Government Funding of Culture and Education: A Case Study for Multiplex Corporation - Prof, Assignments of Introduction to Business Management

Download Government Funding of Culture and Education: A Case Study for Multiplex Corporation - Prof and more Assignments Introduction to Business Management in PDF only on Docsity! Assignment #8 MBA 740 Topic: Government Funding of Culture and Education Readings: ( Readings #2-#24 are available through University Libraries Reserves) 1. Chapter 1 (Culture, p. 87-88) 2. Charen, Mona, “GOP Right to Pare Endowment for Arts” DDN 7/26/97 3. Chait, Jonathan, “Government Arts Subsidies Don’t Make Sense for U.S.” DDN 9/26/97 4. “Where a democracy and its money have no place,” New York Times Oct. 26, 1997 5. Hartman, Carl “Private Companies are Biggest Patrons of the Arts in U.S.” Naples Daily News, 12/27/97 6. Simmons, Carol “Ohio Arts Council Appropriations Hit Peak,” DDN 8/3/97 8. “Richest Orchestras” Sunday Times June 20, 19999 9. “Tale of two job markets” WSJ Aug 7, 1997 10. Bohman, Jim “Gently On the Way Up” DDN 7/25/99 11. Morris, Terry “Schuster Center christening…DDN 4/23/00 12. Smith, “Arts Community builds…” DDN 5/15/99 13. Dayton Philharmonic Concert Program , 2/9/02 14. Morris,Terry “Fundamentals of Arts Center” DDN 7/25/99 15. Kellman, John “RTA Links Downtown to Funds” DDN 7/25/99 16. Esrati, David “Location…All Wrong” DDN 7/25/99 17. Morris, Terry “Schuster Center Christening Starts New Era” DDN 4/23/00 18. Morris, Terry “County Awards Culture Grants” DDN 7/10/02 19. Hulsey & Eckert “Schuster to be on capital budget list” DDN 11/22/02 20. FY 2001 Ohio Arts Council Grants Awards Summary: Montgomery and Greene Counties, OAC, 3/14/02 21. Morris, Terry “Ohio Council Awards $840,000 DDN 9/1/02 22. State and Federal Revenues and Expenditures for Fiscal Year 2000 and 2001. OAC Biennial Report (2002) 23. Morris and Neal, “Arts center; actors seek funds for complex” DDN 5/14/03, page B, 1. 24. Weber, Bruce “Endowment Chairman Coaxes Funds for the Arts” NYT. Sept 7,2004 Background: Federal and state government support for cultural activity and education has become increasingly controversial in recent years, occasionally dividing along party lines (see the attached syndicated article by Mona Charen (Readings # 2) which appeared in the Dayton Daily News on July 26, 1997.) State funding for the arts in Ohio increased by $1 million during the first year of the 2000-2001 biennium budget and decreased by $665, 312 during the second year due to state budget cuts. Federal funding to the OAC increased slightly but remained below earlier levels of more than $1 million per fiscal year. (Readings #22) The Montgomery and Greene county recipients of OAC grants in 2001 are listed in the readings. (#20) Learning Objectives: 1. To introduce students to the current levels of government funding of high culture in the U. S. and other countries. 2. To encourage an application of theories about the role of government vs. free markets in funding cultural activities 3. To analyze some of the complex, internal and external factors a firm might consider in determining company policy towards government funding of cultural activities, including a consideration of diverse international attitudes in countries where business is transacted. 4. To urge a thoughtful analysis of the differences between company support for government funding of high culture as opposed to other beneficiaries of government funding, such as education. Assignment: Your team comprises the Governmental Relations Division of Multiplex Corporation, whose world headquarters is located in Dayton, Ohio. Multiplex is a diversified U.S. firm which does business in this country and in Germany and France. It’s most successful division manufactures and sells automobile brake pads, belts and hoses. Approximately 23% of gross sales are attributed to European buyers. Through the Multiplex Foundation a total of $5 million has been distributed annually to educational and charitable organizations in the countries where the company does business. Along with other similarly sized manufacturers, Multiplex is a member of an industry-wide trade organization “The Round Table Group” which is active in making known industry views on government policies to state and federal law makers. The Government Relations Division reports to Ariel Owen, Vice President for Public Affairs and Constituent Concerns. Ms. Owen is 53, an MBA graduate of Wright State University who has been with Multiplex for fourteen years, the last five in her present position. She has called a staff meeting of the Government Relations Divisions. She wants proposals for a new corporate policy at the meeting. She has told her staff the following: 1. The Round Table Group has schedule a meeting in Cincinnati next month to which the CEO’s of member firms have been invited. The agenda for the meeting includes a discussion of the following topics: “Should our industry oppose or support government arts funding?” 2. The President and CEO of Multiplex, Reginald Portnoy has requested Vice President Owen to brief him in writing prior to the round table meeting. In a memorandum to Owen, Portnoy requested a written briefing statement which responds to the following questions: a. “Should Multiplex argue at the Round Table meeting for direct government financial support at the federal and/or state level to dispersing organizations such as the National Endowment for the Arts or The Ohio Arts Council?” Provide him with an analysis of the issues. b. “What business impacts or effects should Multiplex expect to result from our recommendation?” c. “Should we consider recommending a different government funding policy in the U.S. than in Europe?” d. “Is government funding of high culture logically linked to our long standing support for federal and state government funding of higher education?” (Multiplex has vigorously supported increased government expenditures on education in the Ohio legislature.