Thursday, November 28, 2019

Case Study - Cineplex Essays - Loews Cineplex Entertainment

Case Study - Cineplex Company Background In 1979 Garth Drabinsky and Nathan Taylor formed Cineplex. From early on Cineplex saw itself as a niche player. They used small screens to show specialty movies and they employed this strategy not to challenge major chains, but to compliment them. Cineplex did well primarily because of their concept for carefully planned use of shared facilities. With this success they began to expand across Canada with a very rapid rate of expansion. During this expansion however they amassed a 21 million-dollar debt. Also, distributors became reluctant to supply Cineplex for fear of alienating the two largest Canadian chains. In 1983 to avoid bankruptcy, Cineplex reduced its debt by selling off some of its recently purchased assets. Darbinsky also took legal action to win back access to major releases. Son after this time he also purchased the Odeon chain so that he would be able to bid for early runs of movies. This gave Cineplex a major position in the industry. Through Darthbinsky's relentless tactics Cineplex Odeon was the second largest motion picture chain with 1,800 screens in over 500 locations. Now that Darthinsky owned one of North America's major theater chains he sought to change the movie going experience by changing the layout and atmosphere of the theaters to attract even more moviegoers. Drabinsky endeavored to use the size of his chain to obtain added clout with film studious and distributors. Drabinsky had no plans to slow his companies' rapid pace of expansion and he extended Cineplex Odeon's production activities through other branches of the entertainment industry. His unrelenting drive for growth placed tremendous pressure on the company's finances. As doubt grew about the financial health of Cineplex Odeon, Drabinsky reputation as a brilliant strategist was gradually subject to increased scrutiny. He realized his weaning support and ho sought to gain control by buying a large stake in the company. MCA, one of the controlling stockholders, blocked this successfully and forced Darbinsky from his leadership position with the company. When Darbinsky left he left a company carrying a massive $655 million dollar debt. Alan Karp assumed the leadership role and immediately began to cut costs and divest some of Cineplex Odeon's assets. He also took steps to increased concession revenues. In a short amount of time Karp was successful in cutting the debt by ? and was able to switch back to more of a strategic focus. He began to show interest in further growth. As of 1995 Cineplex Odeon reported a loss of $30 million for the 1st 6 months of the year. These numbers started to raise concerns about Karp's ability to turn things around. His attempt to merge with a major chain failed a few months earlier. Although the merger was called off Karp remained enthusiastic about the potential of the company. Analysis Financial I would rate their current financial condition as fair to poor. Return on Total Assets ? not significant Current Ratio ? .22891 (very poor) Long-term debt to equity ratio ? 81.85 Many of their financial ratios are significantly insignificant with profits being negative. SWOT Potential Resource Strengths 1. 85% percent of the company's U.S screens were in the top 15 U.S. markets, while 75% of its Canadian screens were in the top 10 Canadian Markets. 2. Cineplex recently spent $57.5 million in refurbishment and construction of new theaters. This included introducing DTS sound systems in many of its locations. 3. Now embraced a strategy of cautious growth and more sound financial management. 4. With its relatively large size Cineplex could use some muscle to get first run movies and demand bigger revenue splitting. 5. Had very strong concession sales. Potential Resource Weaknesses 1. Seemed to have no clear strategy or business plan ? at one point Karp stated ?that he had not even begun to consider what strategic benefits Seagram might bring to Cineplex?, something he should have been looking at. 2. Fair to poor financial condition with in the company. Weak balance sheet and excess debt. 3. History of overaggressive expansion ? weary shareholders and stakeholders may prevent or slow future mergers or acquisitions. Potential Company Opportunities 1. Alliances or mergers to expand coverage. Karp believed Cineplex was capable of running a theater chain twice as big. 2. The international exhibition business. 3. Case Study - Cineplex Essays - Loews Cineplex Entertainment Case Study - Cineplex Company Background In 1979 Garth Drabinsky and Nathan Taylor formed Cineplex. From early on Cineplex saw itself as a niche player. They used small screens to show specialty movies and they employed this strategy not to challenge major chains, but to compliment them. Cineplex did well primarily because of their concept for carefully planned use of shared facilities. With this success they began to expand across Canada with a very rapid rate of expansion. During this expansion however they amassed a 21 million-dollar debt. Also, distributors became reluctant to supply Cineplex for fear of alienating the two largest Canadian chains. In 1983 to avoid bankruptcy, Cineplex reduced its debt by selling off some of its recently purchased assets. Darbinsky also took legal action to win back access to major releases. Son after this time he also purchased the Odeon chain so that he would be able to bid for early runs of movies. This gave Cineplex a major position in the industry. Through Darthbinsky's relentless tactics Cineplex Odeon was the second largest motion picture chain with 1,800 screens in over 500 locations. Now that Darthinsky owned one of North America's major theater chains he sought to change the movie going experience by changing the layout and atmosphere of the theaters to attract even more moviegoers. Drabinsky endeavored to use the size of his chain to obtain added clout with film studious and distributors. Drabinsky had no plans to slow his companies' rapid pace of expansion and he extended Cineplex Odeon's production activities through other branches of the entertainment industry. His unrelenting drive for growth placed tremendous pressure on the company's finances. As doubt grew about the financial health of Cineplex Odeon, Drabinsky reputation as a brilliant strategist was gradually subject to increased scrutiny. He realized his weaning support and ho sought to gain control by buying a large stake in the company. MCA, one of the controlling stockholders, blocked this successfully and forced Darbinsky from his leadership position with the company. When Darbinsky left he left a company carrying a massive $655 million dollar debt. Alan Karp assumed the leadership role and immediately began to cut costs and divest some of Cineplex Odeon's assets. He also took steps to increased concession revenues. In a short amount of time Karp was successful in cutting the debt by ? and was able to switch back to more of a strategic focus. He began to show interest in further growth. As of 1995 Cineplex Odeon reported a loss of $30 million for the 1st 6 months of the year. These numbers started to raise concerns about Karp's ability to turn things around. His attempt to merge with a major chain failed a few months earlier. Although the merger was called off Karp remained enthusiastic about the potential of the company. Analysis Financial I would rate their current financial condition as fair to poor. Return on Total Assets ? not significant Current Ratio ? .22891 (very poor) Long-term debt to equity ratio ? 81.85 Many of their financial ratios are significantly insignificant with profits being negative. SWOT Potential Resource Strengths 1. 85% percent of the company's U.S screens were in the top 15 U.S. markets, while 75% of its Canadian screens were in the top 10 Canadian Markets. 2. Cineplex recently spent $57.5 million in refurbishment and construction of new theaters. This included introducing DTS sound systems in many of its locations. 3. Now embraced a strategy of cautious growth and more sound financial management. 4. With its relatively large size Cineplex could use some muscle to get first run movies and demand bigger revenue splitting. 5. Had very strong concession sales. Potential Resource Weaknesses 1. Seemed to have no clear strategy or business plan ? at one point Karp stated ?that he had not even begun to consider what strategic benefits Seagram might bring to Cineplex?, something he should have been looking at. 2. Fair to poor financial condition with in the company. Weak balance sheet and excess debt. 3. History of overaggressive expansion ? weary shareholders and stakeholders may prevent or slow future mergers or acquisitions. Potential Company Opportunities 1. Alliances or mergers to expand coverage. Karp believed Cineplex was capable of running a theater chain twice as big. 2. The international exhibition business. 3.

Sunday, November 24, 2019

Types of War essays

Types of War essays American Revolution: Fought as a Limited War meaning the primary objective was to overthrow Britains political system and to be resolved by a treaty. Basically, the wealthy Americans did not want to pay the taxes Great Britain was levying upon them. The political structure did not change very much. The ability to run for office and vote still remained with the wealthy land owners. Civil War: Originally hoped to be fought as a Limited War, Lincoln came to realize the only way to save the state of the Union was to fight a Total War. A war in which the objective was to conquer and destroy the enemy became the outcomes objective. You can consider both wars revolutionary and civil in their definition. The Revolutionary War was fought against friends and neighbors based on their allegiance to the King. People that fought side by side in the French and Indian War were now pitted against each other during the Revolutionary War. The Civil War brought about much more change in the political structure than the Revolutionary War. A two party system was put in place, and the 13th, 14th, and post-war the 15th amendments were passed that abolished slavery, granted citizenship to all persons born in America, and gave every male citizen the right to vote and be elected. Neither war was fought based on the primary focus of slavery. The Constitution, which came about because of the victory in the Revolutionary War, did very little to address slavery other than to consider slaves property and provide cause for a slow emancipation of slaves by exercising a tax on them to begin in 1808. The Civil War only became an issue to concern slavery when Lincoln realized that to win the war and achieve the primary objective of preserving the union was to abolish slavery which in turn would debilitate the Souths ability to support the war. By not having slaves, the South would not have the resources to con ...

Thursday, November 21, 2019

Intellectual Property Essay Example | Topics and Well Written Essays - 2500 words

Intellectual Property - Essay Example The paper the looks at areas for opportunities to devise a new innovative customer-focus service, how and where to search to devise and develop a new customer-focused service idea, and the new services development (NSD) process. The paper then looks at the potential risks and costs that will be determine by the successful development of new or modified services and the intellectual property issues. Finally, the paper makes a conclusion based on the discussions from the research conducted. There has been an increased attention on innovation which is the key to organizational growth and development. Most organizations today face increased competition because of the fast pace of improved technology, and the market external change that has pushed economic and organizational growth. Innovation has become a crucial part of organizations which has been driven by excellent labor force and advanced machinery. Therefore, innovation has become a powerful method of securing a competitive advantage and as a way of defending the strategic position. The research and development plays a crucial role in product and service innovation process. Innovation does not only apply to product or services, but also aims at improving the way people work, live, and play. Innovation has two aspects, which include radical and incremental innovations. Radical innovation refers to a total change in the way people think and use products or manufacture new products as compared to the way they did things before. This form of innovation aims at taking advantage of new technology, thus, creating new opportunities. On the other hand, incremental innovation is involves a day to day change in an organization in order to make sure that there is a continuous improvement in the productivity and quality of products and services through innovation. There are four types of innovation that includes the process