Free Essay

Case Study Analysis Part a: “Power Play for Howard”

In: Business and Management

Submitted By rico55pr
Words 701
Pages 3
Case Study Analysis Part A
Team C
August 14, 2012
MGT/445
Steve Knabe

Case Study Analysis Part A Benefits Costs Risks
Party Tangible Intangible Tangible Intangible Tangible Intangible
Juwan Howard Heat:
$95.2 mil contract including $6 mil in bonuses, hotel suites, limo services, $5000 toward charitable cause

Bullets: 1st offer - $84 mil contract
2nd offer - $100.8 mil contract plus $4.2 mil to cover tax expenses Heat:
Possibility of winning a $100+ mil contract, living in a lavish home with elevators, and receiving “special treatment”

Possibility of expanding his fan base

Possibility of expanding his brand

Bullets: Ability to remain in Washington, which is his home

If Howard accepts the initial offerings from Unseld, his salary would be significantly lower than if he were to accept the Heat’s proposal

Howard would forfeit the special treatment privileges by accepting the Bullets’ offer Accepting the Heat’s proposal would result in Howard leaving the place he calls home

Howard would leave his fan base in Washington $50 mil pay cut if he chose to remain with the Heat during arbitration

Accepting the initial proposal from Unseld would have resulted in a below-average salary

Leaving the Bullets could result in a smaller fan base, which would affect revenues and marketing

Possibility of no contract with the Bullets or the Heat. No contract, no income Leaving Washington may negatively affect his fan base

Howard may regret moving to Florida if he dislikes the coach, team, or state

Media/Fan backlash Benefits Costs Risks
Party Tangible Intangible Tangible Intangible Tangible Intangible
Wes Unseld Howard will increase the likelihood of wins, which increases the team’s budget

Howard will bring revenues to the Bullets through advertising and marketing

Bullets will profit from licensing of Howard’s name and number on gear and memorabilia

Bullets have not won in nine years, Howard could help the Bullets win within his 7-year contract

Washington coach can strengthen the team by keeping Howard on the team

Howard can help strengthen other team members who have potential

Satisfying fans

Howard may attract potential recruits to the team

The Bullets promised the fans that the team would do whatever it took to sign Howard. The final contract will cost the team $100.8 million dollars.

Final 100.8 mil contract and $4.2 mil to cover tax expenses

Loss of profits from Howard’s fans

Loss of profits from fans who disagree Disgruntled team members viewing Howard’s contract as unfair

Fan/Media backlash

Possibility of team members quitting the Bullets because of the controversy surrounding Howard’s contract

Being labeled as a liar for not fulfilling the promise of doing “whatever it takes” to retain Howard

Over-paying Howard and the team does not improve

Washington coach may be unable to pay Howard what he is truly worth

Losing revenues from licensing and promotions through Howard

Losing Howard’s fan base, which contributes to revenues through tickets and merchandise

Fan/Media backlash

Losing Howard to a competing team

Howard can get and bench for a season

Losing Howard’s fan base

Being labeled as a liar for not fulfilling his promise to retain Howard

Disgruntled fans

Benefits Costs Risks
Party Tangible Intangible Tangible Intangible Tangible Intangible
Pat Riley With a winning player, it I likely the team will have more wins. This would result in higher budgets

Acquiring a larger fan base, which contributes to the team’s revenues

Licensing Howard’s name for gear and memorabilia will generate profits

Higher probability of winning

A stronger team

Larger fan base

$95.2 mil contract, $6 mil in bonuses, cost of hotel suites and limo services, game tickets, and $5000 to Howard’s charity work

Cutting salaries of other players to avoid exceeding the salary cap

Attorney fees

Fines and jail time for exceeding salary cap Views of the Heat team as participators in unethical negotiations

Tarnished brand and reputation

Perceptions of favoritism

Fan/Media Backlash

Loss of fan base

Investing a significant amount of money into a player who does not perform

Appearance of valuing Howard more than current team members because of exclusive hotel suites and limo services

Fan/Media Outrage

Fines

Jail time

Loss of Howard to a competing team

Unlikely to regain Howard during arbitration

Similar Documents

Free Essay

Case Study Analysis Part a: Power Play for Howard

...Case Study Analysis Part A: “Power Play for Howard” Learning Team B Maria del C. Perez MGT/445 February 20, 2012 Dr. Anne Hallcom Case Study Analysis Part A: “Power Play for Howard” In the case study of “Power Play for Howard,” Juwan Howard, a free agent basketball player is looking to begin negotiations to obtain at least a $100 million dollar contract for his services. As a Washington Bullets team current player, his manager extends an invitation to this team first. He receives an offer from their organization; it is far below what he is looking to obtain. He decides to look elsewhere. Miami Heat offers him a deal that was too good to be true. They offered $100.8 million, seven-year contract with nice incentives; Juwan Howard agrees to their terms and signs their contract. Prematurely, there is excitement by the new agreement that he thinks is binding (Asher & Brubaker, 2007). The Bullets’ General Manager, Wes Unseld would soon hear back that the contract was invalidated by the basketball league in which they were governed by. The forward, Howard would continue with the Washington Bullets although arbitration takes place. In the end, the decision is made in favor of the Washington Bullets. In this paper, Learning Team B will take the reader through the tangible and intangible benefits, costs, and risks that took place for Juwan Howard, the Miami Heat, and the Washington Bullets- who would later to be known as the Washington Wizards...

Words: 1743 - Pages: 7

Free Essay

Case Study Analysis Part a: Case 3, Power Play for Howard

...Case Study Analysis Part A: Case 3, Power Play for Howard Las negociaciones pueden ser muy complejas e implican varios niveles de costos y riesgos. Los beneficios tangibles e intangibles deben ser evaluados antes de tomar una decisión final. La negociación para el contrato de agente libre Juwan Howard con los Miami Heat y los Washington Bullets es un buen ejemplo de que tan complejas pueden ser las negociaciones. Tanto la negociación distributiva y la negociación integrativa se utilizaron para llevar las negociaciones hasta el cierre. En el siguiente ensayo se muestran los beneficios tangibles e intangibles, los costos y los riesgos que estaban asociados en el contrato de agente libre Juwan Howard serán evaluados desde la perspectiva de Juwan Howard y más allá de los gerentes de ambos equipos en general. En resumen del caso, Juwan Howard, un jugador respetado en la National Basketball Asociation (NBA), es un agente libre y se encuentra en una situación que requiere de varias negociaciones antes de firmar un nuevo contrato, ya sea con los Miami Heat o los Washington Bullets. Cuando llega la conmoción comienza una guerra de 30 días la cual incluye un contrato inválido. En su segundo año en la temporada de 1995-1996 de la NBA, Juwan Howard fue reconocido como súper estrella en los Washington Bullets. La quinta selección en el Draft de la NBA Rookie 1994 fue cortejado por muchos equipos de inmediato cuando estaba a punto de ser un agente libre en la temporada del 1996-1997...

Words: 1970 - Pages: 8

Premium Essay

Case Study Analysis Part a: Case 3, “Power Play for Howard”

...Power Play for Howard Organizational Negotiations – MGT/445 Power Play for Howard In the National Basketball Association (NBA), players and teams negotiate multi-million dollar contracts every year. The risks, costs, and benefits of each potential decision affect the outcome of the negotiations. In the negotiation for Juwan Howard prior to the 2002-2003 season, the Miami Heat and the Washington Bullets attempted to secure a contract with the basketball star. Summarizing the Juwan Howard negotiation case, followed by an analysis of the benefits, costs, and risks for the player and the teams highlights the advantages and challenges faced in a high-profile negotiation. Case Summary This case describes the negotiation process of Juwan Howard, free agent forward of the Washington Bullets, by his agent David Faulk. Faulk’s objective was to solicit a $100 million contract offer for his star player. Wes Unseld, manager of the Washington Bullets, offered a seven-year, $78.4 million contract. Faulk refused Unseld’s offer. In an attempt to gain Howard for themselves, Miami Heat manager Pat Riley offered $100.8 million, luxury hotel suites, and limousine service. The Heat prevailed, and Howard signed. However, a dispute arose between the Miami Heat and the National Basketball Association (NBA). NBA officials concluded that the Heat had exceeded the salary cap set by the NBA. Because of this dispute, the Washington Bullets obtained another chance to bid for Juwan Howard. The...

Words: 1199 - Pages: 5

Premium Essay

Management

...forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Cellich, C., & Jain, S. C. (2004). Global business negotiations: A practical guide. Mason, OH: Thomson/SouthWestern. Coltri, L. S. (2004). Conflict diagnosis and alternative dispute resolution. Upper Saddle River, NJ: Prentice Hall. Lewicki, R. J., Saunders, D. M., & Barry, B. (2006). Negotiation (5th ed.). Boston, MA: McGraw Hill. Lewicki, R. J., Saunders, D. M., & Barry, B. (2007). Negotiation: Readings, exercises, and cases (5th ed.). Boston, MA: McGraw Hill. All electronic materials are available on the student website. Week One: Introduction to Negotiation Details Due Points Objectives 1.1 Explain key negotiation concepts...

Words: 901 - Pages: 4

Free Essay

Miami School District

...Running head: CASE STUDY ANALYSIS PART A: “POWER PLAY FOR HOWARD” Case Study Analysis Claire Henry, Kathy Addison, Jeremy Seay, Jacinta Little MGT/445 August 13, 2010 Case Study Analysis Negotiation is a mutual place where conflict management and conflict resolution takes effect. For example, Juwan Howard was only 23 years old, when he was drafted into the National Basketball Association. Juwan was known for a hard working man, which acted responsibly with dignity and class, off the basket ball court and everywhere. During 1996 and 1997 in his sophomore season, besides becoming a Superstars, he was the highest paid basketball among other players, but the NBA voided his contract soon after. Howard had no choice but to return to the Bullets, signing a contract for seven-year that was worth $100 million. During this case study, the learning team B will evaluate the costs, benefits and risk of negotiation from the perspective of all parties associated with the case study analysis of “Power Play for Howard”. Case Summary The Miami Heat felt that having Juwan Howard on their team would take them to victory since they had not win for the last 6 years. Juwan Howard talent would definitely increase the chances of having a good year in winning. However, keeping Alonzo Mourning another talented player was important to the team also, therefore, Riley promised him “ to make him the highest paid player on the team” which conflicted with Howard’s contract. The NBA...

Words: 2526 - Pages: 11

Premium Essay

Mgt 445

...|[pic] |Course Design Guide | | |School of Business | | |MGT/445 Version 1 | | |Organizational Negotiations | Copyright © 2009, 2006 by University of Phoenix. All rights reserved. Course Description This course provides an overview of negotiations in an organizational setting. Students learn negotiation processes and strategies, the role of stakeholder interests in negotiation, and how to apply these concepts to the workplace. Students also examine conflict management techniques and emerging negotiation trends in globalization and technology. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies...

Words: 2082 - Pages: 9

Free Essay

Case Study Analysis

...Case Study Analysis Part A (“Power Play for Howard”) James Carruthers, Matthew Chouinard, Amber Hawes, Mike Knowlton, and Shellie Mapes MGT/445 March 21, 2011 Dr. Michael Charter Case Study Analysis Part A (“A Power Play For Howard”) Every year, hundreds of millions of U.S. dollars are verbally tossed back and forth during negotiation talks between teams and players. The contract of a player expires and the player may be traded for another player, or essentially bought by another team. The value of a player greatly depends on (a) his playing power and (b) his fan base. In the case of Juwan Howard, a player for the Washington Bullets/Wizards, both his playing power and fan base made him a wanted player by many teams when his contract with Washington expired in 1996. Negotiations became heated, particularly between Miami and Washington, until a miscalculation in the negotiation terms resulted in Howard signing with Washington for another term. Case Summary Juwan Howard was a professional basketball player in the National Basketball Association (NBA) and was looking to renegotiate his contract with his then-current team, the Washington Bullets. This would give Washington the first chance to make an offer. He had the option to renegotiate after 2 years and decided to do so. Washington's new general manager, Wes Unseld, made an original offer of 78.4 million dollars. This was not satisfactory as the open market had determined his worth much higher...

Words: 1921 - Pages: 8

Free Essay

Juwan Howard Case Study

...Case Study Analysis Part A: Case 3, "Power Play for Howard" MGT 445 4/25/12 Power Play for Howard In this assignment Team C will briefly summarize the case of Juwan Howard. Next, Team C will evaluate the benefits (tangible and intangible), risks, and costs associated with negotiating Juwan Howard’s free agent contract. Afterwards, we will provide a brief conclusion. The Overview As kids we have dreams and aspirations of growing up making it big in our profession of choice while making lots of money. According to most children, their dreams range from a number of professions including; Doctors, Lawyers, Teachers, Police, Firefighters or even becoming a professional athlete such as Michael Jordan and Juwan Howard. In the 1990’s, most kids wanted to be like “Mike”. Michael Jordan’s name was a household name, and a major brand for marketing worldwide for Nike. Most NBA players’ career salaries would not even come close to Michael Jordan’s endorsement income from the late 80’s through the 90’s. In our opinion, Michael Jordan was clearly underpaid when he played basketball. It wasn’t until later in his career that he signed the biggest NBA contract of all time paying $30 million a year. Jordan set the bar for young superstar NBA players such as Juwan Howard to sign multi-million dollar contracts in the late 90’s. Juwan Howard’s story was a little different from Michael’s. He signed two contracts over the course of his career totaling $205 million. This type of money is...

Words: 1212 - Pages: 5

Premium Essay

Syllabus Mgt445

...|[pic] |Syllabus | | |School of Business | | |MGT/445 (3 Credits)Version 1 | | |Organizational Negotiations | | |Puerto Rico Campus | Copyright © 2009, 2006 by University of Phoenix. All rights reserved. Course Description This course provides an overview of negotiations in an organizational setting. Students learn negotiation processes and strategies, the role of stakeholder interests in negotiation, and how to apply these concepts to the workplace. Students also examine conflict management techniques and emerging negotiation trends in globalization and technology. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: University policies: You must be logged into the student website to view this document. Instructor policies: This document is posted...

Words: 2010 - Pages: 9

Premium Essay

Starbucks

...Europe (Let us not waste paper, please continue writing your assignment from below) Table of Contents Executive Summary 3 Industry structure – Porter five forces analysis 4 Company background 5 Globalization strategy [1995-2008] 9 Performance in EMEA 11 Findings and analysis 13 References 27 Executive Summary This study is focused on Starbucks, the world’s largest coffeehouse company. The company has the knack of finding the magic formula for every aspect – be it customer satisfaction, innovative marketing or smart partnerships. Given the brilliant performance that Starbucks found in the US, success should have been a foregone conclusion in other geographies as well. Despite all the positives, it could not replicate the same degree of success in Europe as it enjoyed in the US. This study has analyzed the factors which might be held accountable. The aggressive policy of opening stores worldwide to achieve inimitability of its business model, loss of control over the cost of operations, the stock market’s notional correlation of success with number of stores, over-reliance on Seattle management causing a lack of decentralization of key decision-making power in multi-domestic locations and ill-founded belief in changing customers’ habits worldwide have been some of the internal factors. Externally, the factors were the public perception of the company as a symbol American...

Words: 4723 - Pages: 19

Premium Essay

Broken Family

...Delinquency 1 The “Broken Home” or Broken Society A Sociological Study of Family Structure and Juvenile Delinquency By Hillary R. Sheehan Advised by Professor Chris Bickel SocS 461, 462 Senior Project Social Science Department College of Liberal Arts CALIFORNIA POLYTECHNIC STATE UNIVERSITY Winter, 2010 © 2010 Hillary Sheehan Delinquency 2 TABLE OF CONTENTS Chapter Page Research Proposal…………………………………………………………………………3 Annotated Bibliography…………………………………………………………………...5 Outline……………………………………………………………………………………10 Abstract…………………………………………………………………………………..14 Introduction………………………………………………………………………………15 The “Broken Home”: Truth or Trend……………………………………………15 Statistics on Single-Parent Families and Juvenile Delinquency…………………21 Case Study……………………………………………………………………….23 Theories…………………………………………………………………………..27 Criticisms………………………………………………………………………...32 Conclusion……………………………………………………………………….34 Bibliography……………………………………………………………………………..36 Delinquency 3 Research Proposal The goal of this research paper is to explore the topic of juvenile delinquency and to analyze the cause of such behavior. The topic of most interest is how the family structure plays a role in delinquent behavior and what can be said about the so called broken home. There is a lot of research in criminal justice that tries to explore the reasons behind people’s behavior and this paper is intending to address youth who have been involved in the system. By exploring this topic I hope to get a better...

Words: 9153 - Pages: 37

Free Essay

Issues Management

...ISSUES MANAGEMENT Crisis management, at its best, is crisis avoidance. Crisis avoidance involves excellent issues management. Introduction Cigarette smoking, global warming, the future of the rain forest, obesity, healthcare costs, DNA, intensive farming, child labour; these are just a few of the subjects that have influenced the way in which business operates over the past 30 years. Issues management practice is the “identification, monitoring, and analysis of trends in key publics’ opinions that can mature into public policy and regulatory or legislative constraint of the private sector” We will argue that the successful issues manager recognises when an issue had changed or has the power to change the context in which business operates; is able to pinpoint a specific threat or opportunity to a specific industry, company or product, in a specific part of the world at a specific point in time; and can execute a series of actions to do something about it while remaining vigilant for any shifts in interpretation that need new thinking. Issues Management: defining the field What is an Issue? It will come as no surprise to discover that there are many definitions of an issue. Chase and Jones describe an issue as “an unsettled matter which is ready for decision.” Others suggest that, in its basic form, an issue can be defined as a point of conflict between an organization and one or more of its audiences. A simple definition that we like to use is that an issue represents...

Words: 4164 - Pages: 17

Premium Essay

Futher

...Office Phone: (213) 740-0378 FAX: (562) 439-2250 Home Phone: (562) 438-4359 E-Mail: myrtle@usc.edu Office Hours: By Appointment Only Office Location: Lewis Hall 301e Course Description Application of principles of health administration in several practice settings. Decision making, strategic management, organizational performance, communication, and provider comparisons. Introduction This course is designed to be the capstone course for the Master of Health Services Administration degree. It assumes that the student is in the final semester of graduate work and has successfully completed course work in health issues and policy, health economics, financial management, organizational behavior, quantitative analysis, and health law. The title of the course and its description has been instrumental in shaping the focus of this course and the material to be covered. My particular emphasis will be on management strategy within the context of current theory and practice. We will introduce new concepts, develop and refine old ones, expand upon your theory of management and organizations, and examine present and emerging practices. The course activities have been designed to bridge the gap between theory and practice and strengthen...

Words: 5375 - Pages: 22

Premium Essay

Cybersecurity

...Cyber Security by American Military University Professor Derrick Thomas June 22, 2014 Cyber security is a difficulty that everyone faces in today’s society. It is defined in a variety of ways by many. One definition is that cyber security focuses on protecting computer networks, systems, data, and programs from unwanted access. Cyber security is sometimes referred to as information security, information network security, cyberspace security, or even computer security. There are many viewpoints by highly educated people on cyber security but the purpose of this paper is to tell my viewpoint on the subject. Every aspect of a persons life has some sort of cyber dimension. People paying for bills online, cloud computing, and even online gaming. This year in 2014, everyone is bombarded with news headlines that say cyber threats are up. Many of these headlines always include some kind of phishing attack trying to steal someones identity, a hacker that breached the network of a company, a new technique that attacks mobile devices like smart phones, or a government trying to monitor and take secrets from another government!!br0ken!! The concern for cyber security is now a real-world concern globally. The concern over cyber security is what is driving the governments worldwide to make it priority one on their list's now. This is so, because technology is growing at a very fast and continuous pace. The technology field itself is very vast and has much variety. Cyber security...

Words: 4041 - Pages: 17

Premium Essay

Leadership

...ranking number eight for “streaming itself into a $9 billion powerhouse” with 20 million subscribers. This success shows how he embraced a business approach where their mission was to take the troublesome experience of everyday consumers and transform them into a business opportunity. Hasting previously owed a company named pure software but later on sold it and get complete focused on Netflix. This report differentiates the leadership styles used by Hastings in Pure software and in Netflix. It also focuses that communication, conflict management styles & feedback play an important role for Netflix to be one of the successful company. Table of Contents Introduction1 Hidden principles and facts related to Hastin1 Recommendation for Netflix to increases delivery services7 Analysis and leadership paradigm7 Hastings Big Five model of personality leadership traits 8 University of Iowa leadership styles 9 Power, organizational politics, networking, and negotiation 10 Conclusion11 References 12 Introduction Netflix is a video streaming and DVD rental service that is widely used by 23 million people worldwide in March 2012. (Statistics Brain) Originally in 2005 Netflix was predicted to fail and it has since proven stock analysts wrong in that it has taken the world by storm. Reed Hastings is the founder and CEO of Netflix that brought it to its rising success as a video streaming industry leader. Hastings built the company with a hard-driving and risk-taking culture...

Words: 3904 - Pages: 16