Cirque Du Solleil- Strategic Management

Topics: Strategic management, Cirque du Soleil, Business Pages: 13 (3868 words) Published: December 24, 2012
Executive Summary
Cirque du Soleil is an entertainment firm from Montréal, Canada and was founded in 1984. The company started as a small business and gradually grew into a successful organisation with an established presence in the entertainment industry. This report deals with the ways in which the organisation became successful. Therefore, it is necessary to analyse different factors. The first part enumerates the stakeholders which contribute profits for Cirque du Soleil. Conversely, this section will cover the considerations the organisation must take into account for the welfare of its stakeholders. The second part illustrates the organisation’s uniqueness and how they differ from their competitors, which is a result of several innovations and business strategy. In the last part, the mission statement will be illustrated and discussed. Analysis of the mission statement will show the principles, philosophy, and beliefs that take high priority for their business. Furthermore, suggestions for the future will be listed.

1.Stakeholders & the success of Cirque du Soleil
A stakeholder is a person or a group who has an input in an organisation. It can affect the achievement of company’s objectives, activities and the behaviour of its member. (Mullins, 2005:163) 1.1.Cirque du Soleil’s stakeholders

Cirque du Soleil, like all other organisations, has many stakeholders which include managers, employees, customers, government, etc. Every stakeholder has its particular interests to support an organisation. 1.1.1.Managers

Managers have particular interests in an organisation e.g. in job security, size and growth of the organisation or prestige. (Mullins, 2005: 164) Additionally, the managers achieve a self fulfilment because they have career prospects due to the variety of jobs e.g. in environment issues. (Cirque du Soleil, 2012) Hence, the managers are able to learn different stages of work and also have job possibilities in non-circus work. 1.1.2.Employees

Like managers, employees have interests in job security and in learning because the shows are always differentiated. Therefore, employees can also experience a self fulfilment. It is believed that employee’s salary is above the average circus industry salary because the shows are upscale and successful. Thus, employees can build up a reputation and also expand career options e.g. by retraining for a second career or by changing the industry like transitioning to musical theatre for example. (Cirque du Soleil, 2012) 1.1.3.Customers

The customers of Cirque du Soleil are the audiences and they are of prime importance for the organisation. The benefit that Cirque du Soleil gives to the audience is an escape from the stress of their daily lives. In other words, they can get away from it all for a short while. The audience gets a unique experience from the spectacular performance. Due to the multiple shows, customers may come frequently which brings travel possibilities because the organization is touring around the world. An adult experience can be fulfilled due to the fact that the show is more elegant and rich than loud like in a traditional circus. (Pawar, 2007: 8-10) 1.1.4.Government

The government’s purpose in helping the organisation might be to enhance their image. Especially for tourism, the organisation enlarge government’s cultural offering. Therefore, a new target group can be achieved e.g. those who are not interested in historical sights. As a result, this benefit supports the local industry due to taxes. Hence, the city can pursue other projects like the construction of parks as public service. Cirque du Soleil has an agreement with the Government of Canada to serve 25 years with entertainment to support the cultural program in Canada. (Canadian Heritage, 2010) 1.1.5.Suppliers & Distributors

Suppliers and distributors are committed in long term relationships with Cirque du Soleil and bring prestige to the stakeholders due to frequent orders and...

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