Strategic Management Report-National Center of Performing Arts - Case Study Example

Strategic Management Report-National Center of Performing Arts Name: Course: Tutor; Institution: Date: Table of Contents Table of Contents 2 1.0 Introduction 3 2.0 Internal Analysis 3 2.1 Vision, Mission and Core Values 3 3.0 Organizational Issues 5 4.0 Recommendations 7 5.0 Conclusion 8 References 10 1.0 Introduction Strategic management is a growing international management concept for both local and multinational organizations. In this regard, organizations have resulted to increased use and adoption of this approach in organizational operational and strategic running. However, its implementation and execution faces an increased range of challenges in the market (Grant, 2007, p.13). As such, organizations in the global market have to face and confront the issues in order to achieve increased market performance. This report evaluates the concept of performance in the global market with respect to the National centre for Performing Arts organization. The report reviews its performance as well as challenges the organization faces. As such, the report subsequently develops appropriate market recommendations to enhance increased organizational performance and eventual market success. 2.0 Internal Analysis In order to review the functioning of an organization, it is imperative to review its internal organs operations and success levels (Kozami, 2005, p.149). In this case, the report offers an internal analysis of the organization in order to develop a framework of its operations as well as operational potential. 2.1 Vision, Mission and Core Values The organization mission is based on its daily activities provision in the Chinese market. In this regard, the organization has a mission of providing art and culture enhancement services in the Chinese market. In this regard, the services are geared towards increment and improvement of culture knowledge in a bid of boosting harmony and social integration in the Chinese market. As such, the organizational mission is training, and the development of the theatre industry in the Chinese market. In this mission execution, the organization has a vision of expanding its influence beyond China by attaining a global training and outreach on the global theatre industry. Fundamentally, the organizational mission and vision statements are based on the organizational guiding principles that are its social obligation to developing art, developing the Chinese people’s art as well as facilitating the global social integration aspect respectively. It is on these bases that the organization operates. 2.2 SWOT Analysis (Strength, Weakness, Opportunities and Threats) Rogoff (2007, p.44) argued that a SWOT analysis on the organization establishes a range of issues in its operations. On one hand, a strength analysis establishes that the organization attains an increased market performance and success possibility with increased influence in the Chinese market. The organization has over the years built a reputation for cultural and societal training and development in the Chinese market. As such, a majority of theatre organizations serving in the Chinese market have established alliances and membership with the organization for the training of their respective members and facilitators. This aspect offers the organization an increased global reach and profitability margins increase. However, a weakness analysis on the organization reveals that the Changing Chinese culture and increased cultural integration aspects emerging form globalization implications exposes the organization to reduced influence in the market. As such, this offers a strategic threat to the organizational operations expansion. In this regard, the organization faces the strategic long term threat of irrelevance as the society adopts integrated cultures. Moreover, an additional threat to the organizational operations emanates from technological developments. Technology assimilation into arts has led to increased organizational operation costs in a bid to incorporate the necessary art tools and equipments required for modern state of art theatre operations. Further, the organization has a weakness due to its reliance in the tourism industry. Over the past, the organizational arts practices facilitated increased tourism into the market resulting to increased China growth and development. Symbiotically, the organization relied on the tourists to develop its international theatre influence. However, in the recent past, the tourism industry has registered reduced rates consequently negatively impacting on the organizational international arts influence corporate and functional strategies. However, with strategic business improvement processes, the organization is bound to increase its overall strategic performance in the theatre industry. 3.0 Organizational Issues Based on the organizational mission, vision and core values analysis comparison with its internal structures SWOT analysis, this report concludes that the organization faces a range of operational and strategic issues. On one hand, changing trends in the tourism industry serve as a corporate business challenge. On one hand, the organization traditionally relied on the tourism industry to increase its international arts outreach. This was majorly evident in the market at a time when tourism was majorly adventure and leisure based. However, this tourism trend in the Asian and Chinese market has changed. As Marhuenda, Martinez and Navas (2004, p.224) argued, tourism in the region has reverted to work and career related ventures. Thus, unlike the traditional tourists, the modern day tourists work on fixed budgets and hardly have time for arts and other theatre functions in their tours. As such, this exposes the organization to the risk of reduced influence in the international theatres industry. In addition, the organization faces a functional issue in the operation and incorporation of technology in theatre operations. Traditionally, the organizational theatre activities and art performances were manual based. As such, the organization developed competency in performing arts in this platform. However, the theatre industry is changing as evidenced by the increased application of technology in the theatre has changed the arts industry fundamentally. Further, it has increased the capital investments needs in the industry (Barranger, 2006, p.295). As such, this has reduced the organizational profitability levels in the industry. Therefore, this evidences that the organization faces a functional challenge in the operation and execution of its mission in art development in the Chinese market. In addition, the organization faces competition from global competitors in arts performance in the global market. This can be evidenced by the increased industry competition from other arts performance organizations as such as the Indian, Mumbai organization. Competition from these global competitors’ exposes the organization to business challenges in that its international arts and theatre industry influence is threatened by such organizations that have increasingly wide art performance genres. For instance, the Indian arts performance industry, with its rich Indian cultural heritage, enjoys an increased tourism attraction that the Chinese market. This can be evidenced by the industry organizational increased profitability levels. For instance, organisational festival events registered an increased market success rate with organizations such as the Berlin Company festival event dubbed the Turandot show that yielded a $1.6 million income. Finally, a review of the organizational SWOT analysis establishes that the organizational mission for increased art performance in the Chinese market faces an operational challenge in cultural integration. The current society lifestyle has gradually abandoned cultural significance and instead embraced an integrated social cultural approach. Thu, the organizational operations in promoting theatres and art works featuring local and traditional Chinese culture faces a growing trend of reduced audience in the industry. Thus, the organization has to develop appropriate strategic alternatives to overcome this challenge. 4.0 Recommendations Based on the established organizational issues, this report recommends a range of strategic issues in the industry. On one hand, the report recommends an increased art works activities expansion. As evidenced in the analysis, the Indian art and theatre works industry has gained its success due to increased activities line. This as Taylor and Ulrich (2001, p.1590) argue, is equated to provision of a wide product variety in a line of products. Through this approach, organizations capture an increased consumer base through the targeting of diverse consumer bases. Consequently, the Indian art and theatre industry has registered increased success rates. Based on this analysis, this report concludes that the Chinese arts and performance industry success can be facilitated through increased products range. In this regard, the study argues that through an increased scope the organization will increase its overall market performance success rates (Corrocher and Guerzoni, 2009, p.472). In particular, this study establishes that through increased local arts campaign and promotional activities, the organization is bound to acquire an increased industry influence in the Chinese theatre industry. The recommendation can de evidenced by the $ 344,282 income generated by the Shanghai Contemporary Company through its hosting of 5 different performances in the Random event. In addition, the report recommends government involvement in funding the organization to acquire the required technology equipments necessary to promote arts and creative theatre performances in the current global market. The report argues that the art industry plays a significant role as a tourist attraction tool in the Chinese market. Studies such as the one developed by Feng (2008, p.208) argued that the Chinese industry development can fundamentally be based on increased tourism activities in the region. As such, this report recommends that with increased performance efficiency in the market, the industry will enhance increased tourism in the market facilitating eventual sustenance of the current economic development trends in the Chinese market. As Young and Kaczmarek (2000, p.227) state, a government has a strategic role to play in the facilitation and enhancement of international global competition and national comparative advantage building. Finally, this report recommends that strategic alliances and partnerships with theatre and creative arts organizations in the Chinese market have facilitated industrial development. A case of this is evidenced by a study on India and Singapore tourism industry developed by Yahya (2003, p.349), whose strong industrial ties in the market have led to increased financial earnings. Therefore, this report concludes that if the National Centre for Performing Arts organization adopts this approach, it will acquire increased long-term financial gains. 5.0 Conclusion In summary, this report concludes that the National Center for Performing arts in China is an important economic stimulant in the market. Through its local and international tourism industry stimulation, the organization plays a significant role in the economy, a role that ought to be supported through strategic management alternatives. The report establishes that the organizational operations face issues such as technology development, tourism industry changes as well as increased competition from global competitors such as the Indian theatre industry. Consequently, the report recommends three strategic alternatives including art performance activities diversification, government involvement as well as strategic alliances. Finally, the report concludes that with the implementation of the recommended strategies, the organization will increase its overall strategic competitiveness. References Barranger, M. S. 2006, Theatre: A way of seeing, Thomson/Wadsworth, Belmont, CA Corrocher, N. & Guerzoni, M. 2009, "Product variety and price strategy in the ski manufacturing industry", Journal of Evolutionary Economics, vol. 19, no. 4, pp. 471-486. Feng, X. 2008, "Who Benefits?: Tourism Development in Fenghuang County, China", Human organization, vol. 67, no. 2, pp. 207-220 Grant, J.H. 2007, "Advances and Challenges in Strategic Management", International Journal of Business, vol. 12, no. 1, pp. 11-31. Kozami, A. 2005, Business policy and strategic management, McGraw-Hill Publishers New-Delhi Marhuenda, F., Martinez, I. & Navas, A. 2004, "Conflicting vocational identities and careers in the sector of tourism", Career Development International, vol. 9, no. 3, pp. 222-244. Rogoff, E. G. 2007, Bankable business plans, Rowhouse Publishers, New York, NY Taylor, R. & Ulrich, K. 2001, "Product variety, supply chain structure, and firm performance: Analysis of the U.S. bicycle industry", Management Science, vol. 47, no. 12, pp. 1588-1604. Yahya, F. 2003, "Tourism flows between India and Singapore", The International Journal of Tourism Research, vol. 5, no. 5, pp. 347-367. Young, C. & Kaczmarek, S. 2000, "Local government, local economic development and quality of life in Poland", GeoJournal, vol. 50, no. 2-3, pp. 225-234. Read More