Business and Management
Submitted By resp75
Financial and Leadership Strengths and Weaknesses of the Utah Symphony
The financial strengths of the Utah Symphony will now be addressed. One financial strength of the Symphony is the amount of endowments it receives. There are two groups, I and II, which receive endowments. The Utah symphony is in group II and that group gets an average of $8.8 Million per year (Delong & Ager, 2005, p. 4). Another major strength would be the amount of revenue brought in by performances. The 2000-2001 season saw revenue at over $3 million and the projected amount for the next season is over $4 million. The total amount between contribution, endowments, and revenue is over $12 million for the 2000-2001 season and is projected to be over $13 million for the next (Delong & Ager, 2005, p. 15).
The financial weaknesses for the Symphony are almost as much as the strengths however. The major weakness in this organization is the salaries and benefits for the musicians. Because they are under contract, the musicians have a set salary with periodic increases. The expense for this is over $10 million (Delong & Ager, 2005, p. 15). This ends up being a huge expense and leaves very little in the way of profit. Another item that adds to the financial weakness is the fact that ticket prices are projected to only increase by 1% while expenses are expected to increase by at least 2.5% (Delong & Ager, 2005). With expenses increasing by a greater rate than income, this will have a detrimental effect on the symphony organization’s financial outlook.
Now the leadership strengths and weaknesses will be addressed. The strength is having Keith Lockhart as the music director. He is known as a top rate conductor and also cares deeply what happens to the Symphony. His leadership is shown in the fact that after being hired in 1998, by 2001 the Symphony had a year-round schedule with over…...