Operations Management for Building a Brand-New Stadium Off-Campus - Business Plan Example

Location decisions 1. Other important factors in evaluating the available options Availability, proximity of social, and support facilities are another factor that Gardner and his team should have put into considered when evaluating the options at hand. Such facilities include accommodative facility for visiting supporters, Proximity to support departments such as fire fighters and equipped medical facilities. The management should consider these factors in efforts to ensure the safety of every person attending the football match. That is, the management should give safety factor more weight. The accommodative facilities either in the stadia or at the neighborhood directly affect the attendance in a particular football match that directly affects the revenues collected from a particular match. On the other hand, proximity to fire fighters, ambulance services, medical facilities and even police is very vital when locating football stadia in connection to the safety of the football fans in the event of a fire attack or in the case of disaster of any other type (Render & Jay 1997, p. 28). The other factor the administration should consider in making the decision is the alternative events that can take place at the stadia. These events include firework displays, music shows, concerts, political and other gathering and so on. These alternative events are very important in generating extra revenue apart of the sporting activity. Thus in making their decision the management should consider the alternative that is best located or is likely to attract such activities. This is because focus on the revenue is one of the factors that the team should consider, as location is a major revenue factor. 2. Crossover Chart The cross over analysis allows the management to compare two or more locations at a time thus will enable the management to change over to the other alternative that has similar benefits but with different variable and fixed cost. The other parameters needed in this case are the variable cost and the fixed cost the various options. In this case total cost line graphs are used. For the three options, the crossover chart is as shown below: For the three locations and assuming a capacity of 45000 fans per game, the total cost is as shown below: Table 1: Fixed, variable and total cost Location Annual Fixed cost Annual Variable cost Total cost per annum Existing stadium $1000000 $1*45000*5=$225000 $1225000 Brand new stadium $5000000 $2*45000*5=$450000 $5450000 Dallas Cowboys $1000000 $10*15000*5=$750000 $1750000 The table above shows the variation in total cost per annum for the three cases considering a constant capacity of 45000 fans. Following this argument use of the existing stadium is more viable for its lowest total cost per annum. 3. A) To determine the best location the for this case the following procedure will be adopted: i. List all the factors considered in a table. ii. Assign equal weight to all factors. iii. Determine the total score for each location iv. The location with the highest total score is the best. Using the keys to the letter grades, the total scores for various sites are as shown below. Table 2: Total Scores for Equally Weighted Factors Factors Existing Sites New Site 3 Miles from Campus Dallas Cowboys Facility Students’ Ratings of Locations Convenience 5 4 0 Guaranteed Availability for Next Season 3 1 5 Comfort 4 5 5 Cost 5 1 4 National Image 1 4 4 Total score 18 15 18 Boosters’ Ratings of Locations Convenience 1 1 5 Guaranteed Availability for Next Season 4 3 5 Comfort 3 4 5 Cost 5 3 5 National Image 3 3 4 Total score 16 14 24 College Faculty/Staff Ratings of Locations Convenience 4 3 1 Guaranteed Availability for Next Season 5 3 5 Comfort 3 5 4 Cost 5 1 4 National Image 4 4 3 Total score 21 16 17 Average scores: Existing sites== 18.33333 New Site 3 Miles from Campus ==15 Dallas Cowboys Facility ==19.667 Hence, Dallas Cowboys Facility is the best option because it gives highest total score on average. b). In this case, this case the best location in this case is determined as shown below: Students’ Ratings of Locations Table 3: Students ratings of locations Factors Existing Sites New Site 3 Miles from Campus Dallas Cowboys Facility Convenience A B F Guaranteed Availability for Next Season C D A Comfort B A A Cost A D B National Image D B B Using the keys to the letter grades letter grades: A =5, B = 4, C = 3, D = 1 and incorporating grades by the administration the total scores are given as shown below. Table 4: Total score for student rating Factors Existing Sites New Site 3 Miles from Campus Dallas Cowboys Facility Convenience 5*1/6=5/6 4*1/6=2/3 0*1/6=0 Guaranteed Availability for Next Season 3*1/3=1 1*1/3=1/3 5*1/3=5/3 Comfort 4*1/3=4/3 5*1/3=5/3 5*1/3=5/3 Cost 5*1/12=5/12 1*1/12=1/12 4 *1/12=1/3 National Image 1 *1/12=1/12 4*1/12=1/3 4*1/12=1/3 Total score 3.6667 3.0833 4 Boosters’ Ratings of Locations Table 5: Booster is rating of solutions Factors Existing Sites New Site 3 Miles from Campus Dallas Cowboys Facility Convenience D D A Guaranteed Availability for Next Season B C A Comfort C B A Cost A C A National Image C C B Table 6: Total scores for boosters rating Factors Existing Sites New Site 3 Miles from Campus Dallas Cowboys Facility Convenience 1 * 1/6=1/6 1 *1/6=1/6 5*1/6=5/3 Guaranteed Availability for Next Season 4 * 1/3=4/3 3 *1/3=1 5 *1/3=5/3 Comfort 3 * 1/3=1 4*1/3=4/3 5*1/3=5/3 Cost 5 * 1/12=5/12 3*1/12=1/4 5*1/12=5/12 National Image 3 * 1/12=1/4 3 *1/12=1/4 4*1/12=1/3 Total score 3.166666667 3 5.75 College Faculty/Staff Ratings of Locations Table 7: College staff rating of locations Factors Existing Sites New Site 3 Miles from Campus Dallas Cowboys Facility Convenience B C D Guaranteed Availability for Next Season A C A Comfort C A B Cost A D B National Image B B C Table 8: Total scores for college staff rating. Factors Existing Sites New Site 3 Miles from Campus Dallas Cowboys Facility Convenience 4*1/6=2/3 3 *1/6=1/2 1*1/6=1/6 Guaranteed Availability for Next Season 5 *1/3=5/3 3 *1/3=1 5*1/3=5/13 Comfort 3 *1/3=1 5 *1/3=5/3 4*1/3=4/3 Cost 5 *1/12=5/12 1*1/12=1/12 4*1/12=1/3 National Image 4 *1/12=1/3 4 *1/12=1/3 3*1/12=1/4 Total score 4.083333333 3.583333 2.467949 Average total scores: Existing sites== 3.6389 New Site 3 Miles from Campus ==3.222 Dallas Cowboys Facility ==4.07265 For this case Dallas Cowboys Facility still remains the best option because of its highest value. 1. In my own opinion, I would recommend building a brand-new stadium off-campus because it would result to a modern and high-tech facility, which is better in terms of safety considerations instead of the existing facility that was, build in 1950’s. Despite the fact that the administration would name this capital-intensive project after the donor it is fair because there is a possibility of having a space for future expansion considerations. References Render, B. & Jay, H. (1997). Principles of Operations Management. Upper Saddle River: Prentice Hall Read More

 

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