The Athlone Theatre

The Athlone Theatre

Case #3

Group #6

1. (i) Determine suitable objectives for the Athlone Theatre from the data provided.

(ii) Define appropriate CSF and KPI to monitor future performance.

20 marks (Max 1 page)

(b)Develop appropriate strategies to improve the position of the theatre for    presentation to the Mr. Byrne to improve the performance of the theatre in the short term, medium and long term.  

30 marks (Max 2 pages)

        (c) Discuss what leadership actions Byrne might take in order to maintain the support of the competing groups in the Athlone Theatre

                                10 marks (Max ½ page)                                                                                                                            

Date of submission – 14/02/17

1. (i) From the data provided, it shows that the Athlone theatre has just completed a very disappointing year with losses culminating to €57,000. Some objectives for the Athlone Theatre are as follows:

Financial objectives: focus on achieving profitability and long term survival.

• (Growth in earnings: find upper seat limit- how much could make: seats*cost )

• (More diversified revenue base: restaurant, shows etc. ) Bernard Byrne could lease out the theatre during the week for other group rehearsals or for an actual show itself, when the Athlone theatre group are not scheduled to be performing themselves. There is always someone who may need a stage, for ballet, signing etc. If the lease turned out successful, it would be of great benefit, contributing towards lowering the surplus of €57,000.
• (Marketing budget: how much revenue spent on marketing)

Strategic objectives: improve competitive strength and creating customer value.

• (Broader show line: variety, research what wanted, entertainment, compete against cinema- show movies.) The theatre group could stage more exciting shows that will attract students from the University of Athlone, or children from the adjoining schools. For example, a matinee of Beauty and the Beast would attract people from everyone, if it was staged for a couple of nights.  Shakespeare could also be staged more than just twice a year, at exam intervals. This show is a classic and people would be more than willing to pay to see it. Hamlet and ‘The Field by John. B Keane, are also two more classic plays which are studied for the Leaving Certificate and Junior Certificate examinations. These would greatly boost revenue, lowering the deficit of €57,000.
• (Superior customer service: The restaurant located in the Theatre could supply evening meals every weekend, along with pre-and- post theatre meals. Bernard Byrne could implement early bird menus and student discount to attract students from the University.)
• (Technology: good booking system, booking 24 hours/ 365 )

(ii) Critical Success Factors

• The main critical success factor would be attendance. (With seating capacity of 350, Athlone Threatre should focus on selling out shows.) As with anything, for a show or a concert or anything to run smoothly and to make money on your performances, attendance is mandatory.
• (Restaurant and shop revenue generation made €32,000, cost €35,000. Etc)
• ( Increase competiveness, show variety and new customers. )As outlined in the objectives above the theatre could put on more shows to attract the examination students, such as Hamlet and The Field. This would certainly attract school-going children and their guardians. Another way to boost attendance, €12.50 is quite expensive for a show in the economic climate, people would much more appreciate it if there was something else, other than the seat and the show to receive on arrivals like a free drink and entry into a raffle. This would attract a larger audience if marketing emails or direct mail was sent around the vicinity.
• (Cost control: touring groups cost €5,000 in 2014/2015 than it generated, need to make profitable. )

Key Performance Indicators

• In order to attract a wider audience, some key performance indicators must be established. Instead of the theatre having 2 employees employed on the door, selling tickets, Bernard Burke could outsource and use technology as a way of booking tickets. For example Ticketmaster. This way, the theatre would create a lot more revenue for themselves as they would know how many sets would have been pre-booked out of the 350 sets within the theatre, then if there were any vacant seats, the gaps would just have to be filled on the night if possible.
• (Research: comment cards, surveys, see what shows people want )

1. “If you do not change direction, you may end up where you are heading.” -Lao Tzu

The role of the new commercial manager is not just to closely examines their current projects and decide how they will fit with their business portfolios, it is the role to be agile enough to continuously evaluate the workings of the business and ensure that objectives within the business are being met.

In regards to the operational running’s of Athlone theatre it is important to note that change of how the theatre is ran will give the theatre the potential to thrive as a substantial business.  Change can be viewed with negativity, especially by employees where in fact it can be just the opposite.  New leaders, new processes and technologies are introduced with the anticipation of building a stronger competitive advantage.    Furthermore, it is important to note that while change can be an exciting prospect for a business it can also be a terrifying concept for employees.   Athlone theatre must go through various changes to improve the fiscal health of the business.  Before any changes happen, it would be advisable for the management to create a positive internal environment where employees will have full trust in management.   Moreover, it is imperative that all employees see they are valued within the business and any change will not negatively affect their roles.  However, there are a few changes in regards to staff that would be cost effective for the company. The theatre has a limited availability of time due to the immediate decline of business, therefore, all actions will have to be instantaneously.

...