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:Ã¢ÂÂ¢CostsÃ¢ÂÂ¢Future revenueÃ¢ÂÂ¢Needs of hockey fans, hockey players and stakeholdersÃ¢ÂÂ¢Physical concerns of the arenaÃ¢ÂÂ¢Historical issuesÃ¢ÂÂ¢Management's views and expectationsÃ¢ÂÂ¢Leadership potentialÃ¢ÂÂ¢Expected rate of returnÃ¢ÂÂ¢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...