Need help with my writing homework on Opera house public environment. Write a 250 word paper answering; Overview My company is an opera company located in the New Jersey around Princeton .We have own opera house which including a operahall around 1000 seats, a big &bright foyer and delicate dining halls. I aim to do 2020~2021 opera season for my opera house. It will include five productions and they are respectively Madam Butterfly, Don Giovanni, Don Carlo, Carmen, and Andrea Chenier. Our company will produce Madam Butterfly, Don Givani and Don Carlo by ourself because these three are relative small productions according to their scenery, lighting and amount of crew .which means we could save some money on scenery making and lighting. We will invest 1000 million for each production. We will co-produce Andrea Chenier with Royal Opera House. We will share 30% production fee with Royal Opera House. The first performance will in Royal Opera House and will last one month. Then the scenery, lighting and crew will directly travel to our opera house. We will share 30% our ticket sales with Royal Opera House for every performance until meet their total 30% production costs. The last one is Carmen, it will provide a chance to students around Princeton area whose major is related opera to produce this production by themselves. We will offer our opera hall, all facilities and promotion to them but we dont pay for director, cast. Also we will take 75% ticket sales. The reason why we opt these five productions is our opera festival aim to bring operas to younger age audience which means we will chose the most representative for every period and will include as much as features as that period meanwhile Were not only to provide these shows but also have arrange of classes and activities to make opera get close to people.Environment analysisInternal EnvironmentStrengthsWeakness1.Clear goal2.Our mission is focused on the audience.3.Planning much earlier than other opera house.4.Focus on build relationship with our audience.1.Intensive competition2.Limited money3.At introduction stage of business life cycle.4.Weak brand image.OpportunitiesThreats1.The increasing popularity of the diversified tastes of music2.Tickets price is relative lower than others3.More interaction with audience4.Young working team and flexible organization structure.1.Not mature working process.2.Not stable ticket sales and cash flow.3.Easy to influenced by external factors.Strengths Our mission is to enable people to get enriched by operas which means we will do many things to let people who never watch operas feel associated with operas.According to the mission, the present goal is to attract more people.We have an agreement over that young people are more malleable so our specific goal is to attract young audience as much as possible.During the following part I will detailed analysis our target audience, here I want to emphasis that we have a clear goal of what kind of audience were going to focus.We do everything to make sure achieve the goal and also this goal will help us to check if were on the right path. Basically, when opera house plans to do the opera season, they will book conductor and principle cast first because for opera that high artistic value sighers are on the central stage for making production.Most opera house usually two years in advance to book cast that we will take five years in advance instead of two years.Our opera house will much earlier than two years which means we have more choices in relative low price.Weakness Our opera house located at New York city.For a start up opera company, therere full of competition.Metropolitan Opera House which is the benchmark in opera company industry is near us.We cant compete with it in art resource, investment and many other things.There are a lot of substitute products like Broadway musical shows. As we know, making an opera production needs tons of money but therere many risks to have good ticket sales.For us we need to try hard to let others see we have potential to become strong in the future so that we could get investment. According to business life cycle, were in the start-up stage during this period the company has limited revenue while the product is being introduced to the market.Production equipment should be selected and the process determined.A field support system should be designed and product features demonstrated.In this stage also needs to establish market relationships.conduct and analysis limited sales.survey customers and fine-tune marketing plan.The last one is secure first-stage financing .hire staff and execute contracts.( Finance course Power Point). However, for our company, we just know these theory and trying to achieve these. Because of start-up stage, we even dont have any brand image to impress our audience.We dont have firm relationship with our opera company. Because were new, we know that make mistakes may not avoid but well do our best to reduce risks.Opportunities As I mentioned before, that we will have five productions during this session.Andrea Chenier will co-product with Royal Opera House and Carmen will directly use all package from Royal Opera House which means we could devote less money so that we dont need to sale high price tickets.People are price sensitive and we hope we could use low price strategy to attract audience.I do think this is our opportunity to differentiate with other traditional opera house. We aim to do a number of activities with audience including online and offline activities.To give audience that theyre part of our company.I will list some specific activities as our additional products. Our staff are young that means were full of energy.The people working here are have passion to opera and have the same goal to let more people know more about operas.We will employ some people who are vey experienced in this industry.Like our stage management teams leader is Simon who used to work on Royal Opera House over 30 years as senior stage manager.He gave us a lot of suggestion to help us grow up quickly on stage management part.We also provide chance for students to have internship in our company.In this way to make sure we have sufficient people but in lower price.The ownership structure plays a pivotal role for the ventures to build strategic decisions regarding the strategic, managerial as well as operational functions along with formulating a sustainable position within the target market. For the new venture, it is highly essential to maintain strong ownership structure maximum benefits of the market opportunities could be ensured. Correspondingly, the ownership structure of our opera house venture would be based on a sole proprietorship formation, in which the owner of the venture would be responsible of making investments along with enjoying maximum percentage of the profit. In the context of company structure, our opera house business would initially focus on an informal orientation due to the less number of workforce appointed at the start-up stage of the venture. After obtaining a feasible growth in the New York market, the venture would require to implement a hierarchal structure in order to obtain better control and management of the workforce. In the initial stage, the workforce structure of the venture would focus on including highly experienced artists with competent skills in executing opera operations. Moreover, initially the management individuals for the venture would be recruited as per their managing, controlling and communication skills in order to maintain a balance between the operational and managerial staff members within the organization.Threats Opera house is a complex organization, the working process is complex, the management process is not easy and marketing is also complex. Communication with different departments needs to find more efficient way.We need more time to overcome our internal threats.To make sure every department is on the same page. Were start-up company and were on the way to search precisely target audience.We need to as accuracy as possible otherwise well be threaten by ourself because the ticket sales will directly tell that the audience we targeted is not right. Its normal that company influenced by market.Some influences are good which may help us get more market share but some influences are bad like not stable economy environment and other external factors.We are just beginning and we rely on external environment very much to supply that means were easier to get influenced by external threats.Market EnvironmentMusic industry environment I would like to analyze the music industry by using Porters five forces and then I will put Porters five forces into different catalogues of SWOT analysis.I mix these two analysis tool to analyze music industry.Porter five forces analysis is a framework to analyze level of competition within an industry and business strategy development.It draws upon industrial organization economics to derive five forces that determine the competitive intensity and therefor attractiveness of an industry. Attractiveness in this context refers to the overall industry profitability.(Wikipedia) I will analysis music industry from threat of substitute products or services, the threat of established rivals, and the threat of new entrants, the bargaining power of suppliers and the bargaining power of customers.Threat of substitute products or services We listen to music for many different purposes. Some people may want to be relax, someone may want to be cheer up and someone may want to share with friends.There are so many substitute products and services could make you achieve these purposes.You could go to watch a movie which is cheap and entertainment.You could go to see a basketball game which is exciting.You could read book, watch TV, surfer the internet etc.In a word, there are plenty of substitute products or services for music industry.The amount of people is certain which means music industry is facing huge threat of substitute products or services so that we must make sure this industry is always attractive in order to attract people use our products, music. We need to provide cheap and good quality products and services to make us look attractive.Threat of established rivals Music industry is an intensive competition industry because there are so many established rivals.First of all, there are plenty of music genres.People may have their preferences of music genres but almost these genres have expectation to have more and more listeners.Here is a link for music genres list http://www.musicgenreslist.com.We could see it is a quite long list.Second, let us analysis music industry by parsing its definition which is music industry consists of the companies and individuals that make money by creating and selling music.Among the many individuals and organizations that operate within the industry are the musicians, the companies and professionals who creat and sell recorded music such as music publishers, producers, recording studios, record labels etc.From this definition, we could see music industry is huge and fascinating so the established rivals between different labels, genres, musicians etc. are definitely intensive. Threat of new entrants The barriers to entry are created by the following factors, level of expertise required for successful operation, access to resources& distribution network and industry contacts ( Porters five forces analysis http://assignmenthelpseries9.blogspot.com) The music industry is highly specialized sector.Therere already plenty of huge and mature companies and individuals.It will difficult for a new entrant to the music industry to undertake a lot of activities to develop itself and beat the competitors in a short time.Therefore it can be said that the threat of new entrants is very low when considering the music industry.Bargaining power of suppliers To analysis the bargaining power of suppliers, we need to figure out who are suppliers for music industry.I think the suppliers for music industry are artists, composers, live shows producers etc.According to Porters five force analysis that bargaining power for supplier becomes high if there are less substitutes for the products or services they are supplying. the amount which can be supplied is limited, which increases the demand for their products. there are high switching costs of changing from one supplier to another.So for music industry, some extremely talented artists who have music talented that no one could replace are definitely have high bargaining power but for others who are just love music and devoted themselves into music industry and dont create great art value works are have low bargaining power.Its hard for me to say the whole music industry has high or low bargaining power of suppliers.I read an article said that the ability for artists to promote & sell their albums over their own web pages had eradicated the need for most services provided by record labels. In these cases, the record label serves only to provide studios and music support rather than the full services including promotion, distribution and sales. Therefore the internet has increased the bargaining power of suppliers although the success of self-promotion is less.(Porters five forces analyze for music industry).Based on this article, I think for music industry, the bargaining power of suppliers are becoming over and over time.Bargaining power of customer According to the Porters five force that he buyer power is high if the buyers has many different alternatives (Wikipedia). For music industry, it is obvious for customers to have different alternatives.They could like or purchase any kinds of music based on their preference and they also get music from different access like streaming music, buy a CD or go to a music concert so the bargaining power of customer is high.That is why companies or individuals in this industry to try their best to provide best works.SWOT analysis for music industry StrengthsWeakness1.No one hates music.2.Its easy to get associated with music.3.Powerful industry.Too many substitute products and services.Bargaining power for customers are high.Not easy to be profitable .OpportunitiesThreats1The revenue for whole music industry is increasing .2.Technology is an ever-changing driver of how music is consumed.Threat of substitute products or servicesThreat of new entrants .Threat of established rival.Music piracyStrengths No matter where are you from, how old are you, what is your gender, what do you do, you have your own preference of music.The only different is we prefer different music genre.You listen to music at home, in the car, at restaurant etc.You listen to music no matter you are happy, sad, excited.Music is so close to our life and its obvious that no one hates to listen to music. We could listen to music by all kinds of streaming service, by radio and by downloading music.You can also buy CD or go to music concert to appreciate music.You could get music in a free way or you could pay for high quality acoustic music.No matter what kind of methods you opt, getting music is easy and convenient. One the Youtube the most searched for topic for 2014 is Music , percentage of YouTube video views that are music videos which account 38.4% and also there is a report called U.S-music-year-end- report-2013 from Nielsen.In this report said that the teen consumer listens most often and spend the most time listening to music ( approximately 5.8 hours per week.). Teens have the most music apps on their smartphones-approximately seven on their primary smartphone-more than any other age group.It also said that black Friday/cyber Monday consumption which are 29% of the years CD sales occurred between the first week of November and the last week of December, making it an important time for mass merchants and there are a 62% increase in album sales over the prior week on week ending 12/1/13.There are a lot of numbers could show that music industry is a powerful industry.For example, in this report it segment consumers into the Hispanic consumer, the African-American consumer, and the LGBT consumer.For the Hispanic consumer part showed that this consumer has a projected buying power of $1.5 trillion by 2017.They are 15% more likely than the average adult internet user to pay for streaming music subscription.Latin track downloads have been rising over the past three years ( 31.1million in 2010, to 33.7 million in 2011, to 35.3 million in 2012).( Nielsen) All these figures could indicate that music industry is powerful and it keep increasing.Weakness For weakness part, I highlight in green means I put Porters five forces into SWOT analysis so I will focus on that music industry is not easy to be profitable .In 2014, for the first time ever, music streaming services generated more revenue than CDs in the United States. Having been the most important source of income for the music industry since the early 1990s, the CD was dethroned by digital downloads as recently as 2012, the same year download revenues hit their peak ( U.S. streaming revenues surpassed CD sales in 2014).As we know, Spotify is one of the streaming music service leader, but there another evidence that Spotify is not yet profitable so we could conduct that music industry is not yet profitable either as the following graphs show.Opportunities As for technology development, music industry has changed a lot.Peoples relationship with music also changed.We could use more methods to promote our products and customers have more access to get associated with different genre of music.Threats As mentioned above on Porters five forces that there are threats of substitutes, new entrants, established, rivals and also music piracy .Music theft is a real, ongoing and evolving challenge.Both the volume of music acquired illegally without paying for it and the resulting drop in revenues are staggering.Digital sales, while on the rise, are not making up difference.(RIAA-what is online privacy)Opera market analysisopera market size I did the Metropolitan opera market analysis in which it includes the whole opera market analysis and I will use those information to take into my consideration to do our opera house marketing plan.Id like to define how big the market size by knowing how many sellers and buyers for opera part. I need to explain these section by answering five questions.(1) How many opera companies in U.S? (2) How many people have gotten involved in opera?I mean the audience to buy the tickets.(3)Whats the average and total revenue for opera companies in U.S?(1) How many opera companies in U.S.? The total number of opera company is three hundreds and three. We know that there are fifty states in the United States except South Dakota and West Virginia has no opera companies at all , the rest of states are at least have one or more and New York state has the most opera companies which is fifty-two. It seems only indicate that almost everywhere has opera company and unbalanced development besides theses two seems not can prove anything else and there is a graph shows percentage of U.S. adults who attended a live performing arts events in 2012,performing arts attendance involves going to one or more of the following types of event: classical music, Latin or Spanish/salsa music, or jazzperformances. opera, musical theater, or non-musical plays. ballet or other dance performances. From this graph, we could see our opera house located area is relatively high attendance. outdoor performing arts festivals.(2) How many people have gotten involved in opera? Thesecond question that I want to figure out is that how many audience have gotten involved in? We can see from the following form two which is apercent of U.S. Adults Who Attended a Musical Play or Opera in 2012. There are 235 millions adults in the U.S and the average attendance is 16.1% that means there were approximately 38 millions adults went to watch performances.As for comparing, I also attached other figures like Percent of U.S. Adults Who Attended a Jazz Concert in 2012 which attendance rate is 8.1%, Percent of U.S. Adults Who Attended a Classical Music Concert in 2012 which is 8.8%, Percent of U.S. Adults Who Attended a Latin Concert in 2012 which is 5.1%, Adults Who Attended a Non-Musical Play in 2012 which is 8.3%, Percent of U.S. Adults Who Attended a Dance Performance in 2012 which is 7.4% and percent of U.S. Adults Who Attended an Outdoor Performing Arts Festival in 2012 which is 20.8%.Although the form of percent of U.S. adults who attended a musical play or opera includes musical play and opera , we can still tell the attendance rate is not low comparing with others which can also prove that is pretty dynamic in opera market.( State and Metropolitan area art participation table)(3) Whats the average and total revenue for opera companies in U.S? Lets jump to the revenue of opera companies.We use Metropolitan Opera as an example the operating revenues include box office revenues from the New York season, tour revenue, media revenues, revenues from outside presentations, and amounts drawn from the Associations endowment which in Fiscal Year 2012 totaled $170.2 million, compared to 184.0 million in Fiscal Year 2011.Market Environment conclusionFor this part, I analyzed music industry and opera market.Opera market is a small portion of music industry market so it definitely has much in common with whole music market. From Porters five forces analysis of music industry I could know that there are many substitute products and service to for music industry.That Public environmentOpera houses are largely influenced by the public environment. They are designed for the more of public and hence the public control the business. The public environment includes the politics, culture and the decision making of the industry in opera house. It also combines the economic -social data with program and financial data of key opera firms and how they influence in programming decisions. For instance, opera houses are mainly non-profits, but nevertheless, they need to further their development. Recent debate in Congress, America has highlighted the need of government involvement in the art just like most of the democratic states such as Japan handles arts. The discussion was taking the direction of political goodwill and funding in promoting art. This is a public environment that has profound influence on the performance of opera.Economic and social standards such as level of income and culture of the society determine the effectiveness of opera houses. A case in point would be New York where there are almost 52 opera houses. The level of income and civilization is different from that of Florida. People appreciate art and their standard of living is also supportive. They can afford to visit opera houses and enjoy the musical art for their leisure or career purposes. People are also more aware and educated in the urban areas as compared to less developed states. An educated mass appreciate art and hence influence how the business is conducted. The county government also encourages the business through program risk taking. It is part of the work delegated to individuals who are willing to initiate to further their goals. County government involvement reduces the risk associated with such business. Competition EnvironmentMain competition We are located around Princeton University in New Jersey, U.S so based on our location the first competitor is Metropolitan Opera.They will mainly compete with us in attracting loyalty opera production fans. Normally, arts venues will draw 80% of their audience from a 30 minute drive time around an art venue and suggest that this holds true for existing opera interest(Understanding the audience for opera).It takes around 40 minutes drive from Princeton area to Metropolitan Opera House which means if the audiences are really a big fan of opera, they wont mind to drive extra 10 minutes to New York city.Meanwhile this part of audiences are very loyalty with opera productions.They are regular buy tickets to appreciate opera productions and do donation to support them.What more that Met is the benchmark in opera market, it is a very strong brand means they could provide high quality opera productions, state-of-the-art electronic sound and lighting systems.They also world-class cast, directors and conductors.For big fans of opera, the first choice must be Met.The possible future for my company product To answer this question, first of all, I need to emphasize again what my product is. Based on my product and the basic internal& external environment to predict my possible future for my product. My product is 2020~2021 opera season including five opera productions.Basic features about my product are they are the most popular opera productions in every opera house which meanssongful melody and also some aria applicate in movies, popular songs and TV shows so people may very familiar with their sound. Because of this feature, people wont feel it is a barrier to come into opera house to see performance.Second feature is we co-product one productions with Royal Opera House and its brand is also very strong that will make an impression on people our opera house has good quality of opera productions.We are not a grand opera house but we are indeed delicate and has good quality.Third feature is we have a number of activities to promote our opera productions which are very close to audiencess daily life such as Sunday family day and our derivative restaurant.I will talk about this more detailed on my following part. As for the external environment, we located in Princeton University area where is between New York and Philadelphia, is a distinctive urban village. The town is located in southwestern New Jersey in Delaware plain, an area of about 7 square kilometers, East Carnegie lake, west of the Delaware river. Princeton beautiful scenery, surrounded by trees, green grass and trees, clear water surrounded the town quietly flowing. Princeton with a population of about 30000 people, mostly affluent life. small town traffic is convenient, from the New York and Philadelphia takes about 1 hours, and the town of quiet and serene life, under the shadow of thick cultural atmosphere the nobility, so that Princeton has become American upper class like to live ( Baidu).From this we could know that our audiences could possibly from New York City, Philadelphia but for us we will focus on the families and students around this area because we are in first stage in business life cycle which means we are seeking for awareness and in another word, people are not familiar with us .So we do think seldom people are willing to take almost two hours or more to see a uncertain production that is why we decided to focus on our local families and students.Meanwhile, generally some upper class people generated in this area.We have talked in class that people within each class share similar value, interests and behavior.And also we know from last class that social networking thing which is there are two types social groups opening social groups and close social groups.This area is not a close social group but is a relatively tight opening social group which means they could influenced by others.Based on this, we look forward to attracting local people by making good quality productions and also we provide a social activity for them. I talked about our internal environment above.Although we have a lot of weakness and threatens, we do have our strengths and opportunities. Sum up, we have good quality of productions and audience-friendly service, a certain amount target audience geographical around us so that we want to be optimistic about our product future.It will have a good impression on customer and customer will also feel like they are one part of our organization.We expect our opera house could buildthe relationship of mutual trust with our audience. We may not be the benchmark in entire opera market but we want to be the best opera company in Princeton area by offering best service and productions.Macro EnvironmentPoliticalThe political, environmental factors are vital aspects for consideration in when setting up an Opera house. Federal and state laws are some of the fundamental components of the political environment. This section presents a comprehensive analysis of the political environment that may affect the operation of an Opera house business operating in US state of New Jersey.The state of the New Jersey applies taxes to every business that operates in its localities. An Opera House being a business firm, its management will have to comply with applicable tax rates of the region. Every organization carrying out any income generating activity has the obligation to pay taxes depending the existing rates and the amount of income(Christensen 1). For the company to maintain good political relations with the Internal Revenue Service (IRS), it must pay tax promptly as applicable and fill tax return.Second, the company faces the task to adhere to the rules governing the intellectual property laws. Business ideas, logos, names or inventions need protection by the above law. Therefore, any emerging business such as the Opera House must adhere to such rules to avoid future squabbles with anyone who may intend to steal their business ideas. Applying for a patent through the US patents and trademark office may be a bold step to take towards registration of the opera services (Kendall 441). Opera being a movie production business issue like copyrights records have to be set straight. Third, the company will have to check with Environmental Protection Agency on which environmental rules and regulations apply to their and comply with them. Opera being an operator in the entertainment industry means some noise pollution regulations may apply to it (Tajtakova 365). There are also state environmental laws to meet with for example state of New Jersey has its particular environmental lawsFinally, the workplace safety and health law is also a significant regulation the company will have to comply. Workers safety and health are critical. Therefore, the company have to comply with the Occupational Safety and Health Act (OSHA). The company must identify the possible hazards to the employees and takes measures to minimize such accidents.Economic ( macroµ)Locating an opera hall with such high capacity could have a great micro and macro-economic influence not only within the university compound but also in the neighboring community. The first direct influence is the creation of employment opportunity for various stakeholders. These will include the performers, supplies of materials, employees, among others. However, the taxation levied on various products and services might affect the profit margin of the organization.A good example is the music equipment, which are going to be very critical in almost all occasions. In addition, the opera business has been done for very long time (Affron and Mirella, 24). This means that the organization should have unique components in its ingredients so that it can have a competitive advantage. Further, most of the well-established opera specialists that might assist in the production and management will need to be paid handsomely (Royston, 45). As a startup opera business, this may cripple the profit margin of the company. It will call for proper accounting of all available resources. In the recent years, the advertising cost has been on the increase. This has been due to increased interest on the opera business. Therefore, it will not be easy for this company, without enough resources, to brand itself in the shortest time possible. The established company in the industry might take this opportunity to directly or indirectly bring it down. This calls for strategic measures and techniques of analyzing the market trend and more so the position of competitors. On a positive note, the decrease in the price on oil will be of significant relief for those potential customers who will be willing to travel for long distances. Although these may not translate to direct increase in the markup, it will help to caution the economic crisis for the organization, but with proper management in place.Socio-culturalTo establish an idea Opera especially near a legendary similar establishment can be an uphill task. Moreover, when the competitor is more endowed with resources and the new establishment does not have a way through to mobilize the resources it might get a bit tric
