Aqualisa Case Study

Aqualisa Case Study

  • Submitted By: calvinkuoh
  • Date Submitted: 02/24/2009 12:29 PM
  • Category: Business
  • Words: 2087
  • Page: 9
  • Views: 3

At one point in the course, I indicated that the job I had was to make the complex simple, not the simple complex. I also suggested that it was better if you answered my question rather than creating one of your own. My first observation is that uniformily, all of the candidates suffered the problem of Stuart Daw’s competitors. They thought they were looking at how HKCEC should operate a seat riser operation in Hall 3. As a result, the analyses all looked at three alternatives, Buy, rent by event, or rent for the period. These are all valid if HKCEC is intent in being in the seat riser business. However, the case suggested that they did not see concerts as their core business, and certainly did not see operating seat risers as part of that core business. This should have been a clue. The second observation I made was that very few of you took my hint in the requirement to look at this situation for the perspective of all of the parties involved, namely, HKCEC, the promoters, and the suppliers of seat risers. A very small number of people explicitly considered the economics from the viewpoint of the suppliers. A fair number looked at the economics of the Promoters. Everyone tried to see it from HKCEC’s viewpoint. Those that neglected to look at suppliers and promoters got the lowest grades. Unless you looked at the economics of the other parties, you could not determine what made logical sense to pursue. My third observation was that many candidates felt that they had to make the issue much more complex than the data in the case. This included analyses on square footage of the rooms; imputed costs for maintenance, training, insurance, etc.; estimation of how many concerts or days of occupancy there would be in the off season; or cannibalization of other business if the risers were left in the room. The basic analysis from the perspective of HKCEC quickly shows that the costs of setting up seat riders for individual concerts is not economically sound....

Similar Essays