Course Code: MGN-101 Course Title: Management Principles and Organization Behavior

Course Instructor: Mrs. Priyanka Chhibber Section: Q1905

Academic Task No.: 01 Academic Task Title: The Phantasmagoria Factory

Date of Allotment: 05.08.2019 Date of submission: 19.08.2019

Student’s Roll no: A06,A07,A08,A10,A11 Student’s Reg. no:11910737,11910739,11910804,11911169

11911214
Evaluation Parameters: (Parameters on which student is to be evaluated- To be mentioned by students as
specified at the time of assigning the task by the instructor)

Learning Outcomes: (Student to write briefly about learnings obtained from the academic tasks)
a. We got learn about different Business model.
b. We got learn about different ways to earn revenue.
Declaration:
We declare that this Assignment is our group work. We have not copied it from any other student’s work or
from any other source except where due acknowledgement is made explicitly in the text, nor has any part
been written for me by any other person.

Student’s Signature:

Evaluator’scomments (For Instructor’s use only)

General Observations Suggestions for Improvement Best part of assignment

Evaluator’s Signature and Date:

Marks Obtained: Max. Marks:_________________

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Peer Rating: -
Roll no Registration no Marks
A06 11910737 10
A07 11910739 08
A08 11910804 09
A10 11911169 07
A11 11911214 10

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Introduction:
The decision makers in Phantasmagoria factory case are challenged by a number of
decision-making complexities in managing Cirque du Soleil. To start with, multiple
criteria present a crucial source of complexity as the decision makers must satisfy the
conflicting criteria that represent the interests of company’s directors, employees and
stakeholders. For instance, while the Chief Executive Officer of the entertainment
company wants to maintain creativity and originality, other stakeholders think that the
company is losing money by declining to repeat their previous shows. The other source of
complexity is the risk and uncertainty faced by the company as they plan to stage a show
in Los Angeles with the possibility of the show flopping and them being unable to fly
their cast and equipment back home.
Most of the decision making discussed in the case is almost entirely unprogrammed
because they are made on the basis of creative problem-solving due to their unfamiliar
and novel nature. The president of Cirque for shows and new ventures remarks that they
let the creative people make the important decisions regarding the running of the
company. This makes the key decision in this case – letting the musicians, acrobats,
designers and contortionists run the entertainment business through their undying
creativity and invention. However, leaving the making of important decisions to the
artists could have such unintended consequences as unreasonably high expenditure as a
result of the artists asking for more revenue than is needed for their personal benefit.

In order to foster a conducive climate for continuous creativity, Cirque du Soleil resorts to
a noble mission of providing new productions every time for their audience without
repeating previous shows with a view to maintaining and improving the quality of the
productions. Furthermore, the company encourages creativity by leaving the running of
the business to its artists so that they are free to bring in their new artistic ideas without
suppression from the leaders.

The profitable balance between artistic creativity and business discipline is created
through choice of quality over quick profits by shunning duplication of shows, while at
the same time charging their audiences enough to counterbalance the deficit that may
result from non-duplication of productions. In fact, the company always sells at least 97
per cent of available seats for not less than 150 dollars. Concisely, the secret behind the
success of Cirque du Soleil is letting the creative artistic minds run the business, investing
generously in staging shows and charging enough for the high-quality productions they
stage before their audience.

Since 1984 Guy Liberate has been building Cirque du Soleil, an artistic circus that has
amazed thousands of people in hundreds of towns. Cirque has worked hard on keeping
their strengths unbeatable and weaknesses miniscule. In the process of making their
weaknesses turn into strengths they have taken advantage of many opportunities available
to them. Cirque has done so well at expanding their horizon is it difficult to find
opportunities they have not taken advantage of so, where will they go from here? They do
have a few threats, yet even these do not seem to injury Cirque du Soleil.

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Organizational strengths
Strengths:

1. Unique: Cirque Du Soleil, French for Circus of the Sun, was founded in 1984 by
Guy Lailberte Baie Saint.Paul, Canada for the 450th anniversary of Canada's
discovery celebration in Quebec Noeia City. (Roux, 2009) Cirqyue du Soleil now
boasts 5 offices around the world, Amsterdam, Las Vegas, Singapore, and the
headquarters in Montreal. He show that provides the audience with a mix of arts
and street entertainments a visual feast of colors, costumes and performances.

2. TOM (Top Quality Management)/Multiculturalism: What started off as a small

group of 73 employees, including 20 street performers, has turned into a business
of over 3,000employees: and 1,000 performing artists. This 4,000 plus workforce
comes from over 40 different countries and speak 25 different languages 2009)
This diversity creates an advantage for Cirque:

The six arguments for how diversity Literalism are prevalent in this case: (Griffin,
2008) :Cost argument: Higher levels of prod and lower levels of turnover and
absenteeism 200: cities over the world have beer 90 million spectators take seen a
show sincere:1984 c. 19 different shows around prison to 8showsin:2000) 7 touring
showily, arena shows 10 residents show IV. I seasonal show Id. 7 retired shows
since 1984 resident theatres Average age of an employee has goneltemtisa

3. Resource acquisition argument: become known among women and minorities as

a good place to work With over a 32 person casting crew, Cirque has a database of
over 38,000 artists and receives at least 1,000 more potential performers each
month. This database came in handy when Humanity came to life in 2003. Cirque
needed an acrobatic dwarf and the database provide done that had auditioned years
earlier. Marketing argument: better able to understand different market segments
"while offering a outrange of products for retail sale under the Big Top, at resident
show boutiques and on the internet, Cirque du Solely seeking reliable partners to
design, develop, market and distribute unique products which wilbrng Artful
living" into the daily lives of Cirque du See aficionados" (Roux, 2009 Cirque du
Soleil also has an marketing campaign They keep their members in mind by
allowing them to customize what they receive in the emails. The diversity of the
members are also kept in mind. A couple examples are that New York City
members will not receive any information for New Jersey performances because
the rarely get "over the river" furthermore.

4. Problem-solving argument: Increased pool for information In the Cirque du

Soleil world con is avoided altogether. Negativity is banned. Pay is not talked
about and ethics of luring patron shows are not brought up. According to Jamie
Reilly, Quidam's tour services director, "There Cirque way of doing thing and then
there's the way everybody else does it.

5. Systems flexibility argument: overall organizational system becomes more

flexible as oppose to regular traveling circus; Cirque allows performers to bring
family on tour. They provide local masseuses, doctors, psychologists or dentists as
required. Employees reside in either five star hotels or rented apartments. Not only
are the children are provided a quality education but every employee goes through
a two-month training process.
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Weakness:
1. Production Costs: The production Ka alone cost S200 million dollars to produce
than the 36 Broadway productions in 2004. The "O" theater that was mentioned
earl astounding £100 million. The first resident Vegas show, "Mystery “was $45
million yet it paid or itself in less than four years. Cirque du Soleit's yearly revenue
million and it is estimated to be valued at fl bilion. The weakness comes in that the
revenue value would be more if the production bill was not so high, also with high
costs come ticket prices, which will keep people from purchasing them,

2. Cost of Tickets: Ticket prices for a Cirque du Soleil show cost between $45 and
$150. There are many people that are not willing to pay such a high price to
experience cirque du soleit. when comparing the price of a Ringling Bros. and
Barnum & Bailey ticket for their recent production: Zing Zang Zing at $15 to $68,
the difference is astounding: Though the show may be more extravagant, people
will look at spending $45 to be up close to the show as oppose to the nose bleed
Sections.

3. Lack of Weaknesses: Cirque du Soleil has worked hard at covering their

weaknesses. Despite the high production and ticket cost they continually grow
stronger. Every one of their shows has been profitable to date and it does not look
like that will change. Being so unique gloves them such strength that it is difficult
to find weaknesses. They have everything covered from a bank of talent to choose
from as needed to establishing such an amazing reputation that their productions
pay for themselves within years. This can be a case though that their lack of
weaknesses weakness. This can tend to influence people and if it is perceived that
there are not three weak spot then it can surely find them.

Opportunities:
Opportunities: This has been yet another difficult segment of the analysis to analyze.
The Analysis, Cirque du Soleil has their bases covered and takes advantage of every
opportunity becomes available. They have traveling, and stationary shows. They
performed on cruis and for television and movies. They have specialized their marketing
to a point that other companies follow their example. They make their own make up and
costumes. They have l plethora of merchandise available for their fans and are now
moving into the hospitality only thing they do not do is use animals in their shows, but
then they would be lowering themselves to the standards of an everyday circus.

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Threats:
1. Ringling Bros. and Barnum & Balley: This is a circus that is moving with the times.
They have now created a new show that, like Cirque du Soleil, contains a storyline Zing
Zang zoom centered on gravity, and M: Gravity wants to ruin the circus As mentioned
before the ticket priced for a Ringling show is much more cost effective and with animals
they appear much more to the younger children then the theatrics or Cirque, Rig in too,
has circuit of several shows traveling at one time. Though they may not be global they are
much more related to Americans then Cirque du Sole.

2. Scandal: Scandal is a common threat to the entertainment business. It is an ingredient

or guaranteed failure, sometimes it has the opposite effect and creates intrigue and
infamy, but it does cause many loyal and potential customers to turn away. Two scandals
involving Circue do Sofel he first happens in 2003 when Mathew Cusack aerial
gymnasts, was fired after testing:

HIV positive, this was preceded with protests and a payout of $600,000 he second and
most recent controversy is centralized around Lailberte and book chronicling his
supposed scandalous life that events funded by Circue du solei consisted of drugs
prostitutes and celebrities.

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Some problems due to that company got affected are given below:

• Cirque du solei’s states that “the brands draw a decidedly upscale college educated
audience, skewing towards woman.”

• If they were to broaden their target audience this could be away to possibly get a
few more tours going and even increase revenue, because more people will be
interested in seeing them.

• Loose budgets are used to improve creativity.

• Difficulty transporting key special effects and personnel.

Possible solution regarding the arises issues:

✓ They should hire more top-notch performers so they can travel to more places and
puts on more shows for the people.

✓ They should lower the levels of their shows special effects. People are still going to
love the show even if you don’t have the most expensive special effects.

✓ They have already made a name for themselves so people are still going to buy
tickets.

✓ If they were to spend less on equipment that will increase their revenue.

✓ By exercising tighter control over production, expenditure, greater profile margin

can be realized.

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Recommendation:
By analyzing the whole we came to know that everything was going on better way in
between this company was able to maintain its situation by generating more and more
revenue. it became one of the famous circus company on that era but due to some issues it
got compelled to stuck like shortage of budget, not able to bring out the more and more
audience, focusing only on college audiences .Here if we see those things in sense of
business perspective then it was a big problem,for a better it should be move with
according to situation where we have already seen that once it had started its production
in much way along with it had increased the price of ticket with the hike.

In this context, I would like to say that they would have to manage their fund which they
can utilize in further work .In this types of business we can’t survive in easy way if we
are leaving side by side to other group of people where they were majorly focusing on
college students, it seems to be discriminate between two group. Another thing is that
they were spending more on their equipments rather than savings due to that they had
faced problem of funds. We know that in the world various types of cast are living some
of them are very rich some of are poor so according to that we have to set the ticket price
due to that everyone can get a chance to watch it.

Overall, for the smooth business we have to see every aspect like strength of the
organization, weakness, opportunity as well as threat which will affect directly or
indirectly to our organization. If we will move on this way it will never going to get
hamper by any side.

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Conclusion:
Every organization is having its own rules and regulation on the basis of which its
function is working like the same way Phantasmagoria factory was working. It was a very
famous entertainment factory in case of enjoyment.

As we have already seen that it had revenue of $25 million in one production which
shows that how is well performed company. The profitable balance between artistic
creativity and business discipline is created through choice of quality over quick profits
by shunning duplication of shows, while at the same time charging their audiences
enough to counterbalance the deficit that may result from non-duplication of productions

In between it was trying to exhibits its show on the road but it did not get permission
from government but it had tried it best from this view we can say that it’s a hard labor
company which is trying to reach and want to get famous throughout the world. Cirque
has worked hard on keeping their strengths unbeatable and weaknesses miniscule. In the
process of making their weaknesses turn into strengths they have taken advantage of
many opportunities available to them. Cirque has done so well at expanding their horizon
is it difficult to find opportunities they have not taken advantage of so, where will they go
from here, They do have a few threats, yet even these do not seem to injury.

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References:
1. https://studymoose.com
2. http://google.com
3. Robert kreitner, Book Management theory and application

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