Organizational Complexity – Arizona Coyotes

1: How complex is your organization internally? Place your organization on the following chart. Defend your responses and reference sources.

The Arizona Coyotes are considered a “flat” organization on the organizational complexity graph. Their organization fits the definition perfectly, as they are low on horizontal and high on vertical differentiation. They have Large middle management that focuses on information processing. Their President of Hockey Operations Gary Drummond overseas decision that the organization is making and leaves the general manager John Chayka and Head Coach Dave Tippett in charge of directing his staff members. Under the general manager and head coach, they have an assistant general manager, 3 assistant coaches, 2 goaltender coaches, 1 video coach, 2 development coaches, 1 skills coach, 1 skating coach, 1 hockey operations coordinator, and 1 manager of team services (Coyotes, n.d.). All of the individuals listed above have important roles in the organization while making decisions best fit for the success of the players. The organization relies on each individual to strive in its designated role in order to help the players achieve the best success. They have the ability to recruit these staff members form all over the world, as this is the highest level of hockey that you can compete with, making the recruiting process much easier.

2: Locate your organization on the figure, what is the complexity?unnamed

The vertical depth of the Arizona Coyotes organization would be a 2. They have many individuals who can make impact decisions, but they still have a hierarchy in management that makes the final call and many of the important decisions.

The horizontal depth of the Arizona Coyotes organization would be a 4. The task specialization is crucial and all of the members have their own important roles. The difference between many of these individuals is very small, but there is still some hierarchy involved in the organization.

3: Does your organization’s complexity fit its structural configuration?

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The Arizona Coyotes organization fits the “type 3” or “flat” structural configuration.

4: Is there “fit” across the organization’s components? What do we know now about how our organization aligns across these categories? What would make them more effective? Should your organization change its structure based on its complexity?

The organizations components did in fact fit across the organizations structural complexity. Other than the company’s configuration, it matched the other three categories down the chart. Looking at this chart and what it entails, it proves that the Arizona Coyotes rely on many of their staff members to make an impact on the team. They have many different specialized roles, each having a significant impact on the players performance. I do not believe that the Coyotes organization should change its structure based on its complexity because they are trending in the right direction. Their management and organizational staff has found a successful way to work together while keeping the organizations goals in sight.

References

Coyotes, A. Hockey operations. Retrieved February 21, 2017, from https://www.nhl.com/coyotes/team/hockey-operations

 

 

Environmental Complexity – Arizona Coyotes

Arizona Coyotes – Environmental Complexity

First, I want to know generally (like an introduction):

How turbulent is your company’s environment and how well do you believe that they adapt to it?

The Arizona Coyotes are turbulent is a few areas, as their success is based on the team’s year to year performance. They do not have the ability to predict how the season will go as many different things can factor into a team’s performance. They have been very successful at adapting year to year and balancing out the organization to keep it rolling when times are good, and keep it afloat when times are not.

#1: List out as many elements affecting your company as you can for each of the sectors below.

Industry (Competitors, industry size, competitiveness, related industries)

Significant competitors:

  • Arizona Cardinals, Arizona Diamondbacks, Phoenix Suns, Arizona State University Athletics, University of Arizona Athletics, all 29 other NHL teams

Industry size:

  • Large Fan base and followed sports teams like the New York Yankees, Dallas Cowboys and the Chicago Blackhawks are a very large and demanding industry.
  • The Arizona Coyotes would fall under the category below them as their fan base and worldwide followers are much lower, but still enough to be a household name worldwide.
  • $101 million revenue in 2016
  • $60 million in player expenses in 2016
  • Gate Receipts: $20 million

Source: (Ozanian et al., 2017)

Competitiveness:

  • Arizona Coyotes offer its products on the NHL store, Amazon, Local Department Stores and their Team Store located in their home arena.
  • Their tickets can be bought on Ticketmaster, Stub hub, and through their team website.
  • Their low-priced tickets gives them a competitive advantage, but their team merchandise is monitored by the National Hockey League, making al team apparel the same price.

Raw Materials (Suppliers, manufacturers, real estate, services):

Suppliers:

  • Amazon, NHL Shop, Jobing.com team store and local department stores sell Arizona Coyotes team apparel (Jerseys, clothing, labeled household items etc.)

Real Estate:

  • com is the home arena of the Arizona Coyotes, which is located downtown Glendale, Arizona. This is where their home games are played, along with their team store location.
  • They have a practice facility also located in Glendale where the team trains and practices.

Services:

  • They offer the highest level of Hockey available in the world. They provide entertainment for hockey fans during 82 games in a season.
  • They are role models and idols for aspiring young kids who wish to be hockey players, or even just sports fans.

Human Resources (Labor market, employment agencies, universities, unions):

Labor market:

  • Player contracts, coaching contracts, athletic training roles, management roles, leadership roles, retail, marketing and sales.

Employment agencies:

  • They have their staff and departments listed on their website (Coyotes, 2017)

Financial Resources (Stock markets, banks, private investors):

Stock markets & Banks:

  • They are not publicly traded and have no banks.

Private investors:

  • Team owner Andrew Borroway paid $305 million for the team in 2014.

Market (Customers, clients, potential users):

Customers:

  • The fans are the paying customers. They are the ones purchasing the merchandise and the tickets, along with food and beverages during the games.

Potential users:

  • Sports fans in Arizona or visiting Arizona would be potential targets for the Arizona Coyotes.

Technology (Techniques of productions, computers, information technology, e-commerce):

Techniques of productions:

  • Arizona Coyotes use many social media websites to market their team and keep them up to date with the latest information and results.
  • They have commercials, and television rights that allow them to be easily seen in the state of Arizona.
  • They have their players involved in many community engagement activities, which allow fans to have a personal connection with the players while sharing these pictures and events on social media.

E-Commerce:

  • The tickets and merchandise online are easily accessible and have an easy process of purchase and payment.
  • Their 60-day return policy allows its customers to have full satisfaction or their money back.

Economic conditions (Recession, unemployment rate, inflation rate, growth):

Recession:

  • The Arizona Coyotes rely on their fans to attend their games and purchase their team merchandise.
  • Without their consumer spending, revenue will automatically hinder the organization.

Unemployment rate:

  • If the customers are unemployed and have no disposable income, they will be spending their money on necessities to survive instead of entertainment.

Growth:

  • With low priced tickets and the team having a bright future, there is a large room for growth as fans are starting to see a positive turnaround for the organization.
  • They have much more room to grow than they do to fall in their current organizational situation.

Government (City, state, and federal laws, regulations, taxes):

City:

  • The Coyotes are in Glendale, but are known as the Arizona Coyotes.

State:

  • The team is looked upon as a state-wide organization.
  • State taxpayers have helped the organization stay in Glendale and avoid relocation

Taxes:

  • In 2010 and 2011, Arizona tax payers spent $25 million to pay back debt owed to the National Hockey League (Garofalo & Waldron, 2012)

Sociocultural (Age, values, beliefs, education, religion, work ethic, consumer and green movements)

Age:

  • The youngest player on the team is Jacob Chychrun who is 18 years old
  • The oldest player on the team is Shane Doan who is 40 years old (Coyotes, 2017)
  • Fans range from all ages
  • No direct target demographics

Values:

  • Being the only professional hockey team in Arizona, people value the team based on representing the state
  • The players represent the state of Arizona
  • Being professionals and role models for the state of Arizona

Religion:

  • No set religion is followed
  • Players are spread out from 7 different countries across the world (Canada, USA, Sweden, Great Britain, Czech, Deutschland, Russia) (Coyotes, 2017)

Work Ethic:

  • Working for the high salary they are provided
  • Providing excellence for their fans and the state of Arizona

International (Competition from and acquisition by foreign firms, entry into overseas markets, foreign customs, regulations, exchange rate):

Competition from and acquisition by foreign firms:

  • The Arizona Coyotes are publicly owned by the National Hockey League
  • Cannot be bought out as an international organization

Entry into overseas market:

  • Players from overseas countries can play for the team
  • Cannot be relocated overseas
  • Must stay in North America under the National Hockey League

#2: Is the organization internationally diversified? Yes/No

The Arizona Coyotes are not internationally diversified. They are represented in North American under the National Hockey League. Their players are only represented on the international stage during world tournaments and they Olympics, where they represent their respected country. World economy is something that does not affect them as they are based out of North America do not work outside of the continent. They may have online purchasing internationally, with their competitors being other NHL franchises.

#3: How complex and unpredictable is the organization’s environment?

The organization is very unpredictable, as much of their revenue is based on the teams’ year to year success. In the 2012-2013 season, the team generated only $67 million in gross revenue, whereas in the 2015-2016 season they generated $101 million in gross revenue(“Phoenix coyotes revenue 2005-2016 | statistic,” 2016).  If the team is having a successful season, they generate more fans at each game and their merchandise sales skyrockets. They are not a very complex organization, as much or their approach year to year does not change. They must prepare for the team to have success to generate fans, as when they are having a low season there is not much they can do to turn things around for the better.

Which environment does your organization exist in?

The Arizona Coyotes exist in a general environment, as the sectors do not have a direct impact on the company as they may not change them often, but they can indirectly effect the organization over time.

#4: Does your organization’s strategies and goals fit their environment?

Circle one of the types in the following categories that you have found your company to portray: environment, strategy type, and organizational goals.

The Arizona Coyotes fall under category three. They are locally stormy because they are not in a comfortable enough situation where they can sit back and depend on fan loyalty to be there consistently, and they are trying to be an effective organization in terms of success and overall fan contentment.

  Type 1 Type 2 Type 3 Type 4
Environment Calm Varied Locally stormy Turbulent
Strategy types Reactor Defender Prospector Analyzer with/without innovation
Organizational goals Neither Efficiency Effectiveness Efficiency and Effectiveness

 

#5: Did your organization align across environment, strategy type, and organizational goals (i.e., all goals, if not then the correct response is NO)? Yes.

The Coyotes organization aligned across environment, strategy type, and organizational goals. I do not predict any further changes in their environment in the near future. They will like to test the waters with their new general manager being as young as he is, along with trying to keep their organizational high revenue last year of $101 million.

References

Coyotes, A. (2017, February 13). Official Arizona coyotes Website. Retrieved February 14, 2017, from NHL, https://www.nhl.com/coyotes

Garofalo, P., & Waldron, T. (2012). If You Build It, They Might Not Come: The Risky Economics of Sports Stadiums. Retrieved February 1, 2017, from The Atlantic, http://econ2.econ.iastate.edu/classes/crp274/swenson/URP290/Readings/If%20You%20Build%20It,%20They%20Might%20Not%20Come_%20The%20Risky%20Economics%20of%20Sports%20Stadiums%20-%20Business%20-%20The%20Atlantic.pdf

HockeyDB: NHL Attendance. (n.d.). Retrieved February 4, 2017, from (http://www.hockeydb.com/nhl-attendance/att_graph_season.php?lid=NHL1927&sid=2016).

Ozanian, M., Macramalla, E., Mitchell, J., Berg, M., Lee, B. Y., Brown, M., … Groves, D. (2017). Arizona coyotes on the Forbes the business of hockey list. Forbes. Retrieved from http://www.forbes.com/teams/arizona-coyotes/

Phoenix coyotes revenue 2005-2016 | statistic. (2016, October 10). Retrieved February 14, 2017, from statista, https://www.statista.com/statistics/196875/revenue-of-the-phoenix-coyotes/

SWOT Analysis

Strengths

  • Tax Payers help support the organization
  • Shane Doan (One of the most historic players)
  • Family-friendly Atmosphere
  • Affordable prices

Weaknesses

  • Other NHL teams with more of a fan base
  • Consistently having a losing record
  • Low hockey market in Arizona
  • Lack of History
  • Young General Manager

Opportunities

  • Young Talent
  • Lack of success in other Arizona sports franchises

Threats

  • Unhappy Taxpayers
  • Recent Arizona Cardinals success (NFL)
  • Relocation
  • Other professional sports franchises in Arizona
  • Arizona State Men’s Hockey

Strengths

Taxpayers help support the organization – The City of Glendale, Arizona supports the Arizona Coyotes of the National Hockey Leauge. Taxpayers have helped support the organization since 2012 when the team started to become in debt with the NHL (Garofalo & Waldron, 2012). Having this extra support from the city of Glendale allows the Coyotes organization to save millions of dollars and use that money elsewhere. I firmly believe that the organization would be forced to relocate if the city did not support them in this manner.

Shane Doan – Shane is one of the most iconic players currently playing in the National Hockey Leauge. He is currently the organization’s all-time leader in goal scoring, he led the team in scoring from 2003-2011 consecutively and is also the longest-serving captain in the NHL (http://www.hockey-reference.com/players/d/doansh01.html). This is a player that fans buy tickets for a game just to watch him play. Shane has represented Canada numerous times in the Olympics, World Cup of Hockey, World Championships and World Juniors. He is the only original player left on the Arizona Coyotes since they became a franchise in 1995. He is at the tail end of his career, which means fans will want to see him play before he is retired and is inducted into the Hockey Hall of Fame.

Family Friendly Atmosphere – The Arizona Coyotes offer a great family experience during their home games held at the jobing.com arena in Glendale. The in-game animations shown on the jumbotron are meant for all ages. Their mascot “Howler” (picture is shown below) has great reviews among reading further into his bio. During the intermissions, they provide activities on the ice before the Zamboni comes on like “Chuck a puck,” “Ice bowling” and more. This is a great atmosphere to bring your kids too, or just go with a group of friends and enjoy the game.

Image result for az coyotes mascot

Affordable prices – The Arizona Coyotes rank 2nd in the NHL for the cheapest ticket price (http://blog.tiqiq.com/2016/10/2013-14-nhl-average-ticket-prices-team/). Their average ticket price in the 2014-2015 season was $65.57 respectively, with their lowest ticket price being $16.9 average. The highest ticket price in the NHL is the Toronto Maple Leafs with an average ticket price of  $185.43. This makes it much more affordable to watch a game.

Weaknesses

Other NHL teams with a bigger fanbase – The Coyotes have the lowest attendance rating in the NHL. In 2015-2016, the Arizona Coyotes averaged 13,350 fans per home game. The Chicago Blackhawks who had the highest attendance rating had an average of 21,860. This is a massive margin when you look at a 41 home game schedule (http://www.hockeydb.com/nhl-attendance/att_graph_season.php?lid=NHL1927&sid=2016).

Consistently having a losing record – The Coyotes have not been able to reach the playoffs since the 2011-2012 season. This 5-year drought makes for an uneasy fan base as they do not have any success to look back at. Since becoming an organization in 1996, they have not won a Stanley Cup. They are not giving the fans much to cheer about when they are consistently losing.

Low hockey market in Arizona – Hockey is not a major sport in Arizona. With the hot weather they have, people do not want to spend their afternoons or evenings inside a cold rink to watch a hockey game.

Lack of History – The Arizona Coyotes do not have a rich hockey history. This is tough to have young fans attracted to your team when they have nothing to look back on. For example, the Montreal Canadiens have won 25 Stanley Cups, and are an original six team. This is something that new fans can look at and want to be apart of. Becoming a team in 1996 limits the new fans that can be attracted to the organization. Many fans already had a favorite team before the Coyotes started, meaning the loyal fans would still root for their favorite team.

Young General Manager – In 2016, the Arizona Coyotes named twenty-six-year-old John Chyka as their new general manager. He is the youngest general manager in National Hockey Leauge History (Gaines, 2016). Having the youngest general manager in NHL history only proves one thing, that he has no experience in the NHL. There could be a major trust issue with fans as they may not agree with this signing.

Opportunities

Young Talent – The benefit of having a losing record during the season provides you with a high draft pick. The Coyotes have had the luxury of choosing in the top 7 of the NHL draft 4 years in a row (Max Domi, Anthony Duclair, Oliver Ekman-Larson, Dylan Strome). These four individuals were very highly touted in the draft and are highly praised. They are the future of the team and they have not disappointed. Max, Anthony, and Oliver have been very consistent and have been one of the key players for the team at such a young age. Dylan, who was drafted last year (3rd overall selection) is projected to make a major impact in the league starting next season. Max Domi is also the son of former Toronto Maple Leaf legend Tie Domi. These players bring life to the building every night and they are expected to change the culture of the team into a winning organization.

Lack of success in other Arizona sports franchises – Arizona has not had much success with their professional sports teams. The Arizona Cardinals (NFL) have never won a Superbowl since being founded in 1898. The Phoenix Suns (NBA) have never won an NBA Championship since being founded in 19868. The Arizona Diamondbacks have only won the World Series one time which was in 2001(http://www.azsnakepit.com/2013/2/22/4011804/phoenix-sports-nfl-baseball-hockey-basketball). Arizona sports fans can look at the upcoming players in the Coyotes organization and believe they have the best chance of winning a championship.

Threats

Unhappy Taxpayers – Not everyone is willing to support the Arizona Coyotes, especially when they are struggling and are in debt with the National Hockey Leauge. This can cause waves as fans do not want to spend their own hard earned money on a losing franchise that they do not wish support. “For each of the past two seasons, Glendale has paid $25 million to the league to manage the Coyotes, even as the city faced millions of dollars in budget deficits” (Garofalo & Waldron, 2012)

The recent success of the Arizona Cardinals (NFL) – The Arizona Cardinals were pegged to win the SuperBowl for the 2016-2017 season. Unfortunately, they did not do as well as they were projected, but this shows how strong the team is and proves they have a chance to win. This is very attracting to fans as they want to support a team that wins. Football is a much more popular sport than hockey in the state of Arizona.

Relocation – The Arizona Coyotes have been in relocation talks for 5 years now. This may attract fans to a different team as they do not want to be faithful to a team that may not be there in the near future. Without a hockey team in the city of Arizona, many fans may choose to start fresh and find a new team to be loyal to.

Other professional sports teams in Arizona – with the Arizona Cardinals (NFL), Arizona Diamondbacks (MLB), and the Pheonix Suns (NBA), there are many different teams to chose from. It is difficult to find enough time to support more than one team. Season ticket holders will have to prioritize which team they decide to root for and support. Having 4 professional sports teams in the same city is always a threat as it gives fans options.

Arizona State University Men’s Ice Hockey – ASU’s men’s ice hockey team became a Division 1 program in 2015. They play their home games in the same arena (Jobing.com) as the Coyotes do. This provides another alternative for hockey fans to spend their time at. With the lack of success the Coyotes have had, hockey fans may be looking for something new, and the next best alternative for high-end hockey is the Sun Devils of Arizona State.

References

Gaines, C. (2016, May 5). Phoenix coyotes’ new GM is reportedly a 26-year-old “analytics guru” who co-founded a hockey statistics firm. Retrieved February 1, 2017, from Business Insider, http://www.businessinsider.com/phoenix-coyotes-promote-wiz-kid-to-gm-2016-5

Garofalo, P., & Waldron, T. (2012). If You Build It, They Might Not Come: The Risky Economics of Sports Stadiums. Retrieved February 1, 2017, from The Atlantic, http://econ2.econ.iastate.edu/classes/crp274/swenson/URP290/Readings/If%20You%20Build%20It,%20They%20Might%20Not%20Come_%20The%20Risky%20Economics%20of%20Sports%20Stadiums%20-%20Business%20-%20The%20Atlantic.pdf

HockeyDB: NHL Attendance. (n.d.). Retrieved February 4, 2017, from (http://www.hockeydb.com/nhl-attendance/att_graph_season.php?lid=NHL1927&sid=2016).

NHL Average Ticket Prices. (n.d.). Retrieved February 6, 2017, from http://blog.tiqiq.com/2016/10/2013-14-nhl-average-ticket-prices-team/

McLennan, J. (2013, February 22). Phoenix: Which Sport Reigns Supreme? Retrieved February 07, 2017, from http://www.azsnakepit.com/2013/2/22/4011804/phoenix-sports-nfl-baseball-hockey-basketball

E+E Assignment – Arizona Coyotes

What does the organization do? What is its major work activity?

The Arizona Coyotes are a professional sports team that plays in the National Hockey Leauge. They started as a franchise in 1996, and have had many years of struggling to keep the organization running.  They are in the entertainment business and provide fans with some of the best hockey players in the world right in front of their eyes. Its major work activity is to provide Arizona and Coyotes fans around the world with a first class hockey team that they can follow and be part of. With ticket sales, merchandise and Arizona taxpayers, they are working to maintain a professional hockey team in Arizona.

Based on your research, how does the org score on efficiency? Defend your answer.

Based on my research and following the organization for a number of years, I would base their org score on efficiency at a 2. They filed for bankruptcy in 2009 (Gover & Silverbrand, 2009) and have continued to have the lowest attendance rating in the National Hockey Leauge. They are creating little to no revenue and are constantly in the question for relocation. I found the average NHL teams attendance here, http://www.hockeydb.com/nhl-attendance/att_graph_season.php?lid=NHL1927&sid=2016 and this website show the attendance ratings amongst NHL teams from year to year. For example, in 2015-2016, the Arizona Coyotes averaged 13,350 fans per home game. The Chicago Blackhawks who had the highest attendance rating had an average of 21,860. This is a massive margin when you look at a 41 home game schedule.

Based on your research, how does the org score on effectiveness? Defend your answer.

Based on my research, I would rank the org score on effectiveness of the Arizona Coyotes at a 3. The reason I say a three is because for how much conversation there has been about relocation, folding the team, new ownership etc.. they still continue to have a team in the National Hockey Leauge. “In June 2012, the city council of Glendale; Arizona, decided to spend $324 million on the Arizona Coyotes, an ice hockey team that plays in Glendale’s Jobing.com Arena” (Garofalo & Waldron (2012). The city of Glendale is constantly taking taxpayers money and continuing to pay the National Hockey Leauge the debt that they owe to continue the team’s franchise. Another quote from the same article stated “For each of the past two seasons, Glendale has paid $25 million to the league to manage the Coyotes, even as the city faced millions of dollars in budget deficits.

Where would the organization like to be in the graph? Why? How do you know?

I would say the Arizona Coyotes fall under Quad B. Quad B’s definition from the assignment instructions was: “smallest amounts of resources necessary to produce/services. Needs stable Environments.” They are considered a mass producer because of how internationally known they are, but have a low budget and are focused on maintaining the team in Glendale Arizona.

Right now I believe they are content with being in Quad B only because it keeps them located in Glendale, but in the future without a doubt in my mind they would want to be in Quad D., For example, the Chicago Blackhawks have the highest attendance rating, and they have won the Stanley Cup three out of the last six seasons. This shows their popularity with attendance and their success as a franchise by winning. Anytime you are successful you will draw more fans and revenue.

Does the current positioning of the organization correspond to its vision and mission statements? Support your answer.

The current position of the organization does not correspond to its vision and statements. They do not want to be in debt and do not want to have the lowest attendance rating in the National Hockey Leauge. In 2016, the Arizona Coyotes named twenty-six-year-old John Chyka as their new general manager. He is the youngest general manager in National Hockey Leauge History (Gaines, 2016). They hired John to help the team pick the best “bang for your buck” players, using his statistical strategies. This was a bold but effective move in order to try and put a successful team on the ice with the hopes that more fans will come to the games causing more revenue. This proves that they are not content with the way the organization has been run, and they will not be satisfied with the bottom of the National Hockey Leauge.

References

Gaines, C. (2016, May 5). Phoenix coyotes’ new GM is reportedly a 26-year-old “analytics guru” who co-founded a hockey statistics firm. Retrieved February 1, 2017, from Business Insider, http://www.businessinsider.com/phoenix-coyotes-promote-wiz-kid-to-gm-2016-5

Garofalo, P., & Waldron, T. (2012). If You Build It, They Might Not Come: The Risky Economics of Sports Stadiums. Retrieved February 1, 2017, from The Atlantic, http://econ2.econ.iastate.edu/classes/crp274/swenson/URP290/Readings/If%20You%20Build%20It,%20They%20Might%20Not%20Come_%20The%20Risky%20Economics%20of%20Sports%20Stadiums%20-%20Business%20-%20The%20Atlantic.pdf

HockeyDB: NHL Attendance. (n.d.). Retrieved February 4, 2017, from (http://www.hockeydb.com/nhl-attendance/att_graph_season.php?lid=NHL1927&sid=2016).