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VISION:
A strategic vision describes the route a company intends to take in developing and strengthening its business. It lays out the companys strategic course in preparing for the future. A strategic vision portrays a companys future business scope (where we are going or headed) In this case founders Philosophy was Business can be as much fun as creating a show So Firm creating more fun will go to make more money.
Strategic intent: The Cirque Du Soleil had created a new category of live entertainment with its unique hybrid of music, dance and acrobatics. Future growth headed both artistic and commercial way since people were looking for artistic entertainment. Since Cirque experience reached its saturation point after certain time, the firm introduced shows with a new vision of urbanity, overflowing with optimism and happiness.
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Mission: Cirque Du Soleils mission was to enable clients to maximize their entertainment lively by developing and innovating circus show. In a nutshell we aim to "arrange the circus in a modern way.
They did this by providing their audience with excellence in the own supply mechanism, continuous HR training, performers skillness, varieties of shows and new amazing ideas. The provision of sophisticated circus show was the primary concern of Cirque Du Soleil and they feel this to be of paramount importance to the long-term mission of the company.
Core Values: We identify in the case of Cirque Du Soleil to define 7 values about the firms future strategic course; Confidence: The firms founder took 100% risk as a challenge with no advance money initially for having high confidence in his performance. Quality: Show was so attractive for its quality that it became ten year rule show and later on spending money more to keep the show of the highest quality.
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People treated as partner: it decentralized HR operation from country to country and introduced people with 25 different languages. However, the idea seemed simple to find partners to put up with the money and expertise.
GOAL:
A goal or objective is a desired result a person or a system envisions plans and commits to achievea personal or organizational desired end-point in some sort of assumed development. Many people endeavor to reach goals within a finite time by setting deadlines.
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Approach/avoidance goals Not all goals are directed towards approaching a desirable outcome (e.g., demonstrating competence). Goals can also be directed towards avoiding an undesirable outcome (e.g., avoiding the demonstration of incompetence to others). It is thought that approach goals contribute positively to intrinsic motivation whereas avoidance goals do not.
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Many people are guilty of trying to tackle their goals using a series of trial and error approaches. They randomly throw their energy out with all their might on the few steps they know, thinking that this will get them to their goal. They deal with their goals in a haphazard approach, then hope that everything will turn for the best in the end. While it may work in the short-run and on smaller goals, it does not work with big, long-term goals. There are 7-part series on what it takes to successfully achieve goals.
Part 1: Goal Achievement: Introduction Part 2: ESPER Part 3: Establish Part 4: Strategy Part 5: Planning Part 6: Execution Part 7: Review Here Given case study called - CIRQUE DU SOLEIL: CAN IT BURN BRIGHTER.
Chairman or Owner Mr. Laliberte was a great creative leader in terms of artistically & commercially. He had great potential for creation in his mind from the childhood. Thats why at the age of fourteen he ran away from home and started busking the city street.
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In year 1987 CIRQUE DU SOLEIL was about to broke but Mr. Laliberte followed the Business strategy and spent his last pennies to play the Los Angles Art Festival to success & Sustained the CIRQUE DU SOLEIL. He established & proved the plan he made, it was completely correct path. It was a great achievement or goal For Mr. Laliberte and his CIRQUE DU SOLEIL that since CIRQUE DU SOLEIL founding, over 37 million people have seen a cirque show in over 90 cities around the world. Today over 7 million people per year see one of cirques nine productions. The goal was achieved by Mr. Laliberte although the cirque has been an unqualified financial success. At the same time it has garnered critical acclaim, notably prestigious emmy, drama desk, rose dor de montreux, and National Arts Centre Awards. Mr. Laliberte wanted to present the different flavor in front of the world viewers thats why the CIRQUE DU SOLEIL blends opera, dance, theatre and circus with live Music, world class choreography and state of the art pyrotechnics. Mr. Laliberte always wanted to achieve the goal Globaly thats why the employee-first attitude in HR does not stop at the contortionists or the acrobat, rather, it spreads through the entire company so much so that in 2002 Cirque won the WORKFORCE Magazine Optimas Award in the Global outlook category, which recognize an HR department that has created a program or strategy to help a company succeed in the world marketplace.
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Mr. Laliberte was slowly realizing & reviewing CIRQUE DU SOLEILs position in the market. To sustain in the market in December 2000, CIRQUE DU SOLEIL announced its plan establish Mega entertainment complexes around the globe. These complexes would consist of a combination of hotels, restaurants, retail stores, museums, spas,and the like, all sharing the common theme of the alternate Cirque reality. Mr. Laliberte Explained the idea :
RIGHT NOW YOU GO TO A CIRQUE DU SOLEIL SHOW, YOU ARE INSPIRED ABOUT THE EXPERIENCE, THEN YOU WALK AWAY FROM THE BIG TOP AND YOU ARE BACK TO REALITY. OUR DREAM IS TO HAVE SOMEONE WALK FROM THE SHOW
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CIRQUE DU SOLEILs great achievement and ultimate goal was to turn the venture into a continuing series, watching TV these days is a little depressing, People are looking for artistic entertainment that inspires them and makes them think about something other than war and sickness and also Mr. Laliberte made the Cirque is so international is that they have no language they are universal. On top of this Mr. Laliberte knew exactly the right path to achieve the GOAL, same this he Executed and his CIRQUE DU SOLEIL became one of the best Circus in the world. The above GOALS were great achievement for CIRQUE DU SOLEIL as well as for Mr. Laliberte.
INTERNAL ANALYSIS
Analysis of Cirque du Soleil: Compromise between art and profit has been managed very well by Cirque du Soleil. Artistic creativity and commercial success have proven that business can be as much fun as creating a show. After 20 years of continuous effort organization has reached at a crossroad as recognition of success. Internal analysis could be as under: Internal Strength: Could be explained as follows:
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EXTERNAL ANALYSIS
Strategic analysis is a theoretically informed understanding of the environment in which an organisation is operating, together with an understanding of the organisations interaction with its environment in order to improve organisational efficiency and effectiveness by increasing the organisations capacity to deploy and redeploy its resources intelligently. (Professor Les Worrall, Wolverhampton Business School) External environment refers to the major force and factor outside the organization, within as well as outside of the industry that affect the overall performance of the organization. External environment can significantly influence the effectiveness of the organization to large extend. A range of analytical methods can be used to analysis the external environment. There are mostly: SWOT analysis PEST analysis Porters five forces analysis Four corners analysis Value chain analysis Early warning scans war gaming.
The aim of the analytical tool is to sharpen the focus of the analysis and to ensure a methodical, balanced approach. All analytical tools rely on historical, backward looking data to extrapolate future assumptions. It is important to exercise caution when interpreting strategic analysis results. Otherwise the analysis may be unduly influenced by preconceptions or pressures within the organization which seek to validate a particular strategic assumption.
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Cirque du Soleil started as a street live entertainment and over twenty years transforms itself is a very popular circus around the globe that blends opera, dance, theater and fireworks. With still lot of demand of shows, high demand for jobs and bagging prestigious awards means it has strong product differentiation and brand positioning. It has little threat in buyer, supplier or competitive rivalry perspective it manages its own supply. It operates in developed market where buyers are ready to pay a premium price for quality and innovative entertainment. However it has local competitor as well as local competitor who have international exposure as well as foreign competitors. Even though these competitors are not very strong, they do create problem to retain top performers and erode earnings. To offset the threat of substitution and threat of new entry, diversity and further innovation are imperative and thus company needs huge financing which, without collaboration or going public is impracticable for Cirque Du Soleil.
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STRATEGY
Strategy can be defined as a plan, method or series of actions designed to achieve a specific goal or effect. Strategy is the means by which individuals or organizations achieve their objectives. means refer to plans, policies, and principles that guide and unify a number of specific actions. As the business environment has become more unstable and unpredictable, so strategy has become less concerned with detailed plans and more about mission, vision, principles, guidelines and targets. If we consider the case of Cirque Du Soleil or examples of any other business organization, we can find that none wrote detailed strategic plans, but all of them possesses clear ideas of what they wanted to achieve and how they would achieve it. Certainly in a turbulent environment, strategy must embrace flexibility and responsiveness. When the firm is buffeted by unforeseen threats and where new opportunities are constantly appearing, then strategy becomes a vital tool to navigate the firm thru stormy seas. Strategy is about doing things differently; hence, the essence of strategy is making choices. Strategic choices can be distinguished by two basic questions: a. Where to compete?? b. How to compete??
The basic question facing the firm is: How do we make money? The answer to this question
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a. Where to compete (i.e. In which industries and markets should we be in? c. How should we compete?
d. The critical requirement for a companys success is its ability to establish competitive
advantage. Most companies find it helpful to articulate their strategies in one form to another. In the case of the start-up enterprise, strategy is written down in the business plan that was prepared to raise Finance. And the founder of Cirque Du Soleil Mr Lalibertes first strategy was to get Finance. Finally, purpose of strategy is to achieve certain goals. The case discusses various innovations at Cirque du Soleil, the Canada based circus Entertainment Company. Since its first performance in 1983, the company strove to be different from other circuses by constantly coming up with innovations . 1. Every show presented by Cirque, was based on a central theme with a supporting storyline, amalgamating different circus styles from across the world. 2. Cirque avoided animals and star performers, which were commonly seen in traditional circus. 3. The performances at Cirque were very innovative and quite different from what people normally saw. It added a certain amount of sophistication to traditional circus and thus carved out a niche market for itself. Till August 2007, Cirque's estimated revenues for the year were more than US$ 600 million with over a dozen shows running across the world at any point of time. Every new production was entirely different from the previous ones. To produce such vast varieties of acts, Cirque had to be extremely creative and keep innovating. It carefully devised its marketing strategies. Instead of being considered as just another circus company in a declining industry, Cirque redefined its market by fusing art and entertainment. The company's target market was mainly educated and sophisticated, opera going adults and families as opposed to the traditional circuses which were mainly for children.
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1. It should emphasis on its citizen of the world appeal with its brand valueEVEN A
CLOWN CAN DO IT: CIRQUE DE SOLEIL RECREATES LIVE ENTERTAINMENT
2. Facing human resource challenges Mr. Laliberte replied that with 6 billion people in the
world, the planet is full of Jewels & raw diamonds. And need to start Circus School. Its competitor The Cirque Eos has started the first circus school The Ecole de Cirque du Quebec and took the best pupils out on the road instead of shipping them off to the Cirque du Soleil.
performance are an indication of the type of individuals the organization seeksor huntsto join the group. That is the heart of Cirque du Soleil. The first members of Cirque du Soleil were open-minded risk takers. They were free spirits who were mostly self-taught and who lived a nomadic lifestyle, and they were considered marginal to society. Yet they exhibited a tough business sense. Successive generations of artists, artisans, technicians and employees have reinforced these qualities.
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3b. Nurturing environment. A major responsibility in entertainment and business is to create and build a nurturing environment that is conducive to productivity, creativity and personal growth. While Cirque du Soleil wants collaborative creativity, all team members need to be aware that the ultimate goal is the product. Its all about the Show. 3c. Constraints, challenges, differences and consumer expectations. It is common knowledge among investors that Cirque du Soleil designers do not like budget, deadlines or limited resources. However, even the creative personnel admit that the constraints force them to become more resourceful and more creative. The constraints require being able to produce solutions that might not have been thought of before, and they are motivators for getting the job done.
3d. Risk taking; do you ever get burned? Creativity isfirst and foremostabout the courage to take risks, to try new things and to share those experiences with others. In taking risks, mistakes can occasionally be made. But employees can learn from mistakes, and that can create greater credibility over the long term. The biggest risk an organization can take is to adopt complacency and not take risks, which can turn out to be the least productive strategy. 3e. Keep it fresh. By developing new creative products, Cirque du Soleil can keep the product fresh. That helps ensure that the product maintains durability and longevity. The organizations managers are constantly encouraging and receiving employee feedback and ideas in ways that recognize that there might be many different approaches to reach the same result. It encourages the notion of shared creative ownership. In addition, artists, leaders or managers have to review and scrutinize the product continually from the perspective of the audience. Therefore, Cirque du Soleils leaders sit in the audience, night after night, watching the show and listening to what the audience has to say about the performance. 4. New Market Space Companies must stop competing with each other. The only way to beat the competition is to stop trying to beat the competition. To understand what Cirque du Soleil has achieved, imagine a market universe
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Finally, Cirque du Soleil needs to recheck the Two basic questions that are identified as defining a firms basic strategic position: a. where is the firm competing ? b. How is it competing?
ACTIVITIES:
Emphasizing Citizen of the world Cirque Du Soleil can reinvent its brand by making its brand more global as the world is becoming a global village. At present scenario we can find that most of the Cirque DU Soleil revenues come from North America operation, although it has global operation in some extent. Besides, most of the competitors are also from North America as well. In addition to that post 9/11 scenario it is still to guesstimate how long more it will take North American Economy to come out of the recession. To overcome this scenario Cirque can give more emphasis on the rising global economies like South America, Asia, China, South and South East Asia. By doing internal and external analysis on Cirque Du Soleils strategy, we are seeing that Treasure hunting and creative transformation, facing human resource challenges, exploring New Market Space.
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To overcome Financial constraints, challenges, differences it is high time for Cirque Du Soleil whether they will remain as a Private Limited company or will go to IPO to form a Public Limited Company. This decision would help them in two different ways, their financing problem would come down drastically as well as they would get more passion to do much better by anticipating shareholders demand for growth which at present Mr. Guy Lalibete is considering as a negative approach but it might come up with as whole different depiction. Another point to support this change is that Cirque Du Soleil has already thinking about diversification from Artistic to Commercial approach cause even ignoring the new competition, it is not clear how much longer the Cirque can keep feeling 1000 seat theatres at such high admission price with variations on what is essentially the same product, perhaps it is time to re-evaluate their boundaries within which they are operating.
Keep it fresh: trends changes but style remains forever, bearing this slogan Cirque DU Soleil can reinvent their entertainment products by keeping the Cirque experience as different as earlier. Cirque can design newer low budget touring shows in a bit smaller format but emphasizing the local culture and life style by involving tenants form local industry which can be letter on franchised to some local partners as well. After certain these shows can be redesign or further new shows can be introduced to keep the Cirque experience fresh. This way Cirque may keep their shows fresh and revenue growth would also be sustainable. Cirque Du Soleil is an experience rather that a product, this is their motto till now, keeping that in mind the Cirque has no other option to make the Cirque Du Soleil experience available to more people by going in larger global context, this would help them to generate more revenue with sustainable growth.
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RECOMMENDATIONS:
Although Cirque Du Soleil has mega-complexes, yet questions remained about how well the cirque magic would translate to the small screen. Had the cirque experience reached its saturation point? Would it be able to still be the same Cirque Du Soleil? Could the circus of the sun burn any brighter or burn out? We have the recommendations below to answer all the questions:1. To sustain its ambitious expansion schedule and reputation for continuing to outdo itself, Cirque would have to embrace and cultivate the qualities leaders embody. Cirque would also need to learn how to quickly replicate its high-performing teams. 2. They need to comprise a number of teams who will have learned how to use insights to bring a Whole Brain approach to their work at Cirque. Then Cirque du Soleils teams will benefit from a unique understanding of the thinking style that each team member brings to the fore. Also we will have different thinking preferences in production vs creative vs corporate. The Whole Brain concept is very powerful, and the trends are very important to acknowledge and accept. As a result, - Cirque will have achieved a better understanding of interdependencies - A greater openness about different thinking - Styles in the organization increased team effectiveness. 3. We should introduce a unique strength of coaching with high caliber athletes and artists, and we need our leaders to become good coaches to employees for the best and creative performance 4. We will find better results to make team profiles which will help always to explain why the team is going through what it is.
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9. Creativity is also at the heart of the organizations overall business plan. There is no room for compromise at Cirque du Soleil when it comes to artistic expression or to strong business development. Maintaining the delicate balance between these principles is a continuous process.
CONCLUSION:
The First Definition of StrategyThe determination of the basic long-term goals and objectives of an enterprise and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.(Alfred Chandler, Strategy and Structure) Cirque Du Soleil is a company that has built its success on its ability to be creative and innovative. It has successfully developed a new market and continued to expand on that market. This makes Cirque Du Soleil an example of a company that has creativity and innovation at its base Reinvention is a constant theme. Having redefined the traditional big top circus in the 1980s, Mr. Lalibert keeps audiences loyal and attracts new ones by always
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Commenting on the success that Cirque has achieved, Linda Tischler, Senior Writer and
Former Managing Editor (of the 'New Media' section), Fast Company, wrote, "At a time when audiences for all performing arts are declining, Cirque du Soleil has taken a particularly moribund segment of the market -the circus -and created an entertainment juggernaut, with a burgeoning record label, a retail operation and a deal with Carnival Cruise Lines."6 3
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costumes. Sometimes, the amount spent on creating a theater for a Cirque production was exorbitantly
5 6 Cirque differentiated itself from the traditional circus in all business aspects. The company created a niche market of live entertainment within the entertainment industry. Rather than providing a product for which demand already existed, it used its innovativeness and creativity to create a demand for live entertainment... Key Concepts and Techniques: Hierarchy of Growth Related Diversification Portfolio Models Synergy Core Competence Industry Structure (Five Forces) Key Success Factors Value Chain Profit Pools Value Net Directions in Which to Diversify Technology Geography Customer Cirque Du Soleil has also expanded into other areas. This has included releasing two films and a television special. This has also included ventures in publishing and merchandising. Cirque Du Soleil
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Cirque was cited as one of the companies to have implemented 'Blue Ocean Strategy' by creating demand, by developing a new market space, where competition was non-existent (Refer Exhibit I for information on Blue Ocean Strategy).
Here is SWOT analysis for Cirque du Soleil.: There truly is no other show like it on Earth. It is not like a traditional circus. It does not contain a center ring or have a parade of animals performing tricks despite the high production and ticket cost they continually grow stronger. Every one of their shows
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Opportunities Threats, Strengths, Weaknesses, Opportunities, Threats: Cirque Du Soleil took the concept of a circus and completely re-invented and innovated it in a way that has shocked and amazed the world leading to performances on all parts of the globe.
REFERENCE
1. Text Books 2. Web Site 3. Group Discussion 4. All Study Materials
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