A Formal Business Letter to The Rose Theatre Kingston - Essay Example

Your firm Street address/box number Suburb s The Manager/Director The Rose Theatre Borough of Kingston s Dear .. Elements to Consider in Strategic Planning for The Rose TheatreAfter careful analysis of the present context of your theatre, I present to you some thoughts regarding potential strategies to ensure the continued development and success of your business.Theatres, generally, are currently faced with numerous external influences. To their advantage financially, is the “bottom line” benefit that can be gained from accurate financial record-keeping and accounting practices.

Presently, VAT is able to be reclaimed by theatres, a situation consequent to the Lee court ruling of 16th February 2007. Prior to that ruling, as you may be aware, theatres were considered VAT-exempt. A further financial benefit is inherent in the 19% national taxation rate for so-called small business theatre companies. Ensure that your organization is appropriately classified for taxation purposes. As a larger company with profits above £1.5M you may be taxed at 30% of profit per annum.Another salient point is the advantage that British theatres have in their attraction for tourists.

Consider that technology now allows relatively inexpensive advertising on a wider, international scale thanks to the Internet. The inclusion of your theatre on tourist group itineraries could increase exposure of your brand and aid in more consistently achieved full-houses. Further your brand name – The Rose Theatre – is certainly internationally marketable.Home/local productions appear to attract your largest audiences. Careful analysis is needed to identify the ideal balance of productions you stage: would designing your annual program around a majority of such local performances ensure optimum audience numbers, and hence sustainable and predictable margins?

Within this analysis it must be noted that the auditorium at The Rose is exceptionally well-equipped and this factor should also aid in attracting “big name” producers, actors and performers – should more marketing resources be directed at attracting draw card “names” and hence a wider-ranging audience? Finally but perhaps most importantly, the upgrading of the facilities at the theatre, peripheral to the performance hall, must receive priority. The foyer, the ticket sales lobby, and the façade must aid in raising the profile of the theatre.

A strategy to source funding for such improvements is required as many of the proposals in this letter would have their implementation enhanced by a more traditional and inviting “complete” theatre experience at your venue.Hence a summary of three suggestions each of which will help to enable the ultimate priority: planning the correct balance of productions staged both to attract wider audiences; raising the profile of the theatre among national theatre personalities and tourist audiences; and focusing on efficient and effective book-keeping.

Better margins could thus be sustained by ensuring optimum audience numbers throughout the year.A percentage of such potential income could then be earmarked for the physical improvement of the venue, in my view, the ultimate priority. Also the consequent sustainability and profitability of the business will be perceived as reducing risk in the granting of potential development loans from financial institutions.This letter does not comprise a fully comprehensive analysis of your business, nor does it suggest ultimate strategic planning to you.

Rather its intention is to communicate a carefully considered set of informed observations.Please accept it as such and consider its intentions and suggestions favorably.Yours faithfullySignatureFull name