Theater Fixed Factors, Case Study Example

When becoming a president of a small nonprofit theater company, being of great demand among the audience, I would have to acknowledge the key factors making the theater of high demand. These key factors shall be the important factors, which would have to be wisely used. Having the limited information about the theater, we can confidently claim that the theater is popular because of the national reputation of the actors. Considering that popular national actors are working in specifically this theater, we may assume that they are being well paid for their work, correspondingly they are doing their work in a highly professional manner. Thereby using the limited information that we have we can broadly develop a plan of actions in order to successfully raise funds.

In a short run we must consider the fact that due to the lack of idle funds, we must find a way to raise them by the lowest expenditures. In this case we may consider raising the ticket prices. The raise of ticket prices should not be considerable in order to not scare away the visitors, approximately a raise by 10 – 20% of the original ticket price should be enough.

In the following case of a highly demanded theater, the fixed factors would be short term factors. They would be the amount of seats in the playhouse, the small stage, and in this case, the actors. The actors would be short term fixed factors because their variability would not be too unexpected, they are popular in this specific theater, and the visitors know where they are going and which actors they are about to see. If the actors were considered in a long term period, then they would be variable factors, likewise if they were not that famous and were amateur actors.

However, among the long term decisions that would be made in order to efficiently raise funds, would be to expand the theater, making in larger, placing more seats in the theater hall. The sales of tickets, months in advance, means that the theater has great potential, and not all people interested in visiting its plays can do so. Since the theater is already popular, it would be most efficient for the purpose of not losing visitors, is to expand the original building of the theater. However if expanding the theater by great scale would not be possible, it would less costly to move to a larger building fit for a theater, but the risk of losing accustomed visitors will be present.