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Case analysis frontier company

Case analysis frontier company

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Case Analysis Frontier Company

The adventure racing is a series of activities involving mixed team events, multi-day and multi-

sport. The objective of the competition is to be the leading team that will get each of their

members at the finishing line. The rule of the game was that the rivals pass through remote

routes without any aid from outside sources, hence the team that uses the best strategy and route

automatically wins the game. It is a requirement for each team to pass at the various checkpoints,

to successfully win the game. However, in case of injury the team could use their emergency

radios to call for help.

Frontier Adventure Racing is a young Company that carries business in that line of activities.

The major challenge that is facing the Company is the financial crisis that has saw it make losses

for four consecutive years. The Company’s president is in charge of organizing most adventure

races in Canada. In addition to its reputation at international level, there are some great products

from the Company, which has made it become a popular in the field. The Sport Network together

with Outdoor Life Network had a nice deal to the Company that entails television coverage for

two hours in the next Company’s race. The condition for the coverage involves paying for the

production cost. The situation has compounded the financial crisis at the Company since the deal

is vital for the Company’s visibility. The current situation at the Company cannot facilitate

payment for such costs. Some other challenges includes sourcing for new sponsors, bills for

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sponsorship and the perceived need for TV production whose cost is far above the normal cash

requirements. The problem has left the president in a very complex situation without possible

remedies.

Analysis of the Macro Environment

After the Company initiated the race, their revenue projection was positive with new members

entering the races. Zietsma attracted more participants by lowering the entry fee to about $1,400

per every team that wished to be considered. The cost covered for the thirty-six hours race. In

extreme races, the entry fee was increased to approximately $4,200 for each of the teams.

Comparing with other similar races in other locations the charges was $2,000 and $9000 for the

thirty-six hour and longer races respectively. The case with the British and the Ontario were

different since the latter races generated more revenues while those organized in British

Columbia continually lost profits. The losses were attributed to the travelling expenses for the

race staffs that were increasing at a higher rate. Other associated costs that sunk the profits

include equipment rental cost such as the cost of renting canoes or kayaks and the renting vehicle

costs. The British Columbia weathers were unpredictable and therefore not very conducive for

the organized events. A lot of time was required to study the weather and design the course to be

undertaken. The Quebec races also required the local people who were fluent in French in order

to translate the promotional materials into the French language. They were also important to

offer service in the site arrangement negotiations, which further compounded the cost that

competed for the profits generated. The extreme races turned out to be more profitable even

though the entry fee was almost three times that of the 36-hour races. In the end, the associated

costs were twice less as much as those of the thirty-six hour were. Zietsma failed to track the

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Surname 1 Name Course Tutor Date Case Analysis Frontier Company The adventure racing is a series of activities involving mixed team events, multi-day and multisport. The objective of the competition is to be the leading team that will get each of their members at the finishing line. The rule of the game was that the rivals pass through remote routes without any aid from outside sources, hence the team that uses the best strategy and route automatically wins the game. It is a requirement for each team to pass at the various checkpoints, to successfully win the game. However, in case of injury the team could use their emergency radios to call for help. Frontier Adventure Racing is a young Company that carries business in that line of activities. The major challenge that is facing the Company is the financial crisis that has saw it make losses for four consecutive years. The Company’s president is in charge of organizing most adventure races in Canada. In addition to its reputation at international level, there are some great products from the Company, which has made it become a popular in the field. The Sport Network together with Outdoor Life Network had a nice deal to the Company that entails television coverage for two hours in the next Company’s race. The condition for the coverage involves paying for the production cost. The situation has compounded the financial crisis at the Company since the deal is vital for the Company’s visibility. The current situation at the ...
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