1. Value-Chain Analysis
The Waynesboro Bulls is a Class-AA baseball team and farm club for the Atlanta Braves. The Bulls’ league consists of eight teams that are all located within a 150-mile radius of Waynesboro. The Bulls ranked sixth of eight last year, but have high hopes for the coming season in part because of the acquisition at the end of the last season of a great new pitcher, Wing Powers. Wing had the next to best ERA last season. Wing is also a popular player, seen frequently in the community, using his humor and occasionally outrageous behavior to develop a local fan club called the “Wingers.” None of the other players come close to Wing in popular- ity. Head Coach Bud Brown, a 15-year veteran of the Bulls, is optimistic for the coming season, noting the team’s luck has “got to change.” The Bulls have only 2 winning seasons in the last 10 years. The Waynes- boro baseball park is somewhat typical of AA parks, though somewhat older and a bit smaller. It serves a variety of sodas and beers and nachos to its fans on game days. Also in a 150-mile radius of Waynesboro are 3 NASCAR venues, 2 outdoor concert venues, 12 colleges with competitive sports teams, 1 major league football team, 1 major league basketball team, but no major league baseball team.
Jack Smith, a consultant for the Waynesboro Bulls has been asked to complete a value-chain analysis of the franchise with a particular focus on a comparison with a nearby competing team, the Durham Buf- faloes. Jack has been able to collect selected cost data as follows for each of the six steps in the value chain. Single-ticket prices range from $4.50 to $8.00, and average paying attendance is approximately 2,200 for Waynesboro and 3,400 for Durham.
Average Cost per Person at Scheduled Games
Waynesboro Bulls Activities in the Value Chain Durham Buffaloes
$0.45 Advertising and general promotion expenses $0.50
0.28 Ticket sales: At local sporting goods stores and the ballpark
0.25
0.65 Ballpark operations 0.80
0.23 Management compensation 0.18
0.95 Players’ salaries 1.05
0.20 Game-day operations: security, special entertainment, and game-day promotions
0.65
$2.76 Total Cost $3.43
Required Analyze the value chain to help Jack better understand the nature of the competition between the Bulls and the Buffaloes and to identify opportunities for adding value and/or reducing cost at each activity.
2. SWOT Analysis
Required Refer to the information in Self-Study question 1, regarding the Waynesboro Bulls. Prepare a SWOT analysis for the Bulls.
3. The Balanced Scorecard
Required Refer to the information in Self-Study question 1, regarding the Waynesboro Bulls. Prepare a balanced scorecard for the Bulls.