Organization Identification
The sports organization is called Acorn. The name was decided upon based on the desired impact the organization will have on the people. Just as a small acorn seed blossoms into the magnificent sturdy oak tree, so will the organization grow young talent to its full potential. Acorn is a private organization owned by Sir Les Wexner the wealthiest man in Ohio. The vision of the organization is to transform Ohio into a class-leading center for football. Football, in this case, means a game that requires teams to run, throw and kick an oval ball across a 100-yard field (U.S Diplomatic Mission to Germany, 2009). Acorn was established in the year 2015 and has its headquarters in Akron city, Ohio State. Acorn has a stadium on the outskirts of the town of Akron, where the members periodically meet for training sessions and recruitments. Since its beginning, Acorn has mainly specialized in football for the college students at Ohio State University. Acorn has experienced great success in producing some of the best football players in the state, as well as in the country. Acorn principles and values are based on nurturing of talent to improve the quality of life of the people involved.
Partner Agency
Acorn has recently been considering on expanding its target group to include the elementary and high school students in the state. Incorporation of the primary and high school students into the organization pushes Acorn a step further in realizing its vision. A partnership with Ohio State University Athletics Department will undoubtedly be beneficial to Acorn’s goal and vision. Ohio State University is a large public university founded in 1870. The main campus sits 4 kilometers north of Columbus city on a 1,764-acre land. The University initially started as a manufacturing and agricultural center in Central Ohio. Over the years, OSU has grown to become the third largest public university in the United States. OSU has an athletics department with intercollegiate sports teams called Buckeyes. The Buckeyes have won major championships in the country three times. OSU Buckeyes has produced notable sports figures like Jesse Owens, who was the 1936 Olympics gold medalist. The University admits about 20, 000 first-year students each year (Ohio State University, 2012).
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The Facility
Acorn is looking into starting a football academy that will accommodate the elementary and high school students. The facility will be incorporated into the already existing facility at Akron with just a few modifications to suit the target group and encourage participation.
The proposed facility will include the setting up of a new 100-yard football pitch, an indoor gym, a dispensary and also a changing room with a capacity of 100 students. This facility will be closely linked to the central facility in such a way that the students from the new facility will transition flawlessly to the already existing facility once they are graduate from high school to college.
The facility will be run all through the week, with opening and closing hours of 0800 hours and 1800 hours respectively. Acorn will also hold in-house competitions to keep the spirit of competition high. Additional six buses will be required to transport the new students to and from the facility back to their respective schools. Routine gym classes and field training will be included in the facility’s schedule to ensure the students are fit. Remunerations will also be offered to the students who dedicate their time and efforts to the program. However, the payments will be subject to budget allocation and therefore will not be fixed. The facility will also put the needs and interests of the students first, with a program that receives suggestions from the students.
Target Consumers
Acorn Sports shall be situated in the city of Akron, Ohio State. The city has an estimated population of 197, 846 people as of July 2017. 14.5% of the people at Akron city represent people aged between six years and fifteen years which equates to 28, 687 young people, who will be the primary target market (City Population, 2018). This particular group of people is either in elementary or high school. There will be scouts set up in elementary and high schools all over the state whose primary role will be to recruit students who show interest and have great potential to benefit from the program.
Acorn is targeting this population because more impact can be achieved at this stage of life. Additionally, the students at this level may also benefit from various scholarships available to them at OSU for being members of Acorn. The target consumers are also vulnerable to indulging in drugs and other negative behavior, but Acorn will offer a supportive platform to guide them towards the right path.
Form of Partnership
Acorn will partner with the Ohio State University Athletics Department. It will be a limited partnership, where Acorn will be responsible for running the facility, share profits and loses, and liable for the debts. OSU Athletics Department will share in the gains and losses, but these will be limited to the extent of their investment. All these formal terms will be written down in a partnership agreement (Washington State Department of Revenue, 2011). The limited partnership will be beneficial as it is generally inexpensive and easy to form. Additionally, this form of collaboration has the potential to attract many more investors since limited partners are only liable for the capital invested by them. In this partnership, limited partners can also leave the business or be replaced without dissolving the limited partnership.
The partnership is, however, not without its demerits. The general partner, in this case, Acorn, assumes personal liability for all the debts and other obligations. Furthermore, there exists a possibility of the general partner being constrained in the ability to operate the business freely if the voting rights of limited partners are not drafted carefully. This partnership will include measures to mitigate these demerits such as only giving final authorization of organization expenditure to the president of Acorn and also, clearly stating the position and rights of the partners (Jiang, 2014).
Acorn Assets
An asset is defined as a store of value, representing a benefit or series of benefits accruing to the economic owner by holding or using the entity over a period. Assets can be classified into three broad groups: natural resources, Land and surface water, and Ecosystems. All these categories are essential if an organization is to grow and thrive. Since 2015, Acorn has acquired critical assets that have ensured its continued survival and even facilitated its continuous growth.
Acorn will offer the following assets that will play a pivotal role in ensuring the success of the partnership:
Land : Acorn has a 20-acre piece of land next to its facility at Akron. The property has been dormant ever since the main structure was completed back in 2015. The area will be useful in the partnership as it will serve as space on which the new Acorn facility will be built. Additionally, the land will also be used as a guarantor in the loan request that will be made to solicit enough funds for the project. This large piece of land will also be a form of futureproofing to the organization for planned future expansions.
Modern technology : Being a privately-owned organization, Acorn has unlimited access to the current technology in the market. This can be attributed to much money that has been invested in research and development. The technique will be particularly useful in the storage of records. Furthermore, the technology will also be used in advertising and providing excellent customer satisfaction. Modern technology will also be used in the security department. Biometric scanners will be located at every significant door in the facility to ensure only authorized personnel are in the area hence keeping the students safe. Tracking technology will also be employed on the buses to keep track of the students once they are traveling outside the facility.
Machinery : Acorn has a fully equipped gym that will serve to ensure the students are fit for the game. Acorn also has access to buses that will be used to transport the staff and students. Sir Wexner owns a construction company; hence Acorn will provide the machines to be used in the construction and maintenance processes of the facility. This will be an advantage to the partnership as the costs of construction and maintenance will be easily controlled, hence, ensuring the quality of fittings and maximizing the returns to both the parties.
Money : a multi-billionaire owns Acorn, hence, has access to cash. The funds will be useful in running the day to day activities of the facility. Other legal considerations such as licenses can be applied for with the available money. The money will also serve as a motivational tool for the students which will be offered regarding rewards to the relative achievements of each student.
Ohio State University Athletics Department Assets
OSU Athletics Department, being a subsidiary of the Ohio State University, will offer most of its assets under the university’s discretion. OSU being an ancient university has had years of experience to grow and thrive, hence, bringing to the table vital assets that will ensure the partnership success. As such, the organization brings in non-financial assets to this partnership, which is relevant in supporting the viability of the new facility on the market. The significant assets to be provided by OSU Athletics Department are listed as follows:
Goodwill: OSU Athletics Department being a public university can gather more political goodwill than the private sector. The political goodwill will be valuable in the request for waivers and other government services hence very useful in savings and getting essential government services done. OSU will also favor students it has worked with for their undergraduate admissions and even gives the best students scholarships into the University. This is in line with meeting the students’ expectations leading to more chances of customer satisfaction.
Technical expertise : OSU is a research center and hence can offer professional knowledge on some matters. The general layout of the facility will be entrusted to the University personnel.
Structures: OSU being a public institution has access to various amenities like conference rooms that the organization can use during its meetings. This will, therefore, save on the costs of hiring another premise as the University will provide the organization with substantial rental offers.
Networks : OSU being an ancient institution, it will provide the organization with other interested parties who may help offer opportunities to the students. These parties can include coaches of football teams and athletics alumni who can share their stories of success to the students hence motivate them.
Financial Plan
Financing is an essential aspect for any business. The financial needs will often vary among different establishments based on the type and size of the company. Acorn organization is expected to incur a budget of $2,578,320. This amount will cater for the start-up, running, and maintenance costs for the first year. The major sources of financing are debt and equity. However, government grants to finance certain aspects may also be sought as an option. Each of the sources have their merits and limitations, and before any of them can be used, a proper understanding is necessary. The partnership will be privately funded, with equity and government grants topping up the remaining budget. 63% of the required budget will be financed privately by the owner of Acorn, Sir Les Wexner. Sir Wexner will use his profits from other ventures to make the vision of Acorn a reality. This subsequently makes him the largest investor in the organization, hence, the general partner.
An equity financing of 26% will be sourced from the OSU Athletics Department. This will serve as the percentage stake the Department will have invested in the organization. Additionally, the equity financing allows the Department to share in the profits of the organization. This investment will be adequately defined formally in the entity, with the form in which the equity stake will be divided being included (Schwienbacher, 2015). Since the partnership will include one of the largest U.S. public universities, the government will grant the organization the remaining 11% of the required investment. This will mainly come in the form of tax waivers and business permit waivers (Hofstrand, 2013).
References
City Population. (2018). State of Ohio. Retrieved from http://www.citypopulation.de/USA- Ohio.html
Hofstrand, D. (2013). Types and Sources of Financing for Start-up Businesses. Iowa State University: Extension and Outreach .
Jiang, W. (2014). Business Partnerships and Organizational Performance. The Role of Resources and Capabilities. Nueva York: Springer .
Ohio State University. (2012). Information . Retrieved from https://www.osu.edu/information.html
Schwienbacher, A. (2015). Financing the business. The Routledge companion to entrepreneurship , 193-206.
U.S Diplomatic Mission to Germany. (2009). Sports in America, Football . Retrieved from https://usa.usembassy.de/sports-football.htm
Washington State Department of Revenue. (2011). Types of business structures. Retrieved from https://bls.dor.wa.gov/ownershipstructures.aspx
