Organizational Management JFT2 Task 2: Task A.1. Write an action plan for Anne Ewers analyzing the financial and leadership strengths and weaknesses of the Utah Symphony prior to the merger. Utah Symphony Financial Strengths1. The symphony displays a strong diversity of income sources from performances, grants, contributions, investment income, guild income, commissions and box office rents. They raised over $12,000,000 in the 2000-2001.2 season. The orchestra operates with a substantial surplus of $116,308 for the year 2000-2001.3. The symphony has significant performance revenues and contributions of more than $8 million in 2000-20001 related to performance and community support. Other income that may be less reliable, such as grants, investment income, corporate income, and rental income, make up approximately $4,000,000 of the income source mix.4. The orchestra expects an 11 percent increase in total revenue based on its 2001-2002 financial projection based on raising increased contributions and increasing ticket sales by 1 percent. Financial Weaknesses of the Utah Symphony1. While the orchestra expects an 11% increase in revenue next season, it also expects an overall increase in expenses of 12%. This will cause a negative trend in profits.2. Based on Symphony forecasts, the surplus will fall from $116,308 in 2000-2001 to a projected $2,042 in 2001-2002. Even though they are a non-profit organization, they should avoid deficits and negative trends.3. The symphony's overall expenses are expected to increase by 2.5%4. There is a decrease in public subsidies, especially at the state level, as well as a decrease in income from endowment investments, which threaten the financial sustainability of many orchestras.5. State and local tax revenues use… half the paper… Given the recession, Anne Ewers would like to focus on strengthening the relationship the organization has with donors and sponsors. By strengthening the relationship, Anne may be able to prevent the erosion of the donor base. If prices need to be lowered due to financial pressure, Anne may want to consider holding more shows to increase the volume of ticket sales.2. In the event that collective bargaining is unfavorable, Anne may want to offer incentives, seek recognition opportunities, or other intangible forms of compensation to keep unions agreeing to keep wages within a reasonable range based on revenues.3. If ticket sales decline due to a lack of customer satisfaction, Anne could conduct surveys, focus groups, and industry research to better understand audience interests and innovate ways to drive or keep up with the latest industry trends.