Page 77 - Fundamentals of Management Myths Debunked (2017)_Flat

76 Part 1 • Introduction
oversized screens built by the five largest theater companies sites and to develop some type of licensing arrangements
has grown to the point where it almost equals the number of whereby the industry has some protection over its copyrighted
IMAX locations. The movie theater chains have invested in film content.
these formats because it can add several extra dollars to the Given these factors, what are the movie theater chains
ticket price, resulting in increased revenues. doing? They’re finding ways to make the movie-going experience
Another factor managers need to wrestle with is the something special by providing expensive presentation formats
impression consumers have of the movie-going experience. A that can’t be replicated or accessed in the home, comfortable sur-
consumer lifestyle poll showed that the major dislike about go- roundings (think reclining seats and blankets plus gourmet food
ing to the movies was the cost, a drawback cited by 36 percent brought to you), valet parking, babysitting, beefed-up concession
of the respondents. Other factors noted included the noise, stands, and so forth. These are just some of the ways that movie
uncomfortable seats, the inconvenience, the crowds, and too theaters are working to keep their seats filled.
many previews/commercials before the movie.
A final question facing the movie theater industry and the Discussion Questions
major film studios is how to be proactive in avoiding the prob-
lems that the recorded music industry faced with the illegal 2-19 Using Exhibit 2–1, what external components might be most
important for managers in movie theater chains to know about?
downloading of songs. The amount of entertainment streamed Why?
online (which includes both music and video) continues to 2-20 According to the case, what external trends do managers at the
experience double-digit growth. The biggest threat so far has movie theater chains have to deal with?
been YouTube, which has become a powerful force in the 2-21 How do you think these trends might constrain decisions made
media world with owner Google’s backing. But now Amazon, by managers at the movie theater chains?
Netflix, and other competitors are flexing their movie muscles 2-22 What stakeholders do you think might be most important to
as well. To counter that threat, industry executives have asked movie theater chains? What interests might these stakehold-
for filtering mechanisms to keep unlawful material off these ers have?

CasE applICatIon 3
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China Zhongwang

hat could be more self-explanatory about corpo- in encouraging its customers to expand their businesses. The
rate values than naming your business “China company is looking to expand their operations in Europe
WZhongwang?” Zhong and Wang are Chinese char- and the U.S., with Lu Changqing, the executive director and
acters for loyalty, dedication, and prosperity. It certainly vice president saying, “We’re actively seeking cooperation in
worked out for the Liaoning Province–based Chinese alumi- Europe and the U.S., including potential acquisitions.”
num developer and manufacturer. Employee contribution and a commitment to excellence
Founded in 1993, it had total assets of US$3.9 billion. In have been key to the company’s success. Certain elements—
2014, the company’s revenue like responsible corporate citi-
was around 16 billion RMB China Zhongwang . . . zenship and operation manage-
($2.5 billion). The company investing in corporate ment with integrity—are built
is the largest producer of ex- into corporate values. The trick
truded aluminum in Asia and values. was transforming a corporate
the second largest in the world, slogan into a corporate reality.
with its product being used in many industries—from rail car- In 2012 the Chinese government certified China Zhongwang as
riages to power plants. From the outset the business sought to be a “State Accredited Enterprise Technology Centre.
50
sustainable, prosperous, and contribute to society. China Zhongwang was recognized not only for its tech-
The aluminum industry is highly competitive, and China nology, leadership, and strategy, but also for the fact that its
Zhongwang is not only interested in value creation, but also management practices were inspirational to other companies