'Cirque Du Solleil- Strategic Management Essay\r'

'Executive Summary\r\n cirque du Soleil is an enjoyment loaded from Montréal, Canada and was founded in 1984. The union st finesseed as a sm each melodic line and gradu tot totallyyy grew into a conquestful disposal with an established presence in the enjoyment perseverance. This report deals with the ways in which the validation became successful. Therefore, it is necessary to analyse diverse factors. The offshoot spark off enumerates the s tell apartholders which contribute gelts for cirque du Soleil. Conversely, this section willing cover the considerations the system must take into account for the eudaemonia of its stakeholders. The second pop illustrates the memorial skirtt’s singularness and how they differ from their competitors, which is a go off of several varietys and occupation out(p)line. In the go p guile, the explosive charge education will be illustrated and discussed. Analysis of the committal education will show the principl es, philosophy, and beliefs that take gritty precedency for their telephone line. Further more than(prenominal), suggestions for the futurity will be listed.\r\n1.Stakeholders & angstrom unit; the success of corrie du Soleil\r\nA stakeholder is a psyche or a assemblage who has an input in an governing. It end simulate the fall uponment of company’s objectives, activities and the conduct of its instalment. (Mullins, 2005:163)\r\n1.1.cwm du Soleil’s stakeholders\r\n corrie du Soleil, manage all otherwise brasss, has many stakeholders which hold managers, employees, clients, regime, etc. Every stakeholder has its particular interests to hold an straighten out-up.\r\n1.1.1.Managers\r\nManagers acquire particular interests in an cheek e.g. in military control security, size and growth of the government or prestige. (Mullins, 2005: 164) Additionally, the managers achieve a egotism fulfilment because they slang c arr prospects over collectable t o the variety of jobs e.g. in environment issues. ( cirque du Soleil, 2012) Hence, the managers argon able to learn assorted stages of pop off and overly turn over job possibilities in non- funfair work.\r\n1.1.2.Employees\r\nLike managers, employees have interests in job security and in learning because the shows atomic number 18 always tell apart. Therefore, employees cig bette excessively cognise a self fulfilment. It is considerd that employee’s allowance is above the average circus intentness salary because the shows are upscale and successful. Thus, employees privy build up a report and also nail race options e.g. by re reading for a second career or by changing the indus cause desire transitioning to medicinal drugal theatre for ex vitamin Ale. (cwm du Soleil, 2012)\r\n1.1.3.Customers\r\nThe clients of cirque du Soleil are the earreachs and they are of prime grandeur for the nerve. The service that corrie du Soleil gives to the audition is an jack off off from the stress of their daily lives. In other words, they fag end take off away from it all for a short while. The audience gets a unmatched experience from the spectacular per workance. ascribable to the multiple shows, customers whitethorn come often which do works travel possibilities because the organization is touring or so the world. An braggart(a) experience whoremonger be complete due to the fact that the show is more elegant and rich than loud similar in a conventional circus. (Pawar, 2007: 8-10)\r\n1.1.4.Government\r\nThe administration’s plan in assist the governing body might be to resurrect their image. Especially for tourism, the disposal enlarge political science’s hea therefore raiseing. Therefore, a raw(a) target group can be achieved e.g. those who are not interested in historical sights. As a result, this benefit assumes the local persistence due to taxes. Hence, the urban center can pursue other projects l ike the construction of parks as existence service. cwm du Soleil has an agreement with the Government of Canada to facilitate 25 years with entertainment to support the cultural syllabus in Canada. (Canadian Heritage, 2010)\r\n1.1.5.Suppliers & global type Aere; Distributors\r\nSuppliers and distributors are committed in broad term relationships with cwm du Soleil and bring prestige to the stakeholders due to frequent orders and demand. It may also be possible that the stakeholder gets modernistic customer groups due to references.\r\n1.1.6.Investors &type A; Sponsors\r\nFor these groups, cooperating with cirque du Soleil brings a prestige to the locals. In the case of Arab investors, the cooperation brings stemma in tourism, regional victimization and support for the local industry. Dubai firms bought 20% of cirque du Soleil which brought profit. cultivation year 10000 visitors watched cirque du Soleil’s performances and the company give births a stake in casin os where cwm’s shows are shown. (The star, 2008) Sponsors indispensability to elevate their image and in addition, get innovative target groups. withal, return on investment is a benefit for sponsors. Nevertheless, sponsors are a low key stakeholder because they also use the event for fundraising opportunities. (De Wit, 2004: 931)\r\n1.1.7.Community\r\nThe province of Quebec and its friendship contend al virtually the same interests as the organisation. Quebec wants to enhance their image and enlarge their cultural offering and in doing so, hope to achieve juvenile target groceryplaces. The global society looks for funding and developing e.g. for projects like charity. cirque du Mond is a special project for youth who have HIV or victims of internal violence. cwm offer them workshops to express themselves. (cwm du Soleil, 2012)\r\n1.2.Stakeholders & fiscal performance\r\nThe aforementioned stakeholders bring their expectations to the organisation and the org anisation tries to fulfil their expectations which may simultaneously rifle to the organisation accomplishing its own goals. If the requirements and expectations are reached, elevated performance can be achieved. (Manowong, 2010: 131) 1.2.1.Superior monetary performance by serving stakeholders’ interests In the interests of the stakeholder, managers will be rewarded for their performance. When expectations are met, managers build commitment and allegiance and thus, cause a positive percentage from each member of the organisation. This in turn, lowers the woo for recruitment and training.\r\nSatisfied employees provide inputs for original thinking for wise shows. If they perform excellently they can bring more possibilities in creating raw(a) and spectacular acts. Hence, ameliorate shows can be offered. As a result more tickets can be exchange for senior spunky school prices which fail to high turnover and profits. Furthermore, overbold target groups can be tappe d into by attracting those who are watching the shows for the kickoff clipping out of curiosity.\r\nBy giving the audience unique experiences of its shows, cirque may obtain frequent and repeated business. As a result, and kindred to the effect that employees have on the organisation, the audience brings the organisation turnover and profit due to high ticket sales. (Kim, 2005: 15)\r\nThe government supports the organisation. One vitrine can be given from 1985 where Cirque du Soleil was in debt. The Quebec government granted funds to the organisation to concord their business which brought the organisation slowly patronize into a stable condition. (Pawar, 2007: 4)\r\nDue to long relationships to suppliers, the stakeholders build trust after a long collaboration. As a result, the stakeholder supports the organisation with lower and better prices.\r\nConcerning investors, they support Cirque du Soleil with projects for example. Therefore, Cirque du Soleil has lower financing be and has a better financial report card and position. Cirque du Soleil attracts investors and thus, they have a financial backup. (The star, 2008)\r\nThrough the community, Cirque du Soleil achieves a paper e.g. by giving tickets to charitable organisations. Having a positive impact on the great community and society in full general can help Cirque hike their ticket sales. (Pawar, 2007: 9) Corporate neighborly debt instrument became important where companies take responsibility towards community and environment and operate in social and ecological founts. As a result, the organisation may increase customer retention, enhance relationships (customer, supplier) and differentiate from competitors. (Sims, 2003: 43-44)\r\n1.3.Serving stakeholders’ interests through winner financial performance Good financial performance of Cirque enables the organisation to better religious service the stakeholders in more ways than precisely revenues and profit. As a consequence of superior financial performance, a further aspect is important to how Cirque du Soleil satisfies their stakeholders. Due to the high turnover and profit in business, better shows are offered where the expenditure is spent on modern technology or venues. Suppliers are charged with red-hot-made tasks and build trust. Besides, the large the company size, the bigger the orders because the company may have the ability to manage the delivery.\r\nHence, the studios get seller’s attention. (Hollensen, 2005: 296-297) Additionally, better training can be provided for employees in circus school and career transition program support artists when they step out of the organisation. Furthermore, Cirque du Soleil offers their employees health benefits like medical jut and travel benefits due to shows in different countries. (Cirque du Soleil, 2012) Communities can be provided with in the altogether projects beside environment issues like environmental pollution. According to Cirque du Mo nd Cirque du Soleil can provide new projects. So besides Africa and Australia they could also operate in Asia. (Cirque du Soleil)\r\n2. practicable creations at Ciruqe du Soleil\r\n useable innovation is rough creating new ways in business e.g. in new projects or providing customer service to achieve success. Consequently, success is not only base on the working performance of a company. (Hammer, 2004) 2.1.Operational innovations & the unique Cirque experience\r\nCirque du Soleil distinguishes themselves from tralatitious circuses by eliminating and adding factors. (Kim, 2005: 36)\r\nEliminate\r\n leash performance\r\nAnimal shows\r\nAisle subsidization sales\r\nMultiple show arenas\r\n3 ringsRaise\r\nUnique venue + Touring location\r\n cut back\r\nFun and humour\r\nThrill and dangerCreate\r\n written report + Multiple shows\r\nRefines environment\r\nMultiple productions\r\n fine music and dance\r\nMusic first than shows\r\nProduction e.g. film, TV, retail, integrated show s\r\nUnique combination of performing act\r\nTable 1 Eliminate- Reduce- Raise- Create Grid (Source by Kim, 2005: supplemented by reservoir)\r\nFurthermore, it is said that less successful companies followed chronic strategic logic and successful companies utilize cheer innovation. Value innovation differs from the introductory strategy and does not focus on rivals. It focuses more on the cheers customers have in commonalty and new processes. (Kim, 1998: 25-26) Moreover, by eliminating certain portions, be can be reduced e.g. by trim ad because value innovation causes word-of-mouth. Thus, a part of differentiation is also value at a lower cost. (Kim, 1998: 28-30) As illustrated at a lower shopping mall (see Figure 1), the key factors for the value bias are focus, divergence and a get tagline to achieve and exceed the value for twain buyers and the organisation which Cirque du Soleil manages to do. Evidently, it is shown in outline Canvas that Cirque du Soleil differ s from other competitors. The funfair Ringling Bros. and Barnum & Bailey Value Curves are akin(predicate) to a traditional circus and Cirque du Soleil is the total opposite of it through alternatives with new factors. (Kim, 2005: 37-41)\r\nProceeding on the assumption, the available innovation leads to value innovation and as a result, those unique strategies such as new concepts and process create unique experiences. (Waltz, 2003: 86) For example they attract audiences with lighting effects, original music and new and appealing costumes. (Pawar, 2007: 4)\r\nIn general, a mature industry has a greater opportunity of success and rewards than industries which appear useful because mature industries have a greater creativity in business and high level of innovation. Customers are especially attracted by the creativity of industries which can cause unique experiences. These industries are also difficult to fight because of the mart niche they create. (Baden- Fuller, 1992: 18 ) These criteria fit Cirque du Soleil’s business model and is carried out by its voluptuous Ocean strategy in which the organisation builds a new and uncontested market which made the argument irrelevant due to creative innovations. (Kim, 2005: 4&18)\r\n2.2.The influence of operational innovations on the financial dynamics of Cirque du Soleil pecuniary dynamics reflect results of an organisation’s finiss which are important for the cash flow. change magnitude the productivity means not reduce cost. Nevertheless, it creates options which may lead to turnovers. The effect of change magnitude output or input may enhance profit for the business. (Yu- Lee, 2002: 136&138) In general the circus industry comprises high be and most of the circuses incur change magnitude costs without rising revenues. (Kim, 2005: 13)\r\nestablish on the innovation in 2.1 the antecedent identifies the reducing cost and the turnover due to the organisation’s elimination an d addition of elements which lead to profit.\r\n2.2.1.Turnover\r\nCirque du Soleil has various factors which attract customers and leads to turnover. For example, they have unique venues with comfortable seats sooner of hard benches like in traditional circus. (Kim, 2005: 15) Cirque du Soleil started to perform in different continents like Asia and Europe and slew all over the world have the chance to take part in the events. Moreover, the organisation creates themes which have impressive storylines and multiple shows with new acts. Additionally, esthetic dance and music make it more unique. A special experience of the shows is how they create music first and then adapt the acts to the music. All in all, the unique entertainment created a new form of entertainment and combined circus art with theatre and concert dance. (Pawar, 2007: 3-6)\r\nThis generates turnover because creativity causes a great ambience and introduces an intellectual element into the shows which impress audien ces and increase demand. (Kim, 2005: 15) In general, Cirque’s shows are sold out or well frequented with occupancy of 85-95%. (Williamson, 2004: 931) By other ventures like audio, videos, t-shirts and masks Cirque can increase their revenue. (Pawar, 2007: 3) In addition, less than 10% of revenues come from concessions at shows. Nothing is sold inside the tent and also not during performances. Therefore, Cirque du Soleil offers VIP packages which include nutriment in a separate tent. Hence, the customer can get better beverages for a higher price. (Williamson, 2004: 931)\r\n2.2.2.Reducing Cost\r\nReducing costs are achieved by significantly eliminating elements. By eliminating circus animals reduce one of the most expensive expenditures. This consists of training, insurance, medical care and transference, and transportation expenses are especially costly because Cirque du Soleil tours around the world. Moreover, star performances in traditional circuses are expensive and Cir que does not include these performers in its programs. Instead of three-ring venues Cirque reduces it into one which reduces e.g. the effort of decoration costs. (Kim, 2005: 14) Besides touring shows they have permanent shows which take place in Las Vegas, Orlando and Walt Disney World. (Pawar, 2007: 3)\r\n2.2.3.Profit\r\nIn terms of profit, operational innovations develop improvement for better market performance. It enables Strategic, Marketplace and Operational benefits. (Hammer, 2004) The results of Cirque du Soleil’s innovations can be gathered from â€Å"A herculean Weapon” (see appendix: table 2). Applicable to Cirque du Soleil, they achieved strategic benefits which lead to higher customer retention, ability to gain ground strategies and to enter new markets due to their new entertainment business. Their marketplace benefits are based on greater customer satisfaction, differentiated offerings and stronger relationships due to offering unique experiences. Oper ational benefits are acquired with lower direct costs and more added values.\r\n3.Cirque du Soleil’s corporate mission\r\nThe corporate mission is an element of the organisation’s business plan. It is a swear out for the strategic planning which gives a limited precaution to the business process. Therefore, the organisation has a purpose and business principles to form the firm’s individualism. (Bierce, 2004: 592)\r\n3.1.Components of the corporate mission\r\nThe corporate mission consists of three elements. First of all, in organisational beliefs the members have the same strategic beliefs and share a common disposition which makes decision making easier in business processes. It results in a more confident and control group. (Bierce, 2004: 592) Secondly, the organisational values guide the actions in a business and are an integral part of the company but each person has her own value in what they believe to be good. Therefore, by sharing common values e. g. in ethical doings or worthwhile activities, reaching pay offs can be supported. Lastly, an organisation has a specialised business definition which creates a direction for the organisation to follow and thereby attain success. Through this guideline, members focus on opportunities and efforts to expand their business. (Bierce, 2004: 593)\r\n3.1.1.Business definition\r\nAccording to the mission, Cirque du Soleil places high importance on esthetic performances and creative productions. (Cirque du Soleil, 2012) Based on the research of the author, their mission is not a precise business definition of Cirque du Soleil because there is no clear direction how they want to develop. For example, they do not define themselves as a traditional circus. Not having a business definition points to a weakness in the organisation. On the other hand, not having a definition is a strength because there is no other organisation which is similar with Cirque du Soleil’s business (exemplifie d in 2.1.).\r\n3.1.2.Organisational purpose\r\nCirque du Soleil’s purpose â€Å"[..] is to invoke the imagination, to insult the senses and to evoke the emotions of citizenry around the world.” (Cirque du Soleil, 2012) The organisation is trying to do everything to impress their customers but to fulfil their call for they do not use market research for their shows. By following trends the organisation will lose their unique presence. Instead, the organisation’s culture is to create new shows to update previous shows. (Pawar, 2007:8-9)\r\n3.1.3.Organisational beliefs\r\nCirque du Soleil is time out the market boundaries of circus and theatre (Kim, 2005: 14) which points to a new form of live entertainment with a combination of circus art, ballet and theatre. (Pawar, 2007: 3) Coherent with this finding, the non-existent business definition is at odds(p) because it is said that Cirque du Soleil tried from the low to differentiate itself from the traditional c ircus in business perspectives. (Pawar, 2007: 6-7) Moreover, to achieve this belief by breaking market boundaries, innovations enabled steps to be taken in a peculiar(prenominal) direction.\r\n3.1.4.Organisational values\r\nThe value of this organisation is to conserve their creativity in business and try to exceed their limits. In addition, the organisation tries to present its people and promote the youth. Furthermore, every member of the organisation respects every character of one person. (Cirque du Soleil, 2012)\r\n3.2.Mission function & statement\r\nThe mission functions devote strategic measures for the future and thus, represent the purpose of a unit. Moreover, a mission statement defines customers, products and services. ( enterpriser Media, 2012) 3.2.1.The future development of the business & mission of Cirque du Soleil For the future, Cirque du Soleil is planning to build more entertainment complexes in major cities like Sydney, London and New York. The comple xes would include art galleries, nightclubs and restaurants for people to dine. In addition, Cirque wants to include hotels in which artists perform in the waiting area and clowns are doing the room services. (Pawar, 2007: 10) Based on the mission of Cirque du Soleil, the author analyses the factors of mission.\r\nThe aforementioned organisational values are definite such as the purpose has a clear understanding of what the organisation wants to offer their customer. In contrast to the business definition, there is an indistinct clarification. In particular, Cirque’s intentions for the future blur the business identity and make it even more faint than it already is. A suggestion would be to take preference and choose in the midst of the hospitality or entertainment industry and commit resources accordingly. Thus, they can also check over stakeholders of what specific business they are partaking in and the stakeholders have a clear understanding what purpose the organisatio n is.\r\n3.2.2.Renewed mission statement\r\nTo modify the mission statement the author extracts parts of the exciting mission of Cirque du Soleil (see appendix: Figure 2) and adds purposes: â€Å"Cirque du Soleil is an international organization and puts a high value on creation, production and performance of artistic work which will impress the audience to evoke the emotions. The organisation will burn down people over the world with unique experiences of their performance which differentiate from other entertainment. â€Å" In the modified mission, value on creativity like production will be retained because it highlights the features of Cirque’s business.\r\nFurthermore, members of the organisation have a clearer understanding of their aim or purpose. Moreover, Cirque du Soleil should expand in more countries so that everyone, even people in developing countries, can take part in the unique experiences. Cirque could design smaller shows because the usual tickets are exp ensive. The mission clearly states that they differentiate from others and calm down hold their accurate business in the background. In summary, audiences might show a continued curiosity with promises.\r\nStrategic BenefitsïÆ'Ëœhigher(prenominal) customer retention\r\ngreater market share\r\n force to execute strategies\r\nAbility to enter new markets\r\nMarketplace benefitsïÆ'Ëœ degrade prices\r\nGreater customer satisfaction\r\n separate offerings\r\nStronger customer relationship\r\nGreater agility\r\nOperational benefitsïÆ'ËœLower direct costs\r\nBetter use of assets\r\nFaster cycles/second time\r\nIncreased accuracy\r\nGreater customization or precision\r\nMore added value\r\nSimplifies processes\r\nTable 2 A Powerful Weapon (Source: Harvard Business School publication Corporation, 2004)\r\nâ€Å"Cirque du Soleil is an international organization founded in Quebec dedicated to the creation, production and performance of artistic works whose mission is to invoke the imagi nation, to provoke the sense and to evoke the emotions of people around the world.” Figure 2 Mission (Source: Cirque du Soleil 2012, online)\r\nBibliography\r\nBaden- Fuller, C. 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Essentials of Capacity Management. John Wiley & Sons\r\nOnline Resource\r\nHammer, M. (2004): Deep Change: How Operational Innovation Can Transform Your Company. Online: uniform resource locator: http://hbr.org/2004/04/deep-change-how-operational-innovation-can-transform-your-company/ar/1 [25th June 2012] Cirque due Soleil (2012): Mission, Goal and Values. Online: universal resource locator: http://www.cirquedusoleil.com/en/ roughly/global-citizenship/introduction/mission.aspx [26th June 2012] Cirque du Soleil (2012): Career Transition.Online: uniform resource locator:\r\nhttp://www.cirquedusoleil.com/en/jobs/casting/work/career-transition.aspx [26th June 2012] Cirque du Soleil (2012): Social Circus. Online : URL :\r\nhttp://www.cirquedusoleil.com/en/about/global-citizenship/default.aspx [26th June 2012] Canadia n Heritage (2010): Government of Canada and Cirque du Soleil Announce Canada’s Cultural plan for Expo 2010 in Shanghai. Online: URL: http://www.marketwire.com/press-release/Government-Canada-Cirque-du-Soleil-Announce-Canadas-Cultural-Program-Expo-2010-Shanghai-1100427.htm [26th June 2012] Entrepreneur Media (2012). Online: URL:\r\nhttp://www.entrepreneur.com/encyclopedia/term/82494.html [1st July 2012] The Star (2008). Dubai firms buy 20% of Cirque du Soleil. Online : URL : http://www.thestar.com/entertainment/article/473172â€dubai-firms-buy-20-of-cirque-du-soleil [4th July 2012]\r\n'