A1. Financial and Leadership strengths and weaknesses of the Utah Symphony prior to the merger.
Utah Symphony Financial Strengths:
The Utah Symphony has various financial strengths prior to the merger. First, the Symphony has a high endowment fund within its divisional class. Next, the sponsors and donation contribution that the symphony has received make up more than 30% of the organization’s income. The next, financial strength is the organizations ability to receive government grants at a higher rate than other art organizations. Another strength is that the symphony has less than 8% of its income allocated to general expenses.
Utah Financial Weakness:
The financial weakness the face the Utah Symphony prior to the merger is the expense of the program which is associated with the contracted salaries of its current performers. The expenses make up a huge portion of the organizations operating expense. The next financial weakness is the decrease in the amount of revenue which can be attributed to the global economic state, as the performance arts sector is affected overall. Another weakness is that the organization has a decrease in revenue with underperforming shows, as the production cost of the shows exceeds the ticket sales.
Ways to address financial weakness:
Anne Ewers should renegotiate the current contracts, so that they are more feasible to the viability to the organization. Although the renegotiation of the contacts must not violate the terms of the union. Anne should also eliminate duplicate positions amongst the administrative staff as this will eliminate some of the operating expenses. Also, underperforming programs with in the organizations should be remarketed to attract new audiences to increase the revenue generated by the sale of tickets. The restructuring of the symphony will have a positive benefit of the overall organization.
One leadership strength of...