Submitted by: Submitted by mjuhari
Views: 12
Words: 517
Pages: 3
Category: Business and Industry
Date Submitted: 03/06/2016 01:11 AM
1. Using Exhibit 3-2, what external components might be most important for managers in movie theater chains to know about? Why?
i. Technology – people as the years go by are spending more and more time using computers, mobile, devices, tablets, phone, etc to watch movies which means less ticket sales for the theater and movies can be downloaded easily and will result in loss of sale.. They no longer play with the dolls and fire trucks in the yard (well not as much).
ii. Political – some movies are not appropriate to be played in some countries and banned due to political condition.
iii. Social-culture – Although many have transitioned to the ‘technological world’ some folks still love the old fashion way of entertainment and may not want to move away from that. If the values, attitudes, lifestyle, tradition etc do not change this is information that managers of a movie theater need to be abreast of as this will affect the purchasing power
iv. Economy – The most important component would be the economic components because it is wise to know the amount of “extra” income people may have as this is the money they will use to spend on entertainment and if their income is low then extra purchases like entertainment will be affected in bad way
v. Demographic – important as they should know the ages and types (groups of people who go out to the movies. It helps them to decide which movies to show etc
2. According to the case, what external trends do managers at the movie theater chains have to deal with?
The trends in this case revolved around changing technology downloading and watching movies at home. The ability to download movies coupled with the decreasing prices of home entertainment system take advantage of high definition screens and digital sound. These trends are not likely to reserve.
3. How do you think these trends might constrain decisions made by managers at the movie theater chains?
The movie theater managers could...