Sample Paper on Business Strategies for San Francisco Symphony

Business Strategies for San Francisco Symphony

Business Description

The rave reviews and audience growth for the last five years demonstrates the high quality of the San Francisco Symphony. SFS’ superb qualifications as a musical performing ensemble provide a sound basis for the success of this orchestra. SFS’ rapid but steady growth, stable organizational structure, and financial responsibility demonstrate the ability to manage this grant. Past media, publicity of the SFS indicates its ability and dedication to continue providing the best services in California and at the global levels.

External Analysis

Porter’s 5 Forces

Potential Entrants

The risks of entry by the potential competitors in orchestra industry depend on factors that make it costly to enter. Resources count a major entry barrier to thrive in this business. They include hiring of top artists as well as high technology investments to match the San Francisco’s Symphony. Moreover, some consumers’ behaviors may be hard to overcome since some are habituated to the old fashioned music, hence making it hard to build up consumers trust in trying to show them the advantages associated with a given brand of product over the other. Resources in form of money and time are necessary to generate adequate skills and knowledge to convince the consumer.

Bargaining Power of Buyers

With the buyers being season ticket holders, they have the power to alter the prices in course of the SFS operations. For instance, a regular ticket holder may decide against purchasing, thus impacting the operational costs of SFS. The cost of shifting from one service provider to the other could not be high, thus inclining the consumers to move where they can afford the services efficiently. Still, the discounts offer to students, and regular consumers could not be sufficient to keep the consumers.

Bargaining Power of Suppliers

If the suppliers are in demand elsewhere, they may use this as a weapon to ensure that their wages are increased. In such a case, SFS may be forced to take a counter move to retain their talented assets in the organization to avoid losing the market to the competitors. On the other hand, some of the premises where SFS operates are gained lease process. It means, therefore, that the rent could rise if the lease agreement ends or is terminated.

Intensity of Competition

In California, there are over ten orchestras providing competitive products to the consumers. If all these institutions are competing for the same dollar, it means that the returns are not according to the projections if it were only one orchestra. Numerous orchestras make the switching cost to remain low. Similarly, the not many people would prefer support to an orchestra; rather, they would prefer investing in child development.

High Substitutes

Some people would prefer to remain in their homes for movies while other attends movie theaters. In fact, these circumstances are based on the personal preferences on top of being a cheaper alternative to the orchestra. Some people would prefer to enjoy themselves in the comfort of their homes rather than going out in funny dressing. Other musical performances such as opera and jazz would provide suitable alternatives.

Internal Analysis

SWOT Analysis

Strengths

Power and decision making in the music industry are typically shared, with the roles and the degree and type of interaction between the board and management often geared towards the size and stage of development of the organization. A strong, competent, relationship-oriented executive director is the key to the success of the San Francisco Symphony. A healthy relationship between the chairman of the board and executive members has long been applied in addressing the dynamic problems within SFS.

As an independent music institution, the entrepreneurial vision of SFS has enabled it to step in the immense opportunities in working with the media companies. The media companies need content to help fulfill customers’ needs, differentiate themselves, and entice consumers with simplistic solutions. To get new sources of income, the music industry need to collaborate with the media companies since they have the power. There is significant synergy in providing this to the consumers in easy, manageable packages. It means, therefore, that there are plenty of ways for SFS to work with the media companies. Similar to other businesses, SFS marketing strategy is about finding the right people to work with, people who are willing to be flexible and find solutions.

Internet technology has created both global and domestic improvements in the field of commerce. In particular, cultural industries such as San Francisco Symphony have been impacted. There are no cases where the music industries solely depended on the contribution of an individual artist to boost its income sources. Nor can music and entertainment companies ignore the dangers of internet privacy. This scenario ensures that the services provided by the SFS are affordable, exciting, and attractive to the consumers. Market segmentation suggests customization of the music industries thus promoting the benefits associated with advertising. Unlike the billboards or advertising magazines, marketers are more specific interest in surf specific pages where their customer can access essential information about the SFS, thus boosting their ranking over the competitors.

If a firm can achieve and sustain overall cost leadership, then it will be above an average performer in its industry provided it can command prices at or near the industry average. Cost leadership strategies have been used at San Francisco Symphony to improve profitability and enhance the offering by building such things as brand equity. The cost advantage allows the organization greater flexibility in its pricing strategies. However, as the cost leadership advantage will usually have been obtained through investment and experience, the extra revenues should be used to develop both of these further and develop new products. It contributes to building the marketing assets of the San Francisco orchestra.

Weaknesses

In order to maintain and enhance a musical quality, audience development and increased revenue are necessary to attract and hold onto top musicians, thus maintaining high-quality performances. Fortunately, SFS boast of its publicity and good image portrayed by the musicians as well as the guest conductors. However, these musicians are in demand elsewhere, and the SFS need to provide performance opportunities and pay them competitively. In cases of scheduling conflicts, there is now a financial attraction for them to choose the larger cities. Moreover, there is the need to offer sizeable audiences and competitive compensation.

Taking the example of September 10, 2011, the Orchestra Association made the decision to avoid “debatable music” through a preliminary announcement to its customers. It is because the directors felt that her audiences preferred music that they know and love and that the performance of debatable music should be postponed until a more suitable time. These changes occurred in response to the drastic economies that owe to the fact that the income-producing endowment funds are not bringing in as high a percentage as formerly, making it hard to reduce the price of tickets even at time of falling prices in most activities.

General Opportunities and Threats

Music sponsorships offer meaningful opportunities to orchestra companies to reach their customers in a better manner than classical advertising. It is because it addresses people in direct conjunction with the emotional product of music. Still, the orchestra market develops definable target group segments accurately because the music and movies tastes imply general tendencies regarding brand and product preferences. For an effective reach of particular target group segments, music sponsorships provide almost limitless opportunities regarding the varieties of measures to realize them. SFC can integrate all its marketing and communication instruments to achieve the image, sales or relationship oriented objectives with the sponsorship. According to these objectives and in line with the company’s overall marketing and communications mix, the sponsor can choose between numerous measures that may not impact the company negatively.

 

 

Strategic Challenges Faced by SFS

Driving an association whose most very gifted professional representatives are controlled so unbendingly that they are advised precisely how to perform their advanced assignments; That is accurately the test confronted by pioneers of the 93-year-old San Francisco Symphony, and each other American Symphony of its size.

SFS official chief Brent Assink and Board President John Goldman told members in Wharton West’s late Leadership Forum. The 100 -man organization, drove by Assink, comprises of staff found in every company, with the expansion of a chief of creative arranging, who meets expectations with the music executive to collect the season’s system “You will be playing a project picked by the music executive, and you will get no individual criticism on your execution.” Add to that union decides that manage the number and length of practices, even the definite length and timing of restroom breaks amid those practices, and the number of hours you work, four practices a week, four shows a week, 106 shows a year, and you have an inflexibility and progressive system verging on inconceivable operations.

Recommendation of Strategies

From the exhibited statement of income statement of SFS, if the management of SFS will manage itself regarding the working of the organization and manage its work and the timeline of the working, then the company can get more profit by the year 2018. In the previous six years it came into observation that if SFS concentrate on its revenues, then, the company can come into the profits like the head of concert revenues stated, “it is good that the organization is earning more and more profits for the last six years.” However, I recommend that if the management of organization took some further steps then they can increase this revenue like during the concerts.

Small stalls of different products and the literature related to the company are arranged such that it allow to the audience that will attend the concert to buy these products from the stall at very economical price. Therefore, the company can get enormous revenue by doing the active source of income. If the company can manage its hall and the surroundings of the halls by the developments of the new shops and use these shops for the earning revenue, then the company can get a huge benefit. By doing so, the huge profits will come in the hands of the company and the company can earn a huge benefit and recover its deficit speedily. One of the most important head of the revenue is strategic initiates, and this is the head that has not generated income since last six years and showed a zero balance till now.

If the management of the company manages itself regarding the development of its business then due to this it can get a huge benefit and recover its deficit. The revenue increment will be beneficial for the business, and if the organization is taking a keen interest in this respect, then the deficit cannot recover only but can be converting into the surplus amount. On the other hand, if the company wanted to become into surplus then the company should demonstrate its capacity to exercise control.

The tours should have to become down for the removal of this expenses, which laid a heavy burden on the financial position of the company. It is noted that other overhead expenses head is increasing year by year, and the concept of this type of expenses is not in past but since last year these expenses are increasing.

If SFS will control its unnecessary expenses and increase its revenues with the help of proper strategies, then the company can get his deficit amount in 2018 and goes to the surplus amount in the year of 2030 and beyond.

Nowadays there is a consensus regarding what makes for good musical acoustics. Modern acoustic designers seek to combine a flattering acoustic profile with an even distribution of sound throughout the auditorium. Communication from the platform should connect the audience to the performers, hence building the love to the services provided at SFS. Sound can saturate a small space uncomfortably and can lose impact in a very large one, so the optimal capacity has settled between 2,500 and 3,000 seats, with an overall volume of around eight cubic meters per seat. Today’s acousticians use computer simulations to predict acoustical performance and have achieved highly successful results in other industries. Developing this technological aspect at San Francisco Symphony will instigate to significant benefits.  Many splendid modern halls around the world now meet the highest criteria and the concomitant improvement in the orchestra environment would have a noteworthy effect on the performance standards. If a hall is rewarding to play in, musicians will automatically play better.

Copying from the best acoustical performance is rather challenging since there are several technicalities required. Acousticians may have to accommodate the sculptural ambitions of architects or the economically determined, but acoustically incompatible, demands of symphony concert on the one hand and corporate convention on the other. Meeting these demands has given rise to the multi-purpose hall, and although some ingenious systems for varying acoustic response have been devised, only a few halls have proved wholly successful for orchestral music.

The reliability and the musicality created by the musical instruments should is bound to evaluation to ensure that the consumers get the best products from the music industry. Typically, the recording equipment should be installed in a “control room” acoustically isolated from the main hall. To ensure that the microphones give the best sounds, the loudspeakers should resonate well with the performance created. All beings well, the spread of sound in the control room will resemble that in the hall: the violins will appear to the left, the cellos and basses to the right and the violas, woodwind and piano will occupy the middle.

The staff management needs stipulation in such a way that every player comprehends his or her roles at San Francisco Symphony. Position descriptions and performance appraisals must be developed and maintained for managers, staff, the board directors, and volunteers. It means that planning calendar will serve as a reliable operational tool for the scheduling of different activities.

However, offsetting the limitations on the budgets requires a financial boost, preferably from financing institutions or by sponsors. Winning confidence to acquire the necessary financial support for implementing the discussed objectives remain a big hindrance.