The Billy Beane Case Study
1. Based on the “Billy Beane: Changing the Game” case, explain how and why the Oakland A’s economic situation after 1995 shaped its:
a) Compensation strategies
In the world of major league baseball, the Oakland A’s defied the laws of baseball economics. The team spent only $34 million (the 2nd lowest payroll) had won 102 games and lost only 60 in 2001. On top of this, they finished first in their division and made the playoffs. Major baseball teams would hire high school players rather than college players. This made high school players costly. The Oakland A’s strategy is to hire college players to save on resources. They argued that college players have ...view middle of the document...
b) Staffing (recruiting, selection, and retention strategies) strategies
The Oakland A’s staffing strategies was based on sabermetrics. Sabermetrics is a systematic statistical approach in evaluating teams and players. Based on this science it was found out that this basis for judging the performance of the player should be on-base percentage. The Oakland A’s recruitment would prioritize college players rather than high school players. This was due to the fact that college players have already played more games against better competition. Beane was convinced with the fact that “a young player” is not what he looks like, or what he might become, but what he has done. The bottom line is what the player has produced in college. Beane and DePodesta believed that they could forecast future performance of college players more efficiently than high school ones.
Another staffing strategy is the case of Scott Hatteberg, Hatteberg plays with the Boston Red Sox’s. He was injured and was never signed up by the Boston Red Sox’s. The Oakland A’s did not waste time and hired Hatteberg. The Oakland A’s done this because Hatteberg has an on base scoring record. According to the Oakland A’s, Hatteberg filled up what was missing in the team.
c) Training and development strategies
Batting average was the norm adopted by the other baseball teams. Although training for Oakland was focused on the players ability to obtain on base scoring, the team relied more on selecting player by their on-base percentages. According to sabermetrics model, teams always win with players having attained high on-base percentages. The Oakland A’s training and development strategies embraced on-base percentage as a philosophy for the entire Oakland A’s organization. This system was the star. Each minor league team in the Oakland A’s system began to lead it league in walks, and resulted to higher on-base percentage.