FINAL ONLINE SUMMATIVE ASSESSMENT

Postgraduate Diploma in Business Management

PROGRAMME Postgraduate Diploma in Risk Management
Postgraduate Diploma in Information and Technology Management

MODULE Strategic Management

INTAKE January 2020

DATE 27 November 2020

TOTAL MARKS 100

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SECTION A [40 MARKS]
Read the case study below and answer ALL the questions that follow.

Innovation at Cirque Du Soleil

On June 02, 2007, Guy Laliberte (Laliberte), CEO and founder of Canada-based circus company Cirque du
Soleil (Cirque) received 2007 'Ernst and Young Entrepreneur of the Year award. The award was given to
entrepreneurs, who with their vision, achievement and leadership, provided inspiration to the corporate
world. Commending Laliberte for the work he had done at Cirque, Joseph Schoendorf, and Chairman of the
judging panel, said, "Guy has changed the face of entertainment and had a huge global impact. The shows
that Cirque du Soleil creates and performs have brought joy to millions. All of this year's entrepreneurs
were exceptional, but Guy's commitment to his artistic vision and the passion he has for his work were what
swayed the judges in his favor."
Cirque was founded in 1983. Since its first performance, the company strove to be different from other
circuses, by constantly coming up with innovations. All of this year's entrepreneurs were exceptional, but
Guy's commitment to his artistic vision and the passion he has for his work were what swayed the judges in
his favor." Cirque was founded in 1983. Since its first performance, the company strove to be different from
other circuses, by constantly coming up with innovations.
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 show presented by Cirque, was based on
a central theme with a supporting storyline, amalgamating different circus styles from across the world. The
shows were presented by more than 800 performers, who were a part of Cirque's 3,000 strong work force.
Starting from the recruitment of employees till the production of the shows, it had introduced many
innovative processes. Cirque was cited as one of the companies to have implemented an innovative
strategy. The company was successful in creating a new form of art by combining circus art, theater and
ballet. Subsequently, Cirque also introduced its line of apparel and accessories. About 85 percent of
Cirque's revenues were from the sale of show tickets and the rest from the sale of audios, videos, books,
and licensing agreements for products like T-shirts, jewelry, hats, shoes, masks etc. Apart from touring and
permanent shows in places like Las Vegas, Orlando, and Walt Disney World, Cirque had also produced a
number of movies and television shows. Some of the shows like 'Cirque du Soleil Fire Within', Coreto and
Dralion had won the popular Emmy awards in various categories by creating demand, by developing a new
market space, where competition was non-existent. 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.
In 1980 Gilles Ste-Croix (Ste-Croix), with skills in stilt-walking, along with some performers founded Les
Echassiers de Baie-Saint-Paul (Les Echassiers), and began street performances. Soon Laliberte and
Daniel Gauthier (Gauthier) joined the group. In the same year, Gauthier and Ste-Croix planned to turn Le
Balcon Vert, a performing artists' youth hostel that they managed into an organized performing troupe. To
raise funds for this purpose, Ste-Croix stilt-walked between Baie-Saint-Paul and Quebec City. This
attracted the attention of the Quebec Government and it provided the trio with the necessary funds.

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The Innovative Strategies:
When Cirque began its operations, it functioned with around 73 employees. By 2007, there were 3,000
people working in various areas like art direction, production, stage settings, lighting and special effects, IT,
marketing and public relations, and as trainers, physiotherapists, fitness specialists, musicians, cooks and
the kitchen staff, technicians, and performers. When Cirque began its operations, it functioned with around
73 employees. By 2007, there were 3,000 people working in various areas like art direction, production,
stage settings, lighting and special effects, IT, marketing and public relations, and as trainers,
physiotherapists, fitness specialists, musicians, cooks and the kitchen staff, technicians, and performers.

Sets and Costume Design:

Cirque invested an enormous amount of time and money in preparing unique sets and costumes.
Sometimes, the amount spent on creating a theater for a Cirque production was exorbitantly high. For
instance, Cirque spent US$ 165 million to build a theater for KA at the MGM Grand in Las Vegas. The
theater's stage had two huge moving platforms which were controlled by a crane which weighed 260,000
pounds and used 4,000 gallons of hydraulic fluid.

Target Audience and Value Innovation

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.
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.

Marketing
Typically, when Cirque planned any shows in new markets, a five- to six-member team would reach the
new market about eighteen months before the event.

The Road Ahead

In April 2001, Laliberte announced that he wanted to make Cirque, the entertainment capital of the world.
Cirque's future plans included building entertainment complexes in major cities including London, New
York, Singapore, Hong Kong, Tokyo and Sydney, in the next 15 years.
(Source:https://www.icmrindia.org/casestudies/catalogue/Business%20Strategy/Innovation%20at%20
Cirque %20Du%20Soleil.htm Date accessed 28th March 2020)

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QUESTION 1 (20 Marks)

With reference to Cirque du Soleil, critically examine the concept of focused differentiation.

QUESTION 2 (20 Marks)

Assuming Cirque du Soleil operates in an industry which is maturing fast, critically analyze the strategies to
be followed in such an industry.

SECTION B [60 MARKS]

Answer ANY THREE (3) questions in this section.

QUESTION 3 (20 Marks)

Critically examine the factors that support Strategy Implementation in organizations using an example of
your own.

QUESTION 4 (20 Marks)

Examine the different types of strategic control adopted by organizations using appropriate example of
a company in the entertainment industry.

QUESTION 5 (20 Marks)

Drawing from an example of your own critically analyze the responses to Organizational Risk in modern
corporations.

QUESTION 6 (20 Marks)

Using the case of Cirque de Soleil critically examine the strategy evaluation process used in modern
corporations

END OF PAPER

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