Art Management and Marketing - The Collectors Creative - Case Study Example

Art Management and Marketing Assignment The Collectors Creative (Author’s name) (Institutional Affiliation) Abstract The art industry has been rankd among the highly risiing in relation to the profits they are currently making. This has been attributed to various economic and social factors that have enabled this industry to thrive overtime. However, owing to the fact that there are certain stebacks that may be met by arts organizations that aspire to join this industry, stakeholders have been compelled to undertake proper analysis in relation to the facets of the arts industry in order to make sound decisions. This project will focus on a case study of a virtual arts organization known as Creators Collective and delve into the analysis of external and interanl environments that may affect its success either positively or negatively. Moreover, it shall focus on a discussio of a virtual financial statement of the organization as well as the financial risks it may face as it continues with its operations. Values and Strategies of the Collectors Creative Mission The organization focuses on provision of curatoral consulting as well as a professional dimension of community development services composed of people with the desire to create and collaboratively work with other people to solve the challenges ascribed to authorship and the dimensions of space. Short Term Organizational Goal The organization focuses curation and facilitating performances such as overnight hotel collaboratives and residency performances as well as provision of a platform for high school students to produce films and engage them in networking for a period of approximately six weeks thus improving their capacity to perform in the favorite art activities. Long Term Organizational Goal The long term goal that the organization aspires to achieve is to create a society where art is appresciated and perceived not as altertanative means of income, but rather a pertinent aspect of social and economic development. This is to be achieved through capacity building by naturing the talents of the young artists at high school level while creating awarness in the society with regard to appreciation of arts. Analysis of the External Environment There are various external factors that may directly of indirectly affect the success of the organization towards achieving its mission, short-term and the long-term goals. They Include: Competition from Properly Established Art Organizations One of the major external factors that may affect the success of the organization is competition from other well established arts organization (Mark, 2011). There are several large art organization that have been in this business and have establiished themseleves properly overtime. Such organizations may pose a great challenge to the Collectors Creative, especially when it makes attempt to penetrate the art industry where many clients have remained loyal to specific art organization. Examples of art organization that may subject the Collectors Creative to high rate of competition are: Arts in Bushwick, Heels on Wheels, The Braveworld Repertory Theatre, Wasted Spaces, J-Collabo Organization among other like the Hollywood World. Technology Technology is another pertinent external factor that may play a great role in determing the success of the organization. The rate at, which technology is changing from time to time has affected the success of various arts businesses either positively or negatively. Research has shown that the current art industry is charatcerized by utilization of advanced technology geared towards production of various forms of art i.e. film production throuhg the use of advanced cameras that produce high quality images (Mark, 2011). In the case of Collectors Creative, changes in technolgy may enhance its efforts directed towards film production in at the high school level. Moreover, technology is has played pertinent role is faclitating the success of any art business when it comes to marketing and creating awareness among the populace in regard to the specific services provided by the organization for instance: The use of social media among businesses has played a crucial role in marketing of their products and their services. Therefore, this is another dimension of technology that may affect the success of the Collectors Creative. Cultural Dimensions Research has shown that culture does not only affect the arts industry, but also affects other businesses. However, the film industry is among the idustries that are highly affected by cultural dimensions in that; the different cultures value different types of art. That is, one apsect of art may not be culturally valued or accepted in some regions. In this regard, the Creators Collective need to take this aspect into consideration as it may affect their success in relation to marketing of their products and services (Griswold, 2008). Analysis of Internal Aspects Competencies and Capabilities that are Important for the Organization The success of the Creators Collective relies heavily on the operational skills that are possesed by the managerial team. One of the competenies that are needed by the organization to facilitate the success of the organization is communication skills. Members of Creators Collective, specifically those that are incharge of marketing require proper communcation skills. This would allow them to effectively market their products to various clients and other stakeholders that may be interested in their art products and services. Moreover, the team needs to be in a position to identify and nuture talent among young artists in order to ensure that the mission of the organization is achieved as stipulated in the organization’s mission statement. The capacity to identify talent among the Creators Collective is imperative owing to the fact that it would allow the organization to faciliate the achievement of their long-term organizational goal, which is to promote community development through nurturing of artisitc talents among the youth. In addition, the organization requires a team that respects and observes culural diversity. This will enable them to operate under highly competitive environments characterized divserse cultral aspects. The respect of cultural divsersity also ensures that the organization operates in a manner that involves production arts works that are desirable to various cultural perspectives. The respect of culture is also imperative owing to the fact that it will allow the organizational members to posess proper inter-personal skills that improves their capacity to operate in a culturally diverse environment. Key Risks faced by the Organization Loss of Talented Artists and Workers to already Establshed Organizations One of the risks that may be faced by the Creative Collectors is lose of identified talents, who may be absorbed by other well-established arts organization. That is, talented young youths who have been identified by the organization may be absorbed by other large organizations and well paying organizations. In addition, the organization may also lose some of its qualified management team to other well-established and properly paying organizations. Rapid Technology Change Perhaps one of the risks that may be faced by the Company is ascribed to the challenges that may be encountered by the organization as its strives to pull its patrons towars the curve of the technology. Research has indicated that the current art industry is faced with a challenge associated with rapid technology change; this is a risk to the Creative Collectors organization owing to the fact that in the case of any technolgy change, the company may be compelled to invest unexpected or unprojected financial resources towards purchasing or installing the new technology (Griswold, 2008). Simplicity vs. Security In the case that the organization operates under s system that allows its members and clients to login and purchase their tickets, it may pose a challenge in that: Some of its clients may find this procedure hectic hence aviod any activity that involves going through the internet and loggin into their accounts to purchase tickets at a discounted rate. This may also pose a risk to the organization owing to the fact that it may be compelled to perfom monitoring activities in relation to online purchasing of discounted online tickets. Provision of discounted online tickets may also cause frastration among the members in the case that they login and realize that the online discounts are no longer provided bu the company and may claim that they are not satisfied by the services offered by the organization. Ways through, which the Organization may Mitigate these Risks In relation to loss of talented artists and team members to properly established art organizations, the Creators Collective may employ a strategy that involves motivating workers through proper renumeration and motivational speeches as well as psychological encouragement. Moreover, the organization may also opt for partnerships with already established organizations in order to provide their workers with a platform to showcase their talent hence improving their performance capacity. On the other hand, the organization may employ a strategy that involves setting a team charged with the responsibility of performing research to identify current technolgy that are applied in the arts industry hence improving its competitive advantage by applying the new art technology. The company may also seek the services of external IT experts in order to ensure that they inform the company of any new technology that has been invented and how it can be applied in the Collectors Creative Company. Ways through, which the Organization Build Trust on Itself Respect and Application of Proper Inter-personal Skills The organization applies the concept of proper inter-personal skills that facilitate a proper and harmonious relationship between among the team members. This has created a high sense of trust among their employees as well as among the talented yound artists identified. Operations under one Orgizational Mission and Goal The essence of working towards common organizational mission and goal is also another way that the organzation has applied to faciliate its efforts towards creating trust on itself and among its team members. Moreover, the mission statement of the organzation as well as its goals enbales to provide quality services to its clients hence creating a trust on its services. Ownership Structure of the Organization and its Appropriateness The organization is owned by a groug of young artists from various cultural and ethinic backgrouds, with each person allcoated a specific responsibility to fulfull. This structure is important due to the fact that it creates a scenario wherby the team is able to produce art work that takes into consideration different cultural factors hence improving its succcess in the current competitive arts industry. Moreover, the ownership of the organization by young individuals is crucial as it facilitates the attracttion of young and talented artists hence increasing its popularity among the young generation that have an interest in issues ascribed to film production and artistic presentation. Key Stakeholders in the Organization The Organization has two key stakeholders; the first stakeholders are the management team that is made up of people from diverse backgrounds working towards achieving a common goal. The needs of the management team are based on their mission statement and the organizational long-term and short term goals. These needs are achieved by the organizational objectives, which involves working with the local populace to identify artistic talent in various high schools and provision of a platform for the talented artists to produce various forms of art works i.e. film production, traditional dances as well as theatrical performances in hotels and other places of leisure. The other stakeholders of the organization are the clients and other people that are interested in artistic presentations, especially among the youth. Moreover, the needs of the stakeholders of the company are young artists in high schools and other parts of the country. In relation to meeting the needs of the clients, the company employs a strategy that involves providing clients with current modes of artistic presentations and interesting films produced by young and talented high school students. On the other hand, the organization ensures that the need of its young artists i.e. actors, traditional dancers and theatrical performers are met by providing an opportunity for them to showcase their talents and earn certain amount of income. Sales and Marketing Target Market The target market for the Collectors Creative is in the entertainment industry, specifically those people that are usually interested in films, theatrical performances and traditional dances. Specifically, its consumers are audiences of its films, traditional dances as well as those who are interested in theatrical performances. For instance; the organization has created a platform for its talented traditional dancers to perform in tourist hotels and other residential places where people value and respect traditional dances. In this regard, the need for entertainment through different forms of artistic presentations is met by the company as it offers its services to its clients. How the Business Differentiates itself from its Competitors To begin with, the organization operates through efforts directed towards identification of talents that are nurtured by providing platforms for its young artists to showcase their talent. This strategy is different from that of most organizations that usually focus on recruitment of already established actors, dancers et cetera. Moreover, in the context of product positioning, the organization focuses on production of films at the High School level thus attracting a young audience, basically majority being High School Students or audiences within high school age bracket. In addition, the organization focuses on provision of its services in Tourist Hotels through presentation of traditional dances, theatrical performances et cetera. This has enhanced its success over time owing to the fact that most large arts organizations focuses on one aspect of production that is basically sold or marketed on the internet and modes of distribution. Key Aspects of Promotion and Product Placement The organization applies different strategies to promote its product and services; one of the strategies applied by the company entails the use of internet technology where it markets its products and services as well as creating awareness among consumers regarding its presence. For instance; the organization has its website where people can access all the information concerning its activities, products and services. In relation to product placement, the organization offers its products to persons that love traditional dances mostly in tourist hotels and high in high schools where it encouraged talented youths to act movies that suit the need of the high school students’ age groups. The organization is located in the United States of America, specifically in New York City, where it offers a number of Disciplinary art performances among different audiences within the city of New York. On its website, the organization has ensured that it has it contacts on social media channels like twitter, facebook, flickr and an email address where most of its clients can access any information concerning its operations. Financial Forecasts of the Organization and Requirements Estimated Sales of the Company The company expects to make an average sale of 273,600 US dollars; approximately 40% of this amount will be made in 48 weeks, with major sales of tickets being experienced during the weekends. The types of sales that shall be provided to the clients are: Online sale of tickets at discount of 10% percent of the total amount of a normal ticket, which shall be sold 50 US dollars. Cash Flow Statements of the Organization Monthly Cash Flows The table above indicates a summarized gross monthly sale of the company. The expenses are also indicated; the monthly expenditure is will be spent on transportation of artists from one point to another as well as other minor expenses such as repair of certain artistic devices. Profit and Loss Statement This table represents the annual net income that shall be made by the company; it is a small and a new arts organization that does not have a huge expenditure budget thus contributing to the limited annual expenditure. Moreover, since it is not a popular company, its income is not as high as compared to other arts organizations that have been established. However, with the current increase in the manner through, which different populations are appreciating artistic work, the business expects to make an increased profit at a rate of approximately 10% annually that is: 10% of 273,600 US dollars, which will results to an increase of: 2, 736 US dollars. Therefore, within a period of three years the profit shall be = 279, 099.36 US dollars, taking into consideration that the production costs remain constant. Assumption: The price of the tickets in regard to the financial statement indicated above is expected to remain constant; however the number of clients visiting shows organized by the company is expected to increase as time goes on. Investment Strategy Assets Required to start the Business The company requires skilled team members who will begin working on a voluntary basis. In addition it also requires an office or a theatre hall where it can train identified young and talented artists. Moreover, it also requires artistic equipment, majorly those that are offered at a cheaper costs due to the fact that the company has is not in a financial stable position. Financial Risks that may be faced by the Organization The organization may be faced by challenges with regard to its financial capacity to meet the needs of the company when it comes to purchasing equipment for production. This can majorly be attributed to the fluctuating prices of artistic equipment, which may increase at times while in other cases they may reduce. Another financial risk that may be faced by the company may occur when the company makes losses i.e. selling less number of tickets against the projections of its team members hence especially after spending finances in organizing such shows. Future Challenges/ Dilemmas/ Opportunities Core Challenge that may be faced by the Organization The core challenge that may be faced by the organization is competition. This is majorly resulting from properly established organizations that produced similar products or services at higher quality as compared to this business. Potential Turning Points for the Organization The potential turning point of the organization may occur when it enters into a partnership with an already established art organization that is more popular and more successful. This may provide it with the opportunity to showcase and market its services properly hence making large amounts of profit. Bibliography Mark, W.2011.The Work of Art in the Age of Mechanical Reproduction, republished by Penguin Great Ideas and translated by J.A. Underwood (2008) Alexander, V.2003.Sociology of the Arts: Exploring Fine and Popular Forms, Blackwell Publishing, Oxford, UK Baudrillard,M.2005.The Conspiracy of Art, ed by Sylvere Lotringer, Semiotext(e) 7 Becker, H 2012. Art Worlds, Berkeley, University of California Press Bourdieu, P.2004. Distinction: A Social Critique of the Judgement of Taste. 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Talking Prices: Symbolic Meanings of Prices on the Market for Contemporary Art, Princeton University Press. Read More