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Ocean Sport

Hawaiian Recreational and Tourism Business Erupts on Big Island, Calling for Organizational and Cost Controls

About Ocean Sports

Over the last 28 years, starting with a card table and umbrella renting snorkel gear and boogie boards, Ocean Sports owner and president, Judy Jennet, scraped and clawed along the beautiful Hawaiian beaches trying to keep up with the competition. While business wasn’t as good as the weather, Ocean Sports was still growing – adding more activities and options for tourists, including sailing, snorkeling, whale watching and sunset adventures, glass bottom boat rides and scuba diving – until it tripled in size overnight when its competitor left Hawaii. Assuming almost the entire ocean recreational business on the Big Island, Ocean Sports capitalized on the opportunity and now works with major resorts such as Hualalai, Waikoloa Beach, Mauna Lani, and Mauna Kea and surrounding villages and hotels.

 

The Challenge
As the mom-and-pop sized business turned into a major company, Ocean Sports’ operations and revenue experienced significant waves of growth and decline, fluctuating from $200,000 increases to $800,000 decreases and back up. The company lacked controls in operations, staffing, and cash flows. Judy wanted more structure to her organization, and she also wanted clearly-defined lines of authority. She needed a more efficient staff that would lead to increased profitability for the business, debt that could be repaid, and an operation that presented opportunities to expand.

The George S. May Solution
Working with the consultants from George S. May International, Judy was able to map out an organizational plan that clearly delineated each area of the business and its associated managers and their responsibilities. The consultants restructured the business, training management and implementing tighter controls and cost-saving procedures, including:

1. Put into place and trained management on accounting practices, cash flow forecasting, and ratio analysis, as well as improved accounts receivables
2. Enhanced and organized job descriptions for all employees and improved overall accountability
3. Implemented performance evaluations for staff and developed a work schedule to cut labor costs
4. Forecasted demand trends and recommended operation hour changes
5. Developed succession planning goals and objectives

The Benefits

1. Cost savings recommendation of $336,500
2. Improved cash flow and reduced maintenance costs
3. More effective staff meetings
4. Implemented a cancellation policy 
5. Revenue enhancements

“We now have confidence and the tools to succeed. The consultants from George S. May gave me a management action plan that will guide the team into its next phase of expansion with clarity and support. ”
Judy Jennet,  Owner and President, Ocean Sports