Students analyze two cases using the information provided in the case and weekly class materials. Written case reports are individual assignments and should not exceed 8 pages. Executive summary and/or abstract are not required for case studies and the only citation used is the case itself. There is no need to conduct external research for these cases as all the required information is contained in the case(s).
Case Assignment
The Springfield Nor’easters: Maximizing Revenues in the Minor Leagues
The focus of this case is how to determine whether a minor league baseball team will breakeven the first year. To do this, you have to consider the costs that need to be covered as well as all sources of revenue including revenue from concession sales and tickets. To do this,you need to determine the optimal prices for a number of ticket plan options including single tickets and various packages.You do not have to consider special seating areas or any special promotions.
Your case analysis needs to address thefollowing issues.
What are the most important findings of the research survey work conducted by the League Sports Association and by Larry Buckingham? What did Buckingham learn about customer profiles, pricing, and the difference in single tickets and season ticket packages?
Design a ticket pricing plan for the Nor’easter’s first season. Be very specific, and explainanyassumptionsthat underlie your strategy.(The majority of your time will be spent on this issue!)
Using your pricing plan, and taking Buckingham’s estimation about concessional sales into account,will the team reach breakeven in the first year? (Be sure to show how you arrived at this conclusion.)
In addressing these questions, please make relevant and appropriate use of data included in the case study. There is no need to conduct additional research; utilize the information presented in the case.Here are some additional guidelines as you undertake the case analysis:
Organizethe reportinto 5 major headings: Background, Key Research Findings, Pricing Plan, Breakeven Analysis, and Conclusion.
Use specific data, not generalities. Your pricing plan needs to be very specific with all assumptions explained.
It is not appropriate in this case or anyotherto refer to tables or exhibits in the case itself. In other words, you can assume the reader is familiar with the issues in the case but does not have a copy at their disposal. Any relevant information needs to be presented in the case analysis.You are encouraged to construct your own tables/exhibits.
Your overall objective is to determine if the team will breakeven the first year using the pricing plan you developed, ticket revenue based on that pricing plan and revenue from other sources (for example, concession sales). If the team will not break even, what options are there to reach the target objectives?
You may attach an Excel spreadsheet to show your calculations of the pricing plan in an appendix if you wish. You may also attach tables at the end of the report to present your analysis such as pricing matrices, expenses, etc.
Refer to the case analysis rubric for overall grading criteria.
Submit a Word document of your analysis in the assignment folder. This should be a professional document carefully proofread for clarity, sentence structure, readability, and writing mechanics. (Note: The cover sheet/title page, table and/or figures in the analysis and any appendices do not count toward the 8 page maximum.)
The case analysis should be no more than 8 pages not counting the title page or any tables/figures/exhibits that you create. It is not necessary to have a reference page since all of the information is coming from the case itself.As with all APA formatted papers, this should be double-spaced.
Do not forget to submit your report toTurnitinand allow enough time if changes have to be made.
“Helpful Hints”
Exhibit 6 provides a helpful (and critical) tool for your analysis. This case requires that you do the math! Numbers have to be crunched to tackle this case.
As shown in Exhibit 6, you donothave to worry about grandstand seating, etc. Stick to the pricing plans laid out in the Exhibit. ThisExhibit is your starting point to determine the optimal prices! It is there for a reason; use it!
Where does the data come from? Look at the survey results that Buckingham will be using. What are consumers willing to pay by price and ticket type? (Note: if you examine the data, you will see there is an additive function. For example, if you add up the percentage of people who are willing to pay $10, $12, or $14 for a ticket, you will note that 80% will pay at least $10 for this type of ticket. If you continue this operation, you can determine optimal prices for the various ticket types.)
To determine total revenue, remember to consider concession sales in addition to ticket revenue.It is not necessary to consider expected concession from each individual item that can be purchased.
While youroverall objective is to determine if the team with breakeven the first year, pleasedon’t confuse this with a traditional breakeven analysis as described in the text. That is not what is required.
Any assumptions have to be logical, based on the facts of the case, and clearly laid out.
Overall the case requires crunching of numbersbut not complex math.Take it one step at a time as you would if you were actually responsible for setting prices and making decisions given the available data. Be sure to allow yourself enough time!