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Therefore Billy Beane decides to set an unconventional strategy in order to be able to compete with

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Therefore Billy Beane decides to set an unconventional strategy in order to be able to compete with other wealthy teams “out there”. His goal setting is based on the strategy he sets for his game in what he calls “an unfair game”. Manager Billy knows that decreasing cost is the main concern of the top executives of his team. The main shareholders and stakeholders have set their goals based on their conservative approaches. To be more specific, the top manager of Oakland Athletic is not willing to take any risk in order to pay more money to recruit better players.
Manager Billy realizes that in order to be able to compete with other teams in World Series, he needs to set his own competitive advantage. To compete for a title in any sport …show more content…

At this point, before we explain further about how the two (Billy and Peter) develop their strategy to decrease risk and increase revenue; it is worthy to mention that the prelude of Billy and Peter relationship is similar to what we learnt in the course as “Theory of constraints”. As the book explains TOC is “a process for creating processes of improvement”.
As early as the beginning of the movie, we realize that the main constraint for Billy is the lack of enough budgets to compete with other wealthy clubs. However, it is very important to see (I believe that is the main value of Moneyball for OM) how Billy with the help of Peter exploits the aforementioned constraint. In Economic sense, how one could maximize his utility considering the imposed, though unwanted, constraint. TOC is very important Theory to explain the measures Billy took in Moneyball. It is important to mention that TOC could contribute to risk reduction in the following ways:
- Contingency cost of delay: if Billy and Peter would not act fast, their whole supply chain management till the beginning of season could be delayed, which may cause colossal financial loss, considering they may end up at the bottom of the table.
- Baseball is a multi-project operation and TOC could contribute to it: In baseball, we need different types of players for different roles. In addition, we need

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