Top 10 Problems Faced by Business, Coursework Example

A national movie theatre chain requires a number of important tools and resources that will facilitate effective growth and change to maintain a vast customer base and to increase sales over time. Therefore, an effective marketing strategy must be in place that will have a lasting impact on the chain and its long-term success. Data collection within the movie industry is ongoing, as box office receipts are generated on a daily basis in order to gauge a film’s degree of success or failure. This requires a movie theatre chain to consider a variety of issues within the industry in order to support its growth and its bottom line. This requires an analysis of how the movie industry has performed in recent years and how its theatres have been able to operate under variable conditions that impact their performance and their sustainability within a competitive environment that is entirely driven on box office receipts and the success of different films. This reflects the importance of recognizing the need for additional resources and an analysis of existing operations. The following discussion will address marketing strategies within the movie theatre industry in greater detail in order to determine how to best fulfill the expectations of this field and the need to achieve sales growth to promote sustainability and a competitive advantage.

The movie theatre industry has experienced a number of difficult challenges in recent years with the high expectations set forth by films and their anticipated level of performance. In addition, it has been very difficult for the industry as a whole because of an increase in streaming services and other types of entertainment that have significant value for many consumers (Geier, 2015). In this context, this level of value often brings consumers to make the decision to stay at home and to enjoy a movie through a streaming service or via another means in order to save time and money (Geier, 2015). In response to the challenges of reduced ticket sales, movie theatres have attempted to make up for some of their losses by increasing their prices on concessions, as well as the offerings that are available (Geier, 2015). It should be noted that “Concession revenue for 2014 was $798 million, up from $787 million the previous year. Concession revenue per customer is up 7.8% on the year, thanks to higher prices” (Geier, 2015). As a result, movie theatres have identified a means of improving their revenue streams by charging higher prices for their concessions (Geier, 2015). This reflects the importance of identifying areas where revenues might be generated when traditional methods no longer apply or are less than productive for an organization. It is imperative that in order to survive over the long term, movie theatres must develop new marketing strategies as a means of creating interest in visiting the theatre on a regular basis.

Expanding concession offerings to new types of foods and beverages, including those of the gourmet variety, are likely to have a lasting impact on the organization and its overall sustainability over the long term. It is important for the theatre to consider such offerings as gourmet coffees and iced drinks, different types of gourmet candies, and other types of appetizers that are non-traditional for the movie theater. In addition, there must be a greater emphasis on the sale of products that are healthier than the normal fare that is offered in the theater setting. This will demonstrate the importance of concessions as part of the movie theater experience and how it impacts a patron’s willingness to return in the future. This strategy must accommodate consumer needs and is best suited to a market research plan to determine consumer preferences within this area.

A movie theatre must also be able to attract consumers from a variety of age groups, including children, teens, adults, and even older adults. These different demographics signify the need to evaluate current conditions and to recognize the value of understanding the dynamics of the industry and how it operates to accommodate customer needs. One of the most important methods by which a theater could obtain customer information is through a survey instrument, whereby different questions are identified that will enable the organization to determine what customers want to see and/or purchase while at the theater (Kolzet, et al., 2012). It is necessary for an organization to determine the type of customer base that it already has and to demonstrate that they are willing to modify their marketing strategies accordingly to ensure that the organization has the appropriate strategy in place for the marketing that is necessary within the target demographic area (Kolzet, et.al, 2012). This process is instrumental in determining how to best move forward with a marketing approach or strategy that will have a lasting impact on the organization and its ability to retain sales growth (Kolzet, et.al, 2012). This process also requires an examination of critical elements that will attract the attention of consumers to ensure that the theater will contribute to the local economy at a high level. This process requires the development of new perspectives to accommodate local residents that will capture and retain their interest over long periods of time. It is important for an organization to evaluate where its target market stands with respect to their movie going habits and how they might have a greater inclination to take in more movies at the theater with different types of incentives that are available to them.

The needs of a movie theater to expand and/or modify its marketing strategy are essential to its overall success and its ability to achieve the intended results under a variety of conditions. Films that are box office hits are likely to attract diverse audiences from a variety of age groups; therefore, during these periods, the theater must do what it can to inform patrons of other offerings that are available to entice them to visit on other occasions. This process requires the continued growth of a given marketing strategy and to recognize the value of consumer input in this process in order to establish promotional opportunities that will have a lasting impact on the organization and its people. This process requires data and information from the consumer population that will determine of the organization will perfect its marketing strategy to accommodate local residents and to encourage multiple visits to the theater, rather than a single visit once or twice per year. This is not a sufficient means of understanding the target market and the demographic that is desired for the theater in order to effectively succeed in attracting a stable audience to the theater on a regular basis.

One of the most critical areas of consideration is marketing to children and teenagers, who undoubtedly comprise a significant portion of the viewing audience, particularly for films produced by Disney and in the superhero genre. These films typically attract large audiences; therefore, this is an appropriate time to consider how to best move forward to expand their potential to visit under other circumstances. For example, during the summer months, there may be an opportunity to provide children with afternoon films at a discounted rate, including first-run films and also popular classics that may attract wider audiences. In addition, discounted concessions could be offered with the purchase of a ticket to one of these special events. These offerings would provide further support and guidance in determining the most feasible course of action in aiming to promote increased movie patronage among children with family-friendly film offerings and discounted concessions.

For teens, this demographic is critical to the overall development of a successful movie theater with respect to its operations and financial performance. It is important to recognize these considerations and to determine how to attract teens to take in films on a more frequent basis, rather than to partake in other activities. This requires an understanding of the teen demographic and the type of films they prefer, along with other marketing tie-ins, such as promotional gifts and materials that may attract teens to the theater more frequently. Therefore, a movie theater must be able to conduct the appropriate market research in the surrounding area and to evaluate that research against national statistics in order to determine the best possible approach that will contribute to a higher level of sales for this target market.

The movie theater industry possesses a number of struggles and challenges that are difficult to manage because they reflect a need to evaluate specific market-based conditions that impact organizational success and overall sustainability. Due to the nature of the movie industry, theater performance is often contingent upon successful films and high box office receipts; therefore, this requires a number of elements that will promote success and provide a means of understanding the target demographic within a given geographic location. This will enable a movie theater to identify its current customer base and to determine what might be missing and what is required to get to the next level in this manner. This process requires an ongoing effort from movie theater managers and employees to promote the theater and to provide an environment that is safe, friendly, clean and where patrons will feel comfortable in their surroundings.

In spite of a number of tragic stories in recent years involving movie theaters, there must be a shift in perspective that will have a positive impact on the organization and on its ability to perform at a higher level. This will encourage patrons to return for repeat visits, particularly when they believe that the movie theater has their best interests in mind. This reflects the importance of understanding the dynamics of the movie theater business and what is required to facilitate change and to promote an attractive climate for movie goers to enjoy films as much as possible. This process will encourage the development of new methods that will facilitate the growth of the industry as a whole through various marketing and promotional efforts, along with other factors that will have a lasting impact on growth and change over time to improve customer satisfaction and repeat visits.

All business problems possess a number of specific challenges that impact the nature and scope of the problem in many ways. This reflects the need to evaluate the specific nature of each problem in order to identify its cause and the ability to address the problem with the belief that it is able to be solved in a timely manner. However, this is not as simple as it seems, as many business problems possess significant complexities and challenge the status quo within an organization or an industry at a very high level. This process requires a greater understanding of the elements of a problem that contribute to its cause and scope, and to determine what is required to solve the problem as best as possible. Therefore, the critical elements that impact an organization and contribute to its problems must be addressed as a means of promoting a better and more productive work environment.

A business problem is significantly impacted by the people who work for an organization, within the industry, and who serve as key stakeholders and customers. Therefore, it is likely when different people come together towards a set of common goals and objectives, conflicts are likely to arise, in spite of efforts made to prevent these conflicts as best as possible. This is a given within an organization and reflects the need to have employees and stakeholders with the ability to effectively communicate and to compromise regarding any number of situations in order to achieve the intended outcomes. These findings reflect the need to evaluate how an organization responds to change and what is required to meet expectations at a high level. At the same time, diversity within an organization is an essential component of its operations and how it conducts itself within the marketplace. However, “The lack of diversity within many large company leadership teams leads to a narrow view of an ever-changing and diverse world—contributing to groupthink, stale culture and a tendency to live with the status quo for too long. The problem to be solved is to first define what diversity (and we’re not talking about satisfying government statisticians) really means in your company, then foster the expansion of differing ideas and viewpoints while ensuring a sufficiently cohesive environment that efficiently gets things done” (BMGI, 2015). From this perspective, it is evident that within an organization, there must be a greater emphasis on diversity in order to solve many of the problems that exist and to recognize how these tools may be effective in meeting the goals and objectives of the organization as best as possible (BMGI, 2015). This process requires the development and sustainability of a group of people who contribute at a high level and who aim to compromise as necessary in order to achieve the necessary outcomes (BMGI, 2015).

A business problem is likely to have an impact on employees, customers, and leaders in different ways; therefore, a level of cohesion must be identified and promote an environment where increased flexibility will sustain a more successful approach to change and progress that will sustain effective growth at a high level. This perspective requires the development of a communicative approach to problem identification and to be realistic in how to solve a problem as effectively as possible. This reflects the importance of understanding how to approach the problem with an open mind and the ability to communicate and to share ideas without judgment or other limitations. When a business problem is identified, there must be a greater focus on the development of a cohesive unit that will improve outcomes and support an environment of change to impact the organization in a positive manner.

An example of a business problem caused by people is when a leader is hired for an organization that may have experience, but is not the right fit and has an entirely different focus and/or strategy from the business as a whole. This is likely to create controversy within the organization and may also pose a threat to the overall progress that has been made. In this scenario, employees are likely to be resentful of the new leader, his or her approach and authority may not be taken seriously, and other issues may occur that impact overall productivity. With the appointment of a leader that is a poor fit for the organization, there is likely to be a number of difficulties related to performance and long-term success. In this situation, it likely that the most feasible solution is to replace the individual with a person who is a better fit for the organization and its current and future needs.

Another contributor to any number of business problems is the growth of technology in different forms, which often impacts all areas of operations. For example, “The pace of technological improvement is running at an exponentially increasing rate. While this has been true for several decades, the pace today makes capital investment in technology as much an asset as a handicap because a competitor may wait for the next-generation technology, which may only be a year away, and then use it to achieve an advantage” (BMGI, 2015). Under these conditions, it is likely that many organizations both large and small allocate resources towards technology, and by the time it is integrated into its operations, a new and improved version is available that would require an upgrade of the existing system for an additional cost (BMGI, 2015). This does not even consider the amount of time that is required and that is spent on training employees to use the new system and to recognize that it is likely to undergo specific challenges before a comfort level is achieved (BMGI, 2015).

For example, a specific division within an organization may recognize the need for a specific type of software or system for a given purpose, thereby making a request to budget for this software. However, another department such as the information technology team is making the decisions regarding the type of technology that is required for the system, often without consulting with the leadership within that department regarding its specific system and daily needs. This leads to a decision on a specific system that may or may not be the most appropriate choice to improve overall productivity within the department. This is a challenging situation with any number of caveats that may contribute to a lack of cohesion between the new system and its end users, thereby creating a difficult climate within the department and a higher level of tension between the department manager and the information technology team who has selected the software and has been responsible for implementation. This process is challenging on many levels and demonstrates the need to develop a greater understanding of how to integrate technology properly into an organization in order to achieve the desired level of productivity.

An organization’s leadership structure must be able to agree upon the types of technology that are necessary for integration and to be proactive in aiming towards solutions that will provide optimal benefits for the end users and support their needs as effectively as possible. This requires a number of critical elements that must be used to provide maximum impact for the organization and which reflect the need to understand how to improve its operations using technology rather than to prohibit its growth with the use of these tools. This is an important reminder that technology may serve many different purposes, but that it does not necessarily provide universal benefits for all users. As a result, the use of technology must be used as a means of solving business problems, not creating new problems for an organization to handle beyond what already exists.

Finally, it is evident that many business problems are caused by the organizations themselves, including their strategic direction, their current operations, and other tools that are used to solve problems in different ways. In a general context, “The lack of sophisticated approaches to information acquisition, analysis and the development of unique insight leaves many companies at a disadvantage; they lack a long-term strategic imperative and instead jump from one strategy to the next on a year-to-year basis” (BMGI, 2015). This reflects the need of an organization to exercise a more cohesive approach to doing business in order to effectively promote an environment where business problems are less likely to occur as a result of strategy and other conditions (BMGI, 2015). It is important for an organization to recognize its overall potential for problems that are related to strategic implementation, as this may pose a risk to its ability to be productive and to make a difference within the chosen industry. This process reflects a greater need to evaluate strategic choices and to aim to make a difference in the lives of its employees and key stakeholders.

It is important for an organization to be productive in meeting the needs of its stakeholders and to align themselves with their customers, as this is likely to produce positive outcomes in many different ways. When this is not the case, an organization is likely to falter on many levels and lack the foresight that is necessary to produce viable outcomes over the long term. This also reflects a need to conduct routine assessments of organizational progress and to determine where there are weaknesses that may directly impact success and achievement within the chosen industry. When an organization is unable to capture and retain the interest of its customers, there is likely to be significant consequences that could eventually contribute to a total business failure. This is not the most desirable set of circumstances; therefore, when problems arise, they must be managed as best as possible in order to prevent this type of issue from taking place.

For any organization, their individual problems must be addressed as quickly as possible in order to provide the best possible outcomes and to prevent the disruption of operations in one way or another. This reflects the need of organizational leaders and managers to recognize the challenges of doing business and to determine how to best approach an organization with the best possible objectives in mind to identify and solve problems in an efficient manner. It is inevitable that some problems are caused by the organizational structure itself and the overall lack of focus and understanding of where weaknesses lie. Therefore, these issues must be addressed as they emerge in order to prevent long-term issues that may impact an organization’s ability to perform at the expected level. It is believed that once an organization recognizes its part in creating problems, there is likely to be a greater understanding of the dynamics that exist and what is required to meet expectations and objectives.

It is believed that organizations must look from within when problems emerge, as it is often the case that the actual cause is also within the firm. This requires a need for reflective examination and to recognize strengths and weaknesses that may impact outcomes in different ways. There must be an emphasis on strong and well-defined organizational leadership as a means of promoting effective results and in determining how to move forward to improve overall performance. This process encourages leaders and employees to work collaboratively to recognize and solve problems and to make sense of the conditions under which these problems occur, including their root causes. This will in turn, provide a framework for achieving greater success and in supporting the organization’s present and future, one step at a time.

References

BMGI, 2015. Top 10 Problems Faced by Business. [Online] Available at: https://www.bmgi.com/resources/articles/top-ten-problems-faced-business?utm_expid=1578812-3.2jtiLpIcTSiu9yBwJOJlJA.0&utm_referrer=https%3A%2F%2Fwww.google.com%2F [Accessed 18 April 2015].

Geier, B., 2015. The sneaky way movie theaters are making up for falling ticket sales. [Online] Available at: http://fortune.com/2015/02/18/movie-theaters-concessions/ [Accessed 18 April 2015].

Kolzet, M., MIller, M. & Kolzet, M., 2012. Rylander Theatre marketing & development strategies & tactics. [Online]
Available at: http://archwaypartnership.uga.edu/wp-content/uploads/2012/05/Rylander-ALL-v4.pdf
[Accessed 18 April 2015].