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Organizational Management Task 2

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Submitted By egypt2006
Words 2474
Pages 10
Emily Wadman
Organizational Management
Task 2

A1. The Utah Symphony and the Utah Opera have combined into one company. Anne Ewers is the new leader of the combined companies. This paper will help her in the development of a new strategy to look at the success of the merge. The Utah Symphony is a group II orchestra. This is based on the level of expenditures every year. In the year of 2001-2002 the average expenses were around 8.8 million for group II orchestras. The Symphony spend around $12.2 million for that year. The Utah Symphony was in the top orchestras in the United States. Even though the symphony had a lot of money the financial state was declining. The musicians were part of a union. They were negotiating their contracts for higher salaries, benefits, and pay increased. The revenue was expected to increase but it was offset by the increase in expenses. The cash balance for that year was $116,308 and it projected to $2,042 for the following year. This was considered another financial weakness. For the start of the merge to be successful Anne needs to have a plan. She can start out by fixing the musicians salaries. She needs to look at the last negotiation and come up with a new contract. She can show the musicians the income statements and explain to them that if they want a raise it could determine the life of the organization. This organization is very dependent on cutting costs and increasing revenue. One way to cut costs is to lower wages. She can show them that the company will not be able to succeed at a surplus if expenses continue to increase. This is a temporary fix or worst-case scenario that wages could be decreased. The musicians will learn that the success of the symphony and keeping their jobs are dependent on each other. As to the increasing expenses offsetting the revenue Anne can look into the fundraising

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