...RJFT Task 1 Utah Symphony and Utah Opera: A Merger Proposal Unlike major arts organizations in Europe and Canada that rely heavily on government agencies for their funding, orchestras and opera companies in the United States operate under a very different financial model. Income to support these organizations is generated primarily through ticket stales (approximately 46%) and individual contributions (approximately 36%) (Alexander, 2004). Since September 11, 2001, all arts organizations in this country have experienced a dramatic decline in public and government subsidies that has led to major loss of revenues for many of them. As a result, several arts organizations have made the decision to merge. To gain a better understanding of positions for or against the merger of the Utah Symphony and Utah Opera, I have explored motivations of various constituents. Below is a summary for use by Anne Ewers to think through potential issues that may arise during the merger process. Although the Utah Opera Organization’s Chairman of the Board, Bill Bailey supports the merger with the Utah Symphony, there is some hesitation on his part. Currently the Utah Opera Organization is financially stable, however its’ continued viability could be in jeopardy due to a decline in support of the arts (both private and public) possibly due to a negative overall world economic climate. To encourage the support of the Utah Opera Organization’s principals and constituents, Mr. Bailey could...
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...Utah Symphony And Utah Opera Merger RJFT Task 2Iesha ArmourA. 1. “Before the merger the Utah Symphony dealt with many financial issues. A major financial weakness with the symphony is its inability to negotiate the salaries of the employees. All of the symphony’s employees are under contact which leaves them with the financial burden of having topay salaries regardless of the ticket sales. A financial strength of the symphony was the aboveaverage endowments. The symphony was considered to be at the high end of a Group II symphonyorchestra and received an above average endowment for its status. A leadership strength for the symphony was the fact that they had two leaders, one for its musicians, Keith Lockhart, and Scott Parker, who was the chairman of the board. The symphony’s CEO announced his resignation in 2002, which is a leadership weakness. Having to replace a CEO in an organization like the symphony is a difficult task. Finding a professional and seasoned individual to be the CEO of thesymphony was a major issue for them during this time of duress.Symphony Weakness Symphony StrengthsContracted employees (financial) Above average endowment (financial)Resignation of CEO (leadership) 2 Leaders (leadership)A1a. Key steps Anne should take to address the weaknesses to ensure a successful start of themerger will be: • Analyze the current financial status of the symphony by looking at the ticket prices and determine how to keep the sale price close to their current...
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...RJFT Task 2 Iesha Armour A. 1. “Before the merger the Utah Symphony dealt with many financial issues. A major financial weakness with the symphony is its inability to negotiate the salaries of the employees. All of the symphony’s employees are under contact which leaves them with the financial burden of having to pay salaries regardless of the ticket sales. A financial strength of the symphony was the above average endowments. The symphony was considered to be at the high end of a Group II symphony orchestra and received an above average endowment for its status. A leadership strength for the symphony was the fact that they had two leaders, one for its musicians, Keith Lockhart, and Scott Parker, who was the chairman of the board. The symphony’s CEO announced his resignation in 2002, which is a leadership weakness. Having to replace a CEO in an organization like the symphony is a difficult task. Finding a professional and seasoned individual to be the CEO of the symphony was a major issue for them during this time of duress. Symphony Weakness Symphony Strengths Contracted employees (financial) Above average endowment (financial) Resignation of CEO (leadership) 2 Leaders (leadership) A1a. Key steps Anne should take to address the weaknesses to ensure a successful start of the merger will be: • Analyze the current financial status of the symphony by looking at the ticket prices and determine how to keep the sale price close to their current rate...
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...Cristina Nielson 6/18/2011 RJFT Task 2 Action Plan When this merger was decided it was called into action because of the weakness within the Utah Symphony Orchestra and the Opera. Both are great companies but both could use the strengths of the others to improve. This paper will explore the leadership and financial strengths of both companies as well as a complete overhaul of the balanced scorecard of the businesses. Below I have listed the strengths and weaknesses of the leaders and financial aspects of the Utah Symphony Orchestra. Utah Symphony Orchestra Financial Strengths Financial Weaknesses Performing over 200 concerts generating income. Ranked in Group II for budget Expected income supposed increase by 1% in future. Expense increases expected of 2.5% High revenues from concerts Decline in public subsidies Increase in competition of public funding Low deficit at the end of the year. Carry burden of pledges not paid Leadership Strengths Leadership Weaknesses Experienced conductor in the Orchestra organization. Resistant to change Has a great background in TV (helps in marketing) Would prefer to cling to existing model for organization. Has the ability to lead Spends too much on fundraising efforts. Helped the Orchestra obtain the top orchestra spot in the 8 rocky mountain states. Protects his employees and ensures that opinions are heard The hardest part for Anne will be addressing these weaknesses. There are steps that Anne can take in...
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