Stadium Concessions Division ProposalBill “Bratz” Major

Matt “DJ Cheesesteakz” Powers

Prestige Worldwide - Stadium Concessions Division Business Model

• Prestige Worldwide has already cornered the music industry’s mobile karaoke party niche, so it’s time to branch out to the wide world of sports

• Real sports fans want quality

• We scoured the country for the best of everything and brought our aviation backgrounds to bear in the development of a quality concession distribution and sales network

Who are some of our suppliers?

Prestige Worldwide (Stadium Concessions Division) Business Model

Cheesesteaks From Philly

ONLY THE BEST

Coffee From Seattle

ONLY THE BEST

Brats From Chicago

ONLY THE BEST

Prestige Worldwide (Stadium Concessions Division) Business Model

Peanuts From Atlanta

ONLY THE BEST

Prestige Worldwide (Stadium Concessions Division) Business Model

Malts From L.A.

ONLY THE BEST

Prestige Worldwide (Stadium Concessions Division) Business Model

Wings From Dallas

ONLY THE BEST

Who will be the concession stand employees?

ONLY THE BEST

What kind of security do we provide for your investment?

ONLY THE BEST

What are our expected profits?

ONLY THE BEST

http://www.concessioncorp.com/profitmarginanalysis.htm

Who will invest?

Recently selected for promotion…$$$!

SWO-Daddy Cash…$$$!

Not Prestige Worldwide

material

ONLY THE BEST

The Network

Locations

Connections

Supply and Demand

QualcommStadium

Century Link Field

Soldier Field

Metro Dome

Georgia Dome

LincolnFinancial

Field

SEA_A SEA_D

LAX_A LAX_D DFW_A DFW_D

PHI_A PHI_D

ATL_A ATL_D

ORD_A ORD_D

Representing Ground Transportation Costs

Dummy return arc from sink to source for flow control

Multi-Commodity Flow

Single Commodity Flow

SEA_A SEA_D

LAX_A LAX_D DFW_A DFW_D

PHI_A PHI_D

ATL_A ATL_D

ORD_A ORD_D

Included Backup Local Suppliers

ORD_Arr ORD_Dep

Enhanced View of Chicago’s Node Cluster

Dummy return arc from sink to source for flow control

Multi-Commodity Flow

Single Commodity Flow

Other Airport Arrival Terminals

Other Airport Departure Terminals

UL = Brat

Demand

UL = Brat Supply -Cr

CgtCat

CatCat

Cat Cat Cat

Cp

Cp

Cgt

Cat

-Cr

-Clp

-Clp

Production Cost

Ground Transportation cost

Air Transportation Cost

Revenue

Profit from sales of local items

Premium Brat Supplier

Local Multi-Commodity Retailer

Soldier FieldUL = Brat Demand*

Demand only satisfied locally if premium supplier falls short*

Network Vulnerabilities

Attack on SuppliersPremium Supplier Can’t Satisfy Demand

• Flow of malts out of LA and through everywhere else is interrupted• All other commodities can flow through the red arcs• Premium production cost incurred for buying malts from local vendors

– Except for LA, where good malts are still cheap and easy to obtain

SEA_A SEA_D

LAX_A LAX_D DFW_A DFW_D

PHI_A PHI_D

ATL_A ATL_D

ORD_A ORD_D

0 1 2 3 4 5 60

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

Supplier Interdictions

Commodity Attacks: CH.STEAKS, WINGS, BRATS, MALTS, PEANUTS, COFFEE

Profi

t ($)

Attack on VendorsLoss of a Stadium

SEA_A SEA_D

LAX_A LAX_D DFW_A DFW_D

PHI_A PHI_D

ATL_A ATL_D

ORD_A ORD_D

• All revenue for one stadium is lost• No rerouting of commodities required

0 1 2 3 4 5 60

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

Vendor Interdictions

Lost vendors: DFW, ORD, LAX, SEA, PHI, ATL

Profi

t ($)

Attack on AirportsInclement Weather or Other Shipping Issue

• Inclement weather results in airport shutdown• All flow of all commodities interrupted through LA• Qualcomm must go local for all commodities, incurring premium production costs for those products• All other stadiums must go local for malts, incurring malt premiums

SEA_A SEA_D

LAX_A LAX_D DFW_A DFW_D

PHI_A PHI_D

ATL_A ATL_D

ORD_A ORD_D

0 1 2 3 4 5 60

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

Airport Interdictions

Airport Losses: PHI, DFW, ORD, LAX, SEA, ATL

Profi

t($)

Attack on AirwaysLoss of a Particular Air Route

SEA_A SEA_D

LAX_A LAX_D DFW_A DFW_D

PHI_A PHI_D

ATL_A ATL_D

ORD_A ORD_D

• Only one air transportation arc disrupted per attack, local supplier arcs are not eligible for attack• Up to three attacks, the interdictor isolates the most profitable commodity and then tries to take out the next

most profitable, but the backup suppliers confound the interdictor, which actually bumps up profits slightly

0 1 2 3 4 5 6 70

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

Air Route Interdictions

Air Route Losses:

Profi

t($)

PHI ATLPHIATL, PHIDFWPHIATL, PHIDFW, PHIORDDALSEA, LAX, ORD; PHIATLDALSEA, LAX, ORD; PHIATL; ORDDAL

12

3

44 4

All Arcs Eligible For Attack

SEA_A SEA_D

LAX_A LAX_D DFW_A DFW_D

PHI_A PHI_D

ATL_A ATL_D

ORD_A ORD_D

• Attacks are nested somewhat by category– Premium suppliers are prioritized over vendors, then local suppliers and airports are mixed

until virtually all profits are eliminated

0 5 10 15 20 25 300

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

All Arcs Vulnerable

Interdictions

Profi

t($)

Cuts off premium suppliers Cuts off vendors,

then best product

All previous, plus LAX local suppliers

LA falls off the map completely, top four

suppliers, ATL airport and local suppliers

Conclusion

Conclusion• Most valuable suppliers:

– Philly’s cheesesteaks– Dallas’ wings– Chicago’s brats– LA’s malts– Atlanta’s peanuts– Seattle’s coffee

• Most valuable airports:– Same as suppliers, because shutting down an airport has a similar

effect on the overall network as shutting down a premium supplier

• Most valuable customers:– Dallas Metro Dome– Chicago Soldier Field– LA Qualcomm Field– Seattle Century Link Field– Philadelphia Lincoln Financial– Atlanta Georgia Dome

• Room for improvement:– Model more realistic supply chain with more suppliers for each

product and each city– Create a user interface that allows the operator to enter projected

supplies/demands, production costs, ground and air transportation costs

• Prestige Worldwide Concessions Division is a perfect fit! INVEST NOW!!– Minimum startup investment: $3.25 Million

Questions?

This has been a productionSTOLEN