Week 4 BSOP 209 Case Study
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Southwestern University (SWU), a large state college
in Stephenville, Texas, enrolls close to 20,000 students. The
school is a dominant force in the small city, with more students
during fall and spring than permanent residents.
Always a football powerhouse, SWU is usually in the top 20 in
college football rankings. Since the legendary Bo Pitterno was
hired as its head coach in 2003 (in hopes of reaching the elusive
number 1 ranking), attendance at the five Saturday home games each
year increased. Prior to Pitternos arrival, attendance generally
averaged 25,000 to 29,000 per game. Season ticket sales bumped up
by 10,000 just with the announcement of the new coachs arrival.
Stephenville and SWU were ready to move to
the big time!
The immediate issue facing SWU, however, was not NCAA
ranking. It was capacity. The existing SWU stadium, built in 1953,
has seating for 54,000 fans. The following table indicates
attendance at each game for the past 6 years.
One of Pitternos demands upon joining SWU had been a stadium
expansion, or possibly even a new stadium. With attendance
increasing, SWU administrators began to face the issue head-on.
Pitterno had wanted dormitories solely for his athletes in the
stadium as an additional feature of any expansion.
SWUs president, Dr. Joel Wisner, decided it was time for his
vice president of development to forecast when the existing stadium
would max out. The expansion was, in his mind, a given. But
Wisner needed to know how long he could wait. He also sought a
revenue projection, assuming an average ticket price of $50 in 2010
and a 5% increase each year in future prices.
Discussion Questions
1. Develop a forecasting model, justifying its selection over
other techniques, and project attendance through 2011.
2. What revenues are to be expected in 2010 and 2011?
3. Discuss the schools options.
Southwestern University Football Game Attendance, 20042009
2004
2005
2006
Game
Attendee Opponen Attendee
Attendee
Opponent
s
t
s
s
1
34,200
Baylor
36,100
Oklahoma
35,900
TCU
2a
39,800
Texas
40,200
Nebraska
46,500
Texas Tech
3
38,200
LSU
39,100
UCLA
43,100
Alaska
4b
26,900
Arkansas 25,300
Nevada
27,900
Arizona
5
35,100
USC
Ohio State 39,200
2007
36,200
2008
Opponent
Rice
2009
Attendee Opponen Attendee
Attendee
Opponent
Opponent
Game s
t
s
s
1
41,900
Arkansas 42,500
Indiana
46,900
LSU
2a
46,100
Missouri
48,200
North Texas 50,100
Texas
3
43,900
Florida
44,200
Texas A&M 45,900
Prairie View A&M
4b
30,100
Miami
33,900
Southern
36,300
Montana
5
40,500
Duke
47,800
Oklahoma
49,900
Arizona State
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