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Be Our Guest Case Summary Essay

776 words - 4 pages

Be Our Guest Inc. is a Boston based company that rents party equipment to caterers, event planning firms, hotels, etc. for various events. The company was founded in 1983 by Stephen Lizio, a man with prior experience in the wine and food industry. When the firm first started operations, it only provided wait staff and other services to catering companies. However, in the mid-1980s the company began renting tables, chairs, and equipment as well and eventually became a full service company.
Al Lovata, a former banker who started out as a part time financial consultant for Be Our Guest Inc. in 1987, was eventually promoted to Chief Executive Officer. Simone Williamson was also brought into the ...view middle of the document...

It is also the driver’s responsibility to make sure that no equipment is forgotten or damaged on transit.
Be Our Guest has two big competitive advantages over its rivals. One is its location, The company is located in the inner-city Roxbury section of Boston, which is very close to downtown Boston and the intersection of the Massachusetts Turnpike and Interstate 93. This made it easier for the drivers to cover several events with one trip. The second advantage is that Be Our Guest carries high-end elegant inventory. This attracts more prestigious clients. As a result the company can afford to charge higher prices than most competitors and still retain a large number of loyal clients. Be Our Guest has only one competitor who made about the same amount in rental revenues.
Even though Be Our Guest's gross profit keeps rising, the net profit of the company has declined over the past few years. This decline in net income resulted from a rise in general and administrative salaries. Being a Subchapter S Corporation, many of the shareholders took their share of profits as salaries rather than dividends. Because Be Our Guest's productivity was greatest during the holiday season, and...

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