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Shippensburg MBA 554 – ASSIGNMENT – Acme Corporation (“Acme”)

01 / 10 / 2021 Projects

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Shippensburg MBA 554 – ASSIGNMENT – Acme Corporation (“Acme”)

SHORT PAPER ASSIGNMENT:Facts:Acme Corporation (“Acme”) owns and operates several sports bars throughout the United States.In 2005, Acme opened its first sports bar, named “Raiders”, in Carlisle, Pennsylvania. Acmebuilt Raiders in a dilapidated abandoned factory in Carlisle.Acme has made someimprovements to the building in order for it to obtain an occupancy permit for Raiders from theBorough of Carlisle; however, Raiders is now in serious need of repair. Raiders employs 350residents in Carlisle and consists of four bars (one room is a dance club), which are frequentedby members of the Borough of Carlisle, students from Dickinson College and ShippensburgUniversity. In the past five years, Acme has made significant profits from Raiders.In the past year, the police have responded to several incidents at Raiders. The vast majority ofincidents at Raiders stem from fights and charges for public drunkenness. Most recently, a brawloccurred, involving forty (40) patrons, between fans of the Philadelphia Eagles and thePittsburgh Steelers over who is the best football team in Pennsylvania.As a result of these recent incidents, a coalition of concerned Carlisle citizens, known as “TakeBack Our Town”, has begun protesting outside Raiders every Thursday, Friday and Saturdaynight. Take Back Our Town has begun lobbying local state politicians and has started aninitiative of sending complaints to the Pennsylvania Liquor Control Board (PLCB). Take BackOur Town hopes that the PLCB will terminate the liquor license for Raiders.Acme is fully aware of the initiative of Take Back Our Town, and it has adopted a politicalstrategy of hiring a lobbyist and forming a coalition with its customers and students of the localuniversities. This coalition raises money for political campaigns and drafts letters to statepoliticians.Acme is also upset with the current condition of Raiders and it has requested local funding fromthe Borough of Carlisle to make necessary upgrades. The Borough of Carlisle has refused toprovide local funding. Acme has formed an exploratory committee, which discovered a potentialsite in Shippensburg, Pennsylvania within walking distance to Shippensburg University. Acmehas informed the Borough of Carlisle of its intention to relocate Raiders to Shippensburg, if itdoes not receive some sort of public assistance in making improvements to the building.Acme’s potential move has sparked a debate in Shippensburg. Shippensburg has the highestunemployment rate in the Commonwealth of Pennsylvania, and Raiders would potentially create350 new jobs. The students of Shippensburg University, who desire more options for nightlifeother than Wibs, are actively campaigning for the move. Professors are skeptical, as they believestudents may no longer attend class or attend class in rough shape after a long night at Raiders.In either case, the Professors believe that Raiders is not in the best interest of the University.Some concerned citizens of Shippensburg have formed a coalition “Not in Our Town,” and areactively attending meetings in front of the Borough of Shippensburg in opposition of the move.Moreover, the current employees of Raiders are actively against the move, as they do not want torelocate to Shippensburg or commute to Shippensburg.Acme has reviewed its operations in other states and it realized that other states permit sportsgambling to occur at sports bars. Furthermore, Acme is aware that Pennsylvania just passedlegislation in which the PLCB is to select 5 current sports bars in the state as test sites for sportsbetting. In addition to its political strategy regarding Take Back Our Town, Acme has begunlobbying state politicians regarding the new legislation and the PLCB to permit sports betting atRaiders in accordance with the new legislation. In addition, Acme has contacted the PLCBregarding obtaining a liquor license for Shippensburg. Acme has secretly offered the head of thePLCB, who is in charge of issuing permits, reviewing complaints, and in charge of thecommittee selecting the 5 sports bars for sports betting, a high paying job in excess of $350,000per year plus benefits to head its Sports Bar Operations in Southcentral Pennsylvania. Acme isalso holding an event for the members of the PLCB committee in Aruba, all expenses paid, topromote Raiders. Moreover, Acme has started a heavy advertising campaign in both Carlisle andShippensburg. In Carlisle, Acme is airing television commercials to inform the community ofthe potential move of Raiders, the benefits of Raiders, and why it is in need of public assistance.In Shippensburg, Acme is airing television commercials promoting the benefits to the communityof Raiders in Shippensburg and it will impact the community.After analyzing the potential relocation of Raiders, the Borough of Carlisle offered $2 million inpublic funding to assist Acme in upgrading the Casino in Carlisle. Acme is now consideringwhether to accept the offer of the Borough of Carlisle or whether it should relocate toShippensburg.Instructions:Please answer the following questions in two (2) double spaced typed pages:1. Please list the various stakeholders of Acme.2. Please state whether each stakeholder is a market and/or nonmarket stakeholder.3. Please list the powers of each stakeholder and how they may utilize that power. Forexample, if a group uses economic power, the group may decide to boycott Raiders.4. Please list the interests of each stakeholder and Acme’s willingness to interact with eachstakeholder.

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