Opera House Development: A Business Plan for Southbank Centre

This business plan outlines the development of a new opera house at the Southbank Centre in London, focusing on creating long-term value and boosting revenue through a new venture. It includes a situational analysis, SWOT analysis, and rationale for the new business, emphasizing the importan...Read More

Business development

Contents
INTRODUCTION...........................................................................................................................1
Task A..............................................................................................................................................1
Covered in PPT poster.........................................................................................................1
Task B..............................................................................................................................................2
Business plan.........................................................................................................................2
CONCLUSION..............................................................................................................................11
References:.....................................................................................................................................12

INTRODUCTION
The concept of business development is the creation of long-term value for the
organisation from the customer, markets and relationships. The large or small organisation take
business development as an activity, non-profit for -profit enterprises which serves the aim of
developing business in effective way. In development of new venture it needs process of
implementing new strategies and opportunities across the organisation in order to promote
growth and boosting revenue. This involves pursuing opportunities for helping business in grow
and new prospects are identified by converting more leads into customers (Agwu, M.E., 2018).
The business developer work for the corporations across variety of industries for helping them in
attaining business goals. The experience is used in sales and roles related to business which have
contribution in innovative ideas to a company and its future growth. The report is based in the
case study of “Sountbank centre” which is complex of artistic Venues in London, England on
South bank of River Thames founded with the festival of Britain in 1951. The report will discuss
new opportunity for the development of nee tourism, events, hospitality business. Further the
business plan is prepared for the development of new business venture.
Task A
Covered in PPT poster
Task B
Business plan
The business plan defines the written document which provides the detail description of
how new business venture will start-up by defining its objectives and in what way it will attain
the goals. The business plan lays out the written roadmap for the firm from marketing, financial
and operational standpoints. The business plan involves several elements which is requited to
consider for the development of new venture.
Situational analysis
The existing business of the south bank centre is world-famous, multi-venue art centre
with the dynamic year-round festival programme and inclusive ethos. This is the UK largest art
centre place where people experiences world class art and culture which stimulates, inspires,
educates and amazes. It festival programme encompasses art, theatre, dance, classical &
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contemporary music, literature and debate etc. It reached 6.25 million people a year and
encompassing over 5000 events which features world class artists globally (Benites-Lazaro, and
et.al., 2018). This also comprises several venues such as royal festival hall, Hayward Gallery,
Queen Elizabeth hall, national poetry library etc. The “southbank centre” has the new business
opportunity of Operas house. This will helps in attracting large number of customers and artists.
This involves the SWOT analysis.
 Strength- The opera house is greatest of all theatrical art forms which combines drams,
visual arts and music into deep emotional theatre experience. It has strength of
extraordinary ability for suspending audience disbelief in way that no other performance
art form can. It also have strength of strong brand image, loyal customer base. With the
use of unique technology it can attract large number of customers and artists.
 Weakness- The opening of new business of Opera house can face some weakness as no
coordination national performance schedule. The reduction in young and developing
artist program is seen as weakness. The lower number of opportunities of young artists
weakens the pool of high-quality artists.
 Opportunities- The opera house has several opportunities of making collaboration
between opera companies and other subsidised performing art where financial and artistic
economies can attain & develop the new ways for presenting opera as an art form. The
further collaborations with major performing venues where risk sharing and venue cost
would provide opportunities for more adventurous and innovative programming. The
public has understanding of art which is an opportunity for opera to have support
(Goncharenko, T., 2020).
 Threats- The company can face threat in levels of funding with rise in cost of
presentation which can restrict the growth of opera house. The regulations of industry
practices, reduction in number of new generations singers because of lack of training
facilities and professional development opportunities. The general lack of music
education. The opera house can also face threat from competition from other form of
entertainment which is provided by other companies.
Rational for new business
The development of the business is taken by the entrepreneurs by having motivation to
start something new. The art and culture is import aspect in the world which is recognised by
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every one. This involves the several activities which influences society by changing opinions,
values and translating experience across space time. The art & culture involves the painting,
sculpture, literature and other arts which inspires and motivates the people. Through the
activities of art and culture the people experience lot of varieties and got know about the country
traditions. The reason of developing new business of Opera house was to target the new market
segment of customers. To attract the young generation artists. The stage performance rather than
the orchestra is main attention (Klein and et.al., 2018). The development of new business helps
in developing important relationship by attracting new talent, networking with prospective
partners or potential consumers. The developing of new business is strategy for boosting revenue
and lowering costs which helps in improving overall image. The development of business helps
in expanding into new markets by analysis market trends and opportunities along with
demographics and consumer data in context to opera house for southbank centre.
New product development
The new product development considers the ideation, design, validation and launching of
new to world products. In the organisation it is a cross-functional activity which involves people
from different groups in order to perform something new. The successful new product
development starts with the new conception of products in re4spect to customer needs and
aligned with the corporate product development strategy. In the organisation the new product
development involves the process of idea generation, product defining, prototyping, detained
design, testing and commercialization. The opera house is multi-purpose performing art facility
which host the symphony concerts, choir performance and popular music shows (Liguori, and
Bendickson, 2020). The opera is form of theatre in which music is fundamentals component and
dramatic roles which is taken by singers. It incorporates the number of performing arts such as
acting, scenery , costumes and sometimes dance or ballet. The performance is given by opera
house which is accompanied by orchestra or small musical ensemble. In the product it involves
stage, an orchestra pit, audience seating, and backstage facilities for costumes and building sets.
The new product development has the features of repositioning by introducing existing product
in new segment or territory. The new product is differentiated from the other products of
competitors and provides satisfactory performance. The new product are developed due to the
change in technology, market, increase of competition etc.
Market and competitor analysis
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This analysis is process for determining competitors in the industry and researching
different strategies of marketing, This analysis involves the several models.
Porters fiver force model
This model helps in analysis of industry attractiveness and its potential probability which
is a key source of competitive pressure within an industry. This involves of fiver forces which
are as follows-
 Competitive rivalry- This forces examines the intense competition in marketplace which
recognises the number of competitors. The competition of rivalry is high when few
business sells product or service when there is growth of industry and consumers can
easily switch to competitors for offering little cots in context to opera house (Neumeyer,
and Santos, 2018.).
 Supplier power- This force analysis hoe much power the business supplier has & control
over the potential for raising its prices which in turns leads to profitability. The few
supplier leads to more power which is assessed by the number of supplier of raw material
and other resources which are available. The having of strong bargaining power of
suppliers leads to charge higher prices from the opera house.
 Buyer power- This forces has examination of consumer power and its effect on pricing
and quality. The consumer have power when thy are few in number and plentiful sellers.
The low buying power is when consumers make purchase of products in small amounts
and product of seller is different from that competitors. The strong bargaining power
tends to price down and limiting the potential of opera house for earning sustainable
profits.
 Threat of substitution- There is study of how consumers switches from business product
to that of competitor and examines the numbers of competitors in what way the price and
quality as compare to business is examined. The threat of substitute is informed by
switching costs, consumer inclination to change. The high threat of substitute for opera
house then it has to continuously invest in resear5ch and development (Pal, and Nandy,
2019).
 Threat of new entrant- This force have consideration of how easy or difficult is for
competitors to join marketplace. There is great risk of market share for the established
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business. The having of strong threat of new entrant then current players are willing for
earning less profits in order to reduce threat in context to opera house.
PESTEL Analysis
It is macro environmental factor which puts an impact on the entire business environment.
 Political- It not only impacts the cost of doing business but also long term sustainability.
In context to opera house the government regulations, role of local government,
international trade etc. are some factors which can affect new business.
 Economic- This factor have the direct impact of potential attractiveness in given market.
The opera house can be affected with the factors of foreign exchange rate, inflation rate,
employment rate etc.
 Social – This is related to the demographic trends which consider the factors of societal
norms, education level, attitude towards savings, power structure etc. affecting the opera
house. As this this related to representation of culture & art performance which influence
the consumer behaviour (Vaskelainen, and Münzel, 2018).
 Technological- It involves the several technological factors which can impact on the
opera house. The intellectual right and patent protection provides the high safeguard
which encourages players to invest in research and development. the opera hiuse can take
use of latest technology which help in providing good insight into what competitors are
thinking. The analysis of technological environment will help opera house in capturing
technological trends for attaining some business advantages such as increasing
profitability, enhancement of operational efficiency.
 Environmental- For any business the sustainability and environmental factor are critical
which makes organisation forced to adhere with environmental standards. It considers the
factors of laws regulating pollution, safe disposal of hazardous material, climate change
etc, affecting opera house.
 Legal- For running the business in new market the established company is required to
have study of detail legal requirements and regulatory structure for new consumer market
in context to opera house. This requires the careful evaluation of legal aspects. To operate
the business in effective way the company opera house is required to consider employee
protection laws, consumer protection laws etc.
Market analysis of new business and competition
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The market analysis is a thorough evaluation of market within a specific industry which
helps in the study of dynamic market such as volume & value, potential customer segments,
buying patterns and competition etc. The conducting of market analysis for new business helps
in reducing risk, determines emerging trends and help in project revenue in context to opera
house. This is part of business plan which offers a great understanding of your audience and
competition that help in building target marketing strategy. For the new start up business the
market analysis is important in order to know the problems with product which is selling and
acknowledging customers for knowing the business success (Wiginton, and Cartwright, 2020).
The competitor analysis defines the procedure of researching, categorising and evaluating the
strength & weakness of brand which deems to be potential threat for the business. The
conducting of competitor analysis helps in gaining the knowledge and understanding of market
in which the business will operate and its target audience. The opera house has to face from its
several competitors which can be direct or indirect competitors.
Marketing mix
This defines action or tactics which company take use for promoting the product in
market which involves analysis of 4Ps.
 Product- It is recognised as tangible product which delivers the value to customer. To
dete4rmine the needs of customer market and customer research is carried which will
help opera house in meeting the need of consumers. The value proposition, regulatory
requirements, are key considerations for product design and testing.
 Price- The limited aspect is related to pricing decision is considere4d and highly complex
activity. The Opera house can take use of several pricing strategies such as cost plus,
penetration pricing and value-based pricing strategy for differentiating itself form other
competitors. It will also use pricing strategy which is grounded on competition in market.
 Place- This refers to location where opera house will offer its product to the consumers.
The opera house will place its product on television shows, in films, web pages etc.
Intermediaries have an important role in distributing cultural products, such as artist
agents, promoters, ticket agents or even third-party ticketing services. Because of the new
technologies, some cultural products, like music, can be distributed through different
channels.
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 Promotion- This is combination of different advertising, sales promotion, public
relations and direct marketing which is taken use by opera house. The use of promotional
techniques help customer in letting know about the products and services of opera house.
The communication attracts the audience and enables success & financial survival of art
organisation which helps in promoting artists and their work.
Strategy
The opera house is one of the word busiest performing art centres and premier tourist
destination which embark on the digital transformation project. From the above market and
competitor analysis the opera house will follow the strategy of PESTEL analysis as it will
provide the knowledge of external factors which affects the business. As the part of new
integrated business model, the rapid expansion of consumer technology and social applications
has altered audience behaviour and expectations which aims to expand the audience outreach.
As the audience are turning towards the experiences over products for enriching their lives and
finding identity in rapid changing society.
Operational and management plan
This plan demonstrates that how business will operate on continuous basis which
involves physical location, labour, facilities, equipment and processes. The team of manager and
employees also have an important role for carrying the comply operation plan. In the team
management it will involves the operation manager, director will assume the duties for hiring the
appropriate position. There is need of volunteer board which have huge role in organising and
managing an area the duties of volunteer. In the management of art centre in context to opera
house it will includes director, operations manager, production director, grant consultant,
producer of special events, sponsorship and development team and volunteers. The operational
plan for the ongoing management ensures that the premises is managed properly, risk has been
assessed. The opera house will be operated in the London which will offer the venue types such
as open bar, open kitchen and visitor information & interpretation centre. The permitted hour of
operation for restaurant and bar areas is Sunday to Tuesday 7:30am to 12 midnight, Friday to
Saturday 7:30am to 12 midnight. The opera house has to compile with wate management, noise
management etc.
Financial Forecast
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This is part of business plan which involves the five-year financial statement broken in
both monthly or quarterly fir the first year and then annually. In the financial plan it involves the
financial statement of income statement, balance sheet and cash flow statement. The income
statement is known as profit & loss statement which shows revenues and subtracts the costs for
showing of profit or loss. The assets and liabilities is shown in balance sheet of company. The
cash flow statement will help in determining how much money is needed to start or grow the
business by making sure that it never run out of money.
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CONCLUSION
From the above analysis it is been concluded that “southbank centre” is a famous art centre
which organises the festive programme. It has opportunity of business development in context to
opera house which will provide to people world class art and culture experience that can
stimulates, inspires, educates etc. In the report business plan is prepared for the new
establishment in which there has been done detail analysis of several elements of business plan.
The business plan help in understanding the market, competitors and cutomers.
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References:
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Goncharenko, T., 2020. From business modelling to the leadership and innovation in business:
bibliometric analysis (banking as a case). Business Ethics and Leadership, 4(1), pp.113-
125.
Klein and et.al., 2018. Barriers to smart services for manufacturing companies–an exploratory
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Liguori, and Bendickson, 2020. Rising to the challenge: Entrepreneurship ecosystems and SDG
success. Journal of the International Council for Small Business, 1(3-4), pp.118-125.
Neumeyer, and Santos, 2018. Sustainable business models, venture typologies, and
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production, 172, pp.4565-4579.
Pal, and Nandy, 2019. Innovation and business sustainability (IBS): Empirical evidence from
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Vaskelainen, and Münzel, 2018. The effect of institutional logics on business model
development in the sharing economy: The case of German carsharing services. Academy
of Management Discoveries, 4(3), pp.273-293.
Wiginton, and Cartwright, 2020. Evidence on the impacts of business coaching. Journal of
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Books and Journals
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