Accounting For Decison Making Case Study Solution
Value Chain Analysis:
After analyzing the Tennessee Titans value chain activities with Memphis Bulls, it had observed that the cost for value chain activities are relatively identical for both competitors except the cost for game day operations activities which is approximately three times higher for Memphis Bulls than the Tennessee Titans.
Exhibit 1 shows the higher expenditure on Game Day Operations by Memphis Bulls to deliver the higher security, special entertainment and game day promotions which might lead to attract more communities to purchase the tickets from Memphis Bulls to enjoy the baseball league which ultimately increase the revenue for Tennessee Titan’s competitor Memphis Bulls, as a result Memphis bulls will enjoys more profits than Tennessee Titans along with the great local fans for Memphis baseball team.
In order to compete with Memphis Bulls more effectively and profitability, Tennessee Titans should consider the additional value added services to its value chain activities in order to grab the competitive advantage over competitors which ultimately lead to the increase in revenues resulting an increase in profits(AMADEO, 2019).
Currently, the per person cost at Tennessee Titans is lower than the Memphis Bulls but this cost savings cannot offset the loss against the revenues. That is why Tennessee Titans should invest more in fan development in order to get more fans for Tennessee Titans fans club against the Memphis Bulls fans club.
After analyzing the difference between the cost of value chain activities of Tennessee Titans and Memphis Bulls, it has been found that except ticket sales and management compensation, all other value chain activities has lower cost for Tennessee Titans as comparison of Memphis Bulls. So, it should invest more in fan development and more of it, it should spend some money on the survey from Tennessee Titans fans for the purpose to found the satisfaction level of them which might be delighted after adding some other fans desired services.
SWOT analysis and Balance Score Card for Tennessee Titans have been provided in Exhibit 2 and 3 respectively.
Exhibit 1: Difference in Activities in Value Chain
| Activities in the Value Chain | Memphis Bulls | Tennessee Titans | Difference |
| Advertising and general promotion expenses | $ 0.50 | $ 0.45 | $ 0.05 |
| Ticket sales: At local sporting goods stores and the ballpark | $ 0.25 | $ 0.28 | $ (0.03) |
| Ballpark operations | $ 0.80 | $ 0.65 | $ 0.15 |
| Management compensation | $ 0.18 | $ 0.23 | $ (0.05) |
| Players’ salaries | $ 1.05 | $ 0.95 | $ 0.10 |
| Game-day operations: security, special entertainment, and game-day promotions | $ 0.65 | $ 0.20 | $ 0.45 |
| Total cost | $ 3.43 | $ 2.76 | $ 0.67 |
Exhibit 2: SWOT Analysis for Tennessee Titans
Exhibit 3: Balance Score Card for Tennessee Titans
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