Some artists are paid on a fixed-fee basis, while others are paid on a per capita basis. Upon reaching an agreement, Cellar Door, on behalf of the Pavilion, signs a contract with the booking agent for the performer.
Activities that can be avoided for Alltel Pavilion Case.
It features the most modern state-of-the-art acoustics and video of any facility of its kind. The cost of the performing artist has also increased dramatically. This move brought together both worlds of the entertainment business.
The parking, food concession, and merchandise operations are outsourced to other service providers, so the direct costs for parking, merchandise and concessions are determined based on contracts with the service providers that include both a percentage 10 percent of applicable revenues and a fixed fee.
Society is willing to pay handsomely for its entertainment facilities, sports franchises, and entertainers. Pace Entertainment would pay income taxes on earnings from the use of the facility.
These are then added to the direct costs for concessions, merchandise, parking, and insurance to determine total operating expenses. We will write a custom essay sample on The Alltel Pavilion Case: In addition, Pam was frustrated by the lack of clear guidelines for contract negotiations with artists, for setting ticket prices, and in dealing with unexpected low ticket sales for certain concerts.
The report shows the variety of revenues and costs for a concert, and the projected profit for the concert. Comp customers also bring in revenue for parking, concessions, and merchandise sales. For many shows it is difficult to stay within the budget, since the Pavilion serves a five-market region consisting of Raleigh-Durham, Fayetteville, Wilmington, Greensboro, and the Carolina Coast.
Thus depending upon the type of budget, the period of the same is The strengths and weaknesses are obtained from internal organization.
Reserved and lawn seating areas are shown in Exhibit 1. Marketing also coordinates with the operations department to effectively manage the activities on show days. Term Papers Tagged With: The seven-month season usually hosts an average of 40 concerts, and 12 year-round staff plan and manage each season.
Moreover, it also helps to the extent to which change is useful for the company and also guide the direction for the change. What role does CVP analysis and operating leverage play in contract negotiations with different types of performers fixed-fee or per capita?
In the late s Pace Entertainment and the city of Raleigh came to an agreement to build the facility.Case Cost-Volume-Profit Analysis and Strategy: The ALLTEL Pavilion Andrea Mullens 1) The competitive strategy of the ALLTEL Pavilion is largely focused on differentiation.
The ALLTEL Pavilion case is intended for the undergraduate management accounting or cost accounting course and the M.B.A. management accounting course. It provides an excellent context in which to examine strategic issues in using cost volume profit (CVP) in a service business.
Based on an actual entertainment pavilion, the case develops. Latest Articles. Marketing Channel Management by Multinational Corporations in Foreign Markets; Managerial Compensation and Private Foundation Performance. The ALLTEL Pavilion Case: Strategy and CVP Analysis “a concert it’s better live.” No description by.
ABSTRACT: The ALLTEL Pavilion case is intended for the undergraduate management accounting or cost accounting course and the M.B.A. management accounting course. It provides an excellent context in which to examine strategic issues in using cost volume profit (CVP) in a service business.
The case requires you to identify the best strategy for different types of artists, conduct cost-volume-profit analyses, consider the strategic issues related to operating leverage and how this affects the choice of perfor and contract, and assess pricing strategies nc day in early November Patn Berg, Manager of the ALLTEL Pavilion, was reviewing the operating results for the year just completed in preparalion for the .Download