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Tstd297.Cameron.As Ppresentation

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Information about Tstd297.Cameron.As Ppresentation

Published on January 2, 2008

Author: cungar

Source: slideshare.net

Description

This report was an academic project that examined the real-world issue of irregular special event scheduling at the Verizon Center. The intent of this report was strictly academic.
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Applied Strategic Planning for The Verizon Center Sports-Related Special Event Scheduling Presented By Cameron Ungar July 6, 2007

What’s Inside..? Critical Issue? Situation Analysis History Stakeholders Environmental Scan Internal Industry Competitive Macro Value Scan Mission Statement Driving Forces Performance Audit Desired Future Critical Success Indicators Gap Analysis Solutions Recommended Action Contingency Implementation

Critical Issue?

Situation Analysis

History

Stakeholders

Environmental Scan

Internal

Industry

Competitive

Macro

Value Scan

Mission Statement

Driving Forces

Performance Audit

Desired Future

Critical Success Indicators

Gap Analysis

Solutions

Recommended Action

Contingency

Implementation

Critical Issue – Consistent Scheduling Why This Issue? To maximize the facility’s psychic value to the community by providing unique and entertaining programming. To provide a platform to draw additional tourism revenue into DC, while showcasing the community to national audiences. To serve as an additional revenue source for Washington Sports & Entertainment. The Verizon Center seeks more consistent sports-related special event scheduling.

Why This Issue?

To maximize the facility’s psychic value to the community by providing unique and entertaining programming.

To provide a platform to draw additional tourism revenue into DC, while showcasing the community to national audiences.

To serve as an additional revenue source for Washington Sports & Entertainment.

Today’s Situation – Irregular Success The Verizon Center is owned and operated by Washington Sports & Entertainment (WSELP). WSELP is the parent company to: Washington Sports (Wizards) DC Arena Limited Ticketmaster The Verizon Center opened in 1997 and is the only venue of its kind in the greater DC region. The Verizon Center has been successful in bidding on several major sports properties, but those events have been irregularly scheduled.

The Verizon Center is owned and operated by Washington Sports & Entertainment (WSELP).

WSELP is the parent company to:

Washington Sports (Wizards)

DC Arena Limited

Ticketmaster

The Verizon Center opened in 1997 and is the only venue of its kind in the greater DC region.

The Verizon Center has been successful in bidding on several major sports properties, but those events have been irregularly scheduled.

Today’s Situation – Stakeholders Washington Sports & Entertainment/ Lincoln Holdings Washington Wizards (NBA), Washington Capitals (NHL), Washington Mystics (WNBA), Georgetown Hoyas (NCAA) Greater Washington Sports Alliance Residents of Washington, DC Washington, DC business community

Washington Sports & Entertainment/ Lincoln Holdings

Washington Wizards (NBA), Washington Capitals (NHL), Washington Mystics (WNBA), Georgetown Hoyas (NCAA)

Greater Washington Sports Alliance

Residents of Washington, DC

Washington, DC business community

Environmental Scan – Internal Change in ownership Facility Improvements +/ - Anchor Tenants Revisions to event content standards Adaptability of facility Competitive Industry Macro Internal

Change in ownership

Facility Improvements

+/ - Anchor Tenants

Revisions to event content standards

Adaptability of facility

Environmental Scan – Competitive Governmental/ Tax incentives New entrants into marketplace Geography Seasonality Cooperation of related industry segments Historical relevance Industry Macro Competitive Internal

Governmental/ Tax incentives

New entrants into marketplace

Geography

Seasonality

Cooperation of related industry segments

Historical relevance

Environmental Scan – Industry New technological standards Changing trends in event experience Limitations on calendar due to anchor tenants Amendments to safety & alcohol policy Macro Industry Competitive Internal

New technological standards

Changing trends in event experience

Limitations on calendar due to anchor tenants

Amendments to safety & alcohol policy

Environmental Scan – Macro Technology Ticketing Viewing/ Interacting Modes of transportation Home viewing experience Political Exposure to terrorism Community support Macro Industry Competitive Internal Social NBA/ NHL/ WNBA Labor Dispute New cultural demands based on changing demographics Sponsorship reputation Economical Increase in cost of living

Technology

Ticketing

Viewing/ Interacting

Modes of transportation

Home viewing experience

Political

Exposure to terrorism

Community support

Social

NBA/ NHL/ WNBA Labor Dispute

New cultural demands based on changing demographics

Sponsorship reputation

Economical

Increase in cost of living

Value Scan – Culture & Structure Organizational Culture: Places people at the essence of their business structure. Event Patrons Event Promoters Verizon Center Staff Emphasis on Innovation In 1973, Capital Centre was first computerized sports venue. Hired Susan O’Malley as the first female president of an NBA franchise. First private facility management company to manage a university-owned sports facility. Organizational Structure: Product Organization Arrangement into 3 divisions Specific Focus Quick response times Information sharing Hierarchical Structure: Tall Organization Multiple levels of management Areas of expertise Top-down management Spread decision making

Organizational Culture:

Places people at the essence of their business structure.

Event Patrons

Event Promoters

Verizon Center Staff

Emphasis on Innovation

In 1973, Capital Centre was first computerized sports venue.

Hired Susan O’Malley as the first female president of an NBA franchise.

First private facility management company to manage a university-owned sports facility.

Organizational Structure:

Product Organization

Arrangement into 3 divisions

Specific Focus

Quick response times

Information sharing

Hierarchical Structure:

Tall Organization

Multiple levels of management

Areas of expertise

Top-down management

Spread decision making

Mission Statement The Verizon Center’s primary goal is to facilitate the best live sport and entertainment consumer experience in an American sports arena. We intend to meet the recreational needs of residents and visitors to the Greater Washington, DC region along with the service requirements of event promoters by setting the new gold-standard in event customer service; accomplished through the use of cutting edge technology, innovative use of facility infrastructure and a staff-wide dedication to visitor satisfaction. What? Who? How? Why? To facilitate the best live sports and entertainment consumer experience in an American sports arena. Residents & Visitors to Greater Washington, DC and event promoters. By setting the new gold-standard in event customer service; accomplished through the use of cutting edge technology, innovative use of facility infrastructure and a staff-wide dedication to visitor satisfaction. Purveyor of recreational experiences

The Verizon Center’s primary goal is to facilitate the best live sport and entertainment consumer experience in an American sports arena. We intend to meet the recreational needs of residents and visitors to the Greater Washington, DC region along with the service requirements of event promoters by setting the new gold-standard in event customer service; accomplished through the use of cutting edge technology, innovative use of facility infrastructure and a staff-wide dedication to visitor satisfaction.

Driving Forces Services Offered One of the Verizon Center’s goals is to Increase the quality and quantity of services offered to both event promoters and event attendees. Operations Capability Maximize capacity. The Verizon Center is a purveyor of time. Time is perishable, therefore the Verizon Center aims to reduce the amount of inventory (dark nights) while simultaneously maximizing revenue.

Performance Audit – SWOT Analysis Strengths Location Transportation alternatives Innovative and open-minded ownership group. Associations with all of the major sports leagues/ associations. Highly integrated parent company. Fully Loaded facility Weaknesses Building/ city lacks significant sports history Building lacks personality (limited architectural distinction, no endearing quirks) Opportunities Active regional sports commission Success of anchor tenants, maturity of sports superstars Popularity of city for non-sports activities including: Tourism destination Media hotspot Popular culture icon Many existing sports properties Tech savvy community Well-educated, culturally aware Transplant city Huge student volume Threats Seasonality (limited tourism presence in winter and summer) Commuter City Tax/ Governmental incentives offered by other communities to event promoters (financial incentive) Limited sports identity- overshadowed by Washington Redskins. Expensive

Location

Transportation alternatives

Innovative and open-minded ownership group.

Associations with all of the major sports leagues/ associations.

Highly integrated parent company.

Fully Loaded facility

Building/ city lacks significant sports history

Building lacks personality (limited architectural distinction, no endearing quirks)

Active regional sports commission

Success of anchor tenants, maturity of sports superstars

Popularity of city for non-sports activities including:

Tourism destination

Media hotspot

Popular culture icon

Many existing sports properties

Tech savvy community

Well-educated, culturally aware

Transplant city

Huge student volume

Seasonality (limited tourism presence in winter and summer)

Commuter City

Tax/ Governmental incentives offered by other communities to event promoters (financial incentive)

Limited sports identity- overshadowed by Washington Redskins.

Expensive

Where Does the Verizon Center Want to Be? Maintain busy events schedule while hosting at least one sports-related special event annually. Position facility to compete with other sports facilities on basis of cost to produce, event success, event production experience. Implement strategy to regularly draw new sports properties. STRUGGLING GROW STABILIZE Busy events schedule Irregular sports-related special events programming Limited event procurement strategy Increase number of sports-related special events produced. Successful development of original sports programming. Cohesive sports tourism business community. New revenue streams for WSELP (Current State) (Desired State) (Long-Term Vision)

Maintain busy events schedule while hosting at least one sports-related special event annually.

Position facility to compete with other sports facilities on basis of cost to produce, event success, event production experience.

Implement strategy to regularly draw new sports properties.

Busy events schedule

Irregular sports-related special events programming

Limited event procurement strategy

Increase number of sports-related special events produced.

Successful development of original sports programming.

Cohesive sports tourism business community.

New revenue streams for WSELP

Measuring Success Along The Way Critical success indicators (CSIs) are tools to measure the Verizon Center’s success in reaching their desired state. Exposure Increase the number of sports-related special events the Verizon Center bids on by 10%. Recognition The Verizon Center & Washington, DC garner more focus from national media sources. Satisfaction Based on surveys, event attendees, event promoters and community members indicate an increased level of satisfaction with Verizon Center programming. Profit Revenues from sports-related special event programming increases 5% above the previous years cash flow totals.

What Is The Gap Between Now & Future? The gap that must be bridged is to develop a strategy for differentiating the Verizon Center from other competing arenas in the pursuit of sports-related special events and to leverage that positioning into regular sports event scheduling. Irregular sports-related special event scheduling (over 200 events in 2006, but only 15 (7.2%) were non-tenant sports events. Limited value proposition. No strategy for consistently marketing facility to event promoters. GAP STRUGGLING (Current State) STABILIZE (Desired State) GROW (Long-Term Vision)

The gap that must be bridged is to develop a strategy for differentiating the Verizon Center from other competing arenas in the pursuit of sports-related special events and to leverage that positioning into regular sports event scheduling.

Irregular sports-related special event scheduling (over 200 events in 2006, but only 15 (7.2%) were non-tenant sports events.

Limited value proposition.

No strategy for consistently marketing facility to event promoters.

Available Options To Close Gap Expand a sports-related special event currently being hosted by the Verizon Center in an effort to create a new, national sports property. (Ex. BB&T Basketball Tournament) Eliminates bid process. Existing community support. Wider range of control. Does not increase diversity of event programming. May damage already successful event. Requires support of existing sponsors. Create partnerships with other arenas around the country to develop an event exchange/ rotation plan, thus creating discount incentives for event promoters. Competitive advantage on basis of cost. Expanded network base. Referral opportunities. Limited by constraints of partnering venue. Events limited to rotation, no potential for annual growth. Create strategic partnerships with business leaders in industry segments that are relevant to event promoters. Through these partnerships value packages can be created to financially incentivize event promoters for bringing their event to the Verizon Center. Allows Verizon Center to compete with other arenas on basis of cost to produce. Creates broader stakeholder base, thus generating more support for the successful event execution. A more cohesive sports tourism business community. Utilization of GWSA, a strong ally of the Verizon Center. Involves high level of coordination. Requires out-of-the-box thinking from event promoters. May result in some loss of control for Verizon Center. RECOMMENDED! Pros Cons Options

Expand a sports-related special event currently being hosted by the Verizon Center in an effort to create a new, national sports property. (Ex. BB&T Basketball Tournament)

Eliminates bid process.

Existing community support.

Wider range of control.

Does not increase diversity of event programming.

May damage already successful event.

Requires support of existing sponsors.

Create partnerships with other arenas around the country to develop an event exchange/ rotation plan, thus creating discount incentives for event promoters.

Competitive advantage on basis of cost.

Expanded network base.

Referral opportunities.

Limited by constraints of partnering venue.

Events limited to rotation, no potential for annual growth.

Create strategic partnerships with business leaders in industry segments that are relevant to event promoters. Through these partnerships value packages can be created to financially incentivize event promoters for bringing their event to the Verizon Center.

Allows Verizon Center to compete with other arenas on basis of cost to produce.

Creates broader stakeholder base, thus generating more support for the successful event execution.

A more cohesive sports tourism business community.

Utilization of GWSA, a strong ally of the Verizon Center.

Involves high level of coordination.

Requires out-of-the-box thinking from event promoters.

May result in some loss of control for Verizon Center.

RECOMMENDED!

Recommended Action Plan Outline Research Objective 1 Align Objective 2 Objective 3 Objective 4 Partner Objective 5 Objective 6 Strategize Objective 7 Implement Objective 8

Research

Objective 1

Align

Objective 2

Objective 3

Objective 4

Partner

Objective 5

Objective 6

Strategize

Objective 7

Implement

Objective 8

Recommended Action Plan Objectives Tasks & Responsibility Outcomes & CSIs (2) Establish formal relationship with the Greater Washington Sports Alliance (GWSA). Propose relationship to GWSA leaders Draft agreement Secure final approval Outcomes : Strategic alliance agreement CSIs : Executed agreement (1) Gain a comprehensive understanding of competitive landscape. Complete SWOT analysis Draft pitch letter and sample survey instrument to be distributed to regional sports commission to learn about event procurement. Propose research plan to the National Association of Sports Commissions (NASC). Work with NASC to administer survey instrument. Outcomes : SWOT Analysis Survey Instrument allowing for better understanding of competitive environment CSIs : Survey Instrument Survey Results

Propose relationship to GWSA leaders

Draft agreement

Secure final approval

Outcomes :

Strategic alliance agreement

CSIs :

Executed agreement

Complete SWOT analysis

Draft pitch letter and sample survey instrument to be distributed to regional sports commission to learn about event procurement.

Propose research plan to the National Association of Sports Commissions (NASC).

Work with NASC to administer survey instrument.

Outcomes :

SWOT Analysis

Survey Instrument allowing for better understanding of competitive environment

CSIs :

Survey Instrument

Survey Results

Action Plan Continued Objectives Tasks & Responsibility Outcomes & CSIs (4) Work with GWSA to identify and contact key business leaders in those industry segments. Review roster of GWSA executive board & engage Chris Browne in discussions about businesses likely to be most receptive. Receptive executive board members are paired with targeted industry segments. Target board members are contacted to gauge interest Farm for other business leaders who may be interested Outcomes : Database created pairing executive board members with industry segments. CSIs : Database of 10 industry segments and at least 20 business leaders > 50% of targeted business leaders approached express some level of interest (3) Determine what related industry segments would be most appealing to potential event promoters and create a working list. Engage staff in brainstorming session to determine what partnerships to pursue. Survey event promoters Develop list of potential business partners Outcomes : Survey Instrument Working list of potential business targets CSIs : Completion of survey instrument Survey Administered (response rate > 80%) Revised list of business targets

Review roster of GWSA executive board & engage Chris Browne in discussions about businesses likely to be most receptive.

Receptive executive board members are paired with targeted industry segments.

Target board members are contacted to gauge interest

Farm for other business leaders who may be interested

Outcomes :

Database created pairing executive board members with industry segments.

CSIs :

Database of 10 industry segments and at least 20 business leaders

> 50% of targeted business leaders approached express some level of interest

Engage staff in brainstorming session to determine what partnerships to pursue.

Survey event promoters

Develop list of potential business partners

Outcomes :

Survey Instrument

Working list of potential business targets

CSIs :

Completion of survey instrument

Survey Administered (response rate > 80%)

Revised list of business targets

Action Plan Continued Objectives Tasks & Responsibility Outcomes & CSIs CSIs : Pamphlet completed 75% of business leaders express interest in partnership as result of pitch (6) Formalize agreements with businesses that choose to participate. Collaboratively draft agreement detailing responsibilities of Verizon Center and the Value Package partners. Secure final approval from WSELP and execute agreement. Outcomes : Executed agreement with value package partners. CSIs : Value Package partnerships are drafted and executed. (5) Prepare informational literature and pitch the value package opportunity to targeted business leaders. Create a fact sheet detailing: (A) Why it is difficult for DC to compete with other markets in event procurement (B) The impact major sports events can have on the DC business community (C) Details of what is expected from value package partners. Circulate fact sheet for editing Pitch to targeted business partners Outcomes : Fact Sheet

CSIs :

Pamphlet completed

75% of business leaders express interest in partnership as result of pitch

Collaboratively draft agreement detailing responsibilities of Verizon Center and the Value Package partners.

Secure final approval from WSELP and execute agreement.

Outcomes :

Executed agreement with value package partners.

CSIs :

Value Package partnerships are drafted and executed.

Create a fact sheet detailing: (A) Why it is difficult for DC to compete with other markets in event procurement (B) The impact major sports events can have on the DC business community (C) Details of what is expected from value package partners.

Circulate fact sheet for editing

Pitch to targeted business partners

Outcomes :

Fact Sheet

Action Plan Continued Objectives Tasks & Responsibility Outcomes & CSIs CSIs : First meeting of events committee. Draft of procedural manual created. Procedural manual finalized. (8) Develop marketing material/ communications plan to promote the benefits of the value package to potential event promoters. Provide fact sheet and summary of value package benefits to Washington Sports marketing and PR staff. Marketing material/ communications plan to be developed by Washington Sports. GWSA, Verizon Center staff and WSELP to approve materials. Communications plan to be implemented by Washington Sports marketing and PR department. Outcomes : Marketing Material Website Media Kit Communications plan CSIs: Marketing materials created and communications plan implemented. (7) Establish an events committee to discuss the types of events the value package partners might be interested in bringing in. Invite value partners to join an events committee, to provide partners with a stake in the success of the events to be produced, while providing the Verizon Center access to a broader communications network. Empower GWSA to oversee the events committee. Draft events committee procedural manual. Outcomes : Procedural manual created .

CSIs :

First meeting of events committee.

Draft of procedural manual created.

Procedural manual finalized.

Provide fact sheet and summary of value package benefits to Washington Sports marketing and PR staff.

Marketing material/ communications plan to be developed by Washington Sports.

GWSA, Verizon Center staff and WSELP to approve materials.

Communications plan to be implemented by Washington Sports marketing and PR department.

Outcomes :

Marketing Material

Website

Media Kit

Communications plan

CSIs:

Marketing materials created and communications plan implemented.

Invite value partners to join an events committee, to provide partners with a stake in the success of the events to be produced, while providing the Verizon Center access to a broader communications network.

Empower GWSA to oversee the events committee.

Draft events committee procedural manual.

Outcomes :

Procedural manual created .

Strategic Alliance Summary

Action Plan – Resource Requirements Staff Full-Time Events Assistant at the Verizon Center Volunteers 1 intern (Verizon Center) 1 Intern (GWSA) Appreciation Gifts Other Consultant (Legal Counsel) Approximately 10 hours to review partnership agreements Misc. (print materials, marketing budget) $20,700 Annual Salary $20,000- $30,000 Equipment Additional Computer & Color Printer $2,000

Full-Time Events Assistant at the Verizon Center

1 intern (Verizon Center)

1 Intern (GWSA)

Consultant (Legal Counsel) Approximately 10 hours to review partnership agreements

Misc. (print materials, marketing budget)

Additional Computer & Color Printer

Contingency-Planning Matrix Internal Opportunity External Vulnerability Loss of available inventory Loss of touch with needs of community Key employee turn-over (David Touhey) Verizon Center staff fails to collaborate with value package partners Anchor tenant moves Terrorism Economic recession Establishment of a competitive facility/ event More stringent civic policy with regard to tourism development Key employee turn-over (Chris Browne) GWSA is unable to balance commitment to Verizon Center with needs of overall sports community Washington business community is unwilling to partner with Verizon Center. Lincoln Holdings assumes majority interest in WSELP and integrates new innovation. Development of new career positions in response to expanded procurement processes. Team successes expose facility to greater national recognition Expanded communications network Greater collaborative input from sports community

Loss of available inventory

Loss of touch with needs of community

Key employee turn-over (David Touhey)

Verizon Center staff fails to collaborate with value package partners

Anchor tenant moves

Terrorism

Economic recession

Establishment of a competitive facility/ event

More stringent civic policy with regard to tourism development

Key employee turn-over (Chris Browne)

GWSA is unable to balance

commitment to Verizon Center with needs of overall sports community

Washington business community is unwilling to partner with Verizon Center.

Lincoln Holdings assumes majority interest in WSELP and integrates new innovation.

Development of new career positions in response to expanded procurement processes.

Team successes expose facility to greater national recognition

Expanded communications network

Greater collaborative input from sports community

Planning For The Unexpected Best-Case Scenario Trigger Point: 85% or more of potential value package partners approached choose to align themselves with the Verizon Center and GWSA as a value package partner. Meet with GWSA management to discuss what businesses best fit the needs of the potential event promoters. Create guidelines to filter out the best suited value package partners. Implement plan to designate sub-event committees in order to feed event leads to the event committee. Worst-Case Scenario Trigger Point: 35% or less of potential value package partners approached refuse to align themselves with the Verizon Center and GWSA as a value package partner. Meet with GWSA management to discuss effectiveness of pitch materials. Survey business to discover what their expectations are when entering into a partnership with the Verizon Center and how sports tourism fits into their overall business plan. Analyze survey results and make a determination if the business community’s lack of interest is a result of poor delivery of the strategy objectives or if the Washington, DC business leaders fail to see the benefit in such a partnership. If there is a miscommunication in the message delivery, the material and pitch should be realigned with the survey results. If the business community is uninterested in a partnership relationship, the Verizon Center and GWSA must hold a strategy session to determine what they can do better as a unit to reach the area businesses.

Trigger Point: 85% or more of potential value package partners approached choose to align themselves with the Verizon Center and GWSA as a value package partner.

Meet with GWSA management to discuss what businesses best fit the needs of the potential event promoters.

Create guidelines to filter out the best suited value package partners.

Implement plan to designate sub-event committees in order to feed event leads to the event committee.

Trigger Point: 35% or less of potential value package partners approached refuse to align themselves with the Verizon Center and GWSA as a value package partner.

Meet with GWSA management to discuss effectiveness of pitch materials.

Survey business to discover what their expectations are when entering into a partnership with the Verizon Center and how sports tourism fits into their overall business plan.

Analyze survey results and make a determination if the business community’s lack of interest is a result of poor delivery of the strategy objectives or if the Washington, DC business leaders fail to see the benefit in such a partnership.

If there is a miscommunication in the message delivery, the material and pitch should be realigned with the survey results.

If the business community is uninterested in a partnership relationship, the Verizon Center and GWSA must hold a strategy session to determine what they can do better as a unit to reach the area businesses.

Implementation Project Timeframe = 12-16 months Requires increased cooperation between the Verizon Center executives, the DC business community facilitated through the Greater Washington Sports Alliance. Accountability: The formal partnership creates accountability profiles for GWSA, the Verizon Center and the local business who choose to become value package partners

Project Timeframe = 12-16 months

Requires increased cooperation between the Verizon Center executives, the DC business community facilitated through the Greater Washington Sports Alliance.

Accountability: The formal partnership creates accountability profiles for GWSA, the Verizon Center and the local business who choose to become value package partners

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