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).

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One thought on “E+E Assignment – Arizona Coyotes

  1. This is a good start. You will need to be sure to support your assertions with references. I am also concerned about how you are defining efficiency and effectiveness here. Efficiency deals with costs associated with output, which I get the attendance correlation, however, you may want to find something else that looks at the costs associated with the team for efficiencies. For effectiveness, you discuss offset costs by the local community, which may fit better when discussing efficiency. Effectiveness is determined by whether the organization is able to achieve their goals. So if their goal is to make money, then they are not effective and I would give them a 1 on the chart, but if they have other goals then you need to discuss whether they are effective at achieving them. There were a few places where you did not reference a source and should have (see quote). This company is NOT a mass producer… Side note: Arizona coyotes does not = ice hockey in my mind; no wonder they have problems. 😉

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