In 2010, Ticketmaster found out the hard way that the
entertainment industry is not, in fact, as recession-proof as
it was once widely believed to be. Th e company, which sells
tickets for live music, sports, and cultural events, and which
represents a signifi cant chunk of parent company’s Live
Nation Entertainment’s business, saw a drop in ticket sales
that year of a disconcerting 15 percent. Th en there was the
mounting negative press, including artist boycotts, the vitriol
of thousands of vocal customers, and a number of major
venues refusing to do business with Ticketmaster.
Yet 2012 has been more friendly to the company—under

the leadership of former musician and Stanford MBA-
educated CEO Nathan Hubbard, who took over in 2010

when Ticketmaster merged with Live Nation, the country’s
largest concert promoter. Th ird-quarter earnings were
strong, with just under $2 billion in revenue, a 10 percent
boost from the same period last year, driven largely by Live
Nation’s ticketing and sponsorship divisions. Ticketmaster
was largely responsible as well, thanks to the sale of 36 million
tickets worth $2.1 billion, generating $82.1 million in adjusted
operating income, which translates to an increase of
51 percent for the year.
Th at’s because Hubbard knows how to listen, and read the
writing on the wall, “If we don’t disrupt ourselves, someone
else will,” he said, “I’m not worried about other ticketing
companies. Th e Googles and Apples of the world are our
competition.”
Some of the steps he took to achieve this included to
the creation of LiveAnalytics, a team charged with mining
the information (and related opportunities) surrounding
200 million customers and the 26 million monthly site visitors,
a gold mine that he thought was being ignored. Moreover
Hubbard redirected the company from being an infamously
opaque, rigid and infl exible transaction machine for ticket
sales to a more transparent, fan-centered e-commerce
company, one that listens to the wants and needs of customers
and responds accordingly. A few of the new innovations rolled
out in recent years to achieve this include an interactive venue
map that allows customers to choose their seats (instead of
Ticketmaster selecting the “best available”) and the ability to
buy tickets on iTunes.
Hubbard eliminated certain highly unpopular service
fees, like the $2.50 fee for printing one’s own tickets, which
he announced in the inaugural Ticketmaster blog he created.

Much to the delight of event goers—and the simultaneous
chagrin of promoters and venue owners, who feared that the
move would deter sales—other eff orts toward transparency

included announcing fees on Ticketmaster’s fi rst transaction-
dedicated page, instead of surprising customers with them at

the end, while consolidating others. “I had clients say, ‘What
are you doing? We’ve been doing it this way for 35 years,’”
Hubbard recalled, “I told them, ‘You sound like the record
labels.’”
Social media is an integral part of listening, and of course,
“sharing.” Ticketmaster alerts on Facebook shows friends of
purchasers who is going to what show. An app is in the works
that will even show them where their concertgoing friends
will be seated. Not that it’s all roses for Ticketmaster—yet.
Growth and change always involve, well, growing pains,
and while goodwill for the company is building, it will take
some time to shed the unfortunate reputation of being the
company that “everyone loves to hate.” Ticketmaster made
embarrassing headlines in the fi rst month of 2013 after
prematurely announcing the sale of the president’s Inaugural
Ball and selling out a day early as a result, disappointing
thousands. But as the biggest online seller of tickets for
everything from golf tournaments to operas to theater to
rock concerts, and with Hubbard’s more customer-friendly
focus, Ticketmaster should have plenty of opportunity to
repent their mistakes.

Questions

How did Mr. Hubbard select his most desirable alternative? Describe which type of Decision Making he used, and explain your findings.

Were the recent decisions that Mr. Hubbard made effective, according to the concepts in Chapter 7 – Decision Making? Explain your response.

• Discuss the difference between economic value and social value or the shared value creation framework.
• Why do you think organizations tend to focus on the creation of one type of value, but not both?

CASE: SUPPLY CHAIN MANAGEMENT

Pierre’s Kitchen

Pierre’s Kitchen manufactures utensils and gadgets for the cooking enthusiast. Pierre’s products are sold throughout North America, predominantly through kitchen and home specialty stores. Like most producers and suppliers of consumer specialty products, Pierre’s must cope with large seasonal variation in demand. This is easily seen to relate to seasonal variation at the retail stores,

One of Pierre’s top-selling product families is its line of 78 different gourmet kitchen knives. The knives have received praise for their comfort in the hand and their ability to hold an edge. Pierre’s credits the popularity of its knives to the steel used in their construction. Pierre’s has always utilized the finest Swedish steel for its blades. The steel used in those knives is the source for nearly all of purchasing manager Robin Benton’s aggravation.

Robin orders steel for knives at the beginning of each month. By the time it is transported to port, shipped to the US, and trucked to the Pierre’s Kitchen plant, it takes just over five weeks to get it. Robin determines order quantities by projecting retail demand for each knife model over the next month, translating those forecasts into steel requirements, and then summing the requirements across the 78 knife models. That forecast for each knife model is based on the sales that occurred the previous month. Pierre’s supplier of steel recently threatened to increase its prices during the next contract period to cover increasing expenses it claims are the result of the wide fluctuations in order quantities from Pierre’s.

Robin has examined her forecasts and orders for knife steel and admits that the orders fluctuate dramatically from month to month. This results from fluctuations in individual store demand, which in turn results from promotions and sales at the store level. When confronted with this information, sales manager Jaylen Cooper responded, “It’s true that sales at individual stores fluctuate, but when I look at month-to-month sales across an entire chain of retail stores, the demand only fluctuates about 10 percent. The only exception to this is the inventory build-up at Christmas time.” Robin’s examination of the actual sales data confirmed Jaylen’s report.

1. Explain all possible causes of the demand fluctuation at the supplier.

2. For each possible cause, identify a reduction strategy that is within Robin’s control.

3. Is this bullwhip effect? Explain.

4. What types of communications enhancements would help reduce the problem?

You and a close friend are taking a math class together. Three hours before an important test, your friend (who is close to failing and needs this class) texts you that she has a copy of the test (she says she got it from someone who found it in the copy room), but doesn’t know how to work the problems. She wants you to meet her and help her work through the problems. In answering, remember that this is your class also and that this is a close friend. Do you help her? What are your considerations in deciding what to do?

Discussing health and good nutrition with parents can be a challenging topic to address. If a child has been diagnosed as overweight or obese by a pediatrician, how can this issue be discussed as a critical topic yet in a way that does not forthrightly offend parents or their child?

Please construct a list of 10 'Internal' Strengths and Weaknesses for Microsoft?

using the business model canvas to analysis the key activity of a sensor in a smart trash bin

Researching deniliquin ethanol plant.

Describe stakeholders - roles & interests of the development of Deniliquin Ethanol Plant.

Explain the Second Act concept obtaining to job transitions.

Eskom is a power company conglomerate in the South Africa and operates several power plants throughout the region, a few of them nuclear power plants. Needless to say, the public is concerned with emissions in the air surrounding these plants. Examine what public opinion means and critically discuss the questions the public relations specialists at Eskom must understand about public opinion before deciding on an appropriate campaign.

Explain the role ethos, logos, & pathos play in persuasive speeches

Please explain the process of an evaluation of on-the-job training, as well as pre-departure training. If there are more ways of doing an evaluation, please cover in detail at least one that is applicable for both on-the-job training and pre-departure training in human resource management.

What was the influence tactic that Carl used to convince the Prairie Health Services Board of Directors to approve the software purchase? Plus Discuss the ethics of Carl’s professional behavior.

It had been a long week and it was only Tuesday. At 2:30 p.m. on a Tuesday afternoon in Prairie City, a small town located in a rural area in the upper Midwest, all indications were that this was going to be a difficult week. Ann Smith, the new clinic administrator for Prairie Health Services, had just finished taking her third call from a frustrated patient and each of the calls was related to Prairie Health Services’ multiple billings. What the patients did not understand was that Prairie Health Services had four divisions: hospital, clinics, nursing home and nursing service. Although they were housed together, each division functioned independently and had separate billing processes.

Over the years, Prairie Health Services had grown from a small county-owned hospital to an organization that provided a broad range of services, operating a community clinic and a satellite clinic, a nursing home, and a home healthcare agency in addition to the hospital. It was that growth and the comprehensive range of services that had first attracted Ann to the position of clinic administrator.

When Ann accepted her position two months ago, the CEO and chairman of the board had charged her with reducing clinic losses. As a result, when she was not fielding calls from frustrated patients, she spent much of her time working on reducing the time from providing service to receiving payment for service,reducing bad debt and increasing cash flow. She was also beginning to realize that the multiple billing issue was just one aspect of the problems faced by Prairie Health Services and one of many reasons that monthly financial reports continued to show losses.

Ann decided to raise the issue of multiple billing the following day at the monthly administrators’ meeting.At that meeting, she learned that the other division administrators (Nick Hamm, nursing home administrator; Bonnie Little, nursing services director; and Carl Nord, CEO and hospital administrator) had also been receiving patient complaints about multiple bills. During the course of their discussion, Ann learned that Nick, Bonnie, and Carl were also extremely concerned about the continued viability of their Prairie County-owned healthcare facility, which had been bleeding financially for some time.

The division administrators and their staff knew that the information technology environment at Prairie Health Services provided basic system functionality at best, and was outdated at worst. The software packages used by each of the four divisions were entirely separate from the software used by other divisions, and any data transfer from one system to another had to be accomplished manually. Each division was required to enter all the patient demographic and insurance information. This was not only inefficient; it resulted in duplication of effort and in creased the likelihood of inaccurate information due to clerical error. It was also inconvenient for those patients who were seen on the same day by two or more divisions. They were required to repeat their demographic and insurance information two, three, or even four times in a single day. Ultimately, lack of integrated technology was one of the primary reasons that Prairie Health Services was incurring large losses.

Ann, Nick, and Bonnie wanted to integrate and update their information technology with a software package that had the capability to link all four divisions in order to increase efficiency and timeliness, and ultimately to reduce financial losses. Carl agreed to present the administrators’ concerns to the board of directors and propose a capital expenditure for a new software system. The board of directors was supportive of this capital investment because board members had also received complaints from patients regarding the multiple bills.

EGOS AND COUNTY POLITICS COLLIDE

The political nature of the organization’s governance added yet another layer of complexity for administrators. The board of directors of Prairie Health Services was comprised of the five elected Prairie County commissioners and two board-appointed community members — most of them small farmers or small businessmen whose families had lived in the county for generations. Their intentions were good, butt hey had little formal business background and were ill equipped to oversee what had become a complex,comprehensive healthcare system. Although Carl was the CEO, he was not originally from Prairie County,and members of the board often bypassed him to speak with Nick or Bonnie,who had both grown up in local communities.

It had not taken Ann long to see that the relationship between Carl and the division administrators was strained. The fact that board members sidestepped Carl in their efforts to understand the financial issues of their healthcare system left Carl feeling angry and in secure. He perceived this as a subversion of the chain of command and forbade Nick, Bonnie and now Ann from talking with board members unless he was present. In fact, while Nick, Bonnie and Ann were expected to attend all board meetings, they kept their opinions to themselves, allowing Carl to speak about anything related to Prairie Health Services. In spite of his insecurity, Carl was politically astute and skilled at verbal manipulation. This meant that his presentations to the board were not always entirely forthright. It also meant that Ann, Nick and Bonnie faced ethical challenges. By keeping silent, they gave tacit approval to Carl’s questionable behavior, but they were too intimidated by him to speak out.

CARL’S POWERS OF PERSUASION

The process of searching for potential software vendors was complex, and despite the fact that he was the CEO and hospital administrator, Carl declined to participate in the process. His explanation was that he did not understand information technology. Instead, he asked that Ann, Nick and Bonnie gather all the necessary preliminary data and make recommendations to him. After several months of research, the administrative team determined that five software companies had products with the capabilities to integrate the four Prairie Health Services divisions. Representatives of these software companies each came to Prairie City for two days to demonstrate their software to the administrators and support staff. Carl was absent from the demonstrations, but met privately with representatives from each of the firms. Most of these meetings were held in his office to discuss the costs and implementation process associated with purchasing particular software pack ages. However, the representatives for Southern Healthcare Software also entertained Carl at private dinner meetings at a local upscale dinner club.

Following the interviews and demonstrations, Ann, Nick and Bonnie determined that two vendors (Pine and Prairie Software, headquartered in the same state as Prairie County, and Southern Healthcare Software, headquartered in a Gulf Coast state) had appropriate integrated software packages that were also in line with what the organization could afford to pay. While neither package met all the specifications of Prairie Health Services, Pine and Prairie Software, with a price of $550,000, was more user-friendly, more closely matched Prairie Health Services’ needs, and was Windows-based. Southern Healthcare Software was judged to be more cumbersome and less flexible, seemed to be somewhat outdated as well as a step down from current software, and was not Windows-based. However, Southern Healthcare Software claimed to have the ability to integrate all four divisions, although it appeared to be best suited for hospital use. The cost of Southern Healthcare Software was $750,000.

Ann, Nick and Bonnie spent approximately two months evaluating both software proposals. They talked with administrators of other healthcare organizations that used either Pine and Prairie Software or Southern Healthcare Software and determined that their clear preference was for the adoption of the Pine and Prairie Software product and implementing a gradual integration of the divisions to ensure a successful transition from four unique software systems to one.

At the same time, representatives of Southern Health care Software returned to Prairie City several times and had further private dinner meetings with Carl. Based on these meetings, he determined that Prairie Health Services should adopt Southern Healthcare Software. He was in favor of an immediate integration of all four record-keeping systems, despite the fact that, admittedly, he did not understand information technology, the challenges that an immediate integration could present, nor the resources required to accomplish the task successfully.

Once Carl’s relationship with Southern Healthcare’s salespeople became known to his administrative staff, it was obvious that he was going to recommend purchasing Southern Healthcare’s software regardless of what his administrative staff’s recommendations were, even though the administrative staff had actual expertise. Despite the expressed preferences of the majority of administrators and staff of Prairie Health Services, Carl recommended Southern Healthcare Software to the board of directors. He also made it clear that he expected the unqualified support of the Prairie Health Services administrators.

Carl knew that he had to play his hand carefully in order to ensure that the board would adopt his software preference without question. In his presentation, he highlighted the fact that some of the software packages reviewed had cost well more than $1,000,000. He did not, however, indicate that the Pine and Prairie Software bid came out at $200,000 less than the $750,000 Southern Healthcare Software bid. Further, he neglected to state that the administrators and staff had overwhelmingly preferred the Pine and Prairie Software. On the contrary, he was adamant that the Southern Healthcare Software was the best fit for Prairie Health Services.

What are the challenges that you have encounter in implementing the decision making in the case?

What are the solutions that you have taken into consideration of reducing the challenges?

What are the 4 decision making styles leaders can take to make a decision? And in your opinion, what is Ann Smith’s leadership style?​​​​​​​