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Working out Alternatives - Case Study Example

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The organization has been popular among lovers of adventure racing. Adventure racing may take the definition of a race of individuals using vehicles over some terrain. The event is multi-sport,…
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Download file to see previous pages In retrospect, FAR one of the players of Adventure racing faces the challenges of inadequate revenue and from the influence of competitors. The company’s management predicts the company will continue making losses (Holland and Jackie 248). This influence has an impact of the return on investment value of the organization (R.O.I)
In analyzing the external environment of FAR various aspects influence organizational performance. First FAR sponsors act as the first influence to the organizational revenue collection. Sponsors have been important in adding value to the organization due to their financial contribution to Racing events. On the other hand, local governments as well as national governments have an implication on firm’s operation (Hoang and Frank 739). It also comes into perspective that environmentalist have an influence on the organization. Environmentalists have an influence on the choice of the routes for the races. Their sentiments ensure that racing events does not influence the environment negatively (Vahlne and Neil 24). On the hand, customers have an important role to play on the success of the firm. Customers purchase tickets to racing events adding value to the revenue of FAR.
An analysis on the revenue of FAR, reveals that the organization provides tickets affordable to every individual. The company’s president Zietsma maintains a low-ticket cost of $1,400 and $4,200 per team. The first price represents a 36-hour race while the next price concentrates on extreme race events. In comparison to other events within the region, FAR rate ranks low. British Colombia races and other races rate at $2000 for the 36-hour race and $5000 to $9000 for extreme races. Other races have higher costs due to increased costs translating from hiring of vehicles, staff and in renting equipments. Other related expenses that make the firm unique to competitors are that it does not incur ...Download file to see next pagesRead More
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