7.1 - Strategic Thinking and Game Theory

7.1 - Strategic Thinking and Game Theory - Diane E. Malone...

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Diane E. Malone MBA 502 – Mod 7.1 - Strategic Thinking and Game Theory August 17, 2010 In 1985, the year the Chicago Bears won Super Bowl XXV, I worked as Restaurant and Bar Manager at the ‘hottest’ night spot in the Chicago suburbs. Before hiring me, the owner and General Manager ran it like any other Greek owned restaurant and bar. They had great food and drinks and the prices were competitive with any other establishments within 25 miles. I had been working running a dance/nightclub in the Marriott O’Hare and was seeking employment outside the large corporations for a change. Upon joining the team, I brought in new ideas and concepts which were foreign to the management at Doc’s. In addition I brought in my DJ, Laura, from Marriott for a one hour ‘trial run’ on our patrons. Laura did her usual high energy, friendly activities with the crowd and the former DJ Production Team was let go that night. Together, Laura and I transformed “Doc’s” into an exciting and fun place for anyone and everyone to visit and feel totally comfortable. The situation was: two prominent night clubs vying for the top level clientele and higher sales, through The issue was: we needed to increase our sales and numbers of frequent customers to make Doc’s a more successful establishment by beginning our side of the noncooperative game (Pindyck & Rubinfield, 2009). A few blocks away there was another popular night spot. It was called “Ollie’s”. This was a good-sized restaurant with a large bar as well. However, Ollie’s also had a large beer-garden, their liquor license ran later than ours so they were open later during the week and they were located three blocks off a major interstate. They had a few advantages over us out of the starting gate. So we needed to change the rules in a different way, with some creativity and Laura’s talent. The strategy was to find out what Ollie’s was doing and how we could do it bigger and better in order for Doc’s to be the more popular club. This was supposed to bring in more money for the owner, the servers and make Laura and me a more desirable team at Doc’s who might even get paid more. Laura and I went to Ollie’s to see what we were dealing with in terms of competition and figure out how to
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7.1 - Strategic Thinking and Game Theory - Diane E. Malone...

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