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problems:

1) Develop a forecasting model, justifying its selection over other methods, and project attendance through the year 2007.

2) What revenues are to be expected in 2006 and 2007?

3) Discuss the school's options.

Case Study (Southwestern University)

Southwestern University (SWU), a large state college in Stephenville, Texas, enrolls close to 20,000 students. The school is a dominant force in small city, with more students throughout fall and spring than permanent residents. Always a football powerhouse, SWU is generally in the top 20 in college football rankings.

As the legendary Bo Pitterno was hired as its head coach in the year 1999 (in hopes of reaching the elusive number 1 ranking), attendance at the five Saturday home games each year has increased. Prior to Pitterno's arrival, attendance generally averaged 25,000 to 29,000 per game. Season ticket sales bumped up by 10,000 with just the announcement of the new coach's arrival. Stephenville and SWU were ready to move to "the big time!"

The immediate issue facing SWU, however, was not NCAA ranking. It was capacity. The existing SWU stadium, built in 1953, has seating for 54,000 fans. The table beneath indicates attendance at each and every game for the past 6 years.

One of Pitterno's demands upon joining SWU had been a stadium expansion, or possibly even a new stadium. With attendance increasing, SWU administrators start to face the issue head-on.

Pitterno had wanted dormitories solely for his athletes in stadium as an additional feature of any expansion.

SWU's president, Dr. Joel Wisner, decided it was time for his vice-president of development to forecast whenever the existing stadium would "max out." The expansion was, in his mind, a given. However Wisner required knowing how long he could wait. He as well sought a revenue projection, supposing an average ticket price of $30 in 2006 and a 10% increase every year in future prices.

Southwestern University Football Game Attendance, 2000-2005:

2000

GAME

         ATTENDEES                         OPPONENT

1       37,100                                    Baylor

2a      41,600                                   Texas

3       39,400                                    LSU

4b     25,200                                    Arkansas

5       37,100                                    USC

 

2001                                                

GAME

ATTENDEES                         OPPONENT

1       36,200                                    Oklahoma

2a     41,300                                    Nebraska

3       38,500                                    UCLA

4b     24,300                                    Nevada

5       37,200                                    Ohio State

2002

GAME

ATTENDEES                         OPPONENT

1       34,700                                    TCU

2a     47,800                                    Texas Tech

3       42,100                                    Alaska

4b     26,400                                    Arizona

5       38,500                                    Rice

 

2003

GAME

ATTENDEES                         OPPONENT

1       42,700                                    Arkansas

2a     48,100                                    Missouri

3       44,600                                    Florida

4b     29,200                                    Miami

5       41,300                                    Duke

 

2004

GAME

ATTENDEES                         OPPONENT

1       43,600                                    Indiana

2a     49,100                                    North Texas

3       45,300                                    Texas A&M

4b     32,700                                    Southern

5       48,600                                    Oklahoma

2005

GAME

ATTENDEES                         OPPONENT

1       47,400                                    LSU

2a     51,200                                    Texas

3       46,500                                    Prairie View A&M

4b     35,200                                    Montana

5       48,700                                    Arizona State

(a) Refer to the Homecoming games.

(b) Throughout the fourth week of each season, Stephenville hosted a hugely well-liked Southwestern crafts festival. This event brought tens of thousands of tourists to the town, particularly on weekends, and had an obvious negative impact on the game attendance.

Management Theories, Management Studies

  • Category:- Management Theories
  • Reference No.:- M961

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