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Forecasting ticket revenue for orlando magic basketball games

05/04/2021 Client: muhammad11 Deadline: 2 Day

I’m studying for my Business class and need an explanation.

1. Highlight an operational challenge (or opportunity) at the company
2. Recommend a strategic "next step" based on your assessment
3. Suggest a line of questioning / topic area to explore with the consultant team during their presentationADMN 580 - CASE 01 Forecasting Ticket Revenue for Orlando Magic NOTE: Please be sure to watch the associated case video embedded in the Pearson e-text. TEXTBOOK CASE For its first two decades of existence, the NBA’s Orlando Magic basketball team set seat prices for its 41-game home schedule the same for each game. If a lower-deck seat sold for $150, that was the price charged, regardless of the opponent, day of the week, or time of the season. If an upper-deck seat sold for $10 in the first game of the year, it likewise sold for $10 for every game. But when Anthony Perez, director of business strategy, finished his MBA at the University of Florida, he developed a valuable database of ticket sales. Analysis of the data led him to build a forecasting model he hoped would increase ticket revenue. Perez hypothesized that selling a ticket for similar seats should differ based on demand. Studying individual sales of Magic tickets on the open Stub Hub marketplace during the prior season, Perez determined the additional potential sales revenue the Magic could have made had they charged prices the fans had proven they were willing to pay on Stub Hub. This became his dependent variable, y, in a multiple regression model. He also found that three variables would help him build the “true market” seat price for every game. With his model, it was possible that the same seat in the arena would have as many as seven different prices created at season onset—sometimes higher than expected on average and sometimes lower.

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