Vail Resorts Responding to Activist Pressure B Benjamin C Esty Edward A Meyer Case Study Solution

Vail Resorts Responding to Activist Pressure B Benjamin C Esty Edward A Meyer

BCG Matrix Analysis

Vail Resorts is a well-respected ski and snowboard company that owns and operates 16 resorts across North America and Europe. The company’s financial results have been steady over the years. In 2018, Vail Resorts achieved EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of $6.4 billion. The company’s share price has increased significantly over the past year and is currently trading at 55x projected 2019 EBIT

VRIO Analysis

In February 2015, a group of investors, including hedge fund ValueAct Capital Management, forced Vail Resorts to investigate the company’s management’s ability to create value, due to an underperformance of the company’s stock in comparison to its peers. The group then recommended that the company adopt a more rigorous management approach to maximize shareholder value. In May 2015, the company implemented a new management approach, under the leadership of Chairman Richard A Miller and CEO Rob Katz. click site The new strategy included

Porters Model Analysis

Six months ago, on November 24, 2015, Vail Resorts, Inc. (Vail) (NYSE: MTN) announced that its subsidiary, Heavenly Valley LLC (Heavenly), had acquired 100% of Alpine Meadows Mountain Resort from Vail for $1.1 billion. While the acquisition was expected to generate significant operating and cash flow improvements for Vail, in 2016, following the announcement, the stock price fell 18

Evaluation of Alternatives

In 2015, Vail Resorts launched into the competitive terrain, trying to gain the most significant breeze in the ski industry by opening a new resort at Vail Mountain, Colorado. However, due to significant concerns that its initial marketing strategies would nevertheless, the project would ultimately not pay off, the resort went public, which raised the first large-capital funds, but this money had gone, and it could never pay off. Vail Resorts also underwent serious bankruptcy, which made it impossible to complete the project,

Problem Statement of the Case Study

[A sample section from the case study on Vail Resorts’ response to activist pressure] Section: Case Studies Vail Resorts Responding to Activist Pressure Activist investors have become a critical issue for Vail Resorts (Vail), a global provider of ski resorts, activities, and accommodations, with operations in eight US states and Canada. The Vail share price has been volatile over the past year, plummeting after the company reported weak financial performance in the third quarter of

Marketing Plan

In April 2018, a group of investors — led by billionaire hedge fund manager and private equity mogul, Bill Ackman, of Pershing Square Capital Management — filed a lawsuit against the management of Vail Resorts, Inc, the parent company of Vail Mountain Resorts, Banff and Jasper Mountains, and Heavenly Ski Resort. The lawsuit, filed in the Delaware Court of Chancery, alleged that the company’s management and board had misled shareholders by hiding the

Recommendations for the Case Study

Throughout this case study, the company has responded to activist pressure with several ways, all of which were necessary but not ideal. For example, Vail Resorts has implemented a board-level committee, a CEO advisory board, and a shareholder engagement charter to increase transparency and engagement. These measures are useful but do not address the root of the problem. next page The company has also made changes to its governance structure, removing some of the board’s decision-making power. Board directors now work alongside management to make