BSOP 209 Week 4 Case Study
Week 4 BSOP 209 Case Study
Southwestern University (SWU), a large state college in Stephenville, Texas, enrolls close to 20,000 students. The school is a dominant force in the small city, with more students during fall and spring than permanent residents.
Always a football powerhouse, SWU is usually in the top 20 in college football rankings. Since the legendary Bo Pitterno was hired as its head coach in 2003 (in hopes of reaching the elusive number 1 ranking), attendance at the five Saturday home games each year increased. Prior to Pitternos arrival, attendance generally averaged 25,000 to 29,000 per game. Season ticket sales bumped up by 10,000 just with the announcement of the new coachs arrival. Stephenville and SWU were ready to move to
the big time!
The immediate issue facing SWU, however, was not NCAA ranking. It was capacity. The existing SWU stadium, built in 1953, has seating for 54,000 fans. The following table indicates attendance at each game for the past 6 years.
One of Pitternos demands upon joining SWU had been a stadium expansion, or possibly even a new stadium. With attendance increasing, SWU administrators began to face the issue head-on. Pitterno had wanted dormitories solely for his athletes in the stadium as an additional feature of any expansion.
SWUs president, Dr. Joel Wisner, decided it was time for his vice president of development to forecast when the existing stadium would max out. The expansion was, in his mind, a given. But Wisner needed to know how long he could wait. He also sought a revenue projection, assuming an average ticket price of $50 in 2010 and a 5% increase each year in future prices.
1. Develop a forecasting model, justifying its selection over other techniques, and project attendance through 2011.
2. What revenues are to be expected in 2010 and 2011?
3. Discuss the schools options.
Southwestern University Football Game Attendance, 20042009
Attendee Opponen Attendee
Ohio State 39,200
Attendee Opponen Attendee
North Texas 50,100
Texas A&M 45,900
Prairie View A&M
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