The Financial Folly of MLB - Case Study Example

Case Analysis The central case in the analysis is the performance of the Baseball League and its economic performance. It looks at the performance of organizations with reference from past experiences on strikes. The assumptions while looking at the case is that the organization is still existing, and only factors for the poor performance are studied.The major question that the article covers is the deteriorating nature in terms of performance of the Major League Baseball. The revenue of the league in comparison with early years is covered in the analysis as well, to assess and evaluate the poor performance of the organization.

The case has sub - issues within the main case that include the behavior of other teams that participate in the league. The character and trend in behavior of the teams together with their fans is a factor that can make it a topic of consideration or discussion.In evaluating the analysis, several schools of economic thought come into play, and they include the law of marginal utility advancement as well as the laws of demand and supply.In such a particular case, strategies that have to be used to solve the problem have to be critically analyzed.

The strategy that has been used here is that of taxation, and the owners are planning to switch formulas. The strategy will be done in a way that the largest percentage of money is awarded to the team with the largest revenue unlike where before the largest percentage was given to the team with the lowest revenues.This strategy comes with the opportunity in instilling motivation among the teams but faces the challenge of revenue allocation because determining the percentage for the middle teams will not be easy.

In relating to the main issue of performance of the organization, the economic policy might bring about mixed results. At first, due to resistance from other teams and stakeholders, revenues will be low but they are bound to increase with time after a clear understanding of the policy and the teams have been synchronized.As a recommendation, the government should take the initiative and offer more revenues and percentages to the organization that are in the economy. Apart from job security being guaranteed, there is also job satisfaction to both the owners of the Baseball League and the players.

Works citedHarold, V. Entertainment Industry Economics: A Guide for Financial Analysis. Cambridge: Cambridge University Press. Australia. 2010. Print