Working out Alternatives for Frontier Adventure Racing - Case Study Example

It is essential for team members to ensure that they cross the finish line first and in time. The event borrows from kayaking, mountain biking and running. Its popularity grew in New Zealand, Australia and in Europe. Therefore, in the last decades, the event has attracted media attention as well as many players. In retrospect, FAR one of the players of Adventure racing faces the challenges of inadequate revenue and the influence of competitors. The company’s management predicts the company will continue making losses (Holland and Jackie 248).

This influence has an impact on the return on investment value of the organization (R.O.I)External Environment analysis 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 a firm’s operation (Hoang and Frank 739).

It also comes into perspective that environmentalist has an influence on the organization. Environmentalists have an influence on the choice of the routes for the races. Their sentiments ensure that racing events do not influence the environment negatively (Vahlne and Neil 24). On the other hand, customers have an important role to play in the success of the firm. Customers purchase tickets to racing events adding value to the revenue of FAR. An analysis of 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, the 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 related expenses that make the firm unique to competitors are that it does not incur the costs of translating promotional materials as well as on translators to other languages.

Internal Analysis The strength of FAR in the market lies in its marketing strategies, the influence of sponsors and its staff. The organization has been influential in the market through the provision of Adventure training seminars. The training facilities have been instrumental in moving crowds since customers are able to experience racing at their pleasure. Such events take place during periods when there is no racing. On the other hand, members of staff in organizations provide the basis for better management of facilities.

FAR over the years has struggled to maintain an effective staff level despite high turnover rates. In managing organizational aspects, the racing organization utilizes work aspects of volunteers, workers as well as volunteers. Other internal strengths come from the marketing campaigns of the organization. FAR also has an effective logistical team, a team of marketers and internal sponsors. The other aspects of strength to the organization include financial changes due to the influence of sponsors (Kumar, Petersen and Robert70).

Sponsors have been influential in transforming FAR into a formidable force in the market thus improving its ranking. Solutions to overcoming ProblemFAR undergoes challenges in terms of the influence of competition and low revenue levels. In order to overcome competition, the organization would need to develop a competitive strategy. The approach will start with the identification of key competitors in the market. FAR will then have to develop a niche and provide their best effort to it (Lewis 539).

The next step in the strategy involves the organization striving to provide unique services. Further, it would be imperative for the organization to build a brand different from its competitors. The next step to improving the competitive position of the industry would be upgrading the marketing strategies of the organization. The organization might utilize social media to their advantage as well a print and media (Lewis 536). Considering the problem of revenue to the organization, the management team might solicit funds from other sponsors.

The team might fulfil this by developing advertisements that entice sponsors into the project. Best AlternativeIt is observed that the main challenge to FAR is the influence of low budget and revenue on racing activities. To limit this organization is justified in looking for sponsors to fund future operations. It is also imperative to realize that revenue challenges occur from poor management of projects derivatives (Hoang, and Frank 736). Therefore, it is imperative for the management team of the organization to develop strategies in overcoming financial budgeting and forecasting.

Then it becomes necessary that the organization utilize software in the management of the budget. Such a front needs to be user-friendly and value the needs of customers.