Good Night Motel Case

1283 words 6 pages
Assignment #1 (The Good Night Motel) When making his decision, McGregor should consider seriously the negative consequences that his business will experience if he refuses Alward’s offer to fill the motel for the two weekend nights in October, at half the room rate. If McGregor refuses, during that weekend his motel will be at his usual capacity of less than quarter full. With the church group there, paying half the rate, it will be as if the motel were half-full! In addition, if he refuses, McGregor’s reputation in the community will suffer, and he will also lose all future business from Alward’s group and other church groups, at regular price. Consequently, Justin McGregor should accept Alward’s offer but under the following two …show more content…

In addition, the church group guests will probably spend most of their time during the day at the church and go to the motel mostly to sleep. All these facts are only fair to McGregor, whose livelihood depends on that motel, at a time of a weak national economy. Being “a good man” (p. 3), Alward must surely understand all these facts. As a result, if I were McGregor, I would respectfully explain all these facts to Alward, appeal to his sense of fairness, and ask for his cooperation. The qualitative factors that McGregor should consider have to do with Grand Bend, which is a small resort community. Refusing to accommodate a church group would bring negative publicity to the Good Night Motel. As a result, McGregor will lose all future business (at regular prices) from Alward’s church group and most likely from other church groups, too. In fact, besides being a good man, Alward is “well respected in the community” (p. 3). This fact means that McGregor should do all he can to develop a good working relationship with Alward, who will bring more church groups in the future. If Alward asks for the half-price rate again in the future, McGregor will be in a much better position to refuse. The community people will not be as critical then (in the future, if Alward asks for the half-price deal again) as if they will be if McGregor refuses Alward’s first request. In other words,


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