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F 7; «‘15,» r.- ‘ ~-r‘ ' 1 Li's. $39?" 1‘ :J, 39:25 ABSTRACT MANAGEMENT CHARACTERISTICS OF PRIVATE PROFIT-ORIENTED GOLF ENTERPRISES IN MICHIGAN BY Gary Joseph Davis In 1970 there were over 10,000 golf courses. This study's comprehensive inventory of 450 courses in Michigan reflects this national growth pattern. Many of the newly developed golf enterprises are experiencing economic diffi- culties. This study is an initial effort to provide pres- ent and future private golf course operators with informa- tion identifying specific management skills which contgi: hutefltgflthelfinancialrsuccesslofrthewenterpriselh It exam- ines, on an intimate level, the private profit-oriented golf courses in Michigan. It is hypothesized that certain management skills applied to golf course Operation create a significant impact upon its success. Management skills were separated into two groups: @EEEEEESEEHEIaQtices, and management profile. There were ten management practice variables and thirteen management Gary Joseph Davis profile variables designated crucial to the success of an enterprise. Success was defined as the relationship of the enterprises' gross income to the mean gross income. The present level of management skills of the 66 randomly° sampled enterprises was identified through use of a per- sonally administered survey instrument. Analysis of the collected management information was a two-part process. The first part provided a compre- hensive description of the 23 management variables using percentage/frequency statistics. This provided an overall descriptive picture of the 23 management characteristics as they appeared in the sample enterprises. The second part of the analysis involved the iden- tification of significant management variables through ap— plication of the Pearson product moment correlation statis- tic. There were several management variables found to have a significant bearing upon the success of the enterprises. There were three management profile variables found to be significant to the success of the 18 hole courses. These include: level of education, job during the off sea- son, and the number of years the course has been estab- lished. In the 9 hole courses, the profile variables found significant were: the number of seminars attended, member- ship in professional organizations, and managers' salary. The contrast in size of the 9 and 18 hole courses is re- flected by the entirely different variables found signifi- cant . Gary Joseph Davis Two management practice variables were found to be significant and they appeared only in the 9 hole enter- prises. These are: sponsoring community events, and co- operative relations with businesses. The results of this study provide a base from which to establish future research in determining the level of importance management skills have in determining the suc- cess of a private profit-oriented golf enterprise. Further research could provide more conclusive evi- dence in establishing the significance of the management variables researched in this study. MANAGEMENT CHARACTERISTICS OF PRIVATE PROFIT*ORIENTED GOLF ENTERPRISES IN MICHIGAN BY Gary Joseph Davis A THESIS Submitted to Michigan State University in partial fulfillment of the requirements for the degree of MASTER OF SCIENCE Department of Park and Recreation Resources 1974 ACKNOWLEDGMENTS This study has been the result of a joint effort on the part of many people. I would like to give special thanks to Dr. Lewis Moncrief whose constructive criticism and counsel guided this study in its entirety. Also, spe- cial appreciation is expressed to Dr. Donald Holecek whose‘ thoughtful suggestions contributed measurably toward the completion of this research. I am particularly in debt to fellow graduate students, Dan Stynes for his many hours of statiStical consultation, and Jim Houck who assisted in the field administration of the survey instrument. Expressed appreciation is due to the 66 golf course managers without whose participation and cooperation this study would not have been possible. Also, special recognition goes to Dr. Kenneth Paine and Dr. James Beard of the Crop Science De- partment for providing timely advice and an initial sense of direction. I am indebted to typist, Lilah Hicks, who typed the final manuscript in the face of deadlines and last minute additions. And lastly, but most importantly, I am deeply grateful to my wife, Jo Ann, whose love, under- standing and support were a continued source of inspiration. ii TABLE OF CONTENTS LIST OF TABLES . . . . . . . . . LIST OF FIGURES . . . . . . . . Chapter I. INTRODUCTION . . . . . . Purpose of the Study . Study Objectives . . . Scope of Study . . . . Hypotheses . . . . . . II. LITERATURE REVIEW . . . . III. SAMPLING/METHODOLOGY . . Sampling . . . . . . . Evolutionary Sampling Study Design . . . . Administration . . . Methodology . . . . . . Limitations . . . . . IV. MANAGEMENT VARIABLES . . Management Profile . . Age of Managers . . . Level of Education . Process Previous Golf Experience . . Number of Years Previous Golf Experience . . . . Levels of Golf Experience . . Number of Years Golf Course Manager Previous Occupations Number of Hours per Week Devoted to Management . . . . Managers Holding Jobs During Off Season Managers' Salary .- . iii Page ix l—J CDQONH 10 15 15 24 32 33 37 39 43 Chapter Management Practices . . . . . . . . . . Speed up Play . . . . . . . . . . Cooperation with Local Community . . . Cooperation with Local Schools . . . . Cooperation with Businesses . . . . . Youth Hiring Practices . . . . . . . Implemented Changes Suggested by Customers . . . . . . . . . . . . . Special Services for Customers . . . . Use of Customers' Addresses in Advertising . . . . . . . . . . . . Use of Financial Records to Influence Management . . . . . . . . . . . . . Use of Discounted or Donated Labor . . Significance of the Data . . . . . . . . Significant Management Profile Variables Level of Education . . . . . . . . . . Job During Off Season . . . . . . . . Number of Years Course Established . . Number of Seminars Attended Last 3 Years Belongs to Professional Organizations Managers' Salary . . . . . . . . . . . Significant Management Practice variables 0 O O O O O O O O O O O 0 Significance of Gross Income . . . . . V. SUMMARY AND CONCLUSIONS . . . . . . . . . Management Profile Variables . . . . . . Significant 9 Hole Profile Variables . Significant 18 Hole Profile Variables Management Practice Variables . . . . . Significant 9 Hole Management Practices. Identifiable Patterns of Significant variables 0 I O O O O O O O O O O O 0 VI. RECOMMENDATIONS . . . . . . . . . . . . . Specific Areas of Investigation . . . . BIBLIOGRAPHY . . . . . . . . . . . . . . . . . . APPENDICES A. CORRELATION COEFFICIENT TABLES . . . . . . B. SURVEY INSTRUMENT AND INVENTORY POSTCARD . iv Page 104 104 105 107 110 110 112 114 114 121 124 132 10. ll. 12. 13. LIST OF TABLES Evolved sampling process . . . . . . . . . . . Random sample before final 9 and 27 hole dis- qualifications . . . . . . . . . . . . . . . Final random sample . . . . . . . . . . . . . Managers' age (9 Hole courses) . . . . . . . . Managers' age (18 Hole courses) . . . . . . . Level of education for 9 and 18 hole golf course managers . . . . . . . . . . . . . . Previous golf experience of 9 and 18 hole course managers . . . . . . . . . . . . . . Number golf Number golf Fields of years previous experience of 9 hole course managers . . . . . . . . . . . . of years previous experience of 18 hole course managers . . . . . . . . . . . . of golf experience of 9 hole course managers 0 O O O O O O O 0 O O O O O O O O 0 Fields of golf experience of 18 hole course managers 0 O I O O I O O O O O O O O O O O 0 Number of years as golf course managers for 9 hole golf operations . . . . . . . . . . . Number of years as golf course managers for 18 hole golf operations . . . . . . . . . . Page 25 26 30 46 48 50 52 54 55 57 58 60 61 Table 14. 15. l6. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. Prior occupations of 9 hole golf managers . Prior occupations of 18 hole golf managers Hours devoted to management by 9 hole golf course managers . . . . . . . . . . . . . Hours devoted to management by 18 hole golf course managers . . . . . . . . . . . . . Managers of 9 hole golf courses holding off season jobs . . . . . . . . . . . . . . . Managers of 18 hole golf courses holding off season jobs . . . . . . . . . . . . . . . Managers' salary for 9 hole golf course operations . . . . . . . . . . . . . . . Managers' salary for 18 hole golf course operations . . . . . . . . . . . . . . . Speed of play in 9 hole golf operations . . Speed of play in 18 hole golf operations . Cooperation of 9 hole golf operations with local communities . . . . . . . . . . . . Cooperation of 18 hole golf operations with local communities . . . . . . . . . . . . Cooperation of 9 hole golf operations with schools . . . . . . . . . . . . . . . . . Cooperation of 18 hole golf operations with SChOOIS O O O O O O O O O O O O O O O I O Cooperation of 9 hole golf operations with businesses . . . . . . . . . . . . . . . Cooperation of 18 hole golf operations with buSinesses O O O O O O O O I I O O O O 0 Youth hiring practices of 9 hole golf operations . . . . . . . . . . . . . . . Youth hiring practices of 18 hole golf operations . . . . . . . . . . . . . . . Implemented changes suggested by customers in the 9 hole golf operations . . . . . . . vi Page 63 64 67 69 71 72 73 74 76 76 78 78 79 80 81 81 82 82 83 Table Page 33. Implemented changes suggested by customers in the 18 hole golf operations . . . . . . . . . 84 34. Special services for customers in the 9 hole golf operations . . . . . . . . . . . . . . . 84 35. Special services for customers in the 18 hole golf operations . . . . . . . . . . . . . . . 85 36. Use of customers' addresses in advertising by 9 hole golf operations . . . . . . . . . . . 86 37. Use of customers' addresses in advertising by 18 hole golf operations . . . . . . . . . . . 86 38. Use of financial records by 9 hole golf opera- tors to influence management . . . . . . . . 88 39. Use of financial records by 18 hole golf opera- tors to influence management . . . . . . . . 88 40. Use of discounted or donated labor by 9 hole golf operations . . . . . . . . . . . . . . . 89 41. Use of discounted or donated labor by 18 hole golf operations . . . . . . . . . . . . . . . 89 42. Pearson product moment correlation coefficients (Manager Profile - 18 hole) . . . . . . . . . 93 43. Pearson product moment correlation coefficients (Manager Profile - 9 hole) . . . . . . . . . 96 44. Pearson product moment correlation coefficients (Manager Practices - 18 hole) . . . . . . . . 100 45. Pearson product moment correlation coefficients (Manager Practices - 9 hole) . . . . . . . . 102 46. Pearson product moment correlation coefficients (Manager Profile - 9 hole successful) . . . . 124 47. Pearson product moment correlation coefficients (Manager Profile — 9 hole unsuccessful) . . . 125 48. Pearson product moment correlation coefficients (Manager Profile - 18 hole successful) . . . 126 49. Pearson product moment correlation coefficients (Manager Profile - 18 hole unsuccessful) . . 127 Vii Table 50. Pearson product moment (Manager Practices - 51. Pearson product moment (Manager Practices - 52. Pearson product moment (Manager Practices - 53. Pearson product moment (Manager Practices - correlation coefficients 9 hole successful) . . . correlation coefficients 9 hole unsuccessful) . . correlation coefficients 18 hole succeszul) . . correlation coefficients 18 hole unsuccessful). . viii Page 128 129 130 131 Figure 1. Golf Course growth in the United States 2. Distribution of total golf enterprises in MiChigan O O O I O O O O O O O O C 3. Distribution of profit-oriented golf enterprises . . . . . . . . . . . . . . 4. Clustered areas for sample selection . 5. Distribution of selected sample (100 golf enterprises) . . . . . . . 6. Distribution of sample size 70 . . . . 7. Distribution of final sample 66 . . . LIST OF FIGURES ix Page 18 19 21 22 27 31 CHAPTER I INTRODUCTION Purpose of the Study Due to modern society's technological advances, the United States population is experiencing an increased amount of leisure time. This substantial amount of leisure time is also accompanied by higher discretionary income and greater mobility which, by their simultaneous occurrence, exerts a growing demand for outdoor recreational opportuni- ties.1 Private Enterprise Outdoor recreation oriented private enterprise will play a vital role in satisfying this growing demand. A sec- tion of the 1962 O.R.R.R.C. Reports recognizes the impor; tance of private enterprise as a significant factor in meet- ing the need for increased recreational opportunities. In regards to private enterprise, the report states . . . that outdoor recreation, unlike a service such as police protection cannot be the responsibility of gov- ernment alone . . . . Government can help make oppor- tunities available and carry out projects in the public 1Marion Clawson, Economics of Outdoor Recreation, John Hopkins Press, 1969, p. 163. 1 interest that cannot be done privately, but it does not, cannot, and should not proVide for all outdoor recrea- tion needs of every citizen.2 Development of Facilities The number of private and municipal golf courses has increased in response to demand pressures created by the rapidly expanding golfing population. But, the munici- palities are limited to minimal participation in the devel- opment of golfing facilities by the nature of their budge— tary constraints, characteristic of public tax supported institutions. The municipalities are, therefore, finan- cially unwilling or unable to invest the necessary large sums of capital required to develop golf facilities. The initiative is thrust upon the private sector to provide golfing opportunities that are demonstrably.needed but in- adequately provided by public agencies. Report 11 of the O.R.R.R.C. entitled, Private Outdoor Recreation Facilities, fully supports and encourages development by private recre- ational enterprises which would augment the public outdoor recreational services and facilities. Golf as an outdoor recreation activity has gained tremendous popularity throughout the country, particularly in the last decade. Figure 1 shows the pattern of golf course growth on a national level. According to the 2O.R.R.R.C., Outdoor Recreation for America (Wash- ington, D.C.: Government Printing Office, 1962), p. 156. Figure 1. Golf course growth in the United '47 A '49 '51 '53 J Years I U '55 L 4 H q q D h b ""57 '5'9 '61 '02 '63 :64: 65 '70 States. 10,000 9,800 ' 91600 9,400 9,200 "' 91000 8,800 8,600 8,400 . 8,200 ' 8,000 - 7,800 - 7,600 7,400 7,200 7,000 6,800 6,600 6,400 6,200 6,000 5,800 5,600 5,400 "5,200 5,000 4,800 4,600 Number of Courses National Golf Foundation's 1967 statistics3 there were ap- proximately 9 million golfers and 8700 courses in the U.S. From these 1967 figures the National Golf Foundation pro- jected the existence of 10 million golfers and 10,000 courses by 1970. Dichotomous Study The total golf project is conceived of as being a tWo part analysis. This portion of the study involves the management profile and practices of the golf operation, while the second part is concerned with the financial and economic aspects. The second portion of the study has been assigned to another graduate student and will be finished approximately the same time as this one. Both research papers compliment each other and share the fruits of coop- erative exchange of information between both researchers. Management Analysis This portion of the Golf Study will provide descrip- tive information concerning the management characteristics of private profit-oriented 9 and 18 hole golf courses in Michigan. The data gathered by this initial effort will provide broad management guidelines and information aimed toward maximizing the profits of existing operations by 3Harry Eckhoff, Golf Development Reaches New Highs in 1965 (Chicago: National Golf Foundation Publication, 1965), PP. 1-2. encouraging the conscious application of management tech- niques. The information obtained by this research will be useful as a point of reference and comparison for current operators and potential developers. The data generated by this research project should not be considered a panacea for management problems, but viewed as a yet to be refined tool which provides valuable insights into the unexplored areas concerning the management aspects of Michigan's 9 and 18 hole golf courses. Measure of Success In addition to the identification of specific man- agement variables, a measure of success of the 9 and 18 hole enterprises will be developed. This success indicator will provide a measure which will result in a dichotomous grouping of courses, those more successful and those less successful. After the classification determining its de- gree of success, an effort will be made to identify those management variables of significance which are associated with the more successful operations. Golf Project This study is funded by Rural Development Funds made available under the Hatch Act and administered through the Agricultural Experiment Station at Michigan State University. This research project represents an initial effort to in- vestigate and identify management characteristics of pri- vately owned, profit—oriented 9 and 18 hole golf courses in Michigan. The identification of management variables to- gether with a measurement of success will provide a basis for further, more definitive research projects. Essentially, this research effort can be viewed as a pilot study explor— atory in nature which attempts to identify and describe a population of unknown quantity and quality. Study Objectives There are a number of objectives which are relevant to purposes of this study. These are: 1. To provide a two-dimensional description of man- agement characteristics consisting of a manage- ment profile, and management practices. 2. To identify significant management practices and profile variables associated with the more suc- cessful courses. 3. To develop a measure of success in order to com- pare and assess the management characteristics of the more successful operations with the less successful ones. 4. Hypothesis testing using the Pearson Product Moment Correlation statistical test in determin- ing the strength of association of specific man- agement variables to the success of an enter- prise. 5. A general assessment and description of the golf industry as it now exists in Michigan. Scope of the Study This study will investigate and identify the manage- ment characteristics of a representative sample population of profit-oriented, privately owned 9 and 18 hole golf courses in Michigan. Profit-oriented courses heretofore being defined as those 9 and 18 hole courses operating on a profit making motive whereby the burden of loss is sus- tained by the owner. This definition necessarily excludes the following: a. All municipal and public courses operated by a unit of government b. County clubs established for private memberships exclusively, purposely for their pleasure or business entertainment and not for profit max- imization *c. 27 hole operations d. Par 3 golf courses e. Miniature golf operations f. Driving ranges Due to budgeting limitations the golf operations located in the upper peninsula were eliminated from our *Due to the disproportionate scale of operation and relatively small population, the 27 hole operation is ex- cluded from this study. The homogeneity of 9 and 18 hole courses regarding their size and sufficient numbers for sampling will provide a consistency to the data for analy- sis purposes. study. The transportation costs and number of hours re- quired to obtain the necessary data were the limiting fac- tors . Hypotheses #1 The more successful 9 and 18 hole golf courses will exhibit significantly different management profile vari- ables when compared to those identified with less success- ful courses. Profile variables: a. b. age number of years golf experience number of years golf course manager level of education number of seminars attended last three years job during off season manager's salary read professional literature belong to professional organizations number of years course established number of hours devoted to management #2 The more successful 9 and 18 hole golf courses will exhibit significantly different management practice vari— ables when compared to those identified with less success- ful courses. Practice Variables: design or modify operations in any way to speed up play sponsor community events cooperative relations with local schools cooperative relation with business special hiring practices toward youth groups customers suggested any change in course oper- ation which was implemented provide special services for customers use financial records to influence management use discounted or donated labor use-customer's address in determining advertis- ing markets CHAPTER II LITERATURE REVIEW A limited amount of definitive literature and re- search exists concerning the managment characteristics of private golf courses operated for profit. The bulk of in- formation pertinent to golf course operation is published by the National Golf Foundation. National Golf Foundation The National Golf Foundation provides the most com— prehensive source of statistical information regarding golf courses and their operation. The data package assembled and distributed by the N.G.F. is primarily general information available to individuals, groups and communities involved in planning, construction, and operation of golf courses. The prepared N.G.F. packets contain useful suggestions and guide- lines emphasizing a preventive approach to golfing operations. The packet of N.G.F. information lacks identification of spe- cific management factors which would improve climate for suc- cessful operation. Some examples of the general advice con- tained in N.G.F. publications are "expect to run in red for first year of established operation," "the manager must be 10 11 social and have good community relations," and "a high qual- ity course superintendent will be an invaluable asset." This information is of limited value, in that it provides the "what" but leaves out the "why" and "how." Promoting Growth and Success The National Golf Foundation does an admirable job in promoting the growth of golf industry, but growth does not automatically mean success. The dramatic increase of golf courses in recent years, underscores the need for more specific information on the management and economic characteristic of the more successful golf courses. Identi- fication of specific variables associated with the degree of success of private golf courses will provide a tool enabling the established and emerging enterprises to obtain a sem- blance of controlled growth and development, thereby enhanc- ing their chances for success. A process of identifying variables which would en- hance chances of successful operation, will encourage future investors and promote stability of established courses. Golfdom Annual Issue The second source of information specifically di- rected toward golf course operation is the Annual Golf Sur- vey issue of Golfdom Magazine. This publication provides an endless variety of general statistics having limited value 12 to this study. The golf operation variables range from, maintenance supplies, golf carts, to tennis courts and swim— ming pools. The data is based on a nationwide mail-in sur- vey form which is distributed to a sampling of their sub- scribers. Unfortunately, the annual issue does not supply information concerning its instrument, sampling technique or analytical methods. At best, the graphs and data presented in the annual issue provide an optomistic inflated picture lof a wide array of operational characteristics. This scat- tergun approach in assemblage of data lacks depth in fact gathering, as well as analysis. Related Outdoor Recreation Research There are various other types of private outdoor rec— reational enterprises being researched which have some com- mon bonds with golf enterprises. An increasing body of re- search is being accumulated in these areas. Although most of these studies are unrelated to the special aspects iden— tified with golf, they all share common factors that can be associated with certain phases of golf as an outdoor recre- ational enterprise. Some of these common bonds of associa- tion are: (1) profit-oriented, (2) privately owned, (3) Open to the public, and (4) a commitment toward meeting the demand for outdoor recreation. Examples of this growing body of research include the following publications: 13 1. Form Recreational Enterprises in Missouri (Ronald Bird, 1963). 2. Rural Recreation Enterprises in New England (Moor, 1964). 3. Youth Camps in Vermont (Bevins, 1970). 4. Analysis of Campground Market in Northeast- Private Areas (Northeast Regional Research Pub- lication, 1973). 5. Private Campground Industry in Michigan (Dice, 1971). 6. An Analysis of Private Commercial Horse Industry in Southern Michigan (Holleran, 1973). 7. An Analysis of Golf as a Recreational Business in Genesee County, Michigan (Moncrief, 1967). These studies provided many useful insights and helped to identify the common group of characteristics that are relevant to the variety of outdoor recreational enter- prises. Most of these studies are descriptive in their presentation of data, reflecting the initial efforts in their respective fields of investigation. The initial ef- forts will provide a baseline of research which future re- search can build and improve upon. This study of specific management characteristics of 9 and 18 hole golf courses, represents an initial effort concerning this aspect of the golf industry in Michigan. Previous existing publications concerning the golf industry in Michigan appeared in the form of recreational magazines, Chamber of Commerce bulletins, and informational materials pertaining to recreational and golf equipment 14 distributed by salesmen and manufacturers. Descriptions about the golf industry contained in these materials are generalized and evidenced wide variances in figures, depend- ing on the source. This study will attempt to resolve some of the broad misconceptions and distortions that currently exist about the golf industry in Michigan. The inaccuracies in tabulation, dissemination, and misinformation by the previously mentioned public and pri- vate agencies are due primarily to the lack of adequate fac- tual research being available. CHAPTER III SAMPLING/METHODOLOGY Sampling Comprehensive Golf Inventory Initially, a comprehensive inventory of Michigan's golf courses was compiled. To no avail, various agencies throughout the state were contacted in our search for an existing compilation of golf courses. Agencies contacted were the Michigan Tourist Council, State Chamber of Commerce, State Department of Transportation, and Michigan Golf Asso- ciation. Inquiry of the Crop Science Department at Michigan State University resulted in the acquisition of a 1969 com- puterized listing of approximately 350 golf courses through- out the state. The list was compiled by a certain golf course maintenance equipment manufacturer. Future re- searchers of outdoor recreation businesses should note that many suppliers of equipment and materials maintain large in- ventory lists of outdoor recreational enterprises which aid them in identifying and establishing their markets. The 350 course list provided by the Crop Science De— partment was further supplemented by the inclusion of 15 16 additional golf courses found in statewide telephone direc- tories. Lists resulting from these combined sources were mailed to the county cooperative extension agent in each county with the request that each agent add courses to the list that were not included and to delete those erroneously listed or which had gone out of business. This procedure produced a comprehensive inventory list of 481 courses. This was considered an adequate number with which to begin the next step of population stratification. It should be noted that 481 golf courses is not to be considered a finalized listing but will be subject to a continual process of additions and deletions. Restated, the purpose of this study is to identify and describe the management characteristics of 9 and 18 hole golf courses run for profit and privately owned. Inventory Postcard Using this study's purpose as a guideline, an inven- tory postcard was designed to gain basic operational data (see Appendix). The postcard would allow further stratifi- cation of our total population. The postcard was then mailed to the 481 golf courses. Population The responses totaled 450 courses. It should be cau- tioned that this 450 is not a final figure and will be 17 adjusted accordingly upon the receipt of additional re— sponses, delayed for various reasons. The distribution of the responding 450 courses is shown in Figure 2. Note the similarity of golf course concentration with respect to pop- ulation densities in the state. This pattern is particu- larly evident in the heavily populated counties of the south- east lower peninsula. The sparsely populated areas of the rural northern lower peninsula mirror those found in the upper peninsula. Survey ngulation A study population of 290 golf courses was obtained from the 450 inventory postcard respondents. These 290 courses met this study's previously stated criteria identi- fying profit oriented 9 and 18 hole courses. Figure 3 shows the statewide distribution of the 290 study population. The regional distribution pattern displayed by the 290 profit oriented courses in the state closely parallels that of the total 450 golf course population (Figure 2). Sample Population An initial sample size of 100 was determined in con- sultation with project coordinator, Dr. Moncrief, to be suf- ficient. In accurately studying the sample population using a sufficient sample size to represent the total population, is an accepted procedure employed by most researchers when it is impossible or unfeasible to sample the total population. / ., Ill-II w ououtou , 3 I r - 'ouvouuou L, , :1 J new: 1 I mucus": Total Golf Enterprises to Date-450. Figure 2. 18 _ _ __ _i I ' O i I l I’cmnzm Q ' ' ' b .scuomcnnrv L - .. .. J 3 . '0 ,..--...I IACKIIAC I..._._..., ]_ : 3 ‘ 1 {I} 0 9 0 f/Z\_\b trust. 0 «noun |'l£800¢ ' 'IIL fSéD I 2 D cunt onxL - ., : .-., 3 ————— ......- 1 QIEI- L rfi'm’o murmfiuflfi 0 U" U umm ' u i 2 i 0 I I ' I I1 3 'LI :2 _I'--s_, L-~-L- - nus“?! 'uoutcALl Tuuma sum" : 3 J | — r : w" . 7 . 5 . 10 mm." “mm- .. -4 , r- --1- --r - - '1 I In. cum om“ ’ II 0"“ .cuuvonn'm“ I 9 I 3 , I I I -2. -135,- J- 2 _. L .i. ' -15- -'--'-mu~o I"°°"I ALLICAI I u." . “70! :quu 'uvnn '18 I I ‘ 7 . 3 3 2 .15 i 5 .47 ...... L- .W *r'j'lz van mu ,“W'W- I cALuoun : 446“” "autumn '* 3 113 z 8 .17 I 18 .28 .ERIIC" - .3--.— l"- ------ T ‘ 0“. 3". MIN '."c" 'WILLSDM: LIMO'I‘ .“0'.” I 12 ' 6 - 5 g 3 g 5 : 10 : 8 I A ____ F. Distribution of Total Golf Enterprises in Michigan. ISL! ROYAL! nu v woman 19 I l I r '- 'OITOIACOI l. I L‘ L l r‘ IIAIACA ,..I warm I- __ I l IIIAIIounII: I we: I 1 I I 0 I O '___J I 0 'c— — .L .. _ - .7 ' ’ I... .. 1 man I 0 IALou r _ .I' I 0 Icmnzm II-- - -I ' 0 Iscuomcun L .. .. - .1 b l ‘oIcIIIIIwII' L_ _ _ J 1 I ”an,” "L _ _ _0- w ' I DELTA ‘ 0 : 0 L 1 ,J‘fl" 1 ' .I l I 0 lb I EIIETI L. .c It uuomu g 1+ «no on: "£50!!! I 0 IISL A ' I cIIAIILE OIxL .. .I I 0-. v, ----- - — - 0 L“ U AIIIIIIII I : Total Profit-Oriented I I I ' . l I l 0 3 1 1 Golf Enterprises to Date- -..7_ ”T L F' ‘ ---J-T ..... 2 90 . ““9" I LAII: .°"‘°“ cue: :fl-IWIN' Anne ' I I I I. 11 R I l I l I l I l I." III: on - .. .. ‘r .............. OCIAIA UNIV“ ’uzcosnflnflu'muuo.‘ L 3 .- U| - -- I 1 I 1 : 3 I 0 I__ Tuscan , mm“ ____‘ I____L- .‘"‘.J I usxz.I I IOITCALI TOIA1WOYI3“'"" I 3 I l I -J‘. .- ..- -J- - I r I" In" 1‘ 6 i 3 ' 6 'Ez-nt‘I-tf'- bug-“L " " " .....I I I---- -— --r--‘1 I "ten" 07"". IOIIIA 'cL'u;°~ ’IIIIAIA. ' ' I i ' I I 9 ‘ 2 [I [I ’ ._, a— C” " 6 1 8 I l ‘ 3 I '4 I f‘ "’ L I'ACOI: _____}__'__J___T_,_ _______ ._,.. 0AIILAIIDI I ALLzuII I ”I." ' (non :IIIgII“ :UV'Wfla‘, I17 I I ' I I I 6 L 2 , 2 I 9 , 3 I 29 ' VAII wImI “L“‘Z-' cALIIouII Iammo" “Hunt": In": 10I 6 5 13 I 9 115 -4-....L..... J----I_.. .....I....... .uounq: l I 6:5:3‘2:H:8I7 ' Figure 3. Distribution of Profit-Oriented Golf Enterprises. 20 Random Sample The original sample size of 100 was selected by the use of random sampling techniques.4 To insure the probabil- ity of a representative sampling of golf courses throughout the state, the survey population was grouped into four arbi— trary regions as shown in Figure 4. The initially selected 100 sample size represents 34% of the 290 firms in the population. The determined sample size was selected to insure that an adequate number of obser- vations were made with a minimum of variance from the study population. Using the random sampling tables, a sample of 100 courses were proportionately selected from regions 2, 3A and BB. The distribution of these 100 can be seen in Figure 5. Table 1 shows the percentages selected from the study popu- lation in each region. Note the disproportionate number of 25 sampled in region 2 which represent 49% of those within the region. The 47 courses selected in region BB are almost twice those in other regions. This proportionately reflects that region 3B contains 54% of the study population. A list of substitute golf courses for each region was randomly selected as a contingency measure to be used in case some original enterprises were unable to participate in the study. 4James Rohef, Statistical Tables (San Francisco: Freeman and Company, 1969), PP. 152-56. 21 “L! ROYAL! III! 1' " '\ OUOHTOI l | r - 'ououuou L. I L. L‘ r" ”Ann I... Iconic I- ., ' ' "'"°”"" ' Luct ' 1 ' I I ' 0 '_ _ _ .I I - - 1 IIIOII I IALou I I ICIIInzIIA I r ‘ ' ' IOICIIISOQ I .1 H L l HACKINAC b " '1 ‘~. . a} 00°” % 800! Region 1 - '9 . '- IICA Region 2 i I ‘\\ ° Region 3A III A t L ii Region BB 9: 3 5‘ ° i ' . in. “.377; I; I f ‘I— I I v #2 "d. hIrSCIaJ on .1 : ......,-.I I I l l - - -’ ‘ l 1 ‘W - _ _ 1’ A ' lfi Figure H. Clustered Areas for Sample Selection. I’Ll ROYAL! "(I v - -I ounutou 22 r - I I IAIACA I... I union": I ' | I- u L Q. - - 1 | L- - 'I In” I I I ouvonuou I, ' J I. .I I" cum: I- _ I ' LucI: I -3. I I IscuooLcAArv I I IIAcIuIIAc I DELT‘ I I I I I cImmIA I Q» ‘ N *O- — IoIcIIIIIsoI'I' L _ - - - fl I '1 I 0 Do 0 T IIIOMIIIE I II“ I emu: OIxL .. .I -.. 2 L .. .. AImIIII 2 I— uuAsxAI" AII’ORD I «can I _1I____12__ -4- “Futumtm "“0“ :ouIIAII : I T086 (OLA T“ I" Istco' I. 1° Inert-on. H ToLmIII': 1 «=qu NEW!” ’ltCDIVaI'."E'-u'IIDLAIDI l l --~-L- I r- I mu ‘I 1 t l 0.7.7::I ‘ FIONI‘ TcL'~;;~?HIl". ' l l I .I I 2 _ L - — “I" : IIIIIIAI I I 2 L - - Incas" I afl- P IIAIIY ALLEC‘I I r..— "l I DERRIIII P- I CABS ‘ 1 II I I I l I 2 2 I 2 I I I Figure 5. Distribution of Selected Sample Size 100. 4-- IIIoIIIcALII 1":1I31I8ACIIAI I I II I ‘UVflH‘flI II IAsIInIIAu I 4------ IS I-JOSEPII' nAIIcII 7""qu Linux: I &} Inuouz IAI.P£IA I ALcouA I I . ...I -E- IIOSCO Altltc ”030. L... ruscoL: . 'sAIIILAc l -‘-— - I-IunnI_ __ _ _ «7qu I In. cum I I 1 I M’__-1 'ILCOIUI I I 3 I -4 run: 9 I I 5 -J--— uouuq: II. 23 Sampling of Rural Areas Golf courses in the upper peninsula were excluded from the sampling process because of their insufficient num- bers and the prohibitive transportation costs involved. This decision reduced the survey population to 285; subse- quently, a decision was made in consultation with project coordinator, Moncrief, to draw a disproportionate sample from region 2. This would insure an adequate frequency of response from rurally located courses. Region 2 includes courses in the northern lower peninsula which exhibits sim- ilar characteristics to those found in the upper peninsula. Decrease Sampling Size Unfortunately, the random sample size of 100 was not achieved due to difficulties and complications arising dur- ing the appointment making process. The unanticipated large number of disqualifications and refusals (see Table l) cou- pled with the limitations of time and funds made it imprac- tical and unfeasible to continue pursuit at a sample size of 100. Pressed by the limitations of time and available funds, it was decided, after consultation with project coor- dinator Dr. Moncrief, that a final sample size of 70 was realistic and attainable. It was, therefore, agreed that 70 courses would provide us with an adequate number of re- sponses which would accurately represent the study population. 24 Evolutionary Sampling Process Tables 1 and 2 provide a view of the evolutionary process involved in arriving at the final sample size of 70. The final sample size of 70 resulted from a combination of several actions involving disqualifications, refusals and substitutions (Figure 6). Disqualified Courses We were totally unprepared for the high rate of dis- qualifications that we encountered. Some of these courses were discovered ineligible during the appointment making process, but most were encountered during the scheduled in- terviews. Among the reasons for disqualifications were: just began the operation.this year and have inadequate rec- ords; some were non-profit subsidized by a corporation (which they neglected to specify in the postcard inventory); others had just bought the golf course and the former owner(s) had the records; and one course had just switched from a private to public course (a growing trend for many financially ailing private courses). There were 17 disqual- ifications which left the study population at 268. Refusals Another 15 courses were refusal casualties that oc- curred during the appointment phoning process. Responses 068 Tval %OOT OOT LI ST 88 89 Z9 0L ZST 88 %99 L? $08 6E EE OE SE 88 VS %BZ 88 %PE 88 LI LI LT IS %LT 98 %6V TZ 8T ST ST 25 %T Region # Profit-oriented Courses % of Total Survey Population Original Random Sample % of Total in Respective Regions Total # Disquali- fied Adj. Random Sample After Disqualifica- tion # of Refusals Adj. Random sample After Refusals # Incomplete Inter- views to be Mailed in Adj. Random Sample Minus Mail-ins Random Selected Substitutes Final Random Sample Population 'T GIQPL 'sseooxd BUTIdeS'paAIOAfl 26 Random sample before final 9 and 27 hole disqualifications. Table 2. mamfimm Eopcmm cw coma nowuma unmom manamaam Hanan no A mamfimm Eoccmm Hmnwm AmHMmSMmm can mGOAMMUHmaHMSUmHQ msqflzv cofiumasmom wabamfiam amass mammsmmm Hanna coflumanmom mabflmflam II mGOHuMOHMHHmavaQ Hmum< coaumHsmom >m>usm manflmwam mcowmmm 45% 18 44 44 47 26% 17 71 71 77 3A 27% 35 138 138 144 3B 70 28% 253 253 TOTAL 268 Figure 6. 27 IscuooLanrv I we: I I I . IcIIszIA I_ __ _ __ J b IIAcIIIIIAc I__ _ __ _ __ _I ‘ '1 I 3 O 0 00 Nb IIIEYI Imam 1 Imuuc I '"I. cant: onIL- I I I "W ..... QLEI- L .l__ I" pnuo 'mflmIALKIA 0 “II II AIII'IIIII I I I l I l I I _ ;‘II'AGA'SIIA'I;II:';II;IoAcooA I II“... "'IIEIAIIII "Am. I I I 1 I 2 I 1 I I 1 L 2 «II-IIIIII'BI'M'I'I W3 A0:c3~“I3.E-If I m I I I I l I I I I. I35": LAIIA T°'°‘°“I-cIAIIA fulfill? AIIIIIAI: I I I I I' " “unrunvoo IncenIIAII“"I-I-‘IIAIIII.AIIII I _2_ __ I I L - “I ‘uIIILAc I l I l I I I" rusooLAI --_-I L---L- . 4" I “'1-J I l USKIJ IIOITOILI 1.;‘1‘01. 3‘CINIU I l I L - _. J- - ' . : I" I.“ ‘ .. -4 I- - - -+- - - -I" ‘ I In.cI.AIII OTYQII I IOIIQ .9LI”';I IIUIfi'l I l I l ' l I I I I- __,__.I__r__:_ __L____I_ _I_, -I--roAIII.AIIt Iwut ALLAAAII I unv T IAIOII :IImI“ Im II I I I 5 1 ' I I 3 1 1_; _ _ .1- """ L“ T ' " " I' L " " " " IIAvIII: AAII AIIIIIII IWW‘I- cALIIouII I “WWI IvAAImIIAIII I g I 2 i 1 I 2 I 3 IIMIIIL- _ - - -L- ------ ’J_-_ I cm I' "- AAAIIcII “III-WIIIIIAIIu Inn” I ' I 2 I 1 ; I 2 ' 2 I 3 I 2 Distribution Sample Size 70. l I __‘_—- w 28 by uncooperative operators were short and blunt. Among these are replies such as: "don't like governmental inter- ference"; "will selectively disclose certain financial in- formation"; and "do not want to participate at all." The refusals were anticipated and provided for by the inclusion of substitution lists. The 268 eligible study population is therefore decreased by 15 more and becomes 253. Appointments and Field Administration The appearance of disqualifications and refusals oc- curred as part of the ongoing administration of the study during the summer of 1973. Therefore the use and selection of substitutes was delayed until after the initial list of 100 random selected courses was screened during the field work administration. This would give us a perspective as to the number of interviews completed and how many random substitutes needed to be selected. Interviews Completed Toward the end of the allotted time scheduled for the field work portion of the study, we had 62 completed questionnaires. In addition, there were 6 incomplete ques- tionnaires that were to be mailed in by the interviewed op- erations. (Note--none of these 6 were received.) Taking into account the 15 refusals, 17 disqualifications and 6 29 non-mailed responses, our original sample of 100 was de- creased to 62. This entire process is presented in Tables 1 and 2. Substitution For reasons previously stated it was decided that a sample size of 70 would be ample in providing a representa- tive picture of the total study population. Eight courses were randomly selected from a supplemental list of substi- tutes. The final sample of 70 represents 28% of the 253 courses considered eligible after the elimination processes had taken their toll. Adjusted Final Sample Size The final sample size of 70 unintentionally included two 27 hole operations and two 9 hole courses that were part of a larger recreational complex. These courses were not discovered until after the interview process had been com- pleted and therefore were not substituted for. This left us with a final sample size of 66 courses, 32 9 hole and 34 18 hole. The adjusted final sample size of 66 represents 27% of the 249 eligible survey population. Distributions The distribution of the 66 sample courses can be seen in Figure 7. Table 3 presents a review of Table 2 with ad- justments accounting for the four late disqualifications. 30 Table 3. Final random sample. Eligible Survey Popu- Percent of Regions lation Minus Eligible Pop- Four Disqual- Final ulation Used ified 9 and Random in Final Ran- 27 courses Sample dom Sample 1 0 - - 2 43 17 40% 3A 71 17 24% 3B 135 32 24% TOTAL 66 27% 249 ISL! MIL! nu II "" '5 000qu 31 I I r " moxuon L. I L. L r" quu ,... . 1 mm: b _ ‘I I I Iunwnn I we: I I I I --_J ' I I--- ... 1 : IrscuooLcIun L. .. .. .. J b ' IIIIIIIIIII all r__ __ __ J I “cm“: L. _. ._ .. .. 1 I I can . I I. | '1 r - '- ‘ . a r" ‘1 I. ' ' I I 00 O I Ellth I_ Q l ‘muovom utuoIIIIIu I "(300! I IISL % emu: 0IxL -.: I Qttt- L- JOT‘C‘OI ”0:1“. 5‘. K" L“ U AIIIIIIIII I 0 I . I l ' l I “I2 ['3 "R.“l I I . 1 I 2 , 1 I i 1 I 2 - - + - - - - um: I '5' .I... .. F5” FIIsuIIIIuI noscou. :ounv I 1”“ I I I i I I I - - - h '- ~ - - — b - - - - “‘30“: L‘I‘ T03CIOL‘ ret‘.‘ I'L‘WII‘: filtfl‘c I I [ ‘I I I ' ' I' ’- IIIIIIou ocuu ,llflYOO ’ucosnI""‘U-"IIIIILAIID L_ _ __ I 'uIIILAc ' l I l I I '_2 tuscOL:. I ' II- -5 J | USKEJ :IOIYGALI 'OIA—TTIO'II 3‘CIN‘W I I I -4 h - - - - r fruit 1 I ' I ‘u‘ I ' ' l ' 1 5:35:1' —' - "In." O'T"‘ I | IOIIA .cu:1°~'flfl§ll. . ' 1 | l I I ‘L _I 3 I 2 I 2 ' 2 I 2 I f’ 'IIAcon “tn“ I In" I “'0' :IImuII "uvuunml I I ’ I 1 I I l I ' I 3 l , II I ___...I.. --..-.....L............ ......T.... .I 1" "’ T van IIIIIIIII;“L““-' cALIIoun 'uczson “autumn"! -5 I I IIRIIENL-—J--_L.2_ J_£-_:_ .2 -J.3-_ I C .3 IN’JOSEPIII .*"CRTIIILLSDAL£;Lz~"“ .UOI‘“ I I 2 1 1 : : 2 I 2 : 3 i 2 Flgure 7- Distribution of Final Sample 66. 32 Study Design This study constitutes a groundbreaking effort of intensive investigation into the management aspects of 9 and 18 hole courses. Consequently, there was an extremely unlimited body of research existing which could be used to provide guidelines in designing and administering this re- search project. Sampling Instrument The sampling instrument was designed with the dual purpose of gathering both management and financial data. A variety of sources were drawn upon to insure that relevant management and economic questions were incorporated in the survey questionnaire. Among these were several golfing pub- lications which included: Golfdom, Pro-Shop Operations, Golf Digest, and Grounds Maintenance. The National Golf Foundation and Dr. Lewis Moncrief's theses5 provided addi- tional information in formulating the survey instrument. Pre-Testing Due to budgeting and time constraints inherent in this study, an adequate pre-testing of the questionnaire as to its degree of reliability and validity was not totally completed. The direct result of foregoing rigorous pre- 5Private Golf Courses in Genesee County, Michigan, 1967. 33 testing was the accumulation of surplus information not spe- cifically crucial to this study. The additional information acquired has been coded and stored for future application and relevant research. Administration Field Work The administration of the questionnaire to the indi- vidual golf course managers occurred from June 7 to August, 1973. I was assisted by graduate student Jim Houck. Maps of the state with detailed locational marks of the random sample population were used as reference guides in assign- ing specific areas and noting completions. After assigning specific geographical areas of the state to each inter- viewer, the golf course managers located within these re- gions were then contacted by phone to set up an appointment. Usually the interviewer selected courses that were somewhat clustered within his assigned area. The average number of completions was three per day but it was not uncommon to do five or six. Interview Procedure The interviews were usually arranged during the week- days and in the morning or early afternoon. This procedure developed due to the nature of the golf business which is 34 characterized by heavy weekend play and night leagues. The interview period lasted from 20 to 30 minutes and occasion- ally ran up to 45 minutes. Most of the managers honored the pre-arranged time for the interview and adjusted their working schedules accordingly. The interview method in- volved the use of flash cards on certain questions struc- tured in multiple fashion. The use of these cards did aid in presenting the several part questions and answers. Personal Interview Advantages The personal interview method used during the sam- pling process provided several advantages over the mailing procedure. Among these were increased accuracy and rate of response. The interviewer had an opportunity to instantly respond to the manager and gain feedback. Any tendency of questions to be misleading or ambiguous could have been cor- rected through on-the—spot adjustments and interpretations. ’The financial information being requested (taxes, gross and net profits, etc.) required an established air of trust, and assurance of strict confidence between the inter- viewer and manager. As it was, there were several instances when managers displayed hesitance and reluctance to divulge financial information. The financial information required to complete this study dictated personal contact with each manager in order to establish mutual confidence and trust. 35 Effectiveness of Personal Interview Using the technique of personal interview proved to be very effective in gaining financial information about the various enterprise operations. Many of the operators interviewed cooperated to the extent of showing last year's tax forms. On the other hand, there were examples of var- ious managers literally pulling figures from memory result- ing in guesstimate type information. Overall, the combination of financial data from these two extremes had a tendency to balance out and provided a representative mean figure. The financial data acquired is the best quality that could be obtained under the short-term probe circumstances inherent in the concept of this study. Administrative Problems Not all of the sampling procedures went as smooth as is previously indicated. A majority of the difficulties were uncovered during the phoning for appointments phase. Making the personal appointments with each manager by phone resulted in our discovery of most of the 17 unqualified courses. Some managers contacted by phone remained skeptical and unconvinced as to our legitimate purposes and therefore refused to participate. Several managers that did make ap- pointments refused to cooperate once we had traveled to their course and began asking questions. 36 Also, there were a few instances where a course had just been acquired, or turned public which was not clearly indicated over the phone. Although these man- agers were willing to cooperate, they did not have the necessary records to do so. After a few fruitless trips involving these types of courses, we became more discern- ing with future phone calls. Organization Approval One additional aspect that we incorporated into our sampling methods was the attempt at getting the tacit approval of professional organizations representing the golf businesses in the State of Michigan. The Michigan Golf Association was contacted in this respect, but there was no follow-up response on their part. This was prob- ably due to our belated discovery that the Michigan Golf Association caters to exclusive private clubs which would be excluded from this study. An organization that did cooperate and encouraged its members to do so was the Northern Michigan Turk Man- agers Association and its President, C. E. Tate. Mr. Tate and his organization expressed keen interest in the study and its objectives. He requested and will be sent the final results. 37 Cooperation Generally, the individuals interviewed, whether manager, owner or pro, were receptive and sympathetic to the goals of the study. They expressed a genuine interest in contributing to a useful research effort such as this one. Overall, they expressed enthusiasm and are looking forward to the published results. A list of those participating in the survey will be kept to insure that all cooperating managers are among the first to gain any beneficial information generated by this study. Methodology The analytical techniques employed are, to a large extent, determined by the quality and quantity of the col- lected data. The analytical techniques used will also reflect the need to meet the previously defined objectives of this study. Percentage - Frequency Analysis To provide the descriptive information concerning two dimensional management characteristics, it was decided that the use of percentage and frequency ratios, with the use of percentage and frequency ratios, with the aid of 38 simple tables, would be suitable. The use of this simpli- fied method of analysis will provide a source of basic de- scriptive information on previously unidentified quantities involving the management aspects of Michigan golf courses. Pearson Statistical Measure The second part of data analysis involves the use of a more sophisticated statistical measure. This analysis uses the Pearson product moment correlation coefficient. The Pearson correlation coefficient is a simple regression analysis of two variables indicating the strength of rela- tionship existing between the two designated variables. A significance level of .05 is used in conjunction with the Pearson statistical measure. Measure of Success To fulfill one of this study's important objec- tives, it is necessary to designate a measure of success that is applicable to the golf enterprises. Therefore, due to the wide variances and inconsistencies exhibited by net income data, reported gross income will be used to deter- mine the degree of success. This success measure has pre- viously been instituted for similar reasons in the prelim- inary draft of the NEM 42 research.6 Those courses with 6Agricultural Experiment Station, "Analysis of the Campground Market in the Northeast-Private Areas" (Univer- sity of Vermont, Burlington, Va., 1973), p. S. 39 gross incomes above the mean of their respective 9 and 18 hole groups will be considered as "more successful" than those falling below. The 9 hole mean gross is $52,468, whereas the 18 hole mean is $127,411. It should be stressed that the use of gross income as a measure of success is an adaptive measure, in response to the high degree of error and inaccuracies displayed by the net figures gathered. The designation of an operation as less successful than another implies a degree of success, and does not unequivocally Categorize such a course as being a failure. The measure of success should be viewed as an analytical tool based upon data fluctuating in degree of re- liability and accuracy. If the golf enterprises had been able to provide ac- curate and complete expense figures, net income would have been used as a measure of success. Limitations Lack of Cooperation Many of the operators were suspicious, distrustful, and elusive in regards to divulging financial information. Their reluctance to cooperate fully in revealing financial information can be attributable to such diverse reasons as: (I) dislike of any type of government connected project; (2) distrustful of revealing confidential tax returns; and (3) fear of competition gaining inside information. 40 Despite repeated assurances of anonymity given prior to and during the interviews, there were many oper- ators hesitant to respond fully to the financial portions of the questionnaire. There were a substantial number of operators un- able or unwilling to supply accurate figures on expendi- tures and incomes, thereby producing unreliable net fig- ures. In fact, the response pattern to financial portions of the questionnaire ranged from guessestimates to spe- cific referrals from last year's tax statement. Success Indicator The use of gross income as a measure of success should be viewed as the best alternative to using net, considering the quality of the collected data. It is rec- ognized that net income would produce a more meaningful measure of success, but that the use of gross income as a success indicator is made necessary by the wide variance and inaccuracies exhibited in the accrued financial data. It should be noted that this study is initial in nature, and lacks the sophisticated monitoring set up and time allowance necessary to obtain reasonably accurate and re- liable data. 41 ‘Sampling Difficulties There occurred several unanticipated difficulties during the sampling portion of this study which ultimately affected the final sampling form. The unusually high num- ber of disqualifications (17) in combination with 15 re- fusals and 6 unanswered mail-ins forced an adjustment of decrease in the final sample population. These factors coupled with budgetary and time limitations, produced a final sample size of 70 as compared to the initially tar- geted 100. Also, using hindsight of the 70 courses sam- pled, there were two 27 hole courses inadvertently sampled which were eliminated due to their disparity in size of op- eration. This factor alone would disrupt any existing homo- geneity and consistency of data emanating from the main sam- ple of standardized 9 and 18 hole courses. Another slight sampling adjustment was made in elim- inating two 9 hole courses from the final 9 hole sample. It was discovered, after the sampling period, that these two 9 hole operations were part of a total recreation com— plex, and the data obtained reflected the operation of the complex and not the golf course itself. These final modifications resulted in a final sample size of 66 golf courses, 32 9 hole and 34 18 hole. When viewing the entire sampling process, all of the above pro- cedures should be taken into consideration. The resulting 42 final sample essentially evolved from a basic trial and error process. Concluding Limitations When evaluating the sampling methods regarding de- gree of error, it is crucial to take into account various externalities which cannot be separated from the total body of this research. This includes such factors as the short term nature of the research, the lack of previous relevant research in this area, and the unknown quantities which had existed in the field prior to the initiation of this inves— tigation. Hopefully, the acknowledgment of the previously stated limitations will provide guidelines for future re- searchers which they can use to improve and expand the orig- inal body of knowledge initiated by this study. CHAPTER IV MANAGEMENT VARIABLES To get a representative picture of the management characteristics associated with the profit oriented golf enterprises in Michigan, it is necessary to isolate and identify numerous variables considered crucial to the over- all management operation. There are basically two groups of variables easily recognized and separated by their de- gree of participation within the total management of opera- tion. Profile Variables The first set of descriptive variables consists of what will be referred to as the static group. Static, is a sense of pre-established conditions not actively changing the complexion of management. The static group of 13 vari- ables will describe the basic manager profile. Practice Variables The second part of our dichotomy of management vari- ables is the presentation of management practices. Now this word-~practices--suggests change and, therefore, this is the 43 44 dynamic aspect of the total management operation. There are 10 variables that make up management practices. These practive variables are the action ingredient in the manage- ment operation of the golf enterprise. Selection of Management Variables The management variables that compose the profile and practice groups were carefully screened and pre-tested. Admittedly, we had a much larger group of potential vari- ables on the questionnaire but this was a precautionary measure to insure that some critical factors were not left out. A culling out process was used to attain the final select group of critical variables pertaining specifically to the management question. Management Profile The following is a comprehensive list of the 13 management profile variables. 1. Age of manager 2. Level of education 3. Previous golf experience 4. Number of years of golf experience 45 5. Type of golf experience 6. Number of years golf course manager 7. Prior occupation *8. Membership in professional organizations *9. Number of seminars attended in last three years 10. Hold another job during season 11. Number of hours devoted to management 12. Managers' salary 13. Number of years course has been established Age of Managers Age_of 9 hole Managers There does not appear to be any great disparity in age groupings or mean age between the successful 9 hole and the unsuccessful 9 hole managers. * These two variables were omitted from the descrip- tive analysis due to 100% negative or affirmative responses which obviate analysis. 46 Table 4” Managers' age (9 Hole courses). _— ft j r, Successful 9 (n=ll) Unsuccessful 9 (n=21) Combined Combined Age Group % Percent Age Group % Percent 20-40 yrs. 18 36 20-40 yrs. 9 36 41-50 " 18 41-50 " 27] 51-60 " 54 72 51-60 " 46 73 60+ " 9 60+ 14 Mean= 47 Mean= 52 The age breakdown in Table 4 reveals that the man- ager of successful 9 hole operations had a mean age of 47 which is five years younger than the mean of 52 for the un- successful 9. Eighteen percent of the successful 9 hole managers fall within the 20-40 age group compared to only 9% of the unsuccessful 9 hole managers. Emergence of younger 9 hole managers will lend support to the theory that operating the 9 hole golf course enterprise is no longer to be considered a hobby or supplementary exercise, but has blossomed into a full-time occupation requiring sharp business sense and long hours. The higher mean age of 52 in the unsuccessful 9 hole managers could possibly reflect a miscalculation on the part of many of the managers who are retirees seeking a self generating income with part-time efforts. The higher mean age not only of the unsuccessful 9, but successful 9, could be related to an extended period of 47 ownership. This would be conducive to promulgating old hab- its and locations not attuned to our present fast-paced mo- bile society. Age of 18 Hole Managers If a youth trend in management is hinted at by the 9 hole data, then the 18 hole golf course operation rein- forces this pattern. It may be possible to get by in a small 9 hole operation from year to year by using part-time management and family supplemental help, but the 18 hole course labor requirements demand at least double the effort. Golf has become a highly competitive business requiring more time and energy to manage a course profitably. The figures in Table 5 show that 40% of the managers of successful 18 hole golf courses fall within the 20-40 age group. This is in contrast to only 18% of the successful 9 hole managers falling within this bracket. There seems to be a greater accent on youth in the successful 18 hole op- erations. Seventy percent of the successful 18 hole man- agers are 50 or under, while only 36% of the successful 9 hole operators fall in this category. The mean age for successful 18 hole golf course managers is 45 which is two years less than the 47 of the successful 9 hole managers, and also two less than the un- successful 18 hole operators. Conversely, 20% of the suc- cessful 18 hole managers are age 60+ in comparison to only 48 Table 5. Managers' Age (18 Hole courses). Successful 13 (n=10) Unsuccessful 18 (n=24) Combined Combined 20-40 yrs. 40 70 20-40 yrs. 25 54 41-50 " 30 41-50 " 29 51-60 " 10 40 51-60 34 63 60+ " 20 60+ " 12 Mean= 45 Mean= 47 12% of the unsuccessful 18 hole managers. These mean age groups are substantially above the respective 9% and 14% of the 9 hole managers. This may indicate a tendency of the successful 18 hole managers to remain longer with a profit- able business. The possible reasons for this tendency could be explained by the huge investments of time and money necessary to sustain this size of operation. Financially and administratively, 9 hole operations are easier to market, reflecting their smaller size and costs. In summary, there seems to be a marked difference in the age of the respective successful 9 and 18 hole courses. The successful 18 hole manager age group empha— sizes managers 50 years or younger, whereas the successful 9 hole operations have only 36% of their managers 50 or under. 49 A closer look at the data points interestingly to 54% of the successful 9 hole managers falling between the ages 51-60. Only 10% of the successful 18 hole managers are in this age bracket. This further strengthens the preceding observations concerning the stress of youth in the 18 hole enterprises. The 54% of 9 hole successful managers between ages 51-60 suggests that the 9 hole golf course still has an attraction for retirees or near retirees with their preconceived no- tions about leisurely retiring into a money making, re- laxing business. Many are falsely led to believe that a small 9 hole golf course is an easy attractive money making proposition requiring minimal work. Some of the operators interviewed actually stated that they had held these beliefs before entering the business but were quickly converted to principles of hard work and long hours which characterize modern day golfing businesses. Level of Education The third variable used in the composition of a total manager profile is the managers' level of education. The level of education of the successful 9 and 18 hole managers is higher than those of the unsuccessful 9 and 18 hole managers. Table clearly shows the superior education displayed by the successful 9 and 18 hole golf course managers . Table 6. Level of education for 9 and 18 hole golf course managers . m Level of Education Combined % Percent Combined % Percent Level of Education Successful 9 (N=ll) Unsuccessful 9 (N=21) Some High School 9 High School 18 Some College 55] 73 College Graduate 18 Some High School - High School 43 Some College 33] 57 College Graduate 24 Successful 18 (N=10) Unsuccessful 18 (N=24) Some High School - High School 10 Some College 50 1.. College Graduate 40 Some High School 4 High School 46 Some College 29 ]so College Graduate 21 51 Seventy-three percent of the successful 9 hole man- agers had some college or were college graduates, whereas, only 37% of the unsuccessful 9 hole managers were so en- dowed. This disparity is also accentuated when analyzing the data on the 18 hole operations. A 90% majority of the successful 18 hole course managers had some college or were college graduates. Of the unsuccessful 18 hole managers, just 50% had some college or better. The evidence points toward strong positive relationships between successful en- terprise operations and the amount of education possessed by the managers. In the successful 9 hole operations, 73% of the man- agers had some college education or better. The unsuccess- ful 9 hole managers had only 57% of their numbers achieving this level. ' There is a greater percentage of the successful 18 hole managers having attained a higher level of education than that achieved by the successful 9 hole managers. This figure is 90% compared to 73% of the successful 9 hole man- agers. Modern Management In effect, the level of education data is reinforc- ing the previous observation of a trend toward younger man- agers. The youth of today are better educated than their predecessors, and therefore utilize their youth and 52 education in combination to effectively manage in the de- manding, competitive golfing business. The 18 hole opera- tions are more complex requiring a greater skill in manage- ment. This is reflected in the greater percentages of suc- cessful managers attaining higher levels of education. This is markedly shown by the 40% difference in level of educa- tion between the successful and unsuccessful 18 hole man- agers. The present management trend is leaning more toward well educated younger managers. Previous Golf Experience Another phase of the managers' profile concerns his experience. It is obvious that previous experience in a particular job is an invaluable asset to the efficient and profitable operation of an enterprise. Previous golf ex- perience appears to play a significant role in relation to the profitability of an enterprise. Table 7. Previous golf experience of 9 and 18 hole golf course managers. Successful 9 (Total N=ll) Unsuccessful 9 (Total N=21) % yes N % no N % yes N % no N 36 4 64 7 50 5 50 5 Successful 18 (Total N=10) Unsuccessful 18 (Total N=24) % yes N % no N % yes N % no N 19 4 81 17 25 6 75 18 53 Previous Experience - 9 Hole Managers Of the successful 9 hole managers, 36% had previous experience in golf course operations. In contrast, only 19% of the unsuccessful 9 hole managers had this experience. This strengthens the concept of prior experience being a positive force in running a successful golf course opera- tion. Previous Experience - 18 Hole Managers Fifty percent of the successful 18 hole managers had previous experience compared to 25% of the unsuccessful man- agers. This data confirms the positive relationship be- tween prior experience and success. Number of Years Previous Golf Experience Number of Years Prior Experience - 9 Hole Managers Table 8 shows that 100% of the successful 9 hole managers with previous golf experience had 5 years or more. The unsuccessful managers with prior experience have only 75% of their number with 5 or more years. The unsuccessful 9 hole managers had 50% of their number with 25+ years experience. This suggests the possi- bility of goal motivations other than profit maximization among these managers. 54 In the successful 9 hole managers group, 50% have 5-10 years experience indicating management seasoned by ex- perience. Table 8. Number of years previous experience of 9 hole golf course managers. _ — Number of years Percent with (N=4) previous experience % Ii previous experience Successful 9 Total (N=ll) (N=4) 0 years 64 7 - under 5 years - - - 5-10 years 18 2 50 11-15 years - - - 16-25 years 18 2 50 25+ years - - - Unsuccessful 9 Total (N=21) (N=4) 0 years 81 7 - under 5 years 1 25 5-10 years 1 25 11-15 years - - - 16—25 years - - - 25+ years 9 2 50 5-10 years experience. under 5 year category. The unsuccessful 9 hole managers have only 25% with The remaining 25% falls in the The unsuccessful 9 hole managers with previous golf experience exist at the extremes in number of years. In 55 contrast, the successful 9 hole managers fall into a middle position suggesting seasoned but not outdated experience. Number of Years Previous Experience - 18 Hole Managers The pattern of 18 hole managers closely parallels those of the 9 hole. Table 9 shows this characteristic quite clearly. Table 9. Number of years previous experience of 18 hole golf course managers. Number of years Percent with previous previous experience % N experience Successful 18 Total (N=10) (N=5) 5’ a-‘. 0 years 50 5 - under 5 years 10 l 20 5-10 years 20 2 40 11-15 years - - - 16-25 years' 20 2 40 25+ years - - - Unsuccessful 18 Total (N=24) (N=6) 0 years 75 18 - under 5 years 13 3 50 5-10 years - - - 11-15 years - - - 16-25 years 8 2 33 25+ years 4 l 17 .uAMJf". 11:14-12”... "a __.' ~ j 1 7A _ 1‘.- r"- I} 'Ii" m4~_v-—w~vvv~. . omVr- Vrv .-<- "Il —— -—-..-—r had 5 or more years experience. years. 56 Eighty percent of the successful 18 hole managers had This high percentage is in agreement with the 100% figure of successful 9 hole managers. The unsuccessful 9 and 18 data is very similar. Both range through the extremes of under 5 years to 25+ The majority of successful 9 and 18 hole managers having experience fall within the balanced range of from 5 years to 25 years. Levels of Golf Experience Closely related fields of experience afford an op- portunity to gain skills and knowledge necessary for admin— istration of a golf course. 9 Hole Areas of Golf Experience Fifty percent of the successful 9 hole managers had supervisory experience. None of the unsuccessful operators had previous administrative experience, and only 25% held a supervisory position. (See Table 10.) 18 Hole Areas of Golf Experience Forty percent of the 18 hole successful managers with previous experience gained it from the administrative and supervisory level. None of the unsuccessful 9 or 18 hole managers claiming prior golf experience were in an ad- ministrative position. (See Table 11.) 57 Table 10. Fields of golf experience of 9 hole course managers. Percent with pre- Experience % N vious experience Successful 9 (Total N=11) No previous experience 64 7 - Golf course administrator - - - Golf course laborer 18 2 50 Golf course maintenance supervisor 18 2 50 Family golf operation - - - Other - - - Unsuccessful 9 (Total N=21) No previous experience 81 17 - Golf course administrator - _ _ Golf course laborer 10 2 50 Golf course maintenance ' supervisor 5 l 25 Family golf operation 5 1 25 Other — - - 58 Table 11. Fields of golf experience of 18 hole course managers. Percent with pre- Experience % N vious experience Successful 18 (Total N=10) No previous experience 50 5 ' - Golf course administrator 10 l 20 Golf course laborer - - - Golf course maintenance supervisor 10 1 20 Family golf operation 20 2 40 Other 10 ' 1 20 Unsuccessful 18 (Total N=24) No previous experience 75 18 - Golf course administrator - - — Golf course laborer 12.5 3 50 Golf course maintenance supervisor - - - Family golf operation 12.5 3 . 50 Other - - - 59 A high percentage of family golf experience char- acterizes both the successful and unsuccessful 18 hole man- agers. The prominence of this experential factor suggests that the 18 hole golf course operations exhibit a stablizing factor of family ownership and operation. This is a prac- tical and economically dictated arrangement considering the large initial investment needed to start an 18 hole opera— tion. Just 25% of the unsuccessful 9 hole operators with prior experience had attained it through family operations. None of the successful 9 hole managers had experience in this field. This data, therefore, would lend credence to the concept that 9 hole golf courses are more susceptible to a higher rate of turnover than the 18. Number of Years Golf Course Manager 9 Hole Managers The successful 9 hole operations had 37% of their managers with over 10 years management experience. The un- successful 9 hole operations had only 10% of their managers with over 10 years experience. At the other end of the experience scale, 63% of the successful 9 hole managers had 5 years or less, whereas there was 52% of the unsuccessful 9 managers in this range. These percentages seem to contradict the theory that the more successful operations would display a greater number 60 of years of experience. None of the successful 9 hole man- agers fell in the 5-10 year range, while 38% of unsuccess- ful managers were in this group. The mean of the success- ful group was 8.8 compared with 7.1 of the unsuccessful. The tables generally indicate a greater participa- tion by less experienced people in both the successful and unsuccessful 9 hole operations. Table 12. Number of years as golf course managers for 9 hole golf operations. Successful 9 (Total N=ll) Unsuccessful 9 (Total N=21) No. of years % N No. of years % N 5 years or less 63 7 5 years or less 52 ll 5 - 10 years - - 5 - 10 years 38 10+ 37 4 10+ 10 - Mean 7.1 - . Mean 8.8 18 Hole Managers Fifty percent of the successful 18 hole managers had 5 years or less experience as a manager. Only 10 per- cent of the successful 18 managers had between 5 and 10 years experience. The unsuccessful 18 managers response rate was 33% in the 5-10 year range. The aforementioned pattern of re- sponses closely resembles those found among the 9 hole oper- ations. 61 Table 13. Number of years as golf course managers for 18 hole golf operations. —1- J Successful 18 (Total N=10) Unsuccessful 18 (Total N=24) No. of years % N No. of years % N 0-5 50 5 0-5 50 12 6-10 10 1 6-10 33 10+ 40 4 10+ 17 Mean 8.7 - Mean 7.0 - Detectable Patterns The only recognizable pattern that appears to sur- face from this data is that the more successful managers have a greater edge in years of experience above 10 years than those being less successful. Another interesting pattern that can be seen de- veloping from the existing data is the total number of man- agers that have 5 years or less experience. This reflects the current degree of flux occurring in the golf business. The high turnover rate of ownership has become commonplace today, as opposed to the stability and long-term ownership patterns established in the past. Previous Occupations Only two groups of prior occupations associated with golfing evolved from the sample. These are the managers 62 that have been working a golf enterprise previously, and those that gained their experience by being part of a family golf operation. Due to the large number of prior occupations, it was necessary to develop general classifications. These classifications are shown in Tables 14 and 15. The occupational fields that occur with the great- est frequency in Tables and are those of business and golf enterprise operators. These occupations are associ- ated with both successful and unsuccessful golf operators. The prevalence of business as a prior occupation suggests there are common denominators of business practices existent in all types of businesses that can be transferred from one occupation to another. Among these transferable denominators would be skills in accounting, budgeting, pur- chasing, taxes, public relations, advertising, and personnel management. Fifty percent of the successful 18 hole managers had prior occupations in business, whereas the successful 9 hole managers had 18%. The larger percentage of 18 hole opera- tors is consistent with the concept that 18 hole operations are more complex requiring greater attention to the multi- tude of business procedures. Business procedure in 9 hole operations are similar but smaller in scale and number. The second most frequently occurring prior occupa- tion is that of golf enterprise operator. The carry-over 63 Table 14. Prior occupations of 9 hole golf managers. Combined Occupation group % N Percent Successful 9 (Total N=ll) Business 18 2 ] 45 Golf enterprise 27 3 Professional services - - Skilled trades - - Sales field 18. 2 Farming - - Public service - - Education 9 1 Family golf - - Other 27 3 Unsuccessful 9 (Total N=21) Business 38 8 43 Golf enterprise 5 11] Professional services 5 10 Skilled trades 10 2 Sales field 10 2 Farming l4 3 Public service 5 1 Education 5 1 Family golf - - Other 10 2 64 Table 15. Prior occupations of 18 hole golf managers. W Combined Occupation group % N Percent Successful 18 (Total N=10) Business 50 5 70 Golf enterprise 20 2] Professional services - - Skilled trades - - Sales field - I - Farming - - Public service 10 1 Education 10 ‘ 1 Family golf 10 1 Other - - Unsuccessful 18 (Total N=24) Business 33 8] 41 Golf enterprise 8 2 Professional services 17 4 Skilled trades l7 4 Sales field 4 1 Farming 4 1 Public service 4 1 Education - - Family golf 8 2 Other 4 1 65 benefits of this occupation to successful golf course man- agement is obvious. Nine and 18 hole managers considered to be less successful were less representative in this oc- cupational group. Twenty percent of successful 18 hole managers had prior occupations in golf enterprises compared to 8% of the unsuccessful managers. Twenty-seven percent of the success- ful 9 hole managers had prior golf enterprise experiences whereas only 5% of the unsuccessful managers had it. The data indicates that prior relevant experience produces transferable skills that may be important in con- tributing to the success of a golf operation. The fact gleaned from this variable strongly suggests that the two prior occupations of business and golf enterprise operators provide a background of skills and training which could prob- ably influence the success of a golfing operation. Other than the two occupations mentioned, the data does not reveal any apparently significant occupations re- lating to the success of a golf operation. One interesting pattern that is present is the fact that the prior occupation of farming is not represented in either the successful 9 or successful 18 hole enterprises. Only 14% of the unsuccessful 9 managers and 4% of the'un- successful 18 managers had prior occupations as farmers. This data tends to destroy the common myth that a farmer can easily convert his farmland into a profitable golf 66 operation on the basis of having cheap land available. Al- though cheap land may relieve part of the large financial burden associated with beginning a golf course, there are added externalities that need to be considered. Among these are capital for development and operation, business skills, public relations, labor, location, etc. Number of Hours Per Week Devoted to Management The hypothesis, restated, is that the number of hours per week a manager spends running his golf operation will be directly reflected in the degree of success. 9 HoleLHours The number of hours spent per week by 9 hole man- agers is shown in Table 16. A significant pattern arises showing the less successful managers spending fewer hours per week on management than their more successful counter- parts. Zero percent of the successful 9 hole managers worked less than 50 hours per week, whereas 29% of the un- successful managers fell in this category. This pattern continued as the hours per week spent on managing increased. Twenty-seven percent of the successful 9 hole managers work 51-70 hours per week in contrast to only 14% of the unsuc- cessful managers. In the final grouping of 71—100+ hours per week, 72% of the successful 9 managers were included, whereas 58% of the unsuccessful managers were in this cate- gory. 67 Table 16. Hours devoted to management by 9 hole golf course managers. Number of hours Combined per week % N Percent Successful 9 (Total N=ll) 0-20 - - 21-40 - - < 50 hrs./wk. 41-50 - - 0 51-60 9 l 27 51-70 hrs./wk. 61-70 18 2 71-80 27 3 ‘ 81-90 27 3 72 71-100+ hrs./wk. 91-100 - - 100+ 18 2 J Unsuccessful 9 (Total N=21) 0-20 14 3 21-40 5 l 29 < 50 hrs./wk. 41-50 10 2 51-60 - - 14 51-70 hrs./wk. 61-70 14 3 71-80 14 3 1 81-90 10 2 58 71-100+ hrs./wk. 91-100 5 1 100+ 29 6 - 68 The data strongly suggests a recommendation that new or potential 9 hole managers should plan on spending a minimum of 50 hours per week and an average of 70 hours per week in actively managing their operations. 18 Hole/Hours The number of hours per week devoted to management by successful and unsuccessful 18 hole managers presents no identifiable pattern of time spent. Both successful and unsuccessful groups of managers display similar numbers of working hours per week. A statistic of some possible consequences is 10% of the successful managers and 8% of the unsuccessful managers spending less than 50 hours per week. The more prevalent practice of 18 hole operations in hiring salaried managers could account for these figures. Hired managers are gener- ally given regular time off thereby spending less hours man— aging than manager/owners. A small number of successful 18 hole managers ap- pear to work fewer hours per week at the lower end of the hourly work scale than their 9 hole counterparts. At the upper end of the hours per week scale shown in Table 17, a majority of the successful (70%) and unsuccessful (68%) 18 managers spend more than 70 hours per week managing. This is also apparent in both types of 9 hole operations. 69 Table 17. Hours devoted to management by 18 hole golf course managers. Number of hours Combined per week % N Percent Successful 18 (Total N=10) 0-20 - - 21-40 10 1 j 10 < 50 hrs./wk. 41-50 - - 51-60 10 l 20 51-70 hrs./wk. 61—70 10 1 71-80 20 2 ‘ 81-90 10 l 70 71-100+ hrs./wk. 91-100 20 2 100+ 20 2 . Unsuccessful 18 (Total N=24) 0-20 4 l ] 21-40 4 l 8 < 50 hrs./wk. 41-50 - - 51-60 16 4 ] 24 51-70 hrs./wk. 61-70 8 2 71—80 13 3 ‘ 81-90 17 4 68 71-100+ hrs./wk. 91-100 13 3 100+ 25 6 - 70 There seems to be no significant difference between the hours per week spent managing 9 and 18 hole operations. Although the 18 hole operation would seem to require more managing hours in actuality, its managing hours per week are similar to the 9 hole operation. This fact may result from use of salaried managers in some golf enterprises and the efficiency of operation associated with scale and length of establishment. The large blocks of time put into the operation of a golf course, whether it be 9 or 18 hole, are related to the peculiar nature of golf as a recreational business. The main factor responsible for the required large inputs of time is the seasonal nature of golf in the Michigan cli- mate. More periods of concentrated time are necessary to gain the maximum benefits of weather and climate which are closely associated with the volume of golf played during a season 0 Managers Holding Jobs During Off Season Off Season Jobs - 9 Hole Managers The pattern that evolved from the 9 hole operations was largely predictable. In Table 18, 45% of the success- ful 9 hole managers held jobs during the off season. Sim- ilarly, 38% of the unsuccessful managers also retained off season employment. 71 Table 18. Managers of 9 hole golf courses holding off season jobs. Successful 9 (Total N=11) Unsuccessful 9 (Total N=21) % yes N % no N % yes N % no N 45 5 55 6 38 8 62 13 The preceding percentages reflect special aspects common to 9 hole operations. Many of the 9 hole managers are retirees or part-time operators holding down full-time jobs. These types of managers use the golf course opera- tion as just one facet of their total income. Using the golfing business as a supplemental income source, most 9 hole managers demonstrate their awareness of the risks in- volved in such a recreational enterprise. There are, of course, exceptions in which the manager depends solely on the golf course for income. Their 9 hole courses are usu- ally well established with a steady clientele built up over the years. The sheer size of 9 hole enterprises limits the pro- fits. The 9 hole course has a decreased ability to handle volume which would tend to generate more profit. This de- crease in profit, therefore, provides the impetus for seek- ing supplemental income in order to survive. 72 Off Season Jobs - 18 Hole Managers The successful 18 hole managers responded 100% neg- atively to holding an off season job. In contrast, only 54% of the successful 9 hole managers responded in the neg- ative. This emphasizes the point that a successful 18 hole operation requires full-time attention and generates suffi- cient profit to support a full-time manager. Although some if not all of the 9 hole operations may require full-time devotion to management, few seldom get it. The 9 hole op- erator generally views the golf field, upon entering the market, as a part-time venture; only after a substantial commitment of time and money does he fully recognize the full-time implications of the golfing business. Table 19. Managers of 18 hole golf courses holding off season jobs. Successful 18 (Total N=10) Unsuccessful 18 (Total N=24) % yes N * % no N % yes N % no N 0 0 100 10 25 6 75 18 Managers' Salary 9 Hole Managers' Salary Forty-three percent of the successful 9 hole man- agers made $10,000-$15,000 a year. None of the unsuccessful 73 9 received this salary. In fact, 66% of the unsuccessful 9 managers received $5,000 or less compared to only 28% of the successful managers. Table 20. Managers' salary for 9 hole golf course operations. Successful 9 (Total N=ll) Unsuccessful 9 (Total N=21) 32:23:: . :2:::::: . 5,000 or less 28 2 5,000 or less 66 2 5,001-10,000 29 2 5,001-10,000 33 l 10,001-15,000 43 3 10,001-15,000 - - 15,001 + — - 15,001 + - - 18 Hole Managers' Salary Seventy-two percent of the successful 18 hole man- agers made $10,000 or more (Table 21). Only 34% of the un- successful managers were in this income bracket. In com- parison to 72% of the successful 18, only 43% of the suc- cessful 9 hole managers made $10,000 or more. This data substantiates the fact that 18 hole operations, overall, do provide higher salaries to their managers than do 9 hole operations. The data on the disparity between 9 and 18 managers' salaries is also supported by the fact that 18 hole operations have higher gross incomes. *Data's reliability and validity questionable, due to small number of cases. Table 21. Managers' salary operations. 74 for 18 hole golf course Successful 18 (Total N=10) Unsuccessful 18 (Total N=24) Salaries Salaries Reported % N=7 Reported % N=17 5,000 or less 14 1 5,000 or less 6 l 5,001-10,000 14 l 5,001-10,000 60 10 10,001-15,000 44 3 10,001-15,000 34 6 15,001 + 28 2 15,001 + - - Management Practices The second group of variables associated with our two-dimensional View of golf management are those identi- fied as describing management practices. This group of variables is dynamic in nature, suggesting active partici- pation by the managers. The following is a list of these ten management practices. 1. Has manager designed or modified the course and/or its operation to speed up play? 2. Sponsor community events 3. Cooperative relations with schools 4. Cooperative relationships with busines 5. Special hiring practices toward youth 6. Have any of the customers or members suggested changes in golf course operations which the manager has implemented? 7. Provide special services for customers 75 8. Direct advertising based upon customer address information 9. Use financial records to influence management decisions 10. Uses discounted or donated labor Speed up Play Active management of a golf course can involve the use of a variety of physical changes and/or operational mod- ifications which would speed up play. A list of these pos- sible changes used in our survey include the following: 1. fewer or no fairway traps 2. fewer or no green traps 3. shorter holes 4. provision of adequate signs 5. few or no hazards (i.e., creeks, ponds, gullies) 6. use of winter rules 7. increase or decrease number of out-of-bounds 8. wider fairways 9. close-cut or no roughs 10. use of starters, weekends and/or weekdays The above mentioned changes are those commonly en- countered in most golfing operations. There is an endless variety of changes instituted by some managers which par- ticularly suit their operations. They are too numerous to list. 76 The data shown in Tables 22 and 23 representing the speed of play variable of the 9 and 18 hole operation indi- dicates that fewer of the more successful courses were mod— ified by management to speed up play. Table 22. Speed of play in 9 hole golf operations. Successful 9 (Total N=ll) Unsuccessful 9 (Total N=21) % % % % Yes N No N Yes N No N 55 6 45 5 81 15 19 6 Table 23. Speed of play in 18 hole golf operations. _ J r —— — I ~— Successful 18 (Total N=10) Unsuccessful 18 (Total N=24) % % % % Yes N No N Yes N No N 70 7 30 3 83 20 17 4 The figures in Tables 22 and 23 indicate a negative association between this variable and success of the enter— prise. In the successful 9 hole operation, only 55% re- sponded affirmatively. In contrast, 81% of the unsuccessful 9 hole responded yg_. This pattern tends to suggest that the more profitable operations emphasize maintaining the 77 quality of their courses rather than compromising quality by seeking and encouraging increased volume. The pattern of using course and/or policy modifica- tion to speed up play reaches a higher frequency in the 18 hole operations. In these larger enterprises the pattern of higher use in the unsuccessful 18 is present. The 70% ygs response of both successful and unsuccessful 18 still reflects the necessity to maintain course quality by con— trolling the distribution of their increased volume. It is interesting that 81% of the unsuccessful 9 and 83% of un- successful 18 are notably higher than their successful coun- terparts. This reinforces the previous mentioned theory that over manipulation of course operations may adversely affect the quality of the course, thereby affecting its overall success. Cooperation with Local Community The 100% ygg responses of the successful 9 hole op- erations and the 90% recorded by the successful 18 hole courses show that these managers actively promote golf in their local communities. Also, there are high percentages of unsuccessful golf operations that Sponsored community events. Due to the high number of positive responses in successful and unsuccessful courses, it is, therefore, plau- sible that the practice of sponsoring community events (pro ams, mudders, scotch double, etc.) seems to be a 78 stabilizing ingredient found in most operations. A nur- tured supply of satisfied customers and members from the local community can produce a consistently dependable source of income. A cooperative relationship with the 10- cal community could mean financial survival for an enter- prise, particularly during a bad season. Table 24. Cooperation of 9 hole golf operations with local communities. 1 Successful 9 (Total N=ll) Unsuccessful 9 (Total N=21) % % % % Yes N No N Yes N No N 100 ll 0 0 76 16 24 5 Table 25. Cooperation of 18 hole golf operations with local communities. W Successful 18 (Total N=10) Unsuccessful 18 (Total N=24) % % % % Yes N No N Yes N No N 90 9 10 l 96 23 4 1 79 Cooperation with Local Schools This variable alone does not have a great impact on the financial well being of an enterprise, but in combina- tion with the cooperative relationship established in the local community and businesses, it becomes part of a care- fully cultivated source of reliable income. None of the golf courses surveyed were fortunate enough to be located near several schools which could possibly provide them with a significant source of income. Having cooperative relations with local schools and colleges usually brings in small amounts of income but can pay off immeasurably in public relations and advertising. The figures in Tables 26 and 27 reveal almost iden- tical figures for both the successful and unsuccessful 9 and 18 hole operations. The high percentage indicates that most courses having cooperative relations with schools show that the managers recognize the value of its public re- lations aspect. Table 26. Cooperation of 9 hole golf operations with schools. Successful 9 (Total N=ll) Unsuccessful 9 (Total N=21) % % % % Yes N No N Yes N No N 91 10 9 l 81 15 19 6 80 Table 27. Cooperation of 18 hole golf operations with schools. I —— 4 ‘— — Successful 18 (Total N=10) Unsuccessful 18 (Total N=34) % % % % Yes N No N Yes N No N 80 8 20 2 75 25 25 9 Cooperation with Businesses This variable has a high potential of significantly increasing the profits of an Operation. Businesses have money to sponsor leagues and tournaments which add a signif- icant source of income to many golf courses. Cooperative agreements with businesses increase profits perceptibly. The money businesses spend during golf outings is experience distributed throughout all facets of the opera— tion (i.e., clubhouse, dinner, bar, dances). In Tables 28 and 29, 64% of the successful 9 hole courses have business relationships. This compares to only 29% of the unsuccessful 9 having these relationships. The 18 hole courses display an even 50% response in cooperation with businesses. The data indicates that both successful and unsuccessful 18 hole operations equally so- licit business relationships. The larger, more successful 18 hole operations would possibly attract the larger, more prosperous accounts thereby contributing to their degree of success over the unsuccessful operations. 81 Table 28. Cooperation of 9 hole golf operations with businesses. Successful 9 (Total N=ll) Unsuccessful 9 (Total N=21) % % % % Yes N No N Yes N No N 64 7 36 4 29 6 71 15 Table 29. COOperation of 18 hole golf operations with businesses. m Successful 18 (Total N=10) Unsuccessful 18 (Total N=24) % % % % Yes N No N Yes N No N 50 5 50 5 50 12 50 12 Youth Hiring Practices It is hypothesized that the use of unskilled, cheap young labor during the summer or weekends would be a factor in cutting overhead costs. The figures tabulated in Tables 30 and 31 do not support this hypothesis. All types of golf operations surveyed exhibit the same low frequency pat- tern of hiring youths. Relevant to this low rate of youth hiring are the state laws of Michigan forbidding youths under 18 years of age from operating tractors. This type 82 of vehicular equipment is used by golf course managers in maintaining their operations. Table 30. Youth hiring practices of 9 hole golf operations. Successful 9 (Total N=ll) Unsuccessful 9 (Total N=21) % % % % Yes N No N Yes N No N 27 3 73 8 29 6 71 15 Table 31. Youth hiring practices of 18 hole golf operations. Successful 18 (Total N=10) Unsuccessful 18 (Total N=24) % % % % Yes N No N Yes N No N 30 3 70 7 17 4 83 20 Implemented Changes Suggested by Customers It is hypothesized that the more successful opera- tors would be more sensitive to customer feedback and imple- ment suggested changes resulting in greater customer satis- faction. Unfortunately, an organized, efficient feedback system does not exist on most courses. Usually the managers gain feedback through informal oral suggestions. The 83 countless oral suggestions offered are generally regarded as an inherent part of the business. They are tolerated and usually discarded. The figures in Tables 32 and 33 indicate that there is no marked difference in positive responses between the successful 9 and 18 hole courses. The relatively mid-range percentages of ygg responses tends to support the idea that many of the managers listen to suggestions with one ear and then proceed with applying their usually superior prior ex— perience managing the course. If a manager took seriously every customer's suggestion, he would have little time for management. The 45% and 40% negative responses shown in the tables of the successful 9 and 18 hole operations re- flect this attitude. Table 32. Implemented changes suggested by customers in the 9 hole golf operations. Successful 9 (Total N=ll) Unsuccessful 9 (Total N=21) % % % % Yes N No N Yes N No N 55 6 45 5 38 8 62 13 84 Table 33. Implemented changes suggested by customers in the 18 hole golf operations. m Successful 18 (Total N=10) Unsuccessful 18 (Total N=24) % % % % Yes N No N Yes N No N 60 6 40 4 75 18 25 6 Special Services for Customers There is an overwhelming affirmative response rate by all successful and unsuccessful courses. In Tables 34 and 35 the data shows over 80% ygg responses from all golf courses. The fact that the data shows such high percentages of affirmative responses in all courses indicates that even the least successful managers recognize that they are in a customer service oriented business. The high ygg responses of a majority of the managers suggest a consensus by them that providing service for the golfer is an inherent part of the business. Table 34. Special services for customers in the 9 hole golf operations. Successful 9 (Total N=ll) Unsuccessful 9 (Total N=10) % % % ' % Yes N No N Yes N No N 82 9 18 2 90 9 10 1 85 Table 35. Special services for customers in the 18 hole golf operations. m Successful 18 (Total N=10) Unsuccessful 18 (Total N=24) % % % % Yes N No N Yes N No N 90 9 10 l 88 21 12 3 A variety of special services were offered by the golf courses interviewed. Some of the services provided were: 1. free tees 2. permit purchaser to try new clubs 3. allow customer to special order merchandise 4. discounts to members 5. free minor equipment repairs 6. provide 9 hole refreshment opportunities 7. provide club cleaning 8. gifts to new members The resulting high frequency of affirmative re- sponses to this variable reveals that the provision of ser- vices is a widely used and accepted practice varying in de- gree from one course to another. 86 Use of Customers' Addresses in Advertising The daily sign-in sheet can become a useful tool for golf course operators. By using the addresses and informa- tion provided by signing in customers, the manager can more effectively direct his advertising. This concept is theo- retically plausible but is contradicted by the gathered data. Only 18% of the successful 9 hole managers and 30% of the successful 18 used this method of determining areas for ad- vertising. The unsuccessful operations had similar percen- tages of 33% unsuccessful 9 and 20% unsuccessful 18. Table 36. Use of customers' addresses in advertising by 9 hole golf operations. M Successful 9 (Total N=ll) Unsuccessful 9 (Total N=21) % % % % Yes N No N Yes N No N 18 2 82 9 33 7 67 14 Table 37. Use of customers' addresses in advertising by 18 hole golf operations. m Successful 18 (Total N=10) Unsuccessful 18 (Total N=24) % % % % Yes N No N Yes N No N 30 3 70 7 20 5 80 19 87 The results of this data suggest that most golf op- erators do not use semi-sophisticated marketing techniques but rather rely on their accrued familiarity with the mar- ket area and the personal day to day contact with regular customers. Of no small significance is the fact that 100% of the managers interviewed expressed the viewpoint that word of mouth was the most prevalent and effective method of advertising. Use of Financial Records to Influence Management There are important management decisions that can be made with the aid of an organized accurate body of finan- cial information. Some of these are: l. purchasing and selling of merchandise 2. purchase of maintenance equipment 3. amount and kinds of advertising 4. scheduling of work 5. hiring of personnel There is a high percentage of all managers using this kind of practice. Tables 38 and 39 show that 70% or more of the successful and unsuccessful managers use their financial records to influence management. The fact that a high percentage of both successful and unsuccessful managers use this management practice suggests the crucial role it plays in normal operations. It was not expected that this 88 variable would have been more refined and developed in the successful operations, thereby contributing to their suc- cess. The data does not support this but instead, indi- cates that this is common practice basic to most enter- prises. Table 38. Use of financial records by 9 hole golf opera- tors to influence management. Successful 9 (Total N=1l) Unsuccessful 9 (Total N=21) % % % % Yes N No N Yes. N No N 91 10 9 l 76 16 24 5 Table 39. Use of financial records by 18 hole golf opera- tors to influence management. Successful 18 (Total N=10) Unsuccessful 18 (Total N=24) % % % % Yes N No N Yes N No N 70 7 30 3 87 21 13 3 Use of Discounted or Donated Labor The use of family labor or devoted friends is one method of cutting overhead costs thereby increasing chances for profit and success. In Tables 40 and 41 fifty percent 89 of the successful and unsuccessful 18 hole operators inter- viewed use discounted or donated labor. According to the data, this type of labor does not appear to be a positive factor in influencing the success of the 18 hole operation. Table 40. Use of discounted or donated labor by 9 hole golf operations. Successful 9 (Total N=11) Unsuccessful 9 (Total N=21) % % % % Yes N No N Yes N No N 18 2 82 9 76 16 24 5 Table 41. Use of discounted or donated labor by 18 hole golf operations. Successful 18 (Total N=10) Unsuccessful 18 (Total N=24) % % % % Yes N No N Yes N No N 50 5 50 5 46 ll 54 13 The 9 hole golf courses provide interesting data which represents just the opposite of the hypothesis that using discounted or donated labor will.have a positive ef- fect on the success of an operation. Only 18% of the suc- cessful 9 used this type of labor compared to 76% of the 9O unsuccessful 9. This negative association may be the re- sult of the inconsistent, unreliable, and unskilled nature associated with family labor. The adverse effect of this variable on success of the 9 hole enterprise would tend to slow down operations thereby decreasing efficiency and pro- fit. This seems to be amplified in the 9 hole operations. Significance of the Data Pearson Product Moment Correlation Pearson's product moment correlation is a uniquely adaptive statistical test. The flexibility of this statis- tic in measuring mixed forms of data is particularly useful in this study. The Pearson correlation statistic is based upon a simple linear regression model which guesses the value of one variable on the basis of knowing the other. It should be cautioned, however, that the predictor value of this study's significant correlation coefficient is lim- ited by the mixed quality and form of the data. With re- spect to this study, the pearson correlation coefficient is primarily descriptive in nature. A significance level of .05 is to be used in con- junction with the pearson product moment correlation coeffi— cients. 91 Flexible Statistical Measure Restated, the Pearson product moment correlation statistical measure is particularly useful in analyzing mixed data (i.e., interval, nominal, ordinal). The pearson correlation formula has two short-cut versions that are used in analyzing relationships between interval/nominal and nominal/to nominal data.7 The measure of association be- tween nominal to nominal data is called the phi coefficient. When measuring the relationship between interval and nom- inal data, the coefficient is labeled point biserial. The coefficient resulting from using the normal pearson product moment formula is labeled the Pearson correlation coeffi- cient. The Pearson product moment correlation coefficients were obtained by using the S.P.S.S. statistical package pro- grams made available through Michigan State University Com- puter Services. The resulting correlation coefficients mea- sure the degree of association between the independent man- agement variables and the dependent variable of success. For each group of independent variables (profile practices) there are six tables of coefficients. Four of these six tables use only net and gross as success measures. All eight tables with net and gross indicating success are for comparison purposes and can be found in the Appendix. 7Jum C. Nunnally, Psychometric Theory (New York: McGraw Hill Company, 1967), pp. 118-120. 92 The remaining four tables (42-45) use the appro- priate measure of success in depicting their coefficients. Significant correlations between the dependent variables of success and independent management variables in these tables are primarily for comparison purposes. The central focus will be upon the coefficients using the developed success measure 0 Significant Management Profile Variables Level of Education The .3416 Pearson correlation coefficient in Table 44 denotes a significant positive relationship between the 18 hole managers' level of education and the success of their enterprises. This correlation indicates that the higher level of education a manager has, the greater are his chances for success. The significant relationship is supported by the fact that 90% of the successful 18 hole managers had some college or were college graduates. How- ever, level of education is not significant in the success- ful 9 hole Operations. There could be many factors causing this discrepancy between 9 and 18 hole operations. Nine hole operations are smaller, less complex and are often pursued as an avocation or retirement business. Under these conditions the drive for profit becomes less intense. Many 93 Table 42. Pearson product moment correlation coefficients. Manager Profile - 18 hole (Total N=34) Measure of Gross Net success Age .0234 a .0571 a -.0720 c Any previous golf experience .3394 c .0488 c .2435 b Noénggs. previous golf experi- .2594 a .0484 a .1927 c No. yrs. golf course manager .1965 a .4902*a .1334 c Level of education .3378*a .2000 a .3416*c Nos seminars attended last -.2684 a _. 915 a _ 2379 c yrs. Reads professional literature .1012 a .1204 a .1124 b Holds job during off season -.2369 a -.l713 a -.2988*b N°fie::3' dev°ted t0 manage" .0178 a -.0785 a .0051 c Managers' salary .4913*a -.0432 a .2055 c 3612:3103: Pr°feSSi°na1 organ' .0580 c -.1462 c .2422 b No. yrs. course established .6543*a .2798 a .4092*c Gross 1.000 .2855*a .7872*c Net .2855*a 1.000 .2202 c Measure of success .7872 a .2202 a 1.000 * Indicates significance at .05 level. a 0 ll phi coefficient (nominal to nominal) point biserial (nominal to interval) pearson coefficient (Interval to interval) 94 of the 9 hole operators enter the market with a risk ven- ture attitude not totally dependent on it for the financial survival. The 18 hole operations require a heftier investment of time and money are are more complex. The managers' live- lihood becomes unseparable with the success of the business. Sophisticated business knowledge and marketing techniques are required to keep a competitive edge. Out of size and complexity of operation it is only natural that successful 18 hole managers have a higher level of education than the successful 9 hole managers. Job During Off Season Holding a job during the off season has a definite negative significance in 18 hole operations. This relation- ship was expected in that an 18 hole operation demands full- time management on a year around basis. This yearly aspect includes necessary planning of capital developments, mer- chandising, and creating good public relations during the off season. The -.2988 point biserial correlation coeffi- cient in Table 42 reinforces the theory that the fewer out- side jobs or distractions pursued by an 18 hole manager during the off season appears to have a positive effect upon his overall success. This variable was not significant in the 9 hole operation. If any, a positive significance would be anticipated. This would reflect the fact that 95 many 9 hole managers do not have sufficient volume to sup- port themselves year-round without gaining supplemental in- come from an outside job. Number of Years Course Established In the successful 18 hole operation this variable has a significant Pearson correlation coefficient of .4092 (Table 42). This indicates that the length of establish- ment has a positive effect on success. This variable does not appear significant in the 9 hole operations. The 18 hole courses have a tendency to be estab- tlished longer which provides them with a greater stability compared to most 9 hole enterprises. There are many rea- sons for the longevity displayed by the 18 hole courses. The required size of investments in time and money reflects a kind of permanence. The 18 hole operations require full- time attention in managing. Through the years it becomes more permanently established and recognized as a community asset. There are only three profile variables that appear significant in the successful 9 hole operations. Number of Seminars Attended Last 3 Years The .5186 coefficient of this variable in Table 43 indicates it may have a positive effect upon the success of 96 Table 43. Pearson product moment correlation coefficients. Manager Profile - 9 hole (Total N=32) Measure of Gross Net success Age -.2115 a -.1625 a -.2341 Any previous golf experience -.0839 c .0470 c .1899 b Noéngzs. previous golf experi- -.0788 a -.0748 a .1459 c No. yrs. golf course manager -.0371 a -.0286 a .0943 c Level of education -.2079 a —.2619 a .0051 c No5 seminars attended last .2625 a .1392 a .5186*c yrs. Reads professional literature .0118 a .1874 a .1300 b Holds job during off season .1436 a —.0490 a .0712 b N°fiegis° deV°ted to manage“ .0571 a .2215 a .1410 c Managers' salary .6368*a .3370*a .5757*c Beiggiiofig PrOfeSSional organ' .2351 c .2433 c .4228*b No. yrs. course established .0610 a -.0351 c .2740 c Gross 1.000 .6360*a .7l36*c Net .6360*a 1.000 .5422*c Measure of success .7936*a .5422*a 1.000 * Indicates significance at .05 level. a b C phi coefficient (nominal to nominal) point biserial (nominal to interval) pearson coefficient (interval to interval) 97 the 9 hole operations. Most of the 9 hole courses are younger than the 18, therefore, this newness may motivate managers to seek out seminars and absorb all available in- formation in order to gain even the slightest edge over com- petition. The frequent attendance at seminars also had a fa- ,miliarity and socializing affect upon those having recently entered into the golfing business. Usually the entrance into golf begins with 9 hole operations which would account for the greater participation of successful 9 hole managers in attending seminars which would offer doses of experienced knowledge. There are a few managers that extol their seminar attendance as strictly a status builder. Belongs to Professional Organizations Belonging to professional organizations has signifi- cance of .4228 (Table 43) in relation to the success of 9 hole operations. In combination with attending seminars, this practice of belonging to professional organizations also gives the newcomer, less established 9 hole course, a chance for identity with the profession. These professional organizations are accepted and recognized by the public and therefore this acceptance can be indirectly focused upon affiliated course members. The significance of these two variables upon 9 hole operations reflects efforts of the newer operations to 98 establish a reputation and gain recognition by associating with specific golf-oriented organizations. Conspicuous and frequent at various golf seminars, coupled with belonging to professional organizations, promotes a sense of identity among the 9 hole courses. A lack of significance of these variables in the 18 hole operations indicate their strong sense of being established and already having competitive management experience. Managers' Salary The managers' salary appears significant in the 9 hole operations with a Pearson correlation coefficient of .5757 (Table 43). It is not significant in the 18 hole en- terprise. This difference could be the result of the mul- tiple but separate systems of paying managers' salaries. The 18 hole managers are paid a basic flat salary whether they are hired or part owners. This is considered as part of the operating costs. Managing the 18 hole oper- ation is essentially a full-time occupation and is paid as such. Usually the manager gets his same salary whether the enterprise gains or loses during the year. Managing the 9 hole operations are not financially rewarding. Many 9 hole operators manage part-time and de- pend upon the actual monthly or weekly receipts before de- termining how much salary they draw. In bad seasons, it is not unusual for a manager to go without his periodic salary 99 or a substantial decrease in earnings. Therefore, when the managers' salary appears significant in the 9 hole opera- tions, it is more of a direct reflection of how financially successful the enterprise is doing. This may not be true in most 18 hole enterprises where the managers may still get the same salaries even though their overall operation is losing money. Significant Management Practice Variables Of the ten management practices involving 18 hole enterprises (Table 44), there were none that showed a sig- nificant negative or positive influence. The initial im- plication is that these management practices have an insig- nificant impact on the overall success of the 18 hole en- terprises. There are two management practices in the 9 hole operations that appear significant. 1. Sponsor Community Events.--The pOint biserial coefficient of .3115 for sponsoring community events indi- cates that this practice contributes to the overall success of the 9 hole operations. The 9 hole enterprises, more so than the longer 18 hole operations, need to rely upon the local communities for their business volume. The 9 hole operators depend more heavily upon a solid core of satis- fied customers to sustain their operations, whereas the 18 Table 44. Pearson product moment correlation coefficients. Manager Practices - 18 hole (Total N=34) Measure of Gross Net success Modify course for speed play -.2543 c .1238 c -.1502 b Sponsor community events -.4298*c .1068 c -.1132 b Cooperate with schools -.1047 C .0743 c .0537 b Cooperate with businesses .0433 C -.3250*c .0000 b Youth hiring .2903*C .0187 c .1502 b Customers' suggested changes .0393 c -.l995 c -.1500 b Offer special services .0519 c -.1220 c .0354 b Use customers' addresses in advertising .1724 c .1414 c .0985 b Use f1nanc1al records to 1n- -.2985*c .0740 c _ 2092 b fluence management Use discounted or donated labor -.l722 c -.2553 c .0380 b Gross 1.000 .2855*c .7872*b Net .2855*a 1.000 .2202 b Measure of success .7936*b .5422*b .0000 *Indicates significance at .05 level. pearson coefficient (interval to interval) a b phi coefficient (nominal to nominal) c = point biserial (nominal to interval) 101 hole operators can rely upon their greater volume and at- traction of non-local customers. 2. Cooperative Relations with Businesses.--The man- agement practice of establishing cooperative relationships with businesses by arranging special golf outings has no significant effect upon the success of the 18 hole enter- prises (Table 44). Most 18 hole operations accommodate and solicit business outings but the effects of their resulting injec- tions of income upon the overall success of the 18 hole operation are minimal in comparison with the affect they have on the success of the more sensitive 9 hole enter- prises. The point biserial coefficient of .3391 in Table 45 shows that the solicitation and establishment of coopera- tive agreements with businesses has a significant impact upon the success of the 9 hole courses. The 9 hole opera- tions that succeed in attracting business outings during a season can substantially increase the gross income. A busi- ness outing on a 9 hole course can and usually does produce above average income. These peak periods of increased in- come can offset losses from slow days or inclement weather. Significance of Gross Income There appears a significant positive correlation of gross income to net and between gross income and measure of 102 Table 45. Pearson product moment correlation coefficients. Manager Practices - 9 hole (Total N=32) Measure of Gross Net success Modify course for speed play -.3505*c -.l952 c -.2790 b Sponsor community events .3004*c .1582 c .3115*b Cooperate with schools .0511 c -.0016 c .1302 b Cooperate with businesses .3296*c .1512 c .339l*b Youth hiring .2046 c .2838*c -.0137 b Customers' suggested changes .0777 c -.0974 c .1575 b Offer special services -.1128 c .3092*c -.2187 b Use customers' addresses in advertising .1067 c .0018 c .1601 b Use financial records to in- fluence management '2337 C -2077 C .1791 b Use discounted or donated -.3858*c -.3025*c -.554 b labor Gross 1.000 .6360*c .7936*b Net .6360*a 1.000 .5422*b Measure of success .7936*b .5422*b .0000 *Indicates significance at .05 level. a = pearson coefficient (interval to interval) = phi coefficient (nominal to nominal) c = point biserial (nominal to interval) 103 success. This relationship supports the justification of using the mean gross income as a more realistic measure of success. The relationship between these income measures and the degree of success occurs significantly in both the 9 and 18 hole operations. CHAPTER V SUMMARY AND CONCLUSIONS This study includes two distinct groups of manage- ment variables representing the total management picture of golf enterprise. One group of 13 describes the manager's profile and is passive in nature. Secondly, there are 10 separate variables of management practices depicting more active processes of management. Management Profile Variables Age of manager Level of education Previous golf experience Number of years of golf experience Type of golf experience Number of years golf course manager Prior occupations Belong to professional organizations Number of seminars attended in last 3 years Holds job during the off season Number of hours per week devoted to management 104 105 12. Managers' salary 13. Number of years course established Six of these profile variables have significant cor- relation coefficients. The number of seminars attended in the last three years, managers' salary, and belonging to a professional organization were found to be significant in the successful 9 hole courses. Three different profile variables--level of education, hold job during the off sea- son, number of years course established--appeared signifi- cant in the successful 18 hole enterprises. Significant 9 Hole Profile Variables Number of Seminars Attended in Last 3 Years The 9 hole enterprises in general are Younger, newly established courses in comparison to the 18 hole en- terprises. There are exceptions which include some of the older 9 hole operations. Overall, our inventory revealed a consistent pattern of recently established 9 hole enter- prises. The newer 9 hole managers are usually inexperienced or less than full-time operators. Therefore, to sharpen their managerial skills, and to retain a competitive edge, they are inclined to attend and participate in more semin- ars than their 18 hole counterparts. The 18 hole managers, usually established longer, gain managerial experienced 106 skills by working longer hours on the job. The 9 hole man- ager generally has not spent an equal amount of time on the job in acquiring competitive managerial skills and therefore, seeks to supplement his deficiency by frequently attending seminars. Frequent participation in professional seminars of various kinds produces recognition and bonds of association with golf as a business. Also, the attendance at seminars may act as asocializing agent to promote feelings of pride and signal a level of status among other golf managers. Belong to Professional Organizations The successful 9 hole managers tend to belong to pro- fessional organizations more than the 18 hole. Again, the new developing, less established aspect of the 9 hole course is inteerven with the significance of this variable. The 9 hole enterprises lack the offering of an 18 hole course and in a sense, present an incomplete image to many golfers. Belonging to professional organizations such as the PGA, USGA, etc., promotes a sense of professional identity and recognition among the developing 9 hole courses. The public accepts and recognizes various professional organiza- tions which lend a certain qualities and economic advantages to businesses.8 Many 9 hole courses are in competition with 8"Professional Associations," Science News (September 27, 1969), p. 266, and (December 6, 1969), p. 525. 107 the longer established 18 hole enterprises, and therefore, must avail themselves of every opportunity to gain acceptance by the public. They must continually develop a clientele. Membership in professional organizations can and has pro- vided many useful management tips and ideas issued through their publications. Managers' Salary The scale of operation in the 9 hole enterprises is smaller than the 18. Fixed costs in the 18 hole enterprises are spread out more reflecting the size and volume of the operation. The managers' salary in 9 hole operations is a much greater part of the whole than is so in the 18 hole. Consequently, its impact upon the total profit is far greater. The 18 hole managers' salary tends to be a predictable, as- signed cost, whereas in many 9 hole operations the salary may vary substantially with the weekly or monthly operating costs. Some 18 hole managers are hired and paid fixed salaries; in contrast, all of the 9 hole managers interviewed were either owners or part owners. The 9 hole managers' salary is gen- erally a draw on profits and fluctuates with the current sta- tus of profit. Significant 18 Hole Profile Variables Level of Education Previous findings in this study show that 90% of the successful 18 hole managers have had some college education 108 or better. The 18 hole golf course operations have become sophisticated and complex businesses. Stiff, stringent com- petition makes the use made on marketing techniques and business skills essential to maintaining profit and survival. Many of the 18 hole enterprises are diversifying their ser— vices by offering tennis, swimming, bar and restaurant, etc., offering additional recreational or secondary services re- quiring an increase in management skills. Job During the Off Season The negative significance of this variable rein- forces the concept that today's 18 hole golf courses are complex, sophisticated business operations which require full-time management. A typical 18 hole golf enterprise generally has a restaurant/bar combination and a sizeable pro shop. Some of the food and drink facilities remain open year-round re- quiring golf course manager's supervision during the off season. The maintenance, purchase and evaluation of new equipment is also taken care of during the off season. New supplies and merchandise for next season must be ordered months ahead of time to insure delivery. Planning of cap- ital improvements, playing regulations, membership meetings, professional seminars, and public relations are all parts of the total year around management responsibilities found in 18 hole operations. All of these administrative 109 responsibilities and duties characteristic of the 18 hole operations require substantial imput of management time leaving little time to devote to an off season job. Number of Years Course Established The length of establishment of a golf course is comparable to the longevity of other businesses. This lon- gevity in and of itself, denotes success and survival which establishes a reputation. Reputation and experience cannot be bought or built overnight. Unfortunately some of the newer enterprises are becoming painfully aware of this fact. The substantial investments of time and money re- quired to establish an 18 hole course necessitates long- term commitments lending a degree of stability to the opera- tion. Many 18 hole courses were specifically designed and built as complete courses. Some started out as 9 hole and then expanded to their present form. The permanency aspect reflected in the 18 hole operations can be attributed to long-term growth and thoughtful planning. In contrast, present day 9 hole courses have sprung up everywhere trying to capitalize on the recreation boom. Characteristically, 9 hole operations can be built with mod- est amounts of time, money, and land. This is reflected in the relative ease of entry into the golfing business. Few of these overnight operations were well planned in regards 110 to site selection and marketing factors. Therefore, when dreams of success and abundant profit fail to materialize, these courses invariably changed hands. This has given many of these 9 hole courses a transient characteristic that dis- couraged the accumulation of a faithful clientele. Management Practice Variables Manager designed or modified course or opera- tion to speed play Sponsor community events Cooperative relations with businesses Cooperative relations with schools Have special hiring practices toward youth groups Have customers' or members' suggested changes in course operation which were implemented Customer addresses used in determining adver- tising markets Special services for customers Use financial records to influence management decisions Use discounted or donated labor Significant 9 Hole Management Practices Spgnsor Community Events The 9 hole enterprises need the participation of local clientele in order to sustain their businesses. The shortness of a 9 hole course and the minimal time required 111 to play it, makes the enterprise attractive to the working people of the community. It has become important for the 9 hole manager to cultivate his clientele and establish a reputation. The management actions suited for these pur- poses are the setting up of local leagues, tournaments, and clinics. The manager should implement a program to educate the local population in terms of golf, thereby demonstrating his interest in their recreational welfare. The 18 hole enterprises must also be responsive to the local communities but the local patronage does not have as great an impact on their business. In the 18 hole opera- tion, a larger volume of golfers is necessary to offset fixed and variable costs. The 18 hole managers spend more money advertising to draw outsiders within reach of their markets. Generally, the smaller 9 hole managers do not have surplus cash to advertise and most have no advertising bud- get to speak of. Cooperative Relations with Businesses The solicitation of business outings by 9 hole courses becomes important to the profits of a small enter- prise. Businesses supply much needed injections of in- come providing a constant number of captured clientele. Of necessity, the solicited businesses would be small. The 9 hole courses have a limited capacity in accommodating cer- tain numbers of users. Nine hole managers must be aware of 112 and persistent in attracting sufficient numbers of busi- nesses. The acquisition of business outings serves to en- hance and build the reputation of the newer courses. The effect of local business outings of 18 hole op- erations is usually less critical due to the overall volume experienced by this size operation. This is not to say that the peaks of income resulting from catering to busi- nesses would not be helpful to 18 hole operations, but that it would not be crucial to its survival. Identifiable Patterns of Significant Variables Four of the five significant variables associated with the successful 9 hole enterprises become inseparably linked with the characteristics of newness and transience. The number of seminars attended in the last three years, be- longing to professional organizations, sponsors community events, and cooperative relations with businesses are the significant variables which indicate efforts of the 9 hole operations toward establishing reputations and clientele. These variables were not found to be significant in the 18 hole enterprises which appear to be established longer. The 9 hole operations have not necessarily decreased--just less business volume compared to their 18 hole counterparts. Therefore, the management of these smaller size courses must persuade every advantage toward gaining a foothold in the 113 competitive business of golf. The patterns can be viewed as primary motivating forces behind the apparent signifi- cant impact that the mentioned management variables have upon the success of the 9 hole enterprises. None of the significant variables appearing in the 9 hole courses are found in the 18 hole operations and vice versa. Conspicuously absent is the lack of any significant management practices in the 18 hole enterprises. An extensive range of management practices was in- cluded in the survey instrument to assure a complete evolu- tion of common management practices as they occur through- out the golf industry. The lack of significance of any practice variables in the 18 hole operations suggests that there are possibly other critical factors which could af- fect success. Among other possible factors affecting suc- cess are physical quality of the course, geographical loca- tion, and public relations. CHAPTER VI RECOMMENDATIONS As indicated in stating the purpose of this study, this financial research is an initial effort to gain some basic financial research and management information concern- ing 9 and 18 hole golfing operatibns in Michigan. Due to the pilot study nature of this study, there were areas of investigation that were not covered. This initial study is necessarily broad, enabling the coverage of an extensive range of management characteristics. Subsequent studies will use this research as a foundation upon which to base their investigations. Specific Areas of Investigation In seeking a general financial and management pic- ture of the golf industry in Michigan it was not possible to specifically focus upon narrow specialized areas. This study included many variables extensively describing the various management characteristics of 9 and 18 hole courses. Although a concerted effort was made to gain as comprehen- sive a picture of management as possible, it is recognized that there are certain areas needing more intensive research. 114 115 Some of these areas were lightly touched upon or excluded by the scope of this study. These unexplored areas could have crucial implications as to the success of an enter- prise. Future research efforts evolving from this study should be narrower in scope, concentrating on specific areas of management. Public Relations The personality and friendliness of a manager and his employees are directly reflected in the operation of the business. This intangible factor could have consider- able effects upon the overall success of an enterprise. This is particularly tru of golf since it essentially de- pends upon relations with the public. Possible areas of investigation would include the gathering of a personality profile of the manager and his help. This type of research could improve employer-employee relations resulting in less turnover and greater efficiency. The results of these specially tailored psychological tests could be compared with the success of an enterprise. Possi— ble resulting actions would be managerial adjustments to im- prove chances for greater success. Personality testing of employees could aid the manager in the hiring of suitable personnel able to contribute positively to overall success. 116 User Profile A user profile would be highly beneficial to the operator of a golf course. It would provide valuable mar- keting information, not only for merchandising, but in areas of providing special conveniences and services. The poten- tial advantages of a user profile to management are numerous and should be intensively investigated. It is possible that higher profits and greater efficiency of operation can be achieved by gaining specific knowledge of customers' habits, demands, and origins. This area of research could provide valuable, practical information for managers. Course Quality The physical aspects of golf course design and qual- ity of maintenance have an important bearing upon the fre- quency of use. This fact is generally accepted throughout the business. It is not a new concept but one which is ap- plicable to most businesses. People understand and like orderly, well maintained, attractive buildings and grounds. The relationships of customers (first time and repeat) to overall golf course quality and design should be thoroughly investigated. It only naturally follows that attractive, well maintained courses have more customers. More customers usually are associated with increased profit. Two courses having been determined equal in all factors excepting de- sign and quality of maintenance could be used as case 117 studies for comparison. The effects of design and mainten- ance upon success could then be described and further de- fined. Location Analysis The location of a golf course with respect to users can be an important factor in determining its overall suc- cess. This area of investigation merits a singularly inten- sive effort not achievable within the scope of this study. The daily users, weekenders, and vacationers all make up the total user population of a golf course. The geographical location of the course may determine, to a large'extent, the volume of users. If in an out-of-the-way location, it may give other local competitors a favorable edge in competition. The local population as well as travelers look for convenience of access. This reflects the increased demands on peoples' time required by work and other activities. People sometimes prefer convenience of location over qual- ity just to save time. Location next to major expressways or highways may or may not accurately reflect total course quality due to the negative effects of traffic. The evening users, or women golfers having partial blocks of time to spend may choose more convenient locations rather than an extra 5 miles. There are numerous reflected factors involving golf course location that require extensive 118 research. In total, these factors may have a significant affect upon the success of an enterprise. Financial Data One of the crucial areas of concern in this study was the creation of a reliable success indicator. Due to the inconsistancies and lack of accuracy in this study's financial data, it was necessary to base success on gross income. The financial information gathered in this study was mostly by spontaneous verbal recall. Many of the smaller 9 and 18 hole enterprises kept inadequate account- ing records. Those that did keep accurate records were un- willing and hesitant to divulge the information contained. Cooperative efforts are needed between researchers and golf managers to establish and maintain a simple accounting sys- tem. This system could be patterned after the computer- ized TELE-FARM system.9 This type of monitoring system would supply university researchers with a method of pro- viding corrective feedback information to enterprises. Under controlled circumstances using a computerized monitoring system, it would be feasible to have a sampling 9TELE-FARM, Computerized form business accounting system between M.S.U. Cooperative Extension Services and selected farms. 119 population of 10-20 courses. This would greatly decrease the degree of error and provide better quality control over data collection. The main objective of future financial research should be to gain accurate reliable figures. Using these, a measure of success can be attained. Once success of the golf operation is determined, then significant rela- tions to the selected management variables can more accur- ately be predicted. The ultimate goal of this research ef- fort and others to follow is to obtain an index of variables determined crucial to the success of the enterprise. Making this index information available to potential investors and those already in operation will provide the necessary tools to predict success. This predictive index will aid in the elimination of golf course failures. It would also control overbuilding and increase management ef- ficiency. Degree of Cooperation The degree of cooperation between researchers and golf course owners/managers could be improved. Although there were numerous refusals and reticent managers encoun- tered throughout this study, the degree of cooperation at- tained was remarkable. To improve relations between re- searchers and golf course managers regional mini-conferences could be held throughout the state. These conferences would 120 inform the golf course operators of current research efforts and encourage their future cooperation. To further develop a spirit of cooperation, the Co- operative Extension Service at Michigan State University will be publishing reports based upon the findings of this study and future studies. These reports will be available to all interested golf enterprises and related recreational businesses. BIBLIOGRAPHY BIBLIOGRAPHY "Annual Buying Issue." Golfdom. March, 1973. Babbie, Earl R. Survey Research Methods. Belmont Ca1if.: Wadsworth Publishing Company, Inc., 1973. Bird, Ronald. Income Potential of Various Kinds of FARM RECREATIONAL ENTERPRISES in Missouri. University of MiSsouri, Agricultural Experiment Station and Resource Development Economics Division, USDA Cooperation, No. B 783, 1963. Bevin, Malcolm I. Youth Camps In Vermont. Burlington, Vermont: UniVersity of Vermont Agricultural Ex- periment Station. Bulletin 662, 1970. Clawson, Marion, and Knetsch, L. Jack. Economics of_9ut- door Recreation. Baltimore, Maryland: The John Hopkins Press, 1966. Cook, Walter, and Holland, Ray. Public Golf Courses. Bulletin 3. Wheeling, West Virginia: American Institute of Park Executives, 1964. Department of Interior, Bureau of Outdoor Recreation. Financing of Private Outdoor Recreation. Washington: U.S. Government Printing Office, 1967. "Fifth Annual Golf Course Industry Marketing and Research Regent." Golfdom. Feb., 1973. Gaylor, Earl E. Par-3 Golf. Bulletin 47. Wheeling, West Virginia: American Institute of Park Executives, 1965. Hehn, Donald Russell. "Fundamental Social and Economic Aspects of Commercial Outdoor Recreation Enterprises in Michigan." Unpublished M.S. dissertation, Michi- gan State University, 1968. Johnson, Hugh A. "Opportunities and Limitations in Private Recreation Development." Paper presented at a Recreation Workshop for Federal and State Employees, Greensburg, Pa., April, 1966. 121 122 Johnson, Hugh. Sources of Capital for Recreation Enter- prises. United States Department of Agriculture, Economic Research Service, Washington, D.C., 1968. Johnson, Hugh. The Enterprise Analysis. United States Department of Agriculture, Economic Research Ser- vice, Washington, D.C., 1968. Moncrief, Lewis. "An Analysis of Golf as a Recreational Business in Genesee County, Michigan." Unpub- lished M.S. dissertation, Michigan State Univer- sity, 1967. Moore, Elmer J. Rural Recreational Enterprises in New England: Investments, Returns, and Problems. Agricultural Economic Research Report No. 56. U. S. Government Printing Office, 1964. Nunnally, Jum, C. Psychometric Theory. New York: McGraw- Hill Company, 1967. Outdoor Recreation Resources Review Commission. Outdoor Recreation for America. A report of the Outdoor Recreation Resources Review Commission to the President and Congress. Washington, D.C.: U.S. Government Printing Office, 1962. Outdoor Recreation Resources Review Commission. Private Outdoor Recreation Facilities. O.R.R.R.C. Report a 11. Washington, D.C.: U.S. Government Printing Office, 1962. U.S. Congress. House. Committee on Environmental Prob- lems. Small Business Opportunities in Outdoor RecreatiBn and TouriSm. Hearings before the sub- committee of the Committee on Environmental Prob- lems, House of Representatives, pursuant to H. Res. 5 and 19, Vol. 1, 92nd Congress, 2nd sess., 1972. Soil Conservation Service. Golfers and applies kesp family on farm. Washington, D.C.: U.S. Govern- ment Printing Office, 1970. Soil Conservation Service. Guide to Making APPRAISALS OF POTENTIALS for OUTDOOR RECREATION DEVELOPMENTS. Washington, D.C.: U.S. Government Printing Office, 1966. Soil Conservation Service. Technical Help for Ruralgec- reation. Washington, D.C.: U.S. Government Print- ing Office, 1962. 123 "The Pro Shop Sale: Make It a Profit Tool--Not a Neces- sity." Golfdom. April, 1973. U.S. Department of Agriculture. Outdoor Recreation: Oppor- tunity for Farm and City. Washington, D.C.: U.S. Government Printing Office, 1962. U.S. Department of Agriculture. Rural Recreation: A New Family Farm Business. Washington, D.C.: U.S. Government Printing Office, 1962. APPENDIX A CORRELATION COEFFICIENT TABLES CORRELATION COEFFICIENT TABLES Table 46. Pearson product moment correlation coefficients. Manager Profile - 9 hole (Total N=1l) (Successful) Gross Net Age -.0586 (a) -.0716 (a) Any previous golf experience -.5959*(c) -.1462 (c) No. yrs. previous golf experience -.5715*(a) -.3l92 (a) No. yrs. golf course manager -.2997 (a) -.2485 (a) Level of education -.4274 (a) -.3878 (a) No. seminars attended last 3 yrs. -.3740 (a) -.4306 (a) Reads professional literature 99.000** 99.000** Holds job during off season .4366 (a) .2778 (a) No. hrs. devoted to management -.ll42 (a) -.4595 (a) Managers' salary .4281 (a) .1837 (a) Belggg: to professional organiza- _ 2507 (c) -.2812 (c) No. yrs. course established -.4668 (a) -.4593 (a) Gross 1.000 .4795 Net .4795 1.000 *Indicates significance at .05 level. **A value of 99.000 is printed if coefficient cannot be computed. (In most cases this is because either all owners possessed the characteristic or none had it.) a = pearson coefficient (interval to interval) b = phi coefficient (nominal to nominal) c = point biserial (nominal to interval) 124 125 Table 47. Pearson product moment correlation coefficients. W Manager Profile - 9 hole (Total N=21) (Unsuccessful) Gross Net Age -.0245 (a) -.0141 (a) Any previous golf experience -.1183 (c) .0124 (c) No. yrs. previous golf experience -.0428 (a) -.0744 (a) No. yrs. golf course manager -.0492 (a) .0459 (a) Level of education -.3274 (a) -.2642 (a) No. seminars attended last 3 yrs. .1112 (a) .4008*(a) Reads professional literature -.3359 (c) .2166 (c) Holds job during off season -.2451 (a) -.4429*(a) No. hrs. devoted to management -.1297 (a) .4936*(a) Managers' salary .0466 (a) -.3812*(a) Belongs to professional organiza- -.l418 (c) .2708 (c) ions No. yrs. course established .1791 (a) .0977 (a) Gross 1.000 .2620 Net .2620 1.000 *Indicates significance at .05 level. a = pearson coefficient (interval to interval) = phi coefficient (nominal to nominal) c = point biserial (nominal to interval) 126 Table 48. Pearson product moment correlation coefficients. m Manager Profile - 18 hole (Total N=10) (Successful) Gross Net Age .1640 (a) -.3559 (a) Any previous golf experience .3601 (c) -.3370 (c) No. yrs. previous golf experience .1917 (a) -.3259 (a) No. yrs. golf course manager -.0500 (a) .4119 (a) Level of education .4102 (a) .4378 (a) No. seminars attended last 3 yrs. -.3624 (a) .0926 (a) Reads professional literature 99.000** 99.000** Holds job during off season 99.000** 99.000** No. hrs. devoted to management -.1013 (a) -.1921 (a) Managers' salary .8874*(a) .1177 (a) Betggg: to professional organiza- _ 3204 (c) .2207 (c) No. yrs. course established .6737*(a) .2118 (a) Gross 1.000 .0485 Net .0485 1.000 *Indicates significance at .05 level. **A value of 99.000 is printed if coefficient cannot be computed. (In most cases this is because either all owners possessed the characteristic or none had it.) a = pearson coefficient (interval to interval) = phi coefficient (nominal to nominal) c = point biserial (nominal to interval) 127 Table 49. Pearson product moment correlation coefficients. w Manager Profile - 18 hole (Total N=24) (Unsuccessful) Gross Net Age .1357 (a) .2941 (a) Any previous golf experience .1541 (c) .1800 (c) No. yrs. previous golf experience .2310 (a) .1799 (a) No. yrs. golf course manager .5044*(a) .5095*(a) Level of education -.1208 (a) .0298 (a) No. seminars attended last 3 yrs. -.0789 (a) -.0775 (a) Reads professional literature .0506 (c) .1233 (c) Holds job during off season -.0070 (c) -.l416 (c) No. hrs. devoted to management .2002 (a) -.0319 (a) Managers' salary -.l437 (a) -.2692 (a) Belongs to professional organiza- .2394 (c) -.3821 (c) ions No. yrs. course established .3191*(a) .2487 (a) Gross 1.000* .4863* Net .4863* 1.000* *Indicates significance at .05 level. a = pearson coefficient b = phi coefficient c= point biserial 128 Table 50. Pearson product moment correlation coefficients. Manager Practices - 9 hole (Total N=11) (Successful) Gross Net Modify course for speed play -.3738 (c) -.1287 (c) Sponsor community events 99.000** 99.000 Cooperate with schools -.2928 (c) -.l995 (c) Cooperate with businesses .4170 (c) .2388 (c) Youth hiring .4967 (c) .4569 (c) Customers' suggested changes -.2847 (c) -.1574 (c) Offer special services .1045 (c) .3687 (c) Usgdsgstggsig' addresses in .6799*(c) .2678 (c) Usslfinancial records to in- .3604 (c) .3069 (c) uence management Ussagiscounted or donated .2809 (c) .1718 (c) Gross 1.000 .4795 (a) Net .4795 (a) 1.000 *Indicates significance at .05 level. **A value of 99.000 is printed if coefficient cannot be computed. (In most cases this is because either all owners possessed the characteristic or none had it.) a = pearson coefficient (interval to interval) C point biserial (nominal to interval) 129 Table 51. Pearson product moment correlation coefficients. m ‘ Manager Practices - 9 hole (Total N=21) (Unsuccessful) Gross Net Modify course for speed play .0136 (c) .0247 (c) Sponsor community events .2043 (c) -.0205 (c) Cooperate with schools .0897 (c) -.0272 (c) Cooperate with businesses -.3403 (c) -.2966 (c) Youth hiring .2635 (c) .2740 (c) Customers' suggested changes .2012 (c) -.2859 (c) Offer special services .1028 (c) .7591*(c) Uszdgzsfiggszg' addresses in .2061 (c) .0051 (c) Usiafiiggggiil records to influence .0288 (c) .0536 (c) Use discounted or donated labor -.0765 (c) .1288 (c) Gross 1.000 .2620 (a) Net .2620 (a) 1.000 *Indicates significance at .05 level. a pearson coefficient (interval to interval) c point biserial (nominal to interval) 130 Table 52. Pearson product moment correlation coefficients. Manager Practices - 18 hole (Total N=10) (Successful) Gross Net Modify course for speed play -.2127 (c) .3038 (c) Sponsor community events -.8227*(c) .1472 (c) Cooperate with schools -.4131 (c) .3383 (c) Cooperate with businesses .1970 (c) -.2879 (c) Youth hiring .3814 (c) -.2468 (c) Customers' suggested changes .5319*(c) .4596 (c) Offer special services -.1024 (c) -.1141 (c) Use customers' addresses in .2912 (c) -.3836 (c) advertising Use financ1a1 records to influence -.5293*(c) .2890 (c) management Use discounted or donated labor -.5635*(c) -.4101 (c) Gross 1.000 .0485(a) Net .0485 (a) 1.000 *Indicates significance at .05 level. a pearson coefficient (interval to interval) c point biserial (nominal to interval) 131 Table 53. Pearson product moment correlation coefficients. Manager Practices - 18 hole (Total N=24) (Unsuccessful) Gross Net Modify course for speed play -.3188 (c) .0790 (c) Sponsor community events -.1l64 (c) .1296 (c) Cooperate with schools -.1296 (C) -.0577 (C) Cooperate with businesses -.0789 (C) -.3563*(C) Youth hiring .2048 (C) .1228 (C) Customers' suggested changes -.0841 (C) -.5180*(C) Offer special services .2430 (C) -.l427 (C) Use customers' addresses in advertising ~0050 (c) ~0505 (C) Use finanCial records to influence .3256 (c) .0175 (c) management Use discounted or donated labor -.l410 (C) -.2037 (C) Gross 1.000 .4863*(3) Net .4863*(3) 1.000 *Indicates significance at .05 level. a = pearson coefficient (interval to interval) b = point biserial (nominal to interval) APPENDIX B SURVEY INSTRUMENT AND INVENTORY POSTCARD SURVEYUINSTRUMENT Code No. 0 O 3 ‘ 3 3 ‘ ' Golf __ Region _' CC EC Name of Facility __ Address City, County, State, Zip Telephone __ Interviewer Date Interviewee __ (Name of individual being interviewed) Sex _____Male _____Female ‘ Relationship to Enterprise: _~__Owner _____Salaried Manager ____Owner and Manager _____Officer on Board of Directors Other: specify { 132 f—‘_—_—‘ M .4———.- -fi.“_— ‘_““w 133 Description of the Enterprise Vb would like to obtain some descriptive information ‘of your enterprise. 1. Please estimate the total acreage of your enterprise; this would include the golf course operation as well as other income generating activities that you might provide (tennis, swimming, etc.) acres. 2. Of the above acreage, how much would you estimate is devoted solely to the golf course operation? acres - 3. To the best of your knowledge, was the course, ”originally designed by a professionally recognized golf course architect? Yes No u. Which months of the year would you consider as peak months in terms of golf play? (interviewers please circle peak months.) 4 5 6 7 8 9 5. Which months would you consider as peak months in terms of sales? 4 5 6 7 8 9 6. What was the total number of 18 hole rounds played at this facility in 1972? # 7. What is the average time to play a round of 18 hole golf? a) 3 - 3 1/2 hours ’“‘b) 3 1/2 - 4 hours c) 4 ~ 4 1/2 hours d) 4.1/2 - 5 hours e) S + Facilities and Course Operation We are interested in gaining some information related to management practices. 8. Please list all greens fees: 18 hole weekday $ 9 hole weekday $_ 18 hole weekend $ 9 hole weekend $ 9. Important: Could you please estimate the total revenue—(monies) generated by greens fees in 1972? a. 9 10. 11. 12. 13. l”. 15. 16. 17. 134 .' How are green fees determined and set? a) price charged by lOcal competiter b) what patrons are willing to pay 0) analysis of costs ___d) past experiences e) outside consultant f) by Board of Directors ___g) other: specify What was your total revenue from these season memberships? $ What percentage of the total play on your course is done at the following times?_ Holidays and weekends o\° o\P Weekdays Have you modified or designed the course in any way to speedgplay? Yes No Examples: a) less number of fairway trips -—_b) fewer green traps c) shorter holes d) adequate signs e) less hazards f) local winter rules ___g) more out-of-bounds h) less out-of-bounds i) wider fairways 3) close out roughs k) other: specify How many golf courses in the area would consider to be competing for customers? # Professionalism We would like to gather information on the background and experience of managers and owners in order to develop a management profile for all ‘golf course operators. What is your age? Years Have you had any previous experience in golf course operations or related fields? Yes No 18. '19. 20. 21. 22. .Golf course maintenance ‘golf facility, what was your occupation? 135 If yes, what fields Administration # Yrs full time experience Parks Dept. Recreation Dept. Golf Course Manager Horticulture Dept. Nursery Other llllll Labor Pro-shop help Grounds maintenance Dept. Park Maintenance General turf (garden or nursery) Other Maintenance Supervision Athletic field maintenance chief Golf course Supt. Parks maintenance foreman Head gardener Grounds maintenance foreman Other Which of the following (show flash card) would best describe the level of formal education that you have completed? ___a) grade school b) some high school c) high school grad. d) some college e) college grad. How many golf merchandise shows, golf business schools, and professional seminars have you attended in the last 3 years? # Do you read professional literature related to golfing operations? (i.e., Golf Digest, Golfdom, etc.) Yes No Are you a member of: PGA USGA GCSA * MGA Other: Speci y Prior to your ownership or management of this 23. 2“. 25. 26. 27. 528. 29. 136 What types of consulting and professional help did “ you solicit in either the development or acquisition and management? (Show flash card) a) Golfing Professionals b) National Golf Foundation c) Engineering Consultants d) Agricultural Cooperative Extension Serv. e) Soil Conservation Services f) Plant materials consultants g) Chemical Company Consultants h) Management conferences i) Iotel-Restaurant management consultants j) Marketing specialists k) University personnel 1) other: Specify n .- -' ”3127-‘£.'~m’12" How much experience do you require for the following classes of full-time employees? Maintenance Sup't. years Pro Shop Manager - years Salaried golf course manager years COMMUNITY RELATIONS It will be very useful in our study to identify_and describe golf course management's relationship with the local community. Do you sponsor and hold community events? (i.e. lo- cal sponsored tournaments, high school or college golf team, ladies' day, etc.? Yes No Do you have cooperative relations with local schools? Yes No Do you have a cooperative relationship with business and hotels for course use? Yes No Do you have any special hiring practice toward youth groups, handicap or other special populations? Yes No CUSTOMER RELATIONS To further develop a management profile, it will be necessary to define the managers relationship with customers. Do you keep customer records? (i.e., sizes, prefer- ences in merchandise, etc.) Yes No 137 30. During the day to day operation of your enterprise, in what ways do you promote customer relations? (i.e., playing golf with customers, duscuss course opera- tions, etc.) ___Yes ___No 31. Have your customers said anything to you or your em- ployees which has prompted any changes in course operations? Yes No If yes: How was this feedback obtained? Person to person (Verbal) Suggestion box Written comments (letters of complaints, etc.) Meetings r-wr—u—IH Ut-H-JL—l 32. What changes did they suggest that you implemented? [ 1 Maintenance [ 1 Pro-Shop [ 1 Course, Design [ 1 Course Management (Tee times, hours open, leagues, ladies' day, etc.) [ 1 Clubhouse Restaurant, snack bar operation 33. Do you provide special services or conveniences for customers and members? Yes No EXAMPLES: ___a) free tees ___b) permit purchaser to try new clubs before buying c) special order merchandise for customers and members ___d) discounts to members e) free minor equipment repair to members f) none-hole refreshment opportunities g) knowledgable caddies h) club cleaning (free for members) i) gifts to new members 3) reminder, to wives, secretaries, etc. on "special days" for purchase of merchandise for others. k) Other HI! I Please Specify ADVERTISING . Agvertising: A couple of quick questions on your methods of advertising. 3". Do you use information on member and/or customer address in determining those areas where you direct your advertising? Yes No 35. 36. 37. 38. 138 Could you please estimate the percent of users which come from each of the following distances to your golf course? a) less than 1 mile b) 5 - 15 miles _ c) 16 - 25 miles d) 26+ miles $569 69 c}. In what ways do you advertise your golf enterprise and how much would you estimate you Spent on each of these forms of advertising in 1972? a) television . b) brochures c) magazines names: 1) 2) d) telephone b06k e) radio f) ‘newspapers g) directories h) word of mouth i) chamber of commerce j) promotion gimmicks k) other 1) 2) calculate total $ MAINTENANCE Maintenance is an important part of the total golf enterprise, and knowledge of maintenance operations of golf courses, will be an invaluable asset to the study. What are your most frequently occurring difficulties encountered during the physical maintenance of the course? a) poor drainage :::b) poor green construction ' ___c) mowing around traps d) mowing around greens e) fairway mowing f) trough mowing ___g) inadequate irrigation ___h) poor equipment ___i) lack of equipment ___j) lack of experienced help ___k) other, please specify 1) 2) 3) Does the design of your course provide for ease of maintenance? (i.e. access to greens, gentle slopes, maintenance roads, easy to mow, tees, etc.) ___Yes , ___No '—V;. . a—T.‘ 3.3: .1 I}: _ 39. HO. #1. #2. 139 Some golf courses have experienced conflicts between golfer play and maintenance scheduling. Do conflicts occur between golfer use and maintenance of the course? ___never ___infrequent1y ___frequently ___very frequently Financial Management We are interested in finding out information on the financial management of your operation. Approximately how many hours per week do you to the management of your golf facility an average week of the season? devote during ___a) b) Which 0-20 hours 21-40 hours 41-50 hours 51-60 hours 61-70 hours 71-80 hours 81-90 hours 91-100 hours 101+ hours of the following sources of financing were utilized to either acquire or develop the golf course? a) financed primarily by the owner financed by stock issue financed by sale of memberships d) financed by government loan type: e) financed by private lending firm f) other: specify A) What types of investment do you plan to make during the next three years? h) other i) none purchase additional land b) new major equipment c) new buildingS' d) major repairs to existing structure e) provide new recreational services f) renovation ofgreens g) redesign course B) Approximately how much do you anticipate such investment will cost? ET ‘ " 'T'—I'— :— "YT—W 140 43. In what way, if any, do you use your financial records to influence or modify management of the enterprise? (Show flash card) purchasing merchandise purchasing equipment c) selling merchandise ___d) determining markets e) plan capital improvements f) scheduling maintenance ___g) personnel practices h) other 1) none Vb would like to ask some questions about family and non-family labor. 44. Who maintains your financial records and accounts? ___a) manager ___b) owner ___c) professional accountant ___d) member of family ‘___e) golf pro ___f) other: specify 45. Do you keep records on family labor? Yes No, #6. Approximately how much did you spend in 1972 for: Actual Pay to hire work done (paid) non-family labor (paid) family labor (unpaid) non-family labor (unpaid) family labor managers salary professional services Ybur help will be greatly appreciated in obtaining. financial information concerning your golf enterprise. "7. Approximately how much did you pay in 1972 for interest on all loans taken out to supportyour golf enterprise? $.1_ 98. Please estimate the current market value ($ per acre) of undeveloped land adjacent or in the vicinity of your golf enterprise. per acre 49. Please estimate the current market value of your golf enterprise (price which you feel that you could receive on the open market). $ 50. 51. $2. 53. 5%. $5. 56. 57. 58. 141 Important: Approximately how much did you pay in 1972 for the following items: a) total property taxes $ b) total insurance costs S c) total utilities costs $ Important: Please estimate your total outlay for golf course maintenance supplies for the year 1972. This would include disease control supplies like insecticides, fugicides as well as seed, fertilizer, oil, gas, fuels, etc. $ What is the actual value of all maintenance equipment? $ What is the present value of all buildings? $ What would you estimate to be the rate of de- preciation on equipment %, buildings % What is the present value of all land and land improvements? $ Please indicate the current rate of tax assessment on your golf enterprise? $ per assessed valuation. _ Could you please estimate your total investment in: a)Pro shop merchandise $ b)Golf carts $ c)restaurant supplies and equipment $ Please indicate to the best of your knowledge the total gross and net revenues during 1972 for the following list of actiVitiesfthat your enterprise may have provided. Please indicate other services that are not covered by our list. Interviewer: If interviewee does not know these figures, please ask him to at least indicate the four largest profit generating activities from the list. Place 1, 2, 3, or u by the appropriate activity. But first try to obtain revenue figures for these actiVities. Activity Revenue ___a) pro shop gross $ net $ b) full restaurant gross $ net $ :::c) bar gross $ net $ ___d) snack bar gross $ net $ ___e) golf cart rental (motorized) gross $ net S f) losses gross $ net 3 -—— 142 59. Please estimate the enterprise's total gross $ and total net in 1972 (all phases of operation) Thank you very much for your cooperation. Interviewers Personal Evaluation 60. Is the golf enterprise located adjacent to a major interstate highway or main transportation artery? Yes No 61. If no, how would you characterize the location with respect to accessability from main transportation arterys? ___a) close: miles away ___b) moderately close: miles away ‘___c) off the beaten path: miles away 62. Please rate the quality of golf course maintenance. (Physical attractiveness of course through maintenance). 1 2 3 u 5 poor fair excellent 63. Please evaluate the appearance (neatness, variety of items, organization, etc.) of the pro shop. 1 2 3 u ' 5 poor fair excellent 64. Does the interviewee appear to be interested in study and cooperative in interview? 1 2 3 u S unenthusiastic indifferent enthusiastic _,__7_ . . _ . 143 INVENTORY POSTCARD COOPERATIVE EXTENSION WORK IN AGRICULTURE AND HOME ECONOMICS U I OIPAITMINY 0' AGRICULTURE AND IICHIGAN STAY! UNIVIIIITY COOPI'AYINC 1 Name of Facility Street or P.O. Box Telephone City County ' Zip Code 1. Please check your appropriate role in the enterprise. ___owner; .___manager; owner and manager 2. Please select the response that best describes the ownership characteristic of your golfing enterprise: - owned by a single individual; owned by partnership or group; profit-oriented corporation; non-profit corporation; owned and operated by city or county 3. What type of clientele is your facility open to: general public; private membership; ~ other: 4. Which of the following categories best describes your golfing business. ___9-Holes; ___J8-Holes; 27-36 Holes; Par 3 Golf Course 5. Please indicate the length of time your enterprise is open during the year: From to I Month ' - ' Month i At what approximate date did your enterprise go into active operation? Month Year NAME: (please print) Thank You for your cooperation. 144 COOPERATIVE EXTENSION SERVICE MICHIGAN STATE UNIVERSITY ° EAST LANSING - MICHIGAN 48823 . Ekpuununcx Park and Recreation Resources AND U.S. DEPARTMENT OF AGRICULTURE COOPERATING Natural Resources Building Dear Sir: The Michigan State University Department of Park and Recreation Resources is undertaking a research project in cooperation with private recreational enterprises in the state. Campgrounds and commercial horse enterprises were completed in 1972. We are not initiating an intensive study of Michigan GOLF enterprises in order to assess their micro-economics and determine the relative economic contribution of golfing to the various counties and regions. Our research group is attempting to first complete a thorough inventory of various types of golf enterprises, both public and private. Such a directory will be the first of its kind and could be a great aid to you as a golf enterprise operator. In order that we may compile as thorough an inventory as possible, we are asking you to fill out the enclosed post card at'your earliest possible convenience and drop it in the mail. The card does not require a postage stamp. we hope to use this inventory information to develop better research information on the business aspects of golf enterprises. We will be happy to send you a copy of this inventory when completed. Thank you for your help. Sincerely, _ 2xt—‘szxel -3452é544:. Eugene F. Dice Extension Specialist Recreation Resource Development Ivs Enclosure Typed and Printed in the U.S.A. Professional Thesis Preparation Cliff and Paula Haughey , 144 Maplewood Drive 4' 1" East Lansing. Michigan 48823 Telephone (517) 337-1527 RH 50‘)“ *1. . h ‘ _ I I. iL— __ HICHIGRN STATE UNIV. LIBRRRIES 31293103756692