Studio 275s Business Overview - Report Example

Student’s Name: Course Title: Instructor’s Name: Date: Studio 275’s Business Overview Studio 275 is a theatre company that produces Canadian plays. Its market niche is the Metropolitan Toronto because of the competitiveness and abundance of live theatre in the region. Initially, the company produced primarily Canadian plays. However, it has expanded its theatre productions to include works that celebrate and acknowledges all the citizens of Canada. The company has a good reputation in the industry despite its low volume of single and group ticket sales. The low ticket sales is attributed to the reluctance of people to stay indoors especially during good weather. Also, larger portion of group tickets are normally sold to schools. When the tickets are not sold during spring, it means that the group sales of the company will be low during the first production. Below is a SWOT analysis of studio 275. Strengths i. The plays are directed by Judith Chapman-a renowned director with numerous award winnings. ii. Incorporation of new technology for marketing purpose. iii. Diversification of theatre works to celebrate all Canadian citizens. iv. Presence of featured actresses who are probably the best in Toronto. v. Strong reputation across Canada. Weaknesses i. The financial resources are limited ii. Reduced number of audience because the season focuses on women’s pas, preset and the future. Men might not be entertained. iii. Low income earners may not be able to purchase tickets. iv. Reader’s eye may fail to catch advertisement on print media. v. Family attendance to shows may be discouraged due to the fact that most shows are not entertaining g to children. Opportunities i. The company will receive sponsorship from financiers like TD financial Institution. ii. Social medial platforms such as twitter and Facebook will increase the company’s advertising. iii. Accessibility of tickets via the company’s website will increase sales. iv. Possible interaction and subsequent interviews with established media houses. v. There is possibility for the company to receive positive reviews from the audience. Threats i. Increased competition from other production houses that produce Canadian works. ii. It is hard to get people participate in theatre plays during summer because the activity is done in-doors while many people are out of their houses during summer. iii. Frequent change in audience who attends different plays. iv. Instances of low turn-up of audiences. v. Possibility of bad reviews. PART B Effective strategic planning is essential for the success of every business. Strategic planning is the first step towards the development of result-oriented operations within a firm. As part of the top management for Studio 275, I would include the following processes in formulation of a strategic plan for the company. Environmental Assessment This step involves the analysis of Studio 275’s internal and external environments. Environmental scanning helps in revealing the strengths, weaknesses, opportunities and threats that undermine the operations of the company. I would divide the process of assessment into internal and external environmental scanning. Internal environment will be assessed using the SWOT analysis model whereas the external environmental assessment will be done using Porters Five Forces model. The model is essential because it uncover the threats and challenges posed by new entrants, pressure from substitutes within the industry, rivalry among the existing players and pressure from the consumers of information-audiences (Kogan et al., 2007. p. 17). The choice of the two models is based on the fact that Studio 275 operates in a Metropolitan city of Toronto. This implies that the different cultures exist due to the presence of people from different backgrounds. Also, Studio 275 has a wide pool of full time and part time staff that has diverse roles and culture. Internal assessment will facilitate the understanding of the company’s corporate culture and its unique way of doing things (Pick, 2005, p. 25). Development of Mission, Vision and Values of the company Mission statement will tell the core purpose of Studio 275 in the industry while vision statement will reflect on what the company wants to be in the future. The formulation of mission and vision statements will be guided by the company’s long term and short term objectives, as well as what the company value in its business. The audience is the most critical asset to the company because it defines the quality of content that the Studio 275 produces. Defining strategic goals The goals will be formulated to suit the mission and vision statements. For instance, attract new patrons, increase Café revenues and the ticket sales within the first season of production. This is because necessary for Studio 275 is faced with insufficiency of funds which can be eliminated if the objectives are met. Developing Strategic Plan Formulation of a strategic plan will show how Studio 275 intends or rather proposes to put the various strategies into action. Strategic plan is basically a document that will show the various elements of Studio 275’s strategic management. Creating an Action, Resource and Budget Plans The strategies will be implemented with the help of a set of programs like budgets and procedures. It might involve changes within the overall structure, culture or management system of the company. Strategic evaluation and control The strategy will be monitored depending on the demand from the external and internal environments of the company. Part C During the initial stages of strategic planning, challenges are bound to occur. The following are the challenges that I am likely to experience during the strategic planning process. Lack of Engagement A major challenge that many strategic planners face is the inability to engage the right group of individuals in the planning process. There might be lack of corporation on the part of the company’s stakeholders and management team. This is because of personal differences that may arise in respect to how Studio 725’s stakeholders wish to execute its business in the future. Also, the management board in every organization is responsible for approving decisions. If there is no engagement, definitely strategic planning process will be done with difficult challenges. Lack of Mutual Consensus Strategic planning is basically concerned with building of a consensus. If done correctly, the process will promote participation, effective communication and collaboration. It offers a structured avenue for voicing conflicts, negotiating the meaning and purpose of the company and one’s position in it. While a true consensus about all elements affecting Studio 275’s stakeholders may seem unrealistic, it would be important to engage everyone through open forums, surveys, interviews and focus groups if the leadership of the company expects to receive maximum cooperation from its stakeholders when it comes to implementation of the plan (Robert, 2009, p. 45). Effective consensus building require sufficient amount of time. Getting the sufficient number of people with different interests, perspectives and interests to agree on the way forward the company should take is probably the most challenging factor in the process of strategic planning (Denver, 2003, p. 34). Achieving consensus can prove to be difficult. However, simple business tools like mind-mapping, brainstorming and nominal ranking can be used. Studio 275 has employees with different roles. Due to such diversity, lack of consensus may arise due to vested interests among the employees. Lack of Momentum in the Short Term Unlike in the past, strategic planning window has continued to decrease from a common span of ten years to a span of two to three years. The strategic planning itself should trigger momentum towards the creation of a sound strategic plan. If the strategic planning process takes long, then the participants will lose their enthusiasm gradually. According to Grünig and Richard (2011, p. 34), having an aggressive timeline during the strategic planning process creates an impression that the intended planning is a serious undertaking Too Much Ambition When highly motivated, visionary and bright people participate in strategic planning process for Studio 275, chances are that poor predictions and decisions are likely to be made. Luscious ideas may grow from fertile minds. Overly ambitious plans are likely to outstretch the company’s resources and become very complicated during the implementation stage. Lack of leadership If Studio 275’s leaders do not support the plan, then the whole thing will fail automatically. Although this point may seem obvious, it is common phenomenon for many leaders to talk about the importance of strategic plan during the initial process of strategic planning. However, they tend to show little interest as the process progress. Failure of very important leaders to show up during the planning process may result into demoralization of the members of the strategic planning task force. Leaders in their capacity should show support to strategic planning because it is their responsibility to think strategically (Fogg, 2014, p. 18). Their thinking is guided by the mission, vision, and values of the company. A clear vision of the future alongside strategic thinking is important remedies to the unavoidable environmental changes that hinder the details of strategic plans. Strategic planning process typically entails staying in course over time, irrespective of challenges caused by the unanticipated circumstances. Bibliography Denver, C. Development of a Strategic Planning Process. AWWA Research Foundation, 2003. Print. Fogg, D. Team-based Strategic Planning: A Complete Guide to Structuring, Facilitating, and Implementing the Process. New York: American Management Association, 2014. Print. Grünig R. and Richard K. Process-based Strategic Planning. Heidelberg: Springer, 2011. Internet resource. Kogan, Raymond F, and Cara B. Strategic Planning for Design Firms. New York: Kaplan Pub, 2007. Print. Pick J. The Theatre Industry. London: Comedia, 2005. Internet resource. Robert E. Stakeholder-driven Strategic Planning in Education: A Practical Guide for Developing and Deploying Successful Long-Range Plans. Milwaukee, Wis: ASQ Quality Press, 2009. Print. Read More