Case Study Maple Leaf Gardens Ltd.

1005 words - 4 pages

Identify the problem and affiliated issuesThe problem facing Maple Leaf Gardens Ltd. (MLGL) is how to manage its business strategically. In other words, MLGL requires strengthening its competitive position in hockey sport, and satisfying its hockey fans and shareholders, most importantly, bringing revenues into the organization.Apart from investment in the arena, the affiliated issues include the need to integrate management activities with those in operations and human resources; to provide strong leadership to manage the hockey team and the arena; and to develop and implement effective financial and marketing strategies in order to increase revenue and awareness of the company.Decision CriteriaThe decision criteria MLGL will use to assess and select their options are:•Costs•Future revenue•Needs of hockey fans, hockey players and stakeholders•Physical concerns of the arena•Historical issues•Management's views and expectations•Leadership potential•Expected rate of return•Marketing capabilitiesIdentification and analysis of alternative courses of actionThe options that the company should consider:1.Crafting a business strategy2.Demolishing and rebuilding the arena3.Finding a new site and building a new modern arena4.Building a new combined arena1. Crafting a business strategyAdvantagesIn order to run a large organization like Maple Leaf Gardens Ltd., which includes the hockey team, the franchise, the players' contracts and the arena, it is important to have a business strategy. It helps to form a strategic vision of the company's future for achievement. It consists of business approaches to operate on a sound financial basis as well as to strengthen the company's overall market position and competitive viability.DisadvantagesAfter years of effective and ineffective handling by different managers, MLGL is running into a complicated management style that may be hard to get a corporate consensus (e.g. 49% of the corporation is owned by the Ontario Teachers Pension Plan). However, a business strategy is a long-term plan that may face different level of risks before its success. The management capabilities is also an issue, it may be hard to recruit a competent team to really meet the challenges of company growth.2. Rebuilding the arena on its present locationAdvantagesTo rebuild on the present site helps preserve the hockey rink and allows it to be used for hockey that maintains integrity and character of the Gardens. In addition, it keeps the memories of fans that are tied up in the Gardens.DisadvantagesThe modern way to optimize the revenue is to build and rent out private and luxury boxes; however, the arena is functionally obsolete and cannot compete with the modern arena (e.g. Skydome) that customers will want in future. Also, it is necessary to move the hockey team to a temporary facility for about two years. It may cost just as much as building a new arena.3. Building a new arena elsewhere in the...

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