are obtained on a daily basis, while the last is obtained weekly

 

 

Teacher performance indicators (for each teacher)

Number of classes taught

Average number of students per class Average retention percentage Student progress in martial arts skills

 

 

 

The first three of these indicators are obtained weekly, while the last one is obtained monthly.

Required

1.    How would you describe George’s competitive strategy?

2.    George has listed some of his CSFs. Critically review these indicators, and explain which CSFs you would add, or change, and why.