A&c Institutional Analysis
Autor: Fathy Aloul • February 24, 2018 • Case Study • 331 Words (2 Pages) • 502 Views
Institutional Analysis
The critical issue for A&C is the fact that their employees lack the necessary skills to outperform in this highly specific niche market. A&C have been partially suffering financially due to deficiency of sponsorships sold, and this is mainly because they lack the right employees who understands the importance of both aspects of the business. The business savvy salespeople have been unintentionally alienating the A&C arts clients. Employees salaries have increased by 6.23% between the years of 2007-2008,when in fact they were preforming poorly, and losing clients.
The decrease in total revenue has become a reason for A&C critical cash situation for their ongoing operation. There are many reasons that are undermining this issue. A&C is primarily known for their extensive contacts, impressive track records and expertise.Now the Internet made it easier for anyone to be able to find contacts of CEOs and presidents of various organizations. A&C role as the intermediary had declined in demand. Also, the government of Canada spending on art and culture had decreased over the past decade, there had been a cutback of approximate $45 million in 2008. In addition, in early December 2008, the Bank of Canada officially declared that the economy is entering into a recession. Many businesses suffered as GDP declined, which caused an increasing reluctance of corporate and art clients to pay significant amounts for sponsorship service. All these factors have forced A&C to work twice as hard for half as much revenues. There is also the potential of their competitors taking on the role of offering services in sponsorship and marketing consulting for Art and Culture. Which will make it even harder for A&C to survive in this market.
Decision Criteria
- Expand the business by adding a public relations division by the start of fiscal 2010.
- Expanding their sponsorship and Marketing to different fields …. or paying our employees a lower salary with commissions
Option Analysis
Option 1: Adding a public relations division
Option 2: Expanding into different fields
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