The Craddock Cup Case Study

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TO: Jose Rivaldo FROM: Andrew Troy DATE: October 20, 2014 SUBJECT: The Craddock Cup Introduction Jose Rivaldo is the General manager of the Craddock Youth Soccer League (CYSL). Mr. Rivaldo plays a significant role in running the Craddock Cup. The Craddock Cup is a 32-team soccer tournament for premier high school soccer teams. Mr. Rivaldo and the CYSL is trying to determine whether the tournament is successful in achieving its goal to generate at least $6,000 annually or if the tournament structure should be changed. Mr. Rivaldo has developed four strategies for improving the tournament. He can keep the tournament the same, double the number of teams participating in the Craddle Cup, double the size of the tournament and increase…show more content…
If they chose this option the company would forgo the revenues of the Craddock Cup. The company would not incur any of the costs associated with operating the tournament. They would not incur $15,700 in fixed costs. The company would have to sacrifice the current profit of the tournament. Choosing this option results in a net profit of $9,198. This option adds the most value to the CYSL and will also allow Mr. Rivaldo to spend his time working on different projects. However, choosing this option associated with Mr. Rivaldo’s goals. Recommended Course of…show more content…
Although, choosing to operate the tournament is less profitable than dropping the tournament, Mr. Rivaldo is committed to providing high quality soccer activities to boys and girls in the area. If the CYSL chooses to drop the tournament, the decision would not be inline with the goals of the company’s management. The company should choose to keep marketing and advertising expenses the same because the company’s estimates will be more accurate than if they had to also estimate the effect of increasing the marketing and advertising expense. CYSL should chose option two because it accomplishes the company’s goal of generating $6,000 annually, it is in line with upper management’s goals, and it will allow for accurate estimates. Conclusion The Craddock Youth Soccer League’s tournament, the Craddock Cup, allows high school aged boys and girls to experience a high quality soccer experience. The Craddock Cup will be most successful if it chooses to expand to 64 teams. This will result in a higher net profit for the company and will allow more players to compete in this highly skilled soccer tournament. If the tournament is expanded it will provide the Craddock Cup more opportunities to grow and become more profitable in the future while achieving company and management

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