Springfield Nor'easters: Maximizing Revenues in Minor Leagues

Student’s Name
Institutional Affiliation
Course
Date
The Spring Nor’easters
Question 1: Minimum Revenue
Determining the revenue required is significant for the future of Spring Nor’easters. Minimum revenue excludes the assured funds to provide a better financial strategy and growth. Besides, minimum revenue generated in the first financial year is significant since it determines the growth future of the firm. Besides, determining the minimum revenue would help Larry plan and address specific issues that jeopardize the team’s success. Therefore, determining the minimum revenue in the first fiscal year is appropriate for Spring Nor’easters’ future strategic plan.
The minimum revenue, excluding the assured funds that Larry needs to generate to meet the financial goals in the fiscal year, is based on the operating expenses. Therefore, the minimum value should be $1,961,379 (Cespedes et al.: Exhibit 1). The revenue will address all the fixed expenses and generate profits for the investors, enhancing the team’s growth.
Question 2: Target Group
The first target group for Spring Nor’easters includes the fans (20,000 individuals). Despite its role in spearheading games, it needs fans for two significant purposes. The first purpose is to offer adequate resources to the team, and a team needs social and economic support to meet the growth and financial thresholds. Therefore, the target group will offer adequate social support since Nor’easters is a newly emerging team requiring significant assistance. Secondly, the fans are classified as the target group for financial assistance. For instance, in the case study, it is noted that Larry had begun preparing for the ticket offers (Cespedes et al.: P1.2). He had adequate marketing skills, and targeting such a population would allow the team and meet financial and social thresholds. The target group would also allow them to plan for future firm activities without notable failures.
The main assumption for identifying fans as the key target group is financial support for any new starting team. A team cannot proceed without the support of the firm. For instance, Nor’easters needs adequate revenues to meet the financial thresholds in the first year. The second assumption is that the fans are needed for the structural outlook for any starting team like Nor’easters. The fans will play a significant role in determining the team’s growth by attracting more individuals. The third assumption for focusing on the fans as the target group is due to the marketing aspect that Bucking...