1 . LAUNCH Six red flags is the world’s largest enjoyment park based on the having of real estate and 5th largest entertainment place based upon its visitor attendance Last season, six red flags served twenty three.
9 , 000, 000 guests; is it doesn’t largest simply by any Entertainment corporation. Company carries 14 properties in United States which includes water recreational areas, thrill recreational areas, games and family entertainment Centres. (Themeparkpost. com, August 30, 2012). Angus Wynne founded half a dozen flags Entertainment Corporation back in 1961.
It had been just started because Theme park in the beginning, but now it offers amusement parks, game titles, restaurants, Zoological parks, kids areas, shows and reveals. It is a community listed company and outlined on Newyork Stock Exchange (NYSE). This form provides its company office in Newyork and headquartered by Texas. It is active in three countries such as Us, Canada, and Mexico with 39 working parks.
Adam Reid-Anderson is a current leader and Al Weber is usually current CEO of the business. (USA Travel guide, 2012) Company’s net gain is 13. 14 mil (2011) and Revenue appears to 1 . 013 billion (2011). It provides about 1900 full-time employees and twenty-seven, 000 periodic employees.
It carries a debts of a hundred and twenty million, due to the lack of cash-flow. (Six flags, 2012). OBJECTIVE STATEMENT “To deliver relatives fun and make fond thoughts for all the guests”. This reveals six flags acts as a place for family showmaster and fulfil the desires of the people. VISION STATEMENT “To make the customers charming by providing world class products and services which in turn meets the expectation with the people” This show the 6 flags happen to be establishing many and providers with global standards of safety to meet customer requires.
VALUES AND OBJECTIVES: The goals and values from the six flags are: * To be environmental friendly to lessen waste and emissions. * To put into practice zero waste initiatives and minimize item footprints. 5. To increase and improve recycling where possible process. These kinds of values behave as a heart of half a dozen flags.
They are really not ready to negotiate or perhaps compromise on any of the factors to improve the business to the next level (Six flags, 2012). 2 . EVALUATION A. EXTERIOR ANALYSIS This kind of analyse regarding the outside environmental factors including demographics, social/cultural, customers, suppliers and rivals of 6 Flags. i) PEST Research. * Politics United States elections are likely to be kept on Nov 2012. Even power adjustments, political stableness will be usually maintained right now there.
Also the people encourage tourism sector as it is among the largest sector of income generation. During his rule, Obama stopped at Disney world and conducted selection campaigns near Magic empire to support their particular views (Sara K. Clarke, Jan 19, 2012). This kind of shows have the positive landscapes towards travel sector.
Therefore we will not experience any challenges at present, however it may happen later on of personal changeover. 5. Socio-Economic Factor. There are two important factors which may affect the socio-economic culture with the Americans. They can be: 1) Aging of culture – Need for Singles and Empty nesters Like remaining portion of the world, ALL OF US are an ageing society.
In Between 2000-2050, age group of 65+ is anticipated to increase by 135% in 2050. (Joshua M Wiener, Oxford journal). Hence there will be increase of only 32% in age bracket of 16-64. This show there will be not really sufficient sum of youthful generation people to enjoy the amusement parks. This is a type of far exterior factors which may affect six flags (Joshua M Wiener, Oxford journal).
2) Elevating income of middle category people Even during the global economic crisis in 2008-2009, it affected those with the excessive levels of salary alone. However the middle course people well balanced at that time and contributed pertaining to the financial development. This chart displays the middle school people financial growth throughout the world. So this displays the level of GROSS DOMESTIC PRODUCT of nation can be paid with the salary of central class persons rather than high quality people. (Mario Pezzini, OECD, 2012) ii) Porter five forces 5. Rivalry In United States there are 5 major theme leisure areas such as Walt Disney, Planks fair, Common Studios, Half a dozen Flags and Merlin Entertainment.
Every company provides several offers to attract customers toward them. For example , in Orlando, Universal studios and Disney gives seat tickets to clients with difference in $4or $5 us dollars during summertime. In six flags, they may have joint venture with coke and give discounts to persons who also bring up their very own coke container to the management office. Although there is fewer probability in return on investment and profits. Hence six red flags understand the industry situation and made improvements in their operational excellence. (Doug kerr, 2011) 5. Bar-gaining power of customers.
Not necessarily difficult to attract customers during the good monetary conditions, but it really is not easy to achieve more clients during monetary downfall. It happened twice to get Six flags during 2001 terrorist attack and 2008 global recession. (Economic Times, 2001) During 2009-10, every company showed their brand differentiations to prioritise buyers. Disneyland offered free entrance to the birthday persons wherever six flags afford 7day package cost of resort at the rate of 4 days and nights. Hence half a dozen flags have to attain buyers towards them, at levels of economy. * Bar-gaining benefits of suppliers. Bar-gaining power of suppliers in this industry totally depend upon which latest technology that they offer.
Suppliers are ready to spend cash according to the added featured given by theme parks. International Relationship of Amusement Parks and Destinations (IAAPA), performs convention every year to show the present day technology and allows amusement park owners to put money it. It will help six red flags to increase their standard by using technology. (IAAPA, 2012) 5. Threat of substitutes The greatest challenge that entertainment sector has to overcome is it is competitors. Cedar fair presents club actions and communities to show their particular differentiation.
Disney offers two worlds greatest cruise ships showing its superiority. So the people can turn their interest towards our rivals or other entertainment sections like ethnical centres, organic gardens and multiplexes. Therefore service offered by Six red flags should fulfill the expectations of shoppers and to conquer competitors.
2. Threat of recent entrants Entertainment Industry is a vast sea and it is challenging to succeed in that. Huge purchase and People reputation is need to there. Many organisations like Hard Rock Recreation area have undergone bankruptcy regardless of establishing this business. Hk Disneyland may be the only place where the new entrants been successful.
So there is certainly less probability of new entrants in these industrial sectors (Pierson E Weber, 2012). B. INSIDE ANALYSIS i) Value Sequence Analysis To understand the competitive advantage and shareholder worth of the business, it is better to split it up the management with value generating activities called benefit chain research. We are going to evaluate primary activities and support activities individually. Primary actions * Operation. * Half a dozen flags retains skilled employees who happen to be friendly together with the customers. Additionally they amuse the shoppers with their multi-talents. * Environment is developed according to it in fact it is eco-friendly intended for the ambiance.
Regular routine service and recycling where possible is performed. * Marketing and Sales 5. Apart from ad and campaigns, “word of mouth” is the biggest campaign for half a dozen flags. 2. Special events will be conducted to get the important events like Olympics, FIFA and in addition for crucial festivals like Christmas and New-year. 5. Having joint promotion with Coco Soda for its advertising and lower price prices. 5. Service 2. Service is based on both the As well as Children Entertainment. * In the event customer maintain lodging facility in Great Escape, resort of 6 flags then they will be provided ticket with 20% discount. (Joshua M Wiener, Oxford journal).
Support Activities * Infrastructure 2. Built in line with the regulations of presidency and specifications of popular. * Energy saving policies can be executed by alternative energy sources. 5. Safety of folks is considered as first concern in 6 flags. 5. Procurement 2. Themes employed in six red flags, United States will probably be seen in additional countries such as Belgium and Canada too. Hence they can be basic interesting attractions of 6 flags.
5. They also import products from Germany and United Kingdom as they are best exporters of Cycle components and Steels. * Costume designers are helped bring down coming from different parts of the world to develop new products and characters that attract people. 2. Human Resource Management 5. Recruit local people at all countries to conquer cross-country cultural issues. * Carries out a great organised method of the work. 2. Coaches sub-ordinate to understand the objectives and achieves the work easily.
5. Technology Expansion. * Have its unique riding technological features. * Alliance with Tatweer will increase musical technology lovers to move towards half a dozen flags. * Developing their beach places, land buy and entertainment parks within the coastal side of America. (Oswald A Mascarenhas, 2004) ii) Inside Strength and Weakness Particular number of factors which usually describe the skills and weak point of the 6 flags. * Strengths 2. Six red flags implemented well executed approach of having the theme recreational areas in every 150 miles of America, which will cover 67% of its American population. This is the greatest power of Half a dozen Flags. * They define and maintain marriage between customer loyalty and financial actions.
So most suitable option predict the length of time it will take to reap their very own investment price. * Guard licensing and training with Warner Bros POWER Comics ensure that the company to achieve the children soon. * Cha?non with junk food restaurant and convenience stores allows all around entertainment section inside one place for customers. 2. Weakness 5. Company started to lose it is loyalty to customers because of unexpected break down of journey and injuries that happened in last 2 years. * Employee’s morale or perhaps attitude toward customers appears to be low in six flags.
In spite of it five managers was thrown away from job recently. * Popular rides like raging half truths and batwings are managed with low capacity of folks. * As compared to Walt-Disney and Cedan Good, Six red flags show fewer interest in maintaining cleanliness. (Miriam Marcus, 2008) Current Problem/Threat: Due to surplus investment by same place and technology, six flags lost the financial development and position in the market. That failed to control it income and suffered a lot during global recession. Soon organization convinced their shareholders and sold homes to control its debt. Completely, a new CEO, Jim Anderson was designated and he was working hard to keep up company’s income with fresh board of directors.
3. STRATEGY INGREDIENTS: ALTERNATIVES i) Market Expansion: Finding a Hard anodized cookware Partner Half a dozen flags had been founded back in 1961. Through the years that concentrated typically on the American continent. Still it would not open totally free hands to take the globalisation policy. But it experiences bankruptcy in the past and struggled in balancing their cash flows. To defeat company’s budget and regain its status on the market Six red flags should undertake Foreign Immediate Investment (FDI).
It can make investments on the world’s famous tourist destinations where people gather a whole lot throughout the year. Supply: WTO, 2010 Our key Challenger like Disneyworld and Universal Galleries entered Markets from the asian continent in the beginning of 21st century alone. Disneyworld come about in Hk and Tokyo; Universal Galleries expanded that markets in Singapore and Japan. By same way, 6 flags may invest for the Asian growing markets.
Because of software expansion and technological advancement, people around the world acquired addicted to Net and Games. There are valid reasons to help to make investment in Asian markets. They are, * Even Asian people’s interest gets forward in technological improvement; still 60% of people in Asia provide preference to their outdoor entertainment factors (Sports week, 2010). * Also Asian country holds 40% of community richest folks (London Times, 2011).
This kind of shows people’s interest and economical condition are favourable to all of us to make profit and solve each of our debt challenges. So , it is best to establish topic parks in Tokyo, China and tiawan or Singapore. The factors to be regarded as before starting in a new region is 5. We need a big initial expense * Countries rules and Regulations should be flexible. 2. There is also a sort of financial risk in this.
So to overcome financial risk, we require an Oriental partner who may be eminent in major Parts of asia. I recommend Oakwood or Press Asia Entertainment group would be the best choice of the Asian partner. This is because those two companies are in the Entertainment sectors for more than half-a-century and effectively done key projects in Asia. ii) Product Development: Slicing the Cost employing new Technology 6 flags are always famous for its Roller-coaster pushes.
Sky-Coaster, Batman Bat-wing coaster and Untamed one are the best roller coaster drives acknowledged by people. Inside the fast moving globe, people anticipate new and innovative elements almost in everything. Rivals like Planks fair and Disneyland overthrow Six red flags mostly in this factor. (Fox news entertainment, 2010) They may have undergone a big change in their offerings constantly just like Night of pleasure and Artwork of Computer animation. But still 6 flags stick to old traditions like Pet kingdom, creatures shows and roller coaster hard drives.
To be stable in American markets, half a dozen flags constantly needs a change. Holding the fame of world’s most significant amusement recreation area of hundratrettiofem acres, 6 flags may offer Adventurous game titles and more indoor games. Online games like solution and Daring Island gives new thrills to the clients.
ADVENTUROUS ISLAND3D GOLF As well Games like 3D Golfing, 3D Football, 3D Bowling and 3D shooting can provide people true to life experience of playing these video games. Along with Family entertainer, this place can change since heaven for youngsters and teenagers. By implementing new technologies, expense of the company could be controlled. The factors being considered just before introducing the characteristics are * Large space needed, as it is available with the six flags. * Safety measures should be carried out and ill-people and kids should not be brought about adventurous games. * Renowned game designers and software developers are needed and cost should be invested about them. PRIORITISING THE STRATEGY Both the strategies happen to be better technique of gaining revenue.
But when contrasting with applying new technology it is advisable to go method with locating a new Cookware partner. Even the investment appears to be more to find Asian partner, ROI can be achieved in a given time and cashflow can be managed soon. New-technology takes a long time to achieve their targets and profits. So , I recommend Getting an Asian partner can be the primary goal and technology development probably the extra goal of Six red flags in the future. four. STRATEGY IMPLEMENTATION The above approaches can be integrated by the method of cost-benefit examination, Marketing plan and HOURS plan. i) Cost-benefit Examination Cost-benefit evaluation is defined as the process of evaluating the business enterprise.
That assess whether the worth of the job is worth ready or not. It also explains regarding the company’s product and services that provide to the globe. As per the past experiences, the following data’s are tabulated. The below desk illustrates the expected initial year economic chart for the construction of Theme park by Hong Kong. This can be a favourite tourist spot and business centre, where much more than 10 million people sessions here every year.
S. NO| ELEMENTS NEEDED| TOTAL| 1| Our Cookware partner Oakwood, who is the leader of entertainment and infrastructure will provide as land. | -| 2 . | First setup cost needed to be invested| USD$ 1 Billion| 3. | Predicted First season Attendance| a couple of Million people| 4. | Expected Expense of ticket sales/person| USD$ 60| 5. | Expected income Generated | USD$ 120 Million | 6. a)| ExpenditureFixed expense = Building cost + Salary of workers + Maintenance| USD$ 30 Million| b)| Adjustable cost = Logistics & Transportation + Unexpected incidents + Insurance + Marketing| USD$ 31 Million| 7)| Expected profit at the end of 1st year| USD$ sixty Million($30 Mil for six flags$30 Mil for Oakwood)|. (Six red flags Texas, 2006) The graph and or chart below reveals the break-even analysis of Six flags for its fresh establishment in Hong Kong. By doing break-even analysis we can say that Initial expense can be regained within a couple of years.
So the cash-flow of the organization will become constant and the debts can be removed as soon as possible. Investors can be presented 15% of dividends every year and persons who invest more than $10 Million will probably be given 40% of firm stocks. Basis for selecting Hk: The elements that enhance six flags to build the theme park in Hong Kong happen to be: * Hk is one of the world’s famous tourist spot wherever more than 10 million people visit annually. * The country encourages tourism sector, also it acts as the primary revenue with the country helping to increase its GDP.
5. Hong Kong provides subsidiary, incentives and tax exemptions for entertainment sector to inspire the tourism. * In addition, it gives us option to take away 70% of profits and remaining to become re-invested in Hong Kong again. (HK Finding, 2011) Rewards for Hk with the Help of 6 flags 5. Our organization generates job opportunities to local people. * It also Uplifts the folks below the financial standard. 2. Asian people can no longer visit American to take pleasure from the world popular Six flags roller coaster drives. * Getting the people out of world wide web and keeping them engaged in real time entertainment section.
2. Changing the angle of the people. * All-natural resources will be explored well. * Expanding free lands and promoting tree farms which are necessary for the regular rain fall. * Thus by doing this 6 flags show its social responsibility in Hong Kong along with its Entertainment region. ii) MARKETING MIXTURE Marketing Blend can be defined as “Putting the right merchandise in the right place in the right time with the right price”. This means that explains about the product, place, price and promotion in the company. MERCHANDISE Six flags are going to offer the products in line with the interest and expectation of Hong Kong people. They are: * Roller coaster hard drives are the one of a kind asset of Six red flags.
Hereafter Hk people can experience that in their homeland itself. * In Hk six flags, apart from usual divisions like Animal Kingdom, Wild lifestyle shows and Roller coasters, six red flags plans to spread out new sector at cost-effective cost 2. Adventurous Area, paint-ball firing will be it is new offerings which appeal to the teens and midsection class persons. * Apart from that it is better to include Garden dreams, Rail highway Entertainment and Street party Entertainment which is the basic pleasure features of Euro people. 5. In the previously mentioned said offerings, six red flags will displays the tradition and traditions of traditional western and American people through music and dance.
5. Games like 3D golf; 3D auto racing will show it is technological development and brand differentiation of six red flags over its competitors. 5. Individual parts are invested in disabled people and game titles like taking pictures water cannons and play grocery store will probably be included. 5. This once again shows 6 flags will be all-time relatives entertainer.
VALUE Hong Kong six flags ought to offer their particular price inside the affordable expense, since the popular amusement parks just like Disney land and Ocean Park are already doing their particular business right now there. * Seats will be classified basically in four divisions namely, 1) 1-day ticket. 2) 2-day ticket 3) Night seat tickets 4) Tickets for resorts and resorts Estimated expense for each section is given beneath with competitive prices pertaining to Disney and Ocean Playground. 1) 1-day ticket 1 day tickets can be found with three different sectors, for children’s, middle era people and Old outdated people. Least expensive ticket price will probably be off HK$100 for senior citizens and maximum price with HK$399 to get middle age group people.
2) 2 time ticket The two day solution is also provided with the 3 different groups in which children are provided cheap ticket of HK$355 dollars and Midsection age individuals are offered HK$499. It is not easy to have each game within a single day as half a dozen flags hold vast entertainment zones. Therefore it offers two day admission for the visitors to enjoy the thrill of six flags completely. 3) Night seats Standard costs of Nighttime tickets are fixed since HK$259 and children below the age of several are not brought about this present.
Laser lights show, ethnic dance and street party are the distinctive events of night reveals. Night reveals are prepared near ocean shores and foreigners may experience the splendor of Hong Kong during night time times. 4) Hotel places.
As Hong Kong is the famous tourist place and Organization hub of Asia, 6 flags intend to offer places prices in both extremes to target along with business people too. Garden watch resorts costs HK $1550 which will be the minimal cost for family and Sea perspective resorts that happen to be offered in the speed of HK$ 1800-2500 intended for premium business customers. Each of the tickets and resorts could be booked through online by making use of six flags and some different tourism websites. Tickets will surely cost less while visitor’s publication their seats before thirty days of their travel around plan.
PLACE. We are going to have Oakwood while the Cookware partner, who have are the leading entertainment business in the Asian continent. Each of our theme park is going to be established with 40 miles of land which will be located near by Avenue of stars and Hk convention and Exhibition centre.
This place acts as a hub of fascination for visitors. Since the place is ornamented with Marine shore in both sides, Big Buddha sculpture at the North and Temple Street evening market in the South. This kind of place can be not warm of the metropolis, but it can be found very near by beautiful ocean shores of Hong Kong.
As there are 40 massive areas of property provided to us by Oakwood, we can have auto parking for more than 1500 vehicles per day. Recycling plants will be built inside the theme park to recycle for cash the water utilized for indoor video games. Also lot of trees will be planted to protect the environment as well as for essential rainfall of Hk. PROMOTION In entertainment organization, promotion ought to be given equivalent importance to the level of organization.
There are lots of opportunities that enhance the business. As Oakwood is the doing Film and television set production, we all promote six flags through television ad and through theatre advertisements. Hong Kong people shows lots of interest in music Industry.
Therefore with the help of Oakwood own cinema for musical technology and style shows six flags strategies to reach the individuals. Along with this developing Google android games to get phones with the intention of thrills accessible in six flags will also be a promotion for six flags. Creating Face book community and applications and conducting marathon races for AIDS patient will improve the company’s manufacturer to the serious.
Also DVD and images about half a dozen flags will probably be sent to the people’s talk about who trips Six red flags, Hong Kong for the first time. These things will certainly promote 6 flags and allows that to reach the minds of Hong Kong persons easily. iii) HR PROGRAMS John Watts. Baker (six flags) will be the head of development staff for this task and Liz Hirsh Naftali (Oakwood) always be the head of operations. Therefore these two people are the elderly most people of both equally companies. Right here Six flags is going to get both the full time and part time employees.
Administration staff will probably be appointed while full-time personnel and workers will be designated as or perhaps workers. Combination of Asian and American people looks after supervision works and native people will probably be given possibility to explore them. Training institute will be created to train the part-time employees, how they should certainly behave for the visitors. Volunteers and support minded people are appointed to adopt care old people, disabled and Children’s.
So , I would recommend Six red flags to apply the above approaches mentioned to manage its money flows and regain it is market status. When these are implemented, then simply its marketplace shares raises very soon. RECOMMENDATIONS 1 . David Hall Hard Ground Heinemann, London: 93, American Regular Resource centre, “American idea parks and mass culture”, http://www. americansc. org. uk/Online/disney. htm [Accessed on 12/08/2012]. 2 . Joshua Meters Wiener and Jane Tilly, (1996) Oxford Journals, “International Journal of Epdemiology”, Quantity 31, Concern 4, site 776-781. several.
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