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Chestnut Ridge Country Club

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CASE 2.5
Chestnut Ridge Country Club (A)1
The Chestnut Ridge Country Club has long maintained a distinguished reputation as one of the outstanding country clubs in the Elma, Tennessee, area. The club’s golf facilities are said by some to be the finest in the state, and its dining and banquet facilities are highly regarded as well. This reputation is due in part to the commitment by the board of directors of Chestnut Ridge to offer the finest facilities of any club in the area. For example, several negative comments by club members regarding the dining facilities prompted the board to survey members to get their feelings and perceptions of the dining facilities and food offerings at the club. Based on the survey findings, the board of directors established a quality control committee to oversee the dining room and hired a new club manager.
Most recently, the board became concerned about the number of people seeking membership to Chestnut Ridge. Although no records are kept on the number of membership applications received each year, the board sensed that this figure was declining. They also believed that membership applications at the three competing country clubs in the area (namely,
Alden, Chalet, and Lancaster) were not experiencing similar declines. Because Chestnut Ridge had other facilities, such as tennis courts and a pool, that were comparable to the facilities at these other clubs, the board was perplexed as to why membership applications would be falling at
Chestnut Ridge.
To gain insight into the matter, the board of directors hired an outside research firm to conduct a study of the country clubs in Elma, Tennessee. The goals of the research were: (1) to outline areas in which Chestnut Ridge fared poorly in relation to other clubs in the area; (2) to determine people’s overall perception of Chestnut Ridge; and (3) to provide

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