1. The main idea of the case
This case is given an overview from the history from Sheffield Theatres Trust. The case will explain what kind of strategies and resources the organisation have and through what kind of changes and development STT have been. The main idea of this case is to see how an organisation can develop and how they use their strategies and resources.
1.1 Summary of the Sheffield Theatres Trust Case
There are two theatres in Sheffield (UK) called the Crucible and the Lyceum. The Crucible has been there for 34 yrs (since 1971) and has gone through a lot of changes, especially with how it generates funding. In 1990 an organization took over the running of the Lyceum as well. This Theatre organization has two main objectives: To service the public, and to make money. Looking after these two theatres with these two different objectives can become difficult, so they found strategies, made steady improvements so they can provide service to the public as well as make money.
There are two different types of theatre; Producing and Touring • Producing - theatre where they find the artists and run shows or events themselves • Touring theatre - An established group comes and they host them. • In 1990 they constructed company called Sheffield Theatres that runs both the Lyceum and the Crucible theatres. This company is run by a governing board that has constantly kept evolving and improving. There are two main branches in the theatre industry:
• Commercial theatre- theatre whose main aim is to make profit • Producing theatre - is run for non-profit (more of a service to the pubic rather than just to make money)
Most funding is given to the producing theatre, which helps companies to produce art/theatre so that people can still afford a ticket. Ticket sales are the main way that the theatres get income, they even host sporting events like the world snooker championships to get ticket sales. A lot of preparation is put into hosting performing arts or events because they have to prepare carefully in order to manage the cost of holding and running events versus the amount of ticket sales. These factors can depend on how long the show lasts and if it is popular. Occasionally it becomes difficult for events or shows to stay open due to a financial crisis so the strategic planning becomes very important. A very good operational structure is extremely important for the theatres to survive.
They made the Sheffield theatre trust in 1995, which took care of both theatres. Their goal was to promote and maintain the theatres in order to improve education in drama, art, singing and music. The goal was that theatres play a role in education of children in drama and theatre plus offer work experience education. They run different series of education workshops and projects. Production costs are the main expense for Sheffield theatre trusts and the second is staffing (About 28%). They have won a lot of awards and prizes for being good at what they do. They have a lot of active strategies to cover all aspects of running the theatres and have split it up in sections and given responsibility to the necessary people. Sheffield theatre trust is a charitable trust. They obtain their money from charity or holding events such as world snooker champs. The way they have gotten their funding has changed a lot since the beginning. They receive funding from city council, arts council England and from special initiative grants (those are usually for particular projects).
A new manager came and created new campaigns to attract more young people to the Sheffield theatre. With those new projects they had to take risks, but marketing managers helped to decide on what projects they will take risks, and help make a plan on how they will market the theatre events. In this case they made a choice to lose their association with high quality and that visitors from an upper class where not happy with it. Also not every...
- Johnson G., Scholes K. & Whittington R., (2005), Exploring Corporate Strategy, text and cases, Seventh edition, Harlow: Prentice Hall.
- Ten Have S., & ten Have W., (et al) (2002), Key Management Models, Pearson Education: London.
- Source: http://www.themanager.org/models/ValueChain-Dateien/image002.gif
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