Problem:
Your consulting firm has been hired to help CRC evaluate its new membership plan and fee structure. Prepare a presentation for the clubs president, addressing the following questions:
' What are the key factors that CRC should consider in its evaluation of the new membership plan and fee structure? Why are these factors important? ' Develop a Schedule 1 (revenue) budget and a Schedule 7 (cash receipts) budget based on the new membership plan and fee structure. Will CRCs new membership plan and fee structure improve its ability to plan its cash receipts? Why or why not? ' What other types of analyses, beyond the Schedule 1 and 7 budgets, (both strictly financial and strategic) would you offer to perform for CRC in order for them to make a complete evaluation of the new membership plan and fee structure? Explain your rationale. ' Explain how CRCs cash management would differ from the present if the new membership plan and fee structure were adopted. ' From a strategic perspective, what are the advantages and disadvantages to implementing this membership plan and fee structure? Given the importance of the potentially clashing goals of better cash management, and increased revenue, would you recommend CRC go forward?