Optimal performance - Essay Example

First content is about the current position of organization and the problem statement. In the next part the author will highlight different external and internal environment factors which erectly or indirectly can impact on the performance of organization. Here the author will compare the theory of different external and internal environment with the 02 specifically and main stream entertainment industry in general. The author then selected the objectives of study. Here he focused on the SMART objective formulation.

We Will Write A Custom Essay Sample On
ANY TOPIC SPECIFICALLY
FOR YOU

For Only $13.90/page


order now

After the objective, the author linked the objective with theory to give readers the reasons why the objective of study is chosen and how the online marketing can be effective for the growth and productivity of an organization. The most important part of this report is about the formation of online marketing immunization. Here author took three main areas where the organization can improve their marketing. First of all the e-mail messaging came under discussion, then author highlighted different merits and demerits of e-mail based marketing and then apply this on the 02.

The authors also have told the readers about the resources required for e-mail marketing and how the organization can make it more effective and useful. The next strategic focus was on the social media use for the marketing of organization. Here the consultants suggest three key tools which are most suitable for 02. The first was faceable, and then twitter and lastly the blobs based customer communication. Lastly author gave different mobile marketing tools like SMS, mobile internet, push notification and location based marketing. Both positives and negatives of these tools are given to bring realistic information about these tools.

At the end, the author has given some suggestions for the management of mobile communication. The last part of work is budget based profit and loss and also cash flow statements are given. These are produced on the basis of different assumptions. These are not he whole organization statements but Just for the marketing projects suggested by the reporters. The Company (02 Arena) The 02 Arena used to be known as millennium dome. It was established before new century and it was hub of celebrations of new century in London. However, it closed just after the opening due to some political issues.

After remaining closed for seven years, the building was taken over by the world most famous entertainment group called AGE. They opened the organization in 2007 after some motivation and alignment. They kept the outer tent as it was before but changed it from inside. They converted into entertainment venue containing arena in the middle and surrounded by restaurants, bars, clubs, shops, cinemas, exhibition center and lot more (The 02, 2013). This is one of the biggest Arenas in United Kingdom and has capacity of massive 20000 Just inside the main arena.

In addition to that they have small arena for the smaller concerts have the seating capacity of 3000 people. They were host of athletic games during London Olympic 2012. In addition, they hosted world most famous singers and actors and became world most wanted destination (The 02, 2013). Furthermore, the Arena can also be converted into the sport advance and hosting basketball, boxing and Tennis as well. The stage shows and theatres are another specialty of Arena. Current Position The revenue of organization is increasing continually after they started in July 2007. The trend shows that its revenue is growing.

After few years of operations, the organization has become entertainment market leader in United Kingdom. It is also well known building in the world. The experienced, skilled and effective management of organization has linked the organization with the world most live entertainment pub and big stars like to come to the 02 and perform their arts (The 02, 2013). The core team is managing the different external companies who are working for AGE. The reason behind hiring different organizations instead of managing themselves is to get help from the experience of organizations who are in the services market for the long time.

These organizations are doing well so far excluding some of the customer services issues (The 02, 2013). The organization is also expanding its functions as well. They are adding some different new and innovative ideas in their existing services. Previously they have made a path going on the 02 building. There is platform on the top where the visitors can take pictures and see the view around. Another new thing near 02 is Amaranths cable car which is on the Thames and connecting the Greenwich Peninsula to the Prince Regent.

Such innovations and development around the place are keeping the customers of organization interested with the place and ultimately gives the benefits to organization by increasing its sale by using their different services (The 02, 2013). However, this report will see some of the gaps in the marketing activities and will valuate if these gaps are filled who much they can increase this revenue. Problem identification The customers in the entertainment industry do not take the information themselves but most of the entertainment organizations are involved in marketing their services.

They motivate the customers by linking their emotions with their services. This situation is more applicable on the 02 and they can do better by doing appropriate online marketing. Their current way of marketing is more relevant on the promoters of their shows. However, if the organizations also increase their marketing activities, they can do much better. They are continuously linked with the customers unlike the promoters. They are in better position to give better information to their customers. In addition to that they can give information about their extra services they are providing in their arena.

This would be like up selling and cross selling of services. In addition, the customers are more familiar with the 02 not the promoters of the shows. They can cash up their trust straightaway doing direct marketing with the customers. The reporters believe that the organizations have capability and sources to improve their marketing through the information they are getting from the customers when they visit the organization during their visit to the 02 (The 02, Some of the problems exist in the market due to less effective use of the existing systems.

If these systems are streamlined and their performance is measured against the investment and expenses the organization is doing on these functions then marketing management can be improved further. There are some new and cheaper solutions of marketing which can be the further needs of the customers but organization is reluctant to use these without any big reason. If the organization wants to grow in the future then they must have to consider modern technological solutions. The customer information needs are changing and organization cannot live with the same systems forever.

The technology is changing the society quickly and only those organizations survive who have capacity and will to go with the technology so they can catch the changes in the society, which is ultimate objective of all sensible organizations. The 02 management though is flexible and happy to accept the changes but there is no platform which keeps the organization, align with the hangers in the business environment (The 02, 2013). Situation analysis of the market (STEEPLE Analysis) This analysis is about the external environment of organization.

The external environment of organization can contain in number of elements in their external environment. However these can be divided into general categories through the STEEPLE Analysts. Social Elements Asker and McLaughlin (2007) examined that the society is the element for which the organization is working. It is sum of people live in an environment and shares the values with each other. The social trends and society has greater impact on any organization. The organizations for the best marketing and communication with their customers must have to understand the society and social values.

The timely understanding of the values of society can help the organizations in achieving their broader goals and objectives. The organizations can adjust themselves with the changing social needs and can increase their sales. It is especially important for the marketers of organization to understand the society and then inform their organization about the expected changes in the society. The 02 Arena is considered as the social hub of London. They are hosting well recognized singers, actors and different sport people. The people come to see them from long distances across the country.

The marketers can tell their organization, what people they like most, where they want to see these people and when they see those people. The marketers then give this information to 02 marketing management who invite different celebrities to their organization. If they will find out the exact needs of the people then they would be in better place to bring the right events and concerts in their organization (The 02, 2013). Technological Elements Grippers and Bonito (2005) examined that the technology is overcoming on all the functions of an organization.

Technology in the manufacturing, management and finance is playing its role to make the organizations more competent. However, its role in the marketing management cannot be ignored. The customer care, customer services, customer management all can be made better through the use of information technology. The modern organizations are spending significant part of their budget in the access and then use of modern technology. McDonald (2007) suggested that for the optimal use of the theory the access of genealogy is not only important but the organizations also need to have skilled employees in the organizations.

More prudent organizations are first developing the skills in their organization to use the technology Just after getting it, more benefits can be obtained from the technology from very beginning so breakable point for the investment on the technology can be achieved. The major issues faced by the organization in using the modern technology is that there are more frequent changes in the technology happen and they have to adjust and re-adjust their technology with the changing market conditions. In 02 the use of technology in different functions of the organizations is quite common.

In the marketing, they are also using the technology for the collection and analysis of customer information. However, this all is not based on the more developed technology. There are number of processes and tasks which are still manual. This takes more time of the employees to feed the information and get the results. However, this all can be converted into more automatic system. This all will increase the efficiency of their employees and level of accuracy of marketing information will improve. The customer services and customer care would improve rather by adoption of better technology (The 02, 2013).

Economical Elements Wilson and Gilligan (2005) examined that the economic conditions are impacting on the buying power of the customers. If the target customers of organization have better income sources and more disposable income then they would freely spend the money on different needs. It is common that the people first prefer to spend on their basic needs and then gradually expend their spending on luxury products and services. The entertainment industry come in the luxury and people spend first on their basic needs and then think about the entertainment.

The organizations in the depressed economic conditions are mostly lowering down their prices so more customers can access their products and services. In case of 02 the organization is not setting the prices of basic concerts but the promoters decide what would be the ticket charges. However the 02 can be stakeholder here and can give their suggestions that to set the prices as the customers can afford. The customer segment a concert is attempting however is more closer to the promoters and promoters know better about the economic condition of people to whom they are targeting (The 02, 2013).

Environmental Elements According to Gilligan and Wilson (2009) the physical environment consideration also comes in the priority on the strategy of organization. The organizations who are more socially responsible are taking all the care to save the environment. They are realizing their customers that they are taking care about the society in general. This ultimately is increasing the goodwill of organization. The organizations that are producing the material and different sort of chemicals in the air are more dangerous for the environment.

The affect of services organizations on the environment is less s they are not physically involved in the delivery of any physical thing. However even the services organizations are keeping environment pure to realize the customers that they are socially responsible organizations. In case of 02 Arena they try to save the environment by encouraging their customers not to come on the cars but come on the tubes or through other sources of public transport. This all is done to realize the customers that they are taking environment as serious issue.

In addition to that they are spending larger amount of their budget on the cleaning and to avoid the health and safety risk (The 02, 2013). Political Elements According to Harrington and Attendances (2011) the political issues and political changes can have affect on the organizations business working at that environment. The political moves like changes in the tax rate, control over the inflation and other similar other factors also affect on the people in the society and affect of the people ultimately coming on the organizations working in that area. The government is biggest body which is caring about the life of people.

If they think organizations working in the country is not good for their people then also can ask the organization o shutdown. The 02 arena is Iconic entertainment venue in London. People from different parts of the world come to this prestigious place and conduct their concerts. The political system in United Kingdom is more stable and more established. There are not lot of changes in the political arena and business working in United Kingdom is safer. The government even wants to attract more investment in the society and hence they have positive attitude towards the businesses (The 02, 2013).

Legal Elements Chain, et al (2011) examined that the laws and regulations have direct or indirect affect on the businesses. The laws are made to protect the rights of different organizations and individuals. If an organization is consistently becoming the reason of danger of their visitors or rights of people are violated at the business place then these matters can go to court and courts can order anybody in the country to align their activities with the rights of people. The organizations and all the individuals bound to follow the laws. The people are also important for the organizations itself.

There are some problems going on which can become the reason of litigation then organizations take pro-active actions to sort these issues so further complications can be avoided. The health and safety issues in case of entertainment industry are most important. There are lot of people coming at the same place. These should be safer when they come and enjoy the concerts. The organization for this purpose can put more security and stewarding services to ensure all the operations are going on smoothly and there is no risk involved with the public health and safety.

To put extra caution the organization also makes the contingency plans in case of emergencies (Brenna, et al, 2008). Ethical Elements Ethics are the norms of society. The people like the things which are according to their ethics and replace the things which are against their beliefs. The ethical values come from the society. The organizations work in that society should respect and align their business operations according to the society. More they will align more they would be able to attract the customers. However the ethics also change with the changes in the society.

The organizations have to follow the continuous process of alignment with the needs of society. The organizations in the entertainment industry should see that there is ethical evolution of the entire concert happening. If there are some issues then these need to be removed. The media have power to find out the ethical issues with the organization and then publicist that issues to the public. The entertainment industry is more sensitive and if the ethical values of the people are not considered then customers quickly can leave the organization and Join another entertainment venue (Abram and Klein, 2003).

SOOT Analysis of 02 Arena The SOOT Analysis is taking into the account the strengths, weaknesses, opportunities and threats. The first two elements of the soot analysis are related tit the internal environment of organizations and last two are more general and about the external environment of organization (Carlson and Anderson, 2011). Doyle (2008) stated that the internal analysis is dealing with number of dependent variables which can be controlled with the right strategy, policy and planning. Keeping eyes on the internal forces I. E. Strengths and weaknesses, the organization can make realistic strategy.

They can find out their core competencies and also the key limitations of organization. Strengths of 02 The location in the entertainment and even all the businesses is most important onset. The organization that captures better places where the customers can access easily can get more customers to their organization. This is reason the organization find out the strategic places where customers can access them and visit them. The transportation facilities should be better for better access. It should be in the areas where people can find the organization. It should have more space to accumulate its customers.

In terms of place the 02 Arena is one of the best places in London. The place has historical importance and also it is near the financial hub of United Kingdom. The meridian line is passing Just over the 02 Arena. It is in the Greenwich and Greenwich Mean Time is known to everybody in the world. There are number of historical places near 02 like Old Navel College, Royal observatory and number of other famous places (The 02, 2013). The 02 is connected with different sources of transportation. The customers of organization can come through the cars; they also can come through the buses.

The most importantly the tube services are Just passing near the 02 which is most important source of combination in London. The 02 have its own river transport in he shape of Thames clipper. This is taking the customers to different famous and busy locations in London. The customers can get Thames clipper services after every 15 minutes. For the world wide visitors, the City Airport is only few miles away for 02. The other strengths of 02 are its effective management. The strong management of 02 has attracted all the big concerts to the 02 in six year time. This is big achievement.

They not only invited to the bigger celebrities to the organization but also given best customer services to their visitors. They are most busy arena in the oral in terms of number of concerts. In average they are doing 15 concerts in a month however these numbers can vary during different times of year (The 02, They are part of big entertainment group called AGE Group. This group own some of the best Arenas in the world and hence understand better that what the demand of industry is. They also have better contract with the people like singers, actors and sports bodies.

This is further helping them to attract best people for their customer’s entertainment. They have created a strong goodwill due to their services to the customers. Due to heir excellent services, they are able to position their services higher. They are charging higher prices from their customers and customers are paying the amount. The higher price setting is giving the organization higher profit margin. The organization has unique design building like half football. Some visitors are Just coming to the bind and taking its picture.

The building has capacity of 20000 people only inside the main arena. However there is lot of space outside as well where smaller arena called indigo, exhibition centre, clubs, bars, and shops are situated under the same roof. This is helping the organization to sell their services to the customers not only for the main reins I. E. Watching the concept but the customers can use their other services and in this way they can increase their revenue further Weaknesses of 02 Firstly the organization is working in very sensitive environment where customers visit directly linked with the economic condition.

If there will be economic depression then it will first impact on the 02 business as they are working in the industry which is not the priority of people. The other weaknesses of 02 are the prices they are charging. They are charging much higher prices than their competing organizations in the same areas like Humble arena. If the customers will perceive that the organization is not providing the same level of services or they have less money to spend on the entertainment they will go to the organization which is less in cost. For the parking only they are charging 28 pounds.

Similar other services of organizations are also very costly. The customers mostly complaints the organization is charging higher prices and it is impossible for the people with the normal income to come and enjoy their time in 02 There are number of organizations providing them different services. These organizations have their own control of common and the organizations have less control over these client organizations. They are outsourcing their parking services, security services and different other services from different organizations. However the organization is more sensitive to their customers.

If their customer is not getting right services due to these organizations, it would be loss for organization which they cannot control (The 02, 2013). They have not best marketing so far with their visitor point of view. The customers can get information from only few marketing sources. The information about the concepts does not go to the customers’ through the centralized marketing campaign but different stakeholders are doing marketing in their own ways. This is becoming the reasons of confusion in the customers and ultimately they lose their customers who could possibly come to organization (The 02, 2013).

Opportunities for 02 The organization can expand its business to other cities of United Kingdom like Manchester and Birmingham. They can find out their visitors in these areas as well. The organization has opportunity to make the hotels near to their 02 building. During the event days they can increase their hotel sales as well. They have places and resources and it is best way they can invest and get extra revenue. After running 02 the place greatly developed and there are number of buildings near 02 like college, TFH building and other private offices.

This is showing that this place is getting the attraction of people and in such situation the hotel business also have possibility of growth. They can add other relevant businesses in the 02 which also can attract the visitors to the 02. They couple of time came with the innovative ideas like Ice Rank outside the 02 and remain reasonably successful. If they come with better ideas then they can get more customer attraction and attention. They can invest in the social welfare projects to increase their goodwill in the society.

There are number of other bigger organizations using this technique for their marketing purposes. This is sort of long term investment. Furthermore, they would be more visible in the public in this way as the modern customers are giving more ratings to the organizations who are working for the social welfare (The 02, 2013). Threats for 02 Some other organizations with better entertainment ideas can come which can harm the benefits of organization. Though for this purpose more investment is needed but there can be some investors who are willing to pay to develop bigger venues then 02.

The Excel Centre is also bigger venue and very near to the 02. They have capacity to accommodate huge numbers of people. However they are famous for the exhibitions if they modify their exhibition centre into arena they can be competitors for 02 Arena. There can be some regularly changes and these can seriously impact on the business f 02. This is especially true for their club business. Each weekend the police people get lot of tough time. If they will carry on then courts can put some restriction on the pubs and clubs business. Furthermore, there can be some success for the customers as well.

The organization might have to pay huge compensation for these legal claims The key personnel of organization can leave the organization and ultimately can impact on the performance of organization. The experts in the entertainment industry are less and finding out for the key role would be hard for the organization Figure 1 – Impact of telecommunication with Marketing Methods Objectives To increase the revenue by 15% of 02 Arena through combination of online and offline marketing during Year 2013. All the organizations want to grow financially. The main indicator of the organization’s growth is its revenue.

If the revenue of an organization increases then it can be said that the organization is growing and catching more customers or able to sell their products and services at the higher profit margin. For the future forecasting the organizations set out their revenue target and measure their performance against hose objectives. The performance measurement system links the organization actual performance with the expected performance. If the organization keeps align their expected performance with their day to day performance then objectives would be able to achieve (Greenback, 2001).

Go and Hiccough (2010) further stated that the objective of organization needs to be more specific and more linked with the operations and functions of organization. Setting out too optimistic or pessimistic goals and objectives both can De-motivate the employees working to achieve those goals and objectives. Too much optimistic locals of organizations discourage the employees as employees believe that they are not able to achieve higher goals or objectives set by their organization. This denomination is main obstacle in the way of employee’s optimal performance.

On the other extreme when the organizations set out the lower goals are set them again the employee’s would not is able to work at the optimal level. The employees may be able to achieve more through their skills and energies but lower goals setting will keep them lower performing. This lower performance ultimately will impact on the benefits and especially financial objectives of organization. At the one hand the organization will spend on the employees’ lot of their resources on the employees in the shape of their salaries, benefits and others.

The use of other utilities at the work place and on the other hand the organization will lose the opportunity to get higher productivity and profitability for their organization (Harrington and Attendances, 2011). So more the objective of organization will be relevant more they will be able to achieve. There is narrow line between the optimistic objective and pessimistic objective. Organizations from their historical financial and other information coming