Analysis of Business Strategy at the Sydney Opera House: A Report

This report presents a comprehensive analysis of the business strategy employed by the Sydney Opera House. It begins with an executive summary and an introduction to the topic, defining business strategy and its importance. The report then delves into the history of the Sydney Opera House, its core values, and its role as a performing arts center. A detailed case study examines the Opera House's market, revenue streams, and the challenges it faced, including funding limitations and software issues. The report highlights the strategies implemented to overcome these challenges, such as a single information medium, asset management, and enhanced security. Key success factors, including an inspiring culture, external collaboration, and client involvement, are also discussed. The report concludes by emphasizing the significance of strategic planning for organizational growth and provides references to support the findings.

Business Strategy
2019

Business Strategy: 1
Table of Contents
Executive Summary:........................................................................................................................2
Introduction......................................................................................................................................3
Levels in Business Strategy:............................................................................................................4
Strategy adapt by Sydney Opera House..........................................................................................6
Challenges Faced by the Sydney Opera House:..............................................................................7
Success factors of Sydney Opera House:........................................................................................7
Conclusion:......................................................................................................................................8
References:......................................................................................................................................8

Business Strategy: 2
Executive Summary:
These report summaries about the strategy which was implemented on the building infrastructure
of Sydney opera house for improvement in the tourism business of Sydney. Sydney Opera House
is the magnificent example of innovation of Australian management. In the complete
implementation the process which was used it is termed as Building Information modeling which
looks after the base interface of Sydney opera house. The Project was begin in the year of 2014
and it was conducted under the guidance of Cooperative for Research Centre (CRC). There were
some challenges which were facing by Sydney opera house in their management system which
were as follows:
 Some limitations were in software which they were using.
 They were facing issue related with the funds. Only limited sources were available for
investment.
 Sydney Opera House was also had some concern related to its security.
 Geographic Isolation of Australia.
 Unique infrastructure of Sydney opera house.
Sydney Opera House performed some critical research and approaches international or national
stakeholders for the engagement in development of its business. The reason behind the success
of the successful implementation in the business was due to factors of the Building information
modeling which were:
 Their cooperative customers and stake holders
 Building of Sydney opera House
 The performance of their Art
 Experience faced by the visitors
 Local people of Sydney and quickness in their business

Business Strategy: 3
Introduction
In this report the detailed case study in the business strategy of Sydney Opera House will be
described. This study will include the introduction or history of Sydney Opera House, their
decision which they took for the business development. The policies in which they make changes
on the basis of their research their strategies to overcome from the challenges which they were
facing since a long period.
What is business Strategy?
The combination of decision taking and action performed in order to accomplish the goal or
targets of the business against the competitor in market, this phenomenon is known as Business
strategy.
Importance of Business strategy
With the increase in the competition in market the organization has to make change in strategy of
their business. There are five reasons which explain the importance of business strategy (van der
Meulen, E., 2018):
 Planning: Business plan is one of the major parts of business strategy, plans provide the
platform and goals but the strategy provide the techniques to achieve them.
 Strength and Weakness: While forming any business strategy the strong points and the
weak points they concluded in front of the management.
 Effectiveness and efficiency: When the situation is clear and things can be understand
easily then it is easy to make the business more effective and more efficient.
 Competitive Advantage: The main focus of business strategy is to capitalize the strength
of the business and use it as an advantage to build up brand on apex in very distinct way.
 Control: If the work is getting done as per the plan than it is easy and precise to control
the operations.

Business Strategy: 4
Levels in Business Strategy:
The level of the business strategy can be classified in three different levels which are as follow
(Ramdani, Primiana, Kaltum, and Azis, 2018):
1. The corporate level- The plan in which a guidelines are provided about the goals in the
business and the expectations to achieve them which makes a clear vision in emplo0yees
to work.
2. The Business Unit level- The units can be product of different type which plays key role
to beat the competitors and to align their objectives with the overall business objective
defined in the corporate level strategy.
3. The level of Function- Distinct department of unit helps to develop the functional
strategy of any business. These departments are not bounded only with the finance, CRM,
sales, operations etc.
The Key points of business strategy:
Mission, vision and business objectives:
The main purpose of the business strategy is to fulfill the objective of business. It provides the
clear vision to conduct the work and also explains the responsible individual for the same
(Mansor, Abu, Abashah, Kassim, and Asyraf, 2018).
Core Values: It explains about the act which should not be performed and which should perform
which makes clear to every unit and department a clear idea to execute the task.
SWOT: The analysis which defines the running situation of any company. It is important factor
of business strategy as it shows the strength and weakness of the operation.
Operational Tactics: It provide the operation details by which it will be clear that in which direct
the task has to be perform.
Resource Procurement: This factor provides the information about the utilization of resources in
the correct manner.
Measurement: The business strategy provides the platform in order to increase the output of the
company and performance for the targets which are defined.

Business Strategy: 5
History of Sydney Opera House:
Sydney Opera House is one of the most significant buildings its construction was started in 20th
Century and it was completed in 1973. It was mentioned in the list of world’s heritage place by
UNESCO as one of the finest piece of human construction. The trust of Opera house maintains
and operates the building and its business completely for the government and for the people of
Sydney. The essential values of the house are mentioned below on which it operates the tasks:
 Collaboration
 Focus
 Safety
 Community
 Creativity
It is well known as performing arts since 20th Century, the orchestra of house was started with the
24 players which were expanded then up to 82 players. The band performs and plays the music
for environment and changes in the society.
Case Study: The market of the orchestra and Opera house is from its own home city itself. Ass
Sydney has good population almost between 4.6-5 million. Sydney opera house is conducting its
business in producing of arts, food & Beverages, in hiring of venue, tourism, conferences etc. In
the economy system of Sydney the opera house contributes up to 200 million dollar per annum.
Once the opera house was facing challenges with the funds and in their management so they
started to research about the situations and collect the data about the population of Sydney. So
they develop a plan to minimize the challenges regarding the fund (Landorf, C., 2019).
They start generating fund by the announcing sponsorship of the opera house, sales and annual
contribution from state government. For Successful business strategy they announce their visions
and goals which were:
i. Praise the talent of the Australia in front of world and lead them to present their art.
ii. Engage the other people or attract them towards the diversity of Australia.
iii. Maintain the decorum of opera house as landmark of culture by performing it as
artistic center of world.

Business Strategy: 6
iv. By investing in the art performance, in cultural activities and in the development of
audience to improve the business.
The facilities which the opera house providing attract the investors to start their services in one
of the finest architecture in the world like foods and beverages, retails and artist which increase
and improve the business of the house. These goals were now making an effective bonding
between business and building of opera house.
Strategy adapt by Sydney Opera House
To improve business of house the team implements some key parameters which were helpful in
order to achieve the success of their business (Guachalla, 2019).
1. Single medium of Information:
The team collects the complete data of the business and instead of accessing data from
different system they implement in single system which can be operated at any instant of
time and from anywhere which will help to gain the exact information without wasting of
time.
2. Asset Complexion:
Sydney opera house has large team of management due to different sections and just
because of this they have very attractive execution process.
3. Safety:
In order to avoid any trespassing or the fraud activities they applied advance security
systems which takes care of the illegal activity in the operation because if there would be
any flaw in the internal system than the business will not be able to build up strongly.
4. Requirements :
As opera house is mainly focused on the artistic performance so they must have the
knowledge of the required materials, hence they collect the data about all of those
required tools and material in their database.
5. Sustainability :
The team of Opera house examines the usage of the resources like water and energy.
They collect the information about the consumption of same and make a budget plan to

Business Strategy: 7
minimize the consumption so that the production cost can be reduce (Quinlan, Babin,
Carr and Griffin, 2019).
Challenges Faced by the Sydney Opera House:
i. Limitation in software: As the opera house was operating functions from long time
and due to its traditional patterns they were unable to upgrade their system with the
advance software as they have improper resources for the same. Their team usually
does research on these challenges and tries to fix the issue at the earliest.
ii. Limited Funds: At first due to limited investors and the limited source of business the
Sydney opera house had to face challenges with the funds or finance. Later on the
management team of the house find out the ways to generate capital for the business.
iii. Data Availability: It is also related with the funds as they have less data in their
database were available to implement new changes in the infrastructure of their
business.
iv. Geographic Isolation of Australia: Due less support from the technical team due to
time zone of Australia as because the office hours are totally based upon the
American standard or European standard.
Success factors of Sydney Opera House:
The following factors were reflecting as the success factors of Sydney Opera House:
 Inspiring and Cooperative Culture: As it is most famous building in the world this
factor inspires the employees and local people of Sydney to have interest on it. People
provide the innovative ideas for its development and also help the house by taking
sponsorship of the house.
 External collaboration: The management team of house makes a way to get connect
with the other organization by investing them in their or by getting them involve in
their own business.
 Client Involvement: This was the major factor which made the house successful in
their business (Howsawi, Eager, Bagia, and Niebecker, K, 2014).

Business Strategy: 8
Conclusion
Hence in this project it is defined that mostly the growth of the company is totally depend
upon the strategies which they opt in order to develop their stand in the market. The
organizations which are working in the traditional style they have to face a lot of challenges with
their mode of working and existence in the market, so techniques which were opted by the
Sydney opera House which set example of successful implementation of business strategies.

Business Strategy: 9
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Business Strategy: 10
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