Strategic Management for the 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 Introduction 3 1.0 Key Issues 3 1.1 Narrow Overseas Market for Arts Products 3 1.2 Target Buyer Limitation 4 1.3 Policy Constraint for Arts in China 6 2.1 Economic Impact: Tourism Industry Development 7 2.2 Sustainable Governance within Organization 9 3.0 Recommendations 11 3.1 Cooperation Strategy for Broadening Marketing 11 3.2 Seeking for Educational Values 13 3.3 Organization Culture Improvement 15 Conclusion 16 References 18 Introduction Strategic management concept development has revolutionized management practices and approaches in the market. In this regard, the approach seeks to counter existing organizational management issues, reinforce organizational strategic goals, as well as enhance development of appropriate management strategies and approaches (Rumelt, 2011, p.4). In a review of these aspects application, this report reviews the Chinese National Center for Performing Arts (NCPA) organizational issues, goals and subsequently offers appropriate strategic recommendations for organizational management and operational management’s improvement. 1.0 Key Issues 1.1 Narrow Overseas Market for Arts Products The Chinese national centre of performing arts as an organization has over the years developed an international approach in its globalization strategy. The theatre, officially opened in 2007, had in its mission a target in the international arts and theatre industry. As such, the organization developed a mission vision objective of promoting arts both in the Chinese market and on the global platform (Janssen, Kuipers and Verboord, 2008 p.721). In order to develop an international presence and approach in the international market, the organization developed an internationalization strategy through the tourism industry. On one hand, the organization developed a partnership relationship with the Chinese tourism industry. Through this partnership, the organization advertises and markets its services to the tourists venturing into the country allowing it an increased international recognition. However, the international tourism industry is changing with increased focused and pre planned tour and travels. As such, the tourist in the Chinese markets have minimal or no time for arts advertising and marketing services. Therefore, this has considerably reduced its arts products international market opportunity. In addition, the organization faces increased competition from rival international arts and culture organizations. Globalization, increased global tourism and technology changes have increased competition in the arts industry. While as traditionally the Chinese culture was among the most known and fascinating, increased globalization has led to the emergence of new cultures such as the Indian culture drawing increased competition and attraction. For instance, Lewinski and Hahn (2008, p.429) argued that the Indian market has been established as an increasingly competitive arts industry with the increased government and industry support. In this regard, through increased festivals, such as the Indian annual festivals, other cultures and art works have influenced the global market significantly reducing demand for the Chinese arts products. Therefore, based on this market dynamics analysis, it is apparent that the Chinese National centre for performing arts has over the years experienced a reducing global arts market, a trend expected to project into the future as new cultures and arts emerge and encroach the global arts industry. 1.2 Target Buyer Limitation The design and building stricture of the Chinese national centre of performing arts is a clear indication of its regard and positioning of the various products in the arts industry. In its structural design, the centre has three main halls with an over 5,000 seater capacity in total. However, the theatre hall, which is specially designed for plays, has a slightly above 1,000 seater capacity as opposed to the other two halls with over 2,000 seater capacity each (Ren, 2011, p.3). This is a clear indication that the organizational management expects minimal contributions and guests to the Chinese play as opposed to the international arts performances and dances. This design structure can be applied to interpret that the organization has its main focus in the international market and on foreigners visiting the Chinese society. As such, in its market niche establishment, the organization seeks to develop an approach through which it serves as the culture and arts information centre at which foreigners into the region can learn art and Chinese culture, all under one roof. Therefore, its target market is on immigrants and tourists whom besides learning the Chinese culture need a blend of the presentations and art work with other global cultures. However, as already discussed, this market base is significantly declining due to a range of external market factors conditions influencing tourism and art work selection. In addition, the organization has limited seater capacity for the theatre hall charged with plays demonstration. This is major market fallout. As a result of this limited capacity, the organization misses out on a large consumer and buyer base who are interested in Chinese plays which remain predominantly influential and captivating. The theatre industry, due to its rich culture retention remains the Chinese arts industry most competitive sector (Zhang and Alon, 2010, p.232). Failure to focus on enlarging the theatre industry and instead focusing on other arts and cultural elements leads to an increased organizational target buyer limitation for its arts products, a scenario risking eventual organizational failure due to reduced earnings against incurred costs. 1.3 Policy Constraint for Arts in China Industrial success is attributed to interplay between respective stakeholders. In this regard, each stakeholder has an absolute responsibility and duty in the management and success enhancement in the industry. As such, eventual success is often attributed to appropriate industry stakeholders networking, collaborations and devotion. These attributes are driven by the need and desire by the stakeholders to support industrial success. Therefore, if one industrial stakeholder is unwilling to promote its success, the industrial success falls into jeopardy. A review by Schoenhals (2005, p.737) sought to evaluate and establish existing external market stakeholders in the industry. In this case, the study developed an analysis evaluating the role of government contribution in the management and success of industries. As such, it established that governments, through the legal and political factors influenced regulations in an industry, an imperative success factor. A review on the Chinese arts industry demonstrates a declining government involvement as well as a decreasing political goodwill. This is evidenced in the lack of appropriate arts industry policies to manage and control art works business. On one hand, the industry lacks a definite policy and legal framework to control and prohibit counterfeit art works. Therefore, this has presented an opportunity for the imitation of art works as well as market infiltration and saturation with foreign artworks. Consequently, this denies the Chinese genuine artworks an opportunity to thrive in the highly saturated market (Galt and Schoonover, 2010, p.204). The Chinese national centre for performing arts is an organization developed to develop and promote the Chinese artworks industry. Therefore, lack of proper regulation and emergence of increased counterfeit art works negates the organizational relevance in the industry. Further, the Chinese government has stringent art associations and groups development requirements. As such, due to increased counterfeits and a decreasing stability and ability bas among the artists, it has become increasingly difficult to form art associations. Therefore, the organization faces the challenge of lack of able and ready partners in the market. It is forced to deal and transact with artists at individual levels, an approach increasing its overall operational costs. 2.0 Strategic Options and Goals 2.1 Economic Impact: Tourism Industry Development One among the major reasons and expectations for the establishment of the Chinese NCPA was to enhance, support and develop the Chinese tourism industry. Statistical analysis on the global tourism industry reveals increased industry and dynamic changes in the last decade. Traditionally, China and Japan served as the ideal tourism destinations in the Asian region. In particular, the Chinese market served as an attraction centre due to its rich historical destination cites such as the China hanging walls. Through these sites, tourists flocked into the region with minimal marketing needs. However, over the recent decade, the tourism industry dynamics changed. As such, instead of tourists focusing on pleasure and adventure as their prime tourism motivation, a majority of them are career and specific objective driven. In addition, the Asian region has experienced an increased tourism industry boast leading to increased competition. For instance, Sausmarez (2007, p.387) stated that Thailand has emerged as an ideal tourist destination centre due to its vast beach lines as well as the existing Thai culture often demonstrated in their arts. Therefore, strategically, the NCPA was established as a marketing tool for the Chinese market. Strategically, the organization focused on the international arts and tourism market. In order to achieve this strategic role, the organization developed operational and functional approaches through which to attract a large pool of tourists into the Chinese market. In this regard, it was classified into three main functions with distinct and diverse mandates of promoting artworks in their respective categories. Subsequently, the respective organizational functions have in the last decade increased their international expos. Under this approach, it is expected that once stakeholders visit China for the fairs, festivals and expos, their tours are not limited to the NCPA. Instead the organizational visitors end up visiting other tourism attraction sites in the nation. Therefore, through its organization of festivals and expos, the organization seeks to increase the number of tourists into the Chinese economy, an imperative economic tool for its eventual development and growth. In addition, the organization seeks to serve as a marketing tool of the Chinese societal culture. Besides its local organized fairs and festivals, the organization actively participates in international events such as social gatherings as well as sporting activities across the globe. Through these participations, the organization avails information and sample art works from the Chinese markets. Through proper marketing and sample offering techniques, the organization creates Chinese culture knowledge on the global market, an imperative step towards curiosity enhancement in the market. Through increased curiosity on the Chinese culture and art works, the organization elevates the Chinese market as an attractive and priority tourism destination site for a majority of the international tourists. Further, the presence of the magnificent NCPA building in Beijing China, serves as an additional tourism attraction cite. The building, designed by the French architect Paul Andreu is deemed as one among the most magnificent buildings across the globe. Therefore, besides its interior art portrays, art works and culture presentation, the building in itself is an international tourist’s attraction site. This was the idea and intention behind its unique design and construction regardless of the high costs incurred as Bergsten (2008, p.231) argued. 2.2 Sustainable Governance within Organization Strategic management and governance is an imperative approach in the recent organizational management in the global market. Through strategic management, organizations seek to establish and evaluate appropriate competitive edges. An organizational competitive advantage is described as an organizational trait and resource either physical such as capital and infrastructure or intangible such as human resource and market reputation and brand that offer it an advantage over peers in the market. Through the development and enhancement of an organizational sustainable advantage enhances the development of sustainable governance approaches. In a further description, Brink (2011, p.321) argued that sustainable governance in organizations is an increasingly growing concept that seeks to enhance organizational strategic goals attainment while positively contributing to the overall societal benefits. Sustainable governance is directly linked to the strategic management concepts of corporate social responsibility (CSR), which are the basis in which organizational managements benefit the society while earning profits. This was the principle objective and goals upon the establishment and development of the Chinese NCPA at its building inauguration in 2007. The organizational mission is a clear indication of its mandate and contribution to sustainability governance. On one hand, the mission statement argues that the organization seeks to grow the Chinese arts industry onto the global platform. Further, the organizational setting in its Beijing building is an added indication of its contribution to the society. In this regard, the organization developed three aesthetic halls in which Chinese and international culture and art works could be performed and portrayed respectively. As such, the organization developed an approach for talent development in the Chinese market. Currently, the organization organizes auditions and festival competitions for respective art works in the nation. Through the art works competitions and festivals the organization benefits the community while earning profits for its increased performance and market presence success. On one hand, the organization enables development of talents in the society. The festivals and competitions increases the chances for talent development and establishment as the participants acquire opportunities for funding and support form interested stakeholders in the international platform. In addition, the organization acquires increased revenue from funds collected from the sponsors and facilitators of such events. Further, the organization sought to attain sustainable governance in its management through artistic works development. This goals and objective attainment and strategic attainment framework for the development of Chinese art works and culture marketing in the global platform. The organization organizes a series of international expos and festivals in the global markets where Chinese culture and art works are marketed (Butcher and Velayutham, 2009, p.27). Through such marketing, the organization attains increased revenues while supporting the growth, expansion and development of the Chinese arts and culture industry. This is through an increased market for the industry products in the global market a break from the traditional market limited to the local Chinese market. Therefore, through its internationalization strategies, the Chinese NCPA has enhanced sustainable governance where its expansion and increased revenue gains coincide with arts and culture development in the Chinese market. 3.0 Recommendations 3.1 Cooperation Strategy for Broadening Marketing As already established under the organizational issues analysis in the Chinese culture and artworks economy, it is apparent the Chinese NCPA organization faces the risk of a declining global market. In this case, it is evidenced that the organizational international market influence and stake is steadily declining due to the emergence of new culture marketing organizations such as the Thailand and Indian markets in the market. Therefore, this report recommends that the organization should seek out partnerships and cooperation’s with other local and international industry stakeholders In order to expand its market base. This recommendation strategy approach success is evidenced in the Indian art works industry. The industry has partnered with both internal and external stakeholders For instance; the industry partners with local artisans in order to enable them improve their art works quality. Through increased art works quality, the Indian arts have in the recent past increased their global presence and influence. Further, the industry partners with the Indian government for the development of appropriate regulatory policies favouring growth and development in the industry for long term benefits. Therefore, based on the Indian case study, this report recommends that the Chinese culture and performing arts industry should focus on developing related and similar approaches on the market. In this regard, the report especially recommends the development of relations with existing arts and culture organizations in the industry. The organization should organize seminars and workshops in collaboration with these organizations and associations. Through such an approach, the gains will be in two fold. On one hand, the organization will help the associations improve their quality a major competitive element in the arts and culture global industry (Flew, 2013, p.22). In addition, the organization will facilitate knowledge and sensitization of the Chinese market base. Therefore, this will subsequently increase the local market willingness to support and purchase local Chinese art works. Through this approach, the organization will enhance a reduction in the strain and focus on the increasingly competitive global market and instead shift the focus into creating a relatively reasonable local demand. In addition, the organization should strive into developing alliances with the Chinese government. As earlier indicated, the organization and the arts and culture industry at large faces a policy constraints where the existing policies are either insufficient or unfavourable to its development. Through liaison with the government, the organization will facilitate increased policies development. For instance, with conjunction with local arts works associations, the organization and lobby with the government for the enactment of regulations restricting selling of counterfeit art work products. Such a policy directive would significantly improve the industry performance through increased empowerenment of the existing art workers. Through this approach, the local market saturation would significantly be reduced allowing for increased local sales. In addition, the organization can partner with the government to develop, organize and facilitate local and international festivals and expos through which to market the Chinese culture and art works in a bid to increase their international market hold and competitive edge through increased market awareness an imperative marketing element as Porter (2008, p.14) argued. Finally, the organization should seek cooperation with international stakeholders especially organizations in the tourism industry. Through the establishment of partnerships and cooperation with such international organizations, the Chinese NCPA will acquire increased opportunities to not only market its products, but also the Chinese economy as a suitable tourist’s destination, one among its strategic goals. 3.2 Seeking for Educational Values Based on the organizational analysis and a review of the Chinese arts and culture industry, it is evident that the industry faces an increased challenge with respect to international competition based on its base and products quality. As outlined under the policies development recommendation, the industry faces an increased challenge in the development of quality and well established art works. Therefore, this report establishes and recommends that there is a need to develop an educational value approach in the organizational sustainable development approach. In this regard this report recommends increased focus and development of education services to the arts and culture industry. The Chinese market, as established by their unique art works and a rich culture, has a large pool of talents that can be nurtured and developed to contribute to increased art works products quality. Therefore, this report argues that the Chinese NCPA should establish an education function. The branch should be well funded as a research and development unit. Functionally, the department should conduct market evaluation analysis to establish existing talents and their forecasted potential. Further, strategically, the function should recommend to the organizational management the appropriate training and educational programs effective for developing and nurturing such talents. As Turner and Conkel (2010, p.458) argued, talents development is an effective and efficient approach to increasing industrial quality through enhanced skills and expertise. Therefore, through such recommended talent development programs, the organization will fundamentally tackle the Chinese arts and culture industry challenge on quality in the international market. Consequently, this will allow the organization strategically and competitively market the Chinese arts and culture industry on a global platform. In particular, this report argues that the organization should focus on developing talents through its sponsoring of institutional art and culture events. A majority of the Chinese institutions and schools organize and hold arts and culture events as part of their co-curricular activities. Supporting of these events through facilitation and funding will increase their influence subsequently promoting their standards resulting to increased participants standards and quality improvements. In addition, the organization can introduce training academies for talented individuals. Such academies should be developed within the existing educational framework and curriculum. However, students in these academies should be offered increased access to arts and culture education and required facilities to develop and enhance their skills. This report argues that through the establishment of arts and culture academies, the quality and standards in the industry would subsequently rise in the long run, subsequently, offering the organization a competitive edge in the global market against existing competitors such as Thailand and India. Further, the organization should focus on establishing workshops for the existing industry practitioners to increase and enhance their experience and skills. As a final tactical recommendation undue educational value in the industry, this report argues that the organization can initiate an educational process through which a nationally and internationally recognized arts and culture course can be offered in the Chinese institutions to elevate and standardize the industry stakeholders standards in the long run. 3.3 Organization Culture Improvement A review on the organizational existing culture establishes that the organization is currently focused on developing and enlarging the international markets for Chinese arts and culture products. As such, the organization has established and developed appropriate supporting strategies such as its increased internationalization approach focusing on marketing its products to the foreign tourists in the nation. As a result, the organization has developed a culture that perceives the Chinese market as small and insufficient for its domestic arts and culture products. Consequently, the culture has led to an increased neglect for domestic market sensitization and education to increase its purchase rates. However, a review on the international and domestic arts and culture markets reveal changing dynamics. Lu and Alon (2004, p.69) stated that the large population base in the Chinese market can be utilized not only as a talent base, but also as a products consumption base for the developed arts and culture products. Therefore, there is an imperative need for the organization to change its existing culture and instead develop a new culture upholding the existing market potential in its domestic market base. However, this report argues that instead of entirely focusing on the local market, the organization should develop a culture incorporating a focus on both markets whether domestic or international. Therefore, this report recommends that the organization should develop a new integrated culture focusing on both markets. As such, the Chinese NCPA organization should develop strategies and operational schedules focusing on developing and exploring the existing domestic market potential. Conclusion In summary, this report reviews the Chinese NCPA with respect to issues facing the corporation, its strategic goals and alternatives and subsequently offers strategic recommendations for improvement in a bid to increase the organizational strategic performance in the long run. On one hand, the report analysis establishes that among the strategic issues affecting the organization include a narrow overseas for arts products, target buyer limitation, and China arts industry policy constraints respectively. Moreover, the analysis establishes that the organizational has tourism industry development and sustainable governance aspects as its key strategic alternative and goals. Consequently, in order to overcome the established issues as well as facilitate an attainment of the organizational strategic goals, the report recommends that the organization should embrace a corporation strategy to broaden its market base, seek educational values, and incorporate a culture change respectively. Through the incorporation of these strategies, this report argues that the Chinese NCPA organizational performance will increase. References Bergsten, C. F. 2008, China's Rise: Challenges and Opportunities, Peterson Institute for International Economics, Washington, D.C. Brink, A. 2011, Corporate governance and business ethics, Springer Verlag, Dordrecht. Butcher, M., & Velayutham, S. 2009, Dissent and cultural resistance in Asia's cities, Routledge, London. Flew, T. 2013, Global creative industries, Cambridge, UK Polity. Galt, R., & Schoonover, K. 2010, Global art cinema: New theories and histories, Oxford University Press, New York. 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