Change At Six Flags Essay

1486 words - 6 pages

When Six Flags’ shareholders became unhappy with the overall performance of their company, they demanded a drastic change. Shareholders insisted that the management and board of directors were replaced immediately (Ryan, 2006). The fight for control of the company was led by Daniel Snyder, owner of the Washington Redskins and Red Zone LLC. Snyder began a proxy battle with the company and finally won the battle and took over as chairman of the board (Donnelly, 2005). However, there were serious problems facing the company including dilapidated parks, inability to attract the right audience, an excessive amount of debt, and a falling stock price. Snyder immediately restructured the organization to begin improving their weak performance. Eventually Six Flags regained its place within the industry, but there were several key factors that were overlooked when implementing the turnaround strategy.
When Snyder took over Six Flags in 2005, he inherited the “largest theme park company in the world” as well as the declining performance of this company (Ryan, 2006). One of Six Flags’ primary problems was that their main assets had been severely neglected. Though the company operated over 25 theme parks, not all of these parks were valued added to the company. For instance, one park in New York was described as nothing more than “a souped-up county fair” (Ryan, 2006). Six Flags parks were in general disrepair. Chipping paint and filthy restrooms detracted from the customer experience. Additionally, Six Flags did not have a strong competitive strategy. Their business was seasonal and they did not attract a lucrative audience to their parks. “Deeply discounted” season passes attracted more teenagers than families (Ryan, 2006). Six Flags’ parks became more of a teenage hangout than a gathering place for young families (Hyman, 2006). Moreover, the company’s long-term debt was excessive. Six Flag’s debt increased significantly between 2003 and 2006 as its current ratio progressively declined (“Six Flags financials,” n.d.). This means that the company was increasing unable to pay off its obligations if they came due (Keown, Martin, & Petty, 2011). Six Flags had accumulated $2,242.4 million in debt by 2005. Finally, the company’s stock price plummeted. In 1999, Six Flag shares were trading at $40 per share and just seven years later, shares were trading for around $5 (Krantz, 2006). For Six Flags to regain its position in the theme park industry, it was necessary for their management team to concentrate on their improving the performance and perception of their brand.
In order to turn the struggling company around, Snyder’s first order of business was to hire an entirely new board of directors and appoint Mark Shapiro, a former ESPN programmer, as CEO of Six Flags (Donnelly, 2005). Neither Shapiro nor the new board had particular experience with Six Flags or retrenchment strategies, but Snyder believed this governance group would help the company recover...

Find Another Essay On Change at Six Flags

My time in Atlanta Essay

745 words - 3 pages I was sitting on a stone in the Middle East. Overall I had a wonderful time at Turner Field home of the Atlanta Braves. I had never experienced anything like that, it was amazing. This conclude my time an Atlanta, Ga. As I said before there are many places to go in Atlanta, Ga. Six Flags, Stone Mountain Park, and Atlanta Braves Stadium change my life because it talk me value in life. It showed me that the world is big, and to explore hard work is

Six Flags Trip Essay

580 words - 2 pages Six Flags Trip Around two years ago i went to Six Flags with my mother and some friends. It was one wild trip up and one wild time there. One the trip up to Six Flags, the one near Akron, We stopped at various places.One place we stopped was a "Super - Wal - Mart" it wasn't really what I would call a "Super - Wal - Mart" since i seen the one in Lexington Virginia. The one in Virginia was huge, I mean it was twice as big as Ashlands

Quality: Regional Amusement Parks

1586 words - 6 pages other guests, the image of Six Flags from previous experience, word-of-mouth communication, as well as advertising. All of these aspects are vital in making sure that the process of creating a memorable and value experience for the customer at a Six Flags theme park goes smoothly. The American Family Fun Award is a recognition of quality excellence created in February 2012 in order to reward and stimulate quality initiatives by North American


973 words - 4 pages . It was nerve racking for me. Going to the theme park, Six Flags, with my family proved to be very difficult with my fear.Before I ever visited Six Flags that day, I never went anywhere near something that lifted me off the floor more than 5 feet. Whenever we went to theme parks that had roller coasters, I would stay on the ground watching everyone else get on the ride. Even though water slides were a little different, I still got nervous and

General Motors

600 words - 2 pages US automobile industry began at the end of the 1800’s and by the 1890’s one out of seven jobs and one out of six businesses owed their existence to the automobile. Also this industry was the largest single customer for many raw materials but now With analysts debating whether or not the American economy is already in a recession, the big three automakers in the US especially General Motors are sharply scaling back production. The facts

Flags Of Our Fathers

909 words - 4 pages . The secrets behind the flag raising was exemplified by a conversation between Bud Gerber (a man who was behind the 7th Bond drive that the three soldiers were to be a part of) and John “Doc” Bradley, where Gerber says “Six guys raising a flag over Iwo Jima. Victory is ours. You’re three of them, right?” and at that point John “Doc” Bradley said “This was the fifth day, sir. The battle went on for thirty five more.” This illustrated the

The California Split

1215 words - 5 pages outdated flags and maps as well as accept ten new representatives into the senate. As if this was not expensive and confusing enough, the entire state would lose the income of agricultural farms and ranches from Central California and rely solely on each state’s own resources. The unity and identity that Californians have grown used to would be abolished and replaced with a new face from their own state. It would change statistics, governments, and the

Bernard L. Madoff: The Largest Accounting Fraud in History

2395 words - 10 pages ) Market Timing - It was said that Madoff invested in the market only six to eight times a year, with the money staying in the market for a few days to a few weeks. Magically, he apparently knew exactly when the market was going up and only invested then. When Madoff thought the market was going to fall, he would supposedly put everything into cash. And he was always in cash at the year end, when the auditors were going to do their thing. (Coenen 2010

NO girl

547 words - 2 pages fire escape was rusted, and the first floors windows were barred.Every ones perceptions of cities are based on experience and actual knowledge. When being taught about cities and going out and experiencing them, you look at everything differently. You are more prone to notice change when you are more familiar with a city because you point out things you have never noticed before because of the new knowledge. For a city being culturally in tact

Observing a Scene. My class was told to just go out and observe a scene and then write a paper about it

654 words - 3 pages to six years. So they know what is going on in this game. They do a lot of drills first then there is a game against the PRO team, which her sister is on. The team basically gets butchered because all of focus is on going out to lunch. On one play, Cassie's sister serves the ball to our side and my other friend Katie turns at the last minute and the ball bounces off her side. It flies up in the air and another girl, Amanda tries to bump it, but it

Confederate Flag, should it stay or go? - American Government - Essay

613 words - 3 pages Few symbols are more hated and loved than the Confederate flag. Its meaning has shifted over the past 150 years and continues to change. Walk around campus and you can see the occasional Confederate flag on the pocket of a shirt or hanging in a dorm room. The question is what do all these flags represent: Southern heritage, outright racism, or just rebellion against authority? The original flag of the Confederacy was not what we know as the

Similar Essays

Six Flags Entertainment Corporation Essay

998 words - 4 pages increasing while at the same it is able to keep its costs in check. With gross profit margin and operating profit margin both on solid footings it appears that Six Flags net profit margin is like a roller coaster ride. In 2010, Six Flags had a net profit margin of 61.37% and in 2011 its net profit margin plummeted into the red at negative 2.24%. This drop of 65% is substantial and does not seem to follow the same positive trend seen with gross

Six Flags Entertainment Corporation (Six) Essay

1910 words - 8 pages great for Six Flags because it means that sales are increasing while at the same it is able to keep its costs in check. With gross profit margin and operating profit margin both on solid footings it appears that Six Flags net profit margin is like a roller coaster ride. In 2010, Six Flags had a net profit margin of 61.37% and in 2011 its net profit margin plummeted into the red at negative 2.24%. This drop of 65% is substantial and does not seem

Six Flags, Inc.: The 2006 Business Turnaround

1706 words - 7 pages and Robin (Hoover's Company Profiles, 2014). They are great crowd pullers of families as children adore these cartoon characters and show up for the meet and greet sessions with the characters as well as purchase custom merchandise of them. Strategy is the name of the ultimate game when it comes to business. Proper crafting and execution of strategy is what differentiates the bigwigs and small fish of any industry. As at 2006, Six Flags was a

Six Flags Entertainment Corporation Essay

1376 words - 6 pages from merchandise and food. Six Flags has a competitive edge over its competitors in terms of accessibility - in the mid-2000 - approximately 98 percent of the U.S. population lived within an eight-hour drive of a Six Flags location. The mission of Six Flags was inappropriate and not providing a unifying theme and it was “a collection of individual amusement parks”. It is clear that the new young management looked at the mission and objectives of