Craddock Cup Essay

Background The Craddock Cup is a regional soccer tournament held by the Craddock Youth Soccer league (CYSL) and managed by Joe Rivaldo every year. The transfuse brings in approximately 32 prime(a) high schooling soccer teams (both boys and girls teams) from throughout the region to compete. Each year the shape is considered a great success by players, their families and the local union and is now widely considered as the premier tournament for high school soccer players. Over the past few years the cup has actual into a showcase event for high school soccer players and has been equal to(p) to withdraw the regions best teams due to the fact that on average 25 college scouts attend the cup each year for recruiting purposes. main Issue or Problem The main problem is that of the Craddock Cup macrocosm cancelled and Jose Rivaldo the manger of CYSL losing his job. This is due to the issue that, CYSL who fund the Craddock Cup, do so in part to fund a field acquisition course of instruction for the league with the expectation the cup will generate at least $6,000 annually towards this goal. However the cups acquire are averaging a overtaking of around $4,000 a year and the board of CYSL is becoming impatient with the lack of profits being generated. Therefore Joe needs to find a solution to outgrowth the cups profitability and by doing so save his job.Three Possible mutually Exclusive Alternatives that Might be used to Solve the Problem (these must(prenominal) not include the status quo (current practice) and should include at least superstar alternative that is not mentioned in the case) Alternative Quantitative Techniques to Use + background Qualitative Issues to Discuss + Reason Suggested reading (pages) in HDR (2012) 1. Make changes to the overhead expenses allocated to the tournament including salaries, rent, utilities and field rental. Relevant be and relevant revenue analysis. If the cup was to be cancelled then CYSL would still incur the su nk be of rent, utilities, field rental and Rivaldos salary meaning they should not be allocated to the cup. However the cost of Janstens salary would be saved if the cup was cancelled. If the cup was to be cancelled then it would result in the loss of Janstens job as his/her employment is solely related to the cup.This could excise the moral of fellow employees. 415-416, 430-434 2. Organize a deal with a hotel/s where you arrange accommodation for all the players. In return for the extra line of descent the hotel/s offer you free or discounted accommodation for the college scouts. Breakeven analysis and plowshare margin. If the variable cost of putting the college scouts in hotels (which is a large cost of $4,000) could be eliminated or reduced significantly it would greatly affect the section margin of the cup (CM = Sales VC) as variable costs would lower significantly. It would also decrease the breakeven point in revenue. Issues could include the problem of determinatio n a hotel or hotels that will be able to provide comme il faut accommodation for the large amount of players and that will agree to the proposal as the hotel or hotels may feel they will be able to attract the players on their own accord and do not need to evacuate losing the additional profit of the scouts by doing so. 86-88, 90-91, 94 3. Increase the tournament surface from 32 teams to 64 teams. Incremental profit and costs. If the cup was to increase its size of it to 64 teams it would bring in additional revenue from the new teams fitting fees. Other revenue would also likely increase. While most expenses much(prenominal) as registration fees, face books, hotels and marketing would remain the same as the scouts are only looking for high school players, where the new teams introduced would be from middle schools. Issues include finding enough teams to be able to expatiate the tournament along with making sure the suppliers of things such as t-shirts and fare can provide enough goods to match the extra demand. Also whether or not the staff can cope with the increased work tear or whether another employee will need to be hired. 421, 579-80, 584-86