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Case Study Analysis

Case Study Analysis

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Published by: Swati Babbar on Jul 25, 2011
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CASE STUDY ANALYSIS: LONDON OLYMPICS 2012

BY GROUP 4: Vaibhav Manocha Sukriti Babbar Krutika Kalantry Ravneet Singh Rohit Sharma Divya Bhadouria

but also for the economy.000 employees and voluntary helpers will experience the on-site events. They are held every 4 years. The Olympic Games is a global event. The 2012 Olympiad stands under the motto Green and Secure .THE OLYMPICS IN LONDON 2012 The Olympic Summer Games are officially called. . The project bandwidth is significant. The 2012 Olympic Games in London are not only interesting from a sports and media viewpoint. The decision for London as host was performed during a meeting of the International Committee in Singapore in 2005. It is estimated that 8 million visitors with 150. Games of the XXX Olympiad.

financial and commercial hub of the world. State-of-the-art sports infrastructure.Objectives of LOCOG for the London Olympics To maximize revenue To maximize attendance in ALL the events and not just easy sells To fill seats with knowledgeable people To make them available to Common people as well Participation Statistics 205 nations 26 Sports 300 Events 12500 athletes Period of Olympics: July 27 2012 to Aug 12 2012 Forecasted Budget Revenues Broadcast Revenue and International Sponsorship 1. .2 billion 60 Domestic Sponsors 1 billion Ticketing Sales 650 million Licensing fees 150 million Total 3 billion Why London won the Olympic Bid? London being one of the most important cultural. Well built public transport proved to be an advantage.

3 Mn Electricity and water *30 = .28 ‡ So per ticket price to break even .05 $4.882 Mn $130.882 Mn Cost for 85% Sales of tickets $130.5 Mn Advertisement = 100 Mn $101.03 Mn Personnel* 30 = 1.16 Mn TOTAL COST: Cost for 70% Sales of tickets $123.240 Mn BREAK EVEN ‡ Total cost $123.68Mn Cost for 85% Sales of tickets $29.TICKETING COSTS: VARIABLE COST(IN US $) Printing per ticket = 2 Couriering =1 Sales man charge = 1.8 Mn for 30 months Total Variable Cost: Cost for 70% Sales of tickets $22.05 per ticket FIXED COST(IN US $) Rent*30 = .242 Mn ‡ Total seating capacity 8 Mn $15.48 $16.

they target between 70 to 80%. to get as many people into the stadium by maximizing revenue. Williamson was IOC Head? Yes it would make a difference.6 697744762 6. The ticketing department and LOCOG share the same objective. 2. Main objective will be getting 100% attendance and thus ticket prices will be much less. Also IOC has no share of ticket revenue so Ticket revenue will not be of any concern.e.9 ‡ Average ticket sales price Questions raised in the Case 1. Williamson was LOCOG Head? No it would not make a difference. i.6 mn $106.8 mn $113. Also they need to consider more about the local Londoners whereas IOC s focus will be more international.PRICE MODEL ‡ Total Revenue ‡ Total tickets sold 591787000 5. They are not worried about 100% attendance. If Mr. it would not be concerned about revenue that much. As IOC is an nonprofit organization. If Mr. .

 Difference in less occupancy and more occupancy is very minimal. .  So its more sensible to get more audience from all over the world to increase the enthusiasm.  More domestic sponsorship can be adhered to.CONCLUSION ‡ More occupancy and less revenue option to be considered ‡ REASONS::  Ticketing revenue represents 20% of the total revenue.

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