Beruflich Dokumente
Kultur Dokumente
Purpose
Table of Contents
The purpose of this manual is to summarize Eagle Wings Consultings overall
recommendations for the Art Mission and Theater, which are packaged in an easy to
read format. The recommendations have been customized and prioritized to deliver
the most valuable solutions in support of the Art Mission and Theaters mission. It
should be used as a guide and revisited in the future as deemed necessary.
This book is divided into three main sections. The first section gives an overview of
the general project. The second section states the specific recommendations. The final
section includes supporting documents, strategic models, and data analyses that our
recommendations are based on.
Executive Overview
Project Overview...................................................................................................................................7
Meet the Eagle Wings Consultants.....................................................................................................8
Art Mission and Theater Can Inspire.................................................................................................9
The Art Mission and Theater.............................................................................................................10
Organizational Timeline and Business Snapshot...........................................................................11
Challenges and Solutions...................................................................................................................12
Return on Investment (ROI)............................................................................................................13
1: Revenue Generation.......................................................................................................................14
Marketing Brochure for Private Events..............................................................................16
Screen Films From Individual Filmmakers........................................................................18
Showcase Student Art...........................................................................................................20
2: Internal Processes............................................................................................................................22
Leverage GiftWorks Free Training Tools............................................................................24
Open Discussions on Board Responsibilities...............................,.....................................26
Workshop to Leverage Board Connections........................................................................28
3: Customer Experiences....................................................................................................................30
Expand Phone Options .......................................................................................................32
Increase Social Media Engagement.....................................................................................34
Rework the Website...............................................................................................................36
Video Scavenger Hunt Competition...................................................................................38
4: Brand Management........................................................................................................................40
Donor Engagement Newsletter............................................................................................42
Internal Commercial.............................................................................................................44
Marketing and Business Development Interns ................................................................46
4
Table of Contents
Appendix
Executive Overview
Scope
Introduction
Project Overview
Eagle Wings Consulting, a student-led consulting group from Binghamton Universitys Center for
Leadership Studies, is working with the Art Mission and Theater through Manleys Service
Learning Project.
This project aims to provide Broome Countys non-profit organizations with exemplary strategic
consulting services. Eagle Wings Consulting has worked closely with the Art Mission and Theater
and its Executive Director to advance the organizations vision for the Greater Binghamton area.
Together, we strive to expand the organizations reach and potential.
Thank you to everyone who has made this project possible. We are extremely grateful for
the opportunity to grow as leaders and help the local community.
Non-profit
Art Mission and Theater
Project Sponsors
Manleys Mighty Marts
Big Als Pizza
Manleys
Service Learning
Project
Strategic Coach
Patricia Albaugh
Professor
Kim Jaussi
Binghamton University
School of Managements
Center for Leadership Studies
Alison Ganci
Accounting,
Leadership and Consulting
Summer 2014
Hunter Smith
Marketing,
Leadship and Consulting
Fall 2014
Henry Aery
Accounting, Management
Information Systems,
Leadership and Consulting
Spring 2015
Alison has worked as a marketing intern and business
analysis intern at a small management
consulting and technology services firm. Next year,
she will continue her education at Binghamton
University in the School of Managements fast-track
graduate program. She looks forward to her Process
Assurance Internship at PricewaterhouseCoopers in
Summer 2014.
Sindhura Mandava
Quantitative Finance,
Leadership and Consulting
Spring 2015
Jonathan Zhou
Marketing,
Leadership and Consulting
Spring 2015
Stefan had to work for everything. The only thing that was
given to him was a one time free pass to see a movie at The Art
Mission and Theater. He didnt feel like he would fit in with the artsy
crowd, wearing a shirt bought at Goodwill. Stefan was transported into a
romance film, with lovers smiling on a grassy hill in the sunshine. For a brief
90 minutes, Stefan left his life. He left being the third child in a single parent
family, constantly swimming in a sea of uncertainty, and bobbing above and
below the poverty line. Stefan was transported to a different life, and was
inspired to make that life his own.
Thats the story Stefan told his wife and two daughters.
9
Welcome to the
Art Mission and Theater
Our mission is to be a source of inspiration and excitement for the community
and to be a catalyst for the revitalization of the Binghamton Area!
1 of 2
Digital Projectors
Installed
$10,500
Broome County
Arts Coucil
Grant
10
Organization Timeline
2004
ART Theater
Burns Down
2005
ART Mission
2004
Adopted the ART
Theater to Create the
Art Mission and Theater
2007
Relocated to
61 Prospect Ave
2011
Hired New
Executive Director
2014
Switched One
Theater to
Digital Projection
2013 / 2014
1,800+
Vision
3,500+
12%
Theater Utilization
50%
110 of 910
455 of 910
22,000
36%
Local University
Students
2014
Binghamton University
Student Awareness
27,000
80%
$(941)
Weekly Profit
$1,600
$7,000
Donations
$28,500
Memberships
1,400+
360
$120,000
Operating Budget
$300,000+
11
Current
Challenges
Customer
Management
Operational
Efficiency
Community
Awareness
United Vision
12
Internal
Processes:
These recommendations
These recommendations
are focused on expanding
aim to further develop
and diversifying revenue
communication,
streams to increase fund
consistency, and
development. The
efficiency throughout all
objective is to stabilize and levels of the organization.
improve the financial
The objective is to align
situation of the Art
the Executive Director,
Mission and Theater.
staff, interns, and Board
of Directors.
Customer
Experience:
Brand
Management:
These recommendations
are centered around
providing valued
customers with a unique
and captivating
experience. The objective
is to maximize the value
of this unique experence.
These recommendations
are focused on
strengthening customer
and donor relationships
through focused
marketing. The objective is
to create more influential
interactions with external
stakeholders of the Art
Mission and Theater.
Internal
Processes
Revenue
Generation
$236
$879
$471
$84*
$447
Brand
Management
Customer
Experience
$843
$1,295
TBD
$877
$5,394
13
Solution
Focus Area 1
Revenue
Generation
Revenue Generation
B
Attracts to the Art Mission and Theater more E
N
groups that may not be interested solely in
independent films and the local community
E
F
Improves capacity utilization and develops
I
untapped revenue stream
T
S
Reduces movie screening expenses
Custo
mer M
anage
ment
16
Potential Obstacles
Time designing and creating brochure
Determining key target markets and
providing rental packages that fit their
needs
Conveying the unique value proposition
to separate the Art Mission and Theater
from competitors
Current
Challenges
Community
Awareness
Supporting
Research
SWOT Analysis
Market Research
Return on Investment
Difficulty
Importance
Our Future
Vision
$236
Year 1
The Executive Director is excited when she receives a phone call, out of nowhere,
requesting a private party. This is the third time the brochure left on display at
local businesses has brought in business, and it always feels like a surprise present.
IMPLEMENTATION STEPS
DAY 1
Brainstorm ideas for pamphlet (e.g., party package, corporate package, wedding package)
Refer to Appendix page 49 for a sample pamphlet
Design and print pamphlet
17
Revenue Generation
Custo
mer M
anage
ment
18
B
E
N
E
F
I
T
S
Potential Obstacles
Time required to balance various streams
of communication
Necessity of properly marketing these films
to create emotional attraction to filmmaker,
as well as general attraction to the film itself
Maintaining professional quality of film
and cinematography
Current
Challenges
Community
Awareness
Supporting
Research
SWOT Analysis
Ansoff s Matrix
Porters 5 Forces
Return on Investment
Difficulty
Importance
Our Future
Vision
$879
Year 1
The Executive Director is elated to see so many community members of all ages
coming into the theater to support the beginning of a young filmmakers career.
The excitement is palpable after the premier, as the filmmaker fields questions
from the audience about his influences as a kid growing up in Binghamton.
IMPLEMENTATION STEPS
DAY 1
Identify and contact talented individual filmmakers to potentially show their films at the
Art Mission and Theater
Refer to Appendix page 50 for prospective film college contacts list
DAY 14 (Week 2)
Receive and view film. If quality is up to standard, negotiate terms and conditions of
screening it, including exchange of monies.
DAY 56 (Week 8)
Screen film at the Art Mission and Theater and make associated payments
according to contractual agreement with the individual filmmaker
19
Revenue Generation
B
E
N
E
F
I
T
S
Potential Obstacles
Time to develop relationships with arts
department professors
Finding high volume of quality art that
students are willing to sell
Maintaining professional quality of art
Current
Challenges
20
Community
Awareness
Supporting
Research
SWOT Analysis
Porters 5 Forces
Ansoff s Matrix
Return on Investment
Difficulty
Importance
Our Future
Vision
$533
Year 1
A young aspiring artist sees her dreams come closer when the Art Mission and
Theater asks to showcase her art. Her parents attitude becomes more supportive
of their daughters passion for art after several pieces of her art are quickly sold.
IMPLEMENTATION STEPS
DAY 1
Network with local university professors to identify talented students
Connect with the students and procure art to be showcased
Schedule 2 artists per months, for the artists to be featured in the following months
21
Solution
Focus Area 2
Internal
Processes
Internal Processes
B
E
N
E
F
I
T
S
Current
Challenges
24
Operational
Efficiency
Potential Obstacles
Time to watch the training videos and
practice within the software to fully
understand it
Time of trainings courses may not
coincide with available times
As the software updates, more training will
be required to be up-to-date on functions
Supporting
Research
7S Model
Value Chain
PEST Analysis
Return on Investment
Difficulty
Importance
Our Future
Vision
$471
Year 1
The Board of Directors is so thankful for the frequent updates of donor relations
the Executive Director provides through the GiftWorks report. Its exciting to be a
part of the donor development, and so encouraging to quantify the fruits of their
labors.
IMPLEMENTATION STEPS
DAY 1
Go to GiftWorks.com and sign up for GiftWorks University Professional Development Series
course (This course contains 5 sessions)
Refer to Appendix page 51 for web addresses to key GiftWorks pages and tutorial videos
DAY 7 (Week 2)
Each week for 5 weeks, watch one of the sessions
For additional research and quick summaries, watch additional support video tutorials at
your own pace as needed
Implement changes to software as you develop more knowledge of the program
25
Internal Processes
B
E
N
E
F
I
T
S
Current
Challenges
26
United Vision
Potential Obstacles
Uneven levels of Board commitment
through this process
High degree of focus needed for this
extended process
Long-term mindset required
Supporting
Research
7S Model
Board Interviews
Return on Investment
Difficulty
Importance
Our Future
Vision
$1,023
3-Year Average
A member of the Board of Directors smiles as he sees that his individual efforts
are being compounded by the efforts of the other Board of Directors members.
They all share a common passion, and are all working in tandem to drive the Art
Mission and Theater forward in one direction.
IMPLEMENTATION STEPS
DAY 1
Call a meeting with the full Board of Directors of the Art Mission and Theater (The meeting can
be during a scheduled monthly meeting or separate in order to explore the necessary topics)
27
Internal Processes
B
E
N
E
F
I
T
S
Current
Challenges
28
United Vision
Potential Obstacles
Requires full participation
Extensive overall planning time required to
create workshop
Understanding full value proposition in the
form of a sales pitch to local businesses
Supporting
Research
SWOT Analysis
Value Chain
Return on Investment
Difficulty
Importance
Our Future
Vision
$447
Year 1
Board of Director members sit at a table, marveling over their successful film
event from the previous night. With a great turnout and a number of sponsors
excited to become part of the next event, the outlook of the Art Mission and
Theater has never looked better.
IMPLEMENTATION STEPS
DAY 1
At the next Board of Directors meeting, participate in the Networking Workshop
Refer to Appendix page 56 for Networking Workshop details
DAY 14 (Week 2)
Follow up with connections identified as high priority from the Networking Workshop
using the processes that has been generated during the workshop
29
Solution
Focus Area 3
Customer
Experience
Customer Experience
B
E
N
E
F
I
T
S
Current
Challenges
Customer Management
32
Operational
Efficiency
Potential Obstacles
Success of system is difficult to measure
Updates must be made consistently
Supporting
Research
7S Model
Value Chain
Return on Investment
Difficulty
Importance
Our Future
Vision
$843
Year 1
A local firm is extremely interested in hosting their annual holiday party at the
Art Mission and Theater, but has some important questions. The firm is easily
able to contact the Executive Director, have their questions answered, and book
their private party in one phone call.
IMPLEMENTATION STEPS
DAY 1
Contact the current phone service providers and ask to set up additional automated phone
extensions
Expand the automatic phone options to include a line to direct callers interested in learning more
about each of the following services:
(1) Movie listings and show times
(2) Membership and donation information
(3) Current gallery artist
(4) Upcoming events
(5) Direct call to Executive Director or available staff member. If the Executive Director is
unavailable to take the call, the caller is prompted to leave a voicemail
Refer to Appendix page 57 for more information
DAY 7 (Repeat)
Update the movies and showtimes recordings when necessary each week
33
Customer Experience
B
E
N
E
F
I
T
S
Potential Obstacles
Experience is key aspect to creating high
quality content
Requires frequent updates
Maintaining consistency in all forms of
communication throughout year
Current
Challenges
Customer Management
34
Community
Awareness
Supporting
Research
Market Research
SWOT Analysis
Value Chain
PEST Analysis
Return on Investment
Difficulty
Importance
Our Future
Vision
$1,295
Year 1
A patron has never heard of the Art Mission and Theater until a distant friend
shares a picture the Art Mission and Theater posted on Facebook. The image
piques her interest, so she Likes the Art Mission and Theaters page, leading her
to explore the website, and then attend a movie that weekend.
IMPLEMENTATION STEPS
DAY 1
Read over the Art Mission and Theaters current facebook page analysis
Refer to Appendix page 60 for Facebook analysis
Incorporate weekly facebook goals in our social media marketing plan
Refer to Appendix page 59 for social media best practices
If scheduled posting software is not currently used, hootsuite.com provides this free service
DAY 7 (Week 2) (Repeat)
Create several posts before each week to be released each day that help towards the
Art Mission and Theaters goals for customer engagement
Refer to Appendix page 58 for social media engagement suggestions
DAY 28 (Week 4)(Repeat)
Analyze the facebook page on a monthly basis through http://likealyzer.com
Adjust your facebook goals according to the analysis and recommendations
35
Customer Experience
B
E
N
E
F
I
T
S
Potential Obstacles
Formatting and design is time intensive
Website analysis may not reflect effect of
specific changes
Current
Challenges
Customer Management
36
Community
Awareness
Supporting
Research
SWOT Analysis
Director Interviews
Return on Investment
Difficulty
Importance
Our Future
Vision
$1,613
Year 1
A quick google search brings a potential customer to the Art Mission and
Theaters website, where she finds the showtimes and decides to attend a movie.
She loves it! The following day she returns to the website where she is lured by the
cause and becomes a proud new member.
IMPLEMENTATION STEPS
DAY 1
Edit website by fixing typos, reinstating hyperlinks, including pictures, and providing more
biographical information of staff and interns
Refer to Appendix pages 61-66 for specific website edits
DAY 2
Increase visibility of the Donate Now function to draw more attention to it
Reorganize text boxes and include more photographs to make the website easier to
navigate for potential customers and donors
DAY 3
Change fonts, color schemes, and writing to create a deeper emotional
connection with website visitors
37
Customer Experience
B
E
N
E
F
I
T
S
Potential Obstacles
Developing specific planning process to be
leveraged in future years
More feasible in the long-term
Finding a community partner to share
event responsibility and costs
Current
Challenges
38
Community
Awareness
Supporting
Research
SWOT Analysis
Porters 5 Forces
Ansoff s Matrix
Return on Investment
Difficulty
Importance
Our Future
Vision
TBD
IMPLEMENTATION STEPS
Day 1
Identify community partners to work with, including volunteers to organize event and
organizations to financially sponsor the event
Day 14 (Week 2)
Establish logistics of the event, such as date, time, scavenger hunt locations
Refer to Appendix page 67 for a basic logistics checklist
Day 21 (Week 3)
Contact local student groups and organization to market the event and encourage student participation and market event
Refer to Appendix pages 53-56 for prospective student organizations
Solution
Focus Area 4
Brand
Management
Brand Management
B
E
N
E
F
I
T
S
Current
Challenges
Customer Management
42
Potential Obstacles
Additional time to create separate
quarterly newsletter
Preparation of pictures and engaging
writing for quarterly newsletter each time
Supporting
Research
7S Model
PEST Analysis
Return on Investment
$877
Difficulty
Importance
Our Future
Vision
Year 1
When a donor opens up the newsletter, he sees pictures of the artists the
Art Mission and Theater has supported, and reads about the excitement it
brought to the city. He feels significant in the community for making that
possible and resolves to donate again.
IMPLEMENTATION STEPS
DAY 1
Outline complete list of newsletter material
Separate current newsletter into material to be sent out weekly and quarterly
Refer to Appendix page 68-71 for a detailed breakdown of newsletter changes
DAY 5
Create newsletter template for quarterly material
Update both newsletters as needed
DAY 7 (Repeat)
Email the weekly newsletters to all email subscribers
43
Brand Management
Internal Commercial
Create a brief advertisement video to be played at the beginning of every movie screening. This
video should describe the Art Mission and Theaters services, its cause and mission, and the ways
customers can contribute (e.g. becoming a member or donating). The video will be a picture
slideshow with music and a voiceover, similar to the previous commercial.
B
E
N
E
F
I
T
S
Potential Obstacles
Video editing is very time intensive
Quality of software, video, pictures, and
sound needs to reflect the overall quality of
the organization
Updates needed as organization grows
Current
Challenges
Customer Management
44
Community
Awareness
Supporting
Research
7S Model
Value Chain
Porters 5 Forces
Return on Investment
Difficulty
Importance
Our Future
Vision
$2,586
Year 1
A patron has been coming to the Art Mission and Theater just a few times a year,
but for quite a while. It wasnt until a short video before the film illustrates that
the Art Mission and Theater is a non-profit that he decides to become a member
and support the revitalization of Binghamton.
IMPLEMENTATION STEPS
DAY 1
Create an outline of the script detailing the cause of the Art Mission and Theater, its services, and
how consumers and donors can help.
Refer to Appendix page 72 for a sample script
DAY 7 (Week 2)
Gather existing content and determine additional content needed for commerical
Create the photo slideshow using movie-making or slideshow software
Add music and voiceovers to the slideshow
DAY 28 (Week 4)
Obtain final approval from the Board of Directors to publicize advertisement
Prepare commercial to screen before each movie
45
Brand Management
B
E
N
E
F
I
T
S
Potential Obstacles
Advertising the significant value of the
experience for potential interns
Training of each new intern will require
time and patience
Frequent turnover of interns will require
extensive documentation
Current
Challenges
46
Operational
Efficiency
Supporting
Research
7S Model
Market Research
Return on Investment
Difficulty
Importance
Our Future
Vision
$5,394
Year 1
IMPLEMENTATION STEPS
DAY 1
Revise current internship curriculum, with explicit tasks, objectives, and metrics for review,
along with intern expectations that better challenges and empowers new interns
Refer to Appendix pages 73-74 for internship descriptions
DAY 7
Post internship on Binghamton University and SUNY Broome career websites
Distribute flyers on university campuses
DAY 14
Review resume applications and schedule phone interviews with candidates
through email first
DAY 18
Conduct phone interviews, review candidates, and schedule in
person interviews for top candidates
DAY 25
Conduct in person interviews, review candidates, hire top
two most qualified candidates, and begin training process
47
Appendix:
Supporting
Documents
48
Corporate Package
Wine
Cheese and Catered
Appetizers
Choice of the 2 Current Film
Being Shown that Week
49
Reference:
Appelo, Tim. "The Hollywood Reporter Unveils the Top 25 Film Schools of 2013." The Hollywood Reporter. The Hollywood Reporter Magazine, 31 July 2013. Web. 04 May
2014. <http://www.hollywoodreporter.com/news/best-film-schools-hollywood-reporter-595712>.
50
Hyperlink
http://www.giftworksconnect.com/giftworks-university/
http://www.giftworksconnect.com/support/videos/
51
52
53
54
55
Networking Workshop
Approximate time: 2 Hours
Attendees: All board members
Time/Location: Bi-monthly board meeting
Materials needed: 1 laptop per board member, Large pad of paper, Markers
1. As a group, make a list of the organizations and community groups you want and believe will be capable of
sponsoring an event.
2. Each member should go through their individual contacts and see where they have stakeholders in these
3. target groups to see what connections are currently available to utilize. Board members should search
through the following contacts lists:
a. Email contacts
b. Business cards
c. LinkedIn members
d. Facebook friends
e. Twitter followers
4. Identify the connection and which board member(s) have an association with this connection
5. Together, develop general guidelines for how to reach out and make initial contact with each identified
connection. Questions to consider during this step :
a. Should we conduct background research on the local business?
b. What specific types of event(s) would appeal to that specific sponsors?
c. How will the other board members be updated on the progress of networking efforts?
d. Should one board member be assigned to one contact to maintain consistency?
e. When should you get the Executive Director involved to finalize planning details?
f. Should you develop a sample script for initial contact phone calls?
g. Should you send personally signed holiday cards to donors that donated a significant amount as a
reminder of their efforts?
6. Partner together with another board member and conduct a mock phone call. One person will pretend to be
a representative from the local business and the other will play their role as a board member.
SITES FOR ADDITIONAL INFORMATION
General Guidelines on obtaining and keeping sponsorships, and the funding you should expect to get from them
http://www.idealist.org/info/Nonprofits/Dev2
Document outlining the importance of corporate sponsorships
http://nonprofit.about.com/od/causerelatedmarketing/ss/How-To-Get-Sponsors-For-Your-Event.htm
56
57
Example
How did you feel about this character in the movie, The Unknown Known?
58
59
60
61
62
63
64
Change on to one
65
66
67
Newsletters Recommendation
Full Steps to Implement:
Day 1
Outline complete list of newsletter material
Separate current newsletter into material to be sent out weekly and material to be sent out quarterly
Weekly material includes movies currently showing and current gallery artist
Monthly material includes fundraising goals, current progress of achieving the fundraising goals, success and
pictures of past fundraising events, summary of membership benefits, and hyperlink to donate more money
Day 5
Create newsletter template for quarterly material. A sample of the quarterly material can be found on the next
page
Update and distribute both newsletters as needed
Day 7 (Repeat)
68
Newsletter Suggestions
Movie Showing and Times
Upcoming Events
70
On Screen Advertising
Newsletter Suggestions
Homepage
Services
Movie Times
Private Parties
Gallery
Partnershops
Memberships
Donation
71
72
73
74
75
76
Appendix:
Surveys
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
Appendix:
Models
103
SWOT Analysis
Purpose:
SWOT Analysis is an evaluative matrix tool used to classify internal and external factors based on whether
they are favorable or unfavorable.
Helpful
Harmful
Internal
Strengths
Weaknesses
External
Opportunities
Threats
Elements:
SWOT analysis is important for evaluating an organizational objective based on two different
factors. These two factors are origin of the attributes, internal or external, and whether or not it is helpful or
harmful. Through this matrix of attributes, an organization can identify a strategy to navigate the current
and future market. The tool can be used for a wide range of situations from whole organizations to specific
objectives. When used for objectives, SWOT analysis can be used in evaluating future feasibility.
104
SWOT Analysis
Strengths
Only non-profit gallery and cinema in Binghamton
Only cinema dedicated to independent movies in Greater Binghamton area
Relationships with other successful non-profit theaters
Loyal patron base
Purchase of two digital projectors
Weaknesses
Facility does not adequately support desired operations
High rent and other overhead costs
Stagnant customer growth
Low brand awareness and marketing efficiency in the community
Misalignment in strategy between Board of Directors and Executive Director
Limited staffing options to fulfill daily operations
Opportunities
Growing student population at Binghamton University and SUNY Broome
Increased market penetration
Increased consumer population
Increased skill of interns
Additional community events
Additional private screening and events
Additional fundraising events with sponsorships
Threats
Expanded movie offerings from Regal, AMC, and Binghamton University
Limited movie distribution due to competition from other cinemas
Strong competition from other community events and non-profit organizations
Decreasing prices from internet content providers
Weak local economy and low disposable incomes
105
7S Model
Purpose:
The 7S Model breaks down an organization into seven elements. By evaluating each element, an organization
can identify how each aligns with the its shared values.
Structure
Strategy
Systems
Shared
Values
Skills
Style
Staff
Elements:
The 7S Model can be applied to improve the performance of an organization. Through each element,
the current alignment with the overall strategy and likely effects of future changes can be evaluated. It is
important for an organization to identify which elements are strong and which are weak. While each
element is separated, they are all interrelated. Often when making an important decision, organizations will
neglect related business processes that will be impacted in the long-term. This model serves to reduce this
risk and ensure smooth transitions. For organizations to succeed, all seven elements should be aligned and
reinforce each other.
106
7S Model
Shared Values
Catalyst for the revitalization of Binghamton
Provide a unique and community centric atmosphere
Appreciation for independent art
Show films that may not be shown in Binghamton otherwise
Strategy
Show independent films and pieces of art
Vision of role within the revitalization of Binghamton is unclear
Internal vision for the Art Mission and Theater is not focused
Structure
Eight members of Board of Directors
One full-time employee (Executive Director)
Relies on volunteers and interns for daily operations
Systems
External communication systems can be more effective
Strong need for Point of Sales system
Online marketing through Facebook has tremendous potential
GiftWorks donor management is a powerful tool
QuickBooks accounting software is industry standard
Skills
Executive Director has strong academic background in non-profit organizations
Board of Directors could benefit from additional fundraising experience
Grant acquisition has been successful
New customer acquisition and marketing skills have room to grow
Staff
Executive Director has experience and education
Board of Directors is becoming more diverse
Paid staffing options currently are limited
Style
Executive Director controls daily operations and internal processes
Active Board of Directors
107
Porters Five Forces is a strategic management tool used to identify the threat of the five forces associated
with industry competition.
Bargaining
Power of
Suppliers
Threat
of
Substitutes
Current
Competition
Threat
of
New Entrants
Bargaining
Power of
Buyers
Elements:
Bargaining Power of Suppliers: How much influence does a supplier have over an organization?
Bargaining Power of Buyers: How much influence does the customer have over an organization?
Competitive Rivalry: How strong is the competition within the industry?
Threat of New Entrants: What is the risk of competitors entering the market?
Threat of Substitution: What is the risk of customers switching to other products of services?
In Porters Five Forces model, each competitive force can be assigned a level of strength. This level
of strength ranges from weak to strong. Based on the associated threats from each competitive force, an
organization may conclude where its biggest current and future risks exist. The model may also be used for
identifying new attractive business opportunities.
Through this analytical tool an organization can recognize whether its current strategy is
appropriately aligned with the associated risks of each force. Adjustments that take into consideration each
threat and will lead to better long-term profitability can be made moving forward.
108
109
PEST Analysis
Purpose:
PEST Analysis is a strategic management tool used to create a framework of macro-economic factors that are
impacting an organization.
P Political
E Economic
S Social
T Technological
Elements:
Political: Federal, State, and Local regulations, Government funding, and Community interaction
Economic: National, State, and local economic growth, Business cycles, Price trends
Social: Population trends, Demographic trends, Demand for products and services
Technological: Technological efficiencies, Rate of technological change, Innovation
PEST Analysis is important for identifying an organizations place in the market. Macro-economic
factors are constantly changing and it is essential for any business to remain modern and competitive. An
organization can use this framework to analyze which macro-economic factors are vital for long-term
sustainability and which require less focus. Businesses must realize industry trends before they occur;
therefore they need a tool such as PEST Analysis to pinpoint where the trend will originate and how its consequences will surface. After deconstructing each factor, an organization can reevaluate current strategies
based on whether or not they leverage these changes.
110
PEST Analysis
Political
New non-profit regulations and taxes
Keeping status as non-profit organization
Obtaining government funding is essential (Grants and Loans)
Grant stipulations must be followed
Economic
Property value is low - Rent expense is high
High overall unemployment with low disposable income
Higher disposable income for target demographic (50+)
Slow regional economic recovery
Social
Shifting age demographics will lead to increase in target market (50+)
Local demand for independent films and art will increase
Overall cinema attendance around the US has decreased
Technological
Shift from film projectors to digital projectors to laser projectors
Point of Sale systems are an industry standard
Media content is cheap and widely available outside of cinemas
Social media increasingly important for outreach
111
Value Chain
Purpose:
The Value Chain is used to visually segment the organizations operations into different categories in order
to determine core competencies and areas of competitive advantage.
Firm Infrastructure
Human Resource Management
Technology
Margin
Procurement
Inbound
Logistics
Operations
Outbound Marketing
Logistics
& Sales
Service
Elements:
Primary activities: Inbound Logistics, Operations, Outbound Logistics, Marketing & Sales, Service
Supporting activities: Firm Infrastructure, Human Resources Management, Technology, Procurement
Margin: Desired end result (e.g. Customer satisfaction)
The Value Chain model is essential for identifying where value is derived in an organizations
business model. Through this model, primary activities for generating value may be identified along with
the secondary support activities. Each activity leads to some type of margin, which must be identified in
order to gauge the value of that business function. In some instances, every activity may not apply based on
organizational structure and industry. After breaking down an organizations functions into each of these
functions, a proper strategy may be devised in order to capitalize on competitive advantages and adjust
internal processes in order to create the most value.
112
Value Chain
Firm Infrastructure
Minimal hierarchical structure
Legal status as 501(c)(3) non-profit organization
Facilities are rented
Technology
New digital projectors
Giftworks donor management program
Point of Sale system would be helpful
Procurement
New movie distributor with better relations
Movie distribution limited in market with other theaters
Acquiring sponsorships has room to for improvement
Inbound Logistics
Very limited parking
Located in outskirts of Downtown Binghamton
Operations
Limited staffing
Two cinemas with total capacity of 70
Slow rotation of gallery artwork
Outbound Logistics
High customer satisfaction
Service
Strong in-person service
Digital service has room to improve
113
Ansoff s Matrix
Purpose:
Ansoff s Matrix is an analytical tool used to evaluate alternative growth strategies for the services and
markets served by an organization.
Current
New
Services
New
Market
Development
Diversification
Market
Penetration
Product
Development
Markets
Current
Elements:
Ansoff s Matrix is an important analytical tool when evaluating a new service or market strategy. An
organization can use this tool to explore different avenues towards growth. Through each strategy, current
and potential risks and benefits can be examined. Often organizations do not consider all possible options in
terms of services and markets. Diversification in particular must be analyzed closely due to its high level of
risk. The organization should first have a clear understanding of its core competencies and what it is trying
to accomplish with a diversification strategy before moving forward.
114
Ansoff s Matrix
Market Penetration
Acquire a larger market share in cinema industry through increased marketing efforts
Curently the least risky strategy
Cinema industry is saturated which makes other strategies more important to pursue
Example: Reduce ticket prices to entice more current customers to attend movie showings
Example: Offer small incentives for attending more movies and events
Example: Offer monthly subscriptions for unlimited movies
Market Development
Attract customers from market segments that are not currently pursued
Market to new geographical regions, such as outside of Binghamton, to attract customers
Value proposition of current products must be clear to convince new market segments
Example: Market to students from local universities
Example: Showcase student artwork
Product Development
Identify additional needs of current customers and differentiate services
Riskier strategy - Investment in new services may not appeal to current customers
Cinema industry is saturated which makes differentiation essential for growth
Example: Offer food and alcohol to customers
Diversification
Riskiest of the four strategies
Extensive market research can find new markets and services, but success can vary
Strays away from core competencies on organization
Example: Create cafe and advertise to new market segment in Binghamton
115
116
Appendix:
Financial Analysis
117
Budget
Income
Contributed Income
Membership Dues
Donations
12,304.55
12,395.63
14,750.04
6,086.52
24,700.18
20,836.56
4,318.00
1,150.00
300.00
1,500.00
5,468.00
1,800.00
2,772.96
10,500.00
0.00
788.00
3,694.00
10,500.00
56,000.04
4,029.96
Grants
Art Theater Income
Special Screenings
Movie Sales - Other
Concession Sales
On Screen Advertising
Special Events
17,754.96
70,530.00
1,228.00
45,549.75
6,510.30
300.00
263.00
65,000.04
12,999.96
200.04
1,500.00
53,851.05
79,700.04
13,310.40
17,834.05
16,749.96
Fundraising Income
4700 INTEREST INCOME
31,144.45
0.27
Contributed Income
Earned Income
Gallery Sales
Space Rental
Earned Income
Grants
NYCON
BCAC
Projector Grant
Federal Work Study
Other Grants
Total Income
132,918.91
16,749.96
189,616.56
Expenses
Fundraising Expenses
General
118
2,487.08
2,000.04
Fundraising Expenses
Art Theater Expenses
Concessions
Projectionist
Special Screenings
Movie Rental
Repairs and Maintenance
New Projectors
Film Shipping
2,487.08
2,000.04
1,496.29
11,131.15
500.00
15,199.18
156.70
0.00
2,142.12
5,199.96
20,708.04
30,625.44
109,108.08
24,050.04
849.96
56,000.04
2,300.04
04/24/14
Jan - Mar 14
YTD Budget
Annual Budget
2,508.35
2,576.00
0.00
5,084.35
2,939.82
1,749.99
721.32
5,411.13
15,772.25
6,999.96
4,000.03
26,772.24
0.00
250.00
250.00
500.01
500.01
1,000.02
2,000.04
2,000.04
4,000.08
2,467.50
9,870.00
0.00
2,467.50
1,500.00
11,370.00
4150 GRANTS
4160 Grants - NYCON
4170 BCAC GRANT
4171 Projector Grant
4181 Federal Work Study
Total 4150 GRANTS
500.00
3,173.25
30,000.00
832.50
34,505.75
9,993.06
1,700.97
0.00
11,694.03
10,868.54
1,987.94
75.00
12,931.48
49,799.99
9,028.78
300.00
59,128.77
252.00
51,786.13
1,000.00
22,810.13
18,800.00
120,071.09
51,786.13
22,810.13
120,071.09
0.00
100.00
2,220.00
491.68
2,483.45
3,738.36
45.20
39,322.30
485.00
46,565.99
457.23
3,608.56
3,949.20
45.00
2,076.63
14,732.64
18,300.22
180.00
528.43
8,588.42
2,400.01
37,689.50
0.00
17,455.90
300.00
21,179.01
1,200.00
78,961.81
Page 1 of 2
119
Sources of Income
Contributed
Income
19%
Fundraising
Income
23%
Earned Income
4%
Grants
13%
Art Theater
Income
41%
Sources of Income
$60,000
$53,851.05
$50,000
$40,000
$30,000
$31,144.45
$24,700.18
$17,754.96
$20,000
$10,000
$5,468.00
$0
Contributed
Income
120
Earned Income
Grants
Art Theater
Income
Fundraising
Income
Grants (2013)
Grants
$12,000
$10,500.00
$10,000
$8,000
$6,000
$4,000
$3,694.00
$2,772.96
$2,000
$788.00
$0
NYCON
BCAC
Other Grants
Grants
Other Grants
21%
NYCON
16%
Federal Work
Study
4%
BCAC
59%
121
Donations
50%
Membership
Dues
50%
12,395.63
Membership Dues
Donations
$10,000
$5,000
$0
122
Theater Income
$50,000
$45,549.75
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$6,510.30
$1,228.00
$0
Special Screenings
Concession Sales
$300.00
$263.00
On Screen
Advertising
Special Events
Special Events
0.49%
Special Screenings
2.28%
Concession Sales
12.09%
Theater Income
123
Theater Expenses
$16,000
$15,199.18
$14,000
$12,000
$11,131.15
$10,000
$8,000
$6,000
$4,000
$2,000
$2,142.12
$1,496.29
$500.00
$156.70
$0
Concessions
Projectionist
Special
Screenings
Movie Rental
Theater Expenses
Repairs and
Maintenance
0.51%
Concessions
4.89%
Film
Shipping
6.99%
Projectionist
36.35%
Movie Rental
49.63%
124
Special Screenings
1.63%
Weeks
2
1
2
1
2
2
2
2
4
2
2
1
2
2
2
2
1
1
1
1
1
2
1
3
2
3
2
3
3
1
3
2
3
2
2
1
4
2
2
4
3
2
1
2
4
4
3
2
2
Sales
Tickets
$
527.00
63
$
88.00
12
$
729.00
92
$
77.00
10
$
760.00
97
$ 1,373.00
172
$
551.00
67
$
543.00
69
$ 3,652.00
452
$ 1,083.00
134
$
579.00
75
$
260.00
33
$ 1,102.00
134
$
368.00
42
$
673.00
84
$
749.00
91
$
571.00
74
$
509.00
63
$
484.00
60
$
207.00
26
$
150.00
18
$ 1,167.00
148
$
315.00
38
$ 1,994.00
240
$
893.00
106
$ 1,413.00
179
$
405.00
49
$ 1,564.00
200
$ 1,989.00
251
$
343.00
43
$ 2,388.00
364
$
698.00
86
$ 2,118.00
264
$
704.00
87
$
895.00
115
$
138.00
17
$ 1,151.00
143
$
336.00
42
$
680.00
84
$ 1,207.00
150
$
524.00
66
$
460.00
56
$
572.00
70
$
224.00
29
$ 2,574.00
332
$ 2,694.00
338
$ 1,413.00
175
$
473.00
61
$ 1,133.00
146
102 $ 45,500.00
5,747.00
125
126
Calculations:
Sales/Ticket
Customers/Year
Tickets/Movie/Week
Sales/Movie/Week
Annual Marginal Member Profit
Ticket Sale Profit
Concession Sale Profit
Customer Profit
$
$
$
$
$
8.00
5,747
50
401.50
74.94
5.12
0.87
5.99
Profit Calculations:
Annual Membership Profit
Annual Ticket Sale Profit
Annual Concession Profit
Annual Marginal Member Profit
$
$
$
$
39.00
30.72
5.20
74.94
$
$
$
5.12
0.87
5.99
$
$
7.20
0.87
8.07
Appendix:
Return on Investment
(ROI) Calculations
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156