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Jft2 Task 2

Analysis of Strategic Plans and Balanced Scorecard for merged Utah Symphony and Utah Opera

Business Summary of Action Plan for Anne Ewers

Before the merger, both the Utah Symphony and the Utah Opera organizations were dealing   with many financial and leadership issues. Anne Ewers will have to establish some effective strategies for managing the key financial and leadership strengths and weaknesses of a combined organization in order for the merger to be a success.

Utah Symphony’s financial strengths and weaknesses :
Financial Strength = Above average endowment, Increasing performance revenues
Financial Weakness = Increasing union wages,

One of the key financial strengths of the Symphony is their above average endowment fund. This endowment fund in 2002 stood impressively above the $10 million mark. This endowment amount was considered higher than the average endowment enjoyed by other symphonies nationally who share the same grouping as the Utah Symphony. This financial strength puts the Utah Symphony near the top of all Group II symphonies in the nation when compared to the average endowments of other Group II symphonies of about $8.8 million (Delong & Ager, 2005, p. 4).

Another key financial strength of the symphony was the projected growth in revenues from performances from the 2001 to 2002 seasons.   In 2001, performance revenues came in at $3,836,513 for the season, and were projected to grow at an annualized rate of 16% up to $4,516,308 (Delong & Ager, 2005, p. 15).   This projected   revenue increase is seen as significant for the overall financial health of the symphony and the promise it holds for its financial future as well.

A major financial weakness of the symphony is its inability to negotiate the union salaries of the musicians. All musicians are paid according to multi-year union contracts negotiated years earlier between the symphony’s board the American Federation of Musicians (AF of M).   This locked-in contract…



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