Jason and Marie Salerno, brother and sister, have been running their family business, a water park called Wild Water, since they both graduated from college. The Salernos operate the park, which is located near the New Jersey shore, with help from their parents. Marie’s husband and Jason’s wife are also involved in the business. Wild Water has now been in business for more than 40 years—it is a landmark to both locals and summer tourists. The water park features such attractions as a wave pool, several water slides, a flume ride, a kiddie pool, and a tube ride. A picnic park, shaded petting zoo, aquarium, snack bar, and restaurant called the Seafood Shack round out the park’s offerings.

The park opens on Memorial Day and cuts back to weekends only after Labor Day, typically closing in the fall. With just a few months to accumulate revenue, the family and employees of the park work extremely hard. Marie oversees the financial aspects of the business, while Jason manages the staff. The staff—rider operators, ticket takers, lifeguards, and the like—are very loyal. Some have parents who once worked at the water park, and many have siblings who also work there. By its very nature, the organization culture of Wild Water is hierarchical—but most who work there, including Jason and Marie, would refer to their employees as part of the family. Jason holds weekly staff meetings, where employees are encouraged to voice their ideas about any aspect of the park’s operations. Photos of workers and customers line the walls of Jason and Marie’s tiny office, and stories about the park and its people abound, including sightings of celebrity visitors and near-disasters such as a close call with a hurricane.

While the organization culture has remained largely unchanged for the past four decades, the environment in which the park operates is changing. A new state safety law requires some expensive updating to meet the code. The Salernos recently learned that some of the smaller beach cottages in the area are going to be torn down to make way for a development of expensive condominiums. Vacationers who rent the condos are more likely to be looking for entertainment in the form of golf, deep-sea fishing trips, and exclusive restaurants. One of the major amusement park chains has been looking at a piece of real estate nearby. This chain is well known for its high-end rides, shows, and eating establishments. The Salernos point out that an entire family could enter Wild Water for the cost of one ticket at one of the chain’s parks.

While the Salernos acknowledge that they have serious challenges ahead, they remain upbeat. Wild Water has been a favorite of families for more than two generations, and they expect it to continue to be a destination for local residents as well as vacationers. But they need to make some changes to keep those visitors—and the new condo owners—coming through the turnstile.

Questions:

1. What are the three main challenges for Wild Water? For each identified challenge, identify if it is internal or externally environmentally focused?

2. What do you see changing for Wild Water in both the internal and external environments over the next five years?

3. What are two ways that the company can respond to its environments? How would these responses impact the company now and in the future?