This individual assignment will be assessed by means of a 3,000 word report. The assignment has been designed to allow you to develop and use your knowledge and skills in understanding key strategic...

Cirque du Soleil
Cirque du Soleil
Understanding different stakeholder considerations and the synthesis between responsibility and profitability
May 2012
Executive Summary
This report examines the factors that contributed to the success of Cirque du Soleil at a time when all the other circuses were closing down. The report draws attention to the fact that in 21 years the circus brand has transformed into a half-billion dollar international company. The company’s ability to tap into new frontiers enabled it to survive the externalities that caused most its rivals to collapse. Further, the report reveals that the maintenance of sound stakeholder relationship is critical to the survival of an organization. The recommendations listed hereunder suggest three key ways by which the company can maintain a sound corporate strategy:
· The company should ensure that they keep track of changes in customers’ tastes and preference so as to maintain its competitive advantage.
· The company should diversify its portfolio so as to ensure that it maintains its stream of income.
· The company should sustain its stakeholder relationship and seek avenues for improvement.
Table of Contents
1Executive Summary
2Table of Contents
41.0 Introduction
51.1 Purpose
51.2 Procedure
51.3 Methods
61.4 Background of the Company
62.0 Discussion
62.1 Stakeholders of the company
82.2 Stakeholder relationship
92.3 Uniqueness of Cirque du Soleil
112.4 The Financial impact of Operational innovations
132.5 Corporate Mission for Cirque
132.5.1 The Mission
132.5.2 Vision Statement
132.5.3 The goal of the company
142.5.4 The Core Values of the Company
143.0 Conclusion
154.0 Recommendations
165.0 References
1.0 Introduction
The main goal of any organization is to achieve financial success. This goal is achievable through the embodiment of the tenets of strategic management. Strategic management denotes a systematic analysis of factors associated with the internal and external environments, which aims at sustaining optimum management practices. Strategic management is a process that spans from the development of a business’ mission and vision to the evaluation and monitoring stage of the strategy. Whereas the two aforementioned steps form the first and last steps of strategic management, setting the company’s objective, crating and implementation of the strategy form the 2nd, 3rd, and 4th steps respectively (De wit and Meyer, 2004).
Strategic management enables a company to establish its goals, aims, duties and obligations. Strategic management can only be realized through strategic planning. Strategic planning refers to the process by which an organization defines its strategy and makes decisions on how to realize its goals (Whittington, 2000). Strategic planning employs the use of a strategic plan, which answers three crucial questions. These questions include, “what do we do”, “for whom do we do this?”, and “how does the company excel?” The main component of strategic planning entails an appreciation of the organization’s mission, vision, strategies and values. The vision and the mission of the company are normally enshrined in the vision and mission statements of the company (Johnson et al, 2008).
The strategy statement of a company is a crucial management tool. It comprises an organization’s vision and mission statements and the aims and goals of the organization. An organization’s vision statement outlines the aspirations of the organization. It states what the company wants to be and how it envisions the operation of the world in which it exists. The vision statement can be emotive and serves as a source of inspiration to the stakeholders of the company. On the other hand, a mission statement underscores the fundamental purpose of the company succinctly explaining the reason for its existence and the steps it takes to achieve its vision (Cirque du Soleil, 2008). Companies often summarize their goals and objectives in these two crucial statements. A company must strive to encourage the personification of the company’s strategic statements by its employees.
1.1 Purpose
This report purposes to examine the corporate strategy adopted by a multi-billion dollar entertainment company, Cirque du Soleil.
1.2 Procedure
This report studies the various strategies applied by Cirque du Soleil. In an attempt to investigate the company’s corporate strategy, the report will employ several strategy models to the case study provided.
1.3 Methods
The information presented in this report was deduced from various sources. These sources include the provided case study, reading materials and resources obtained through internet research. The case study will be analysed using different strategic models. A theory on stakeholder relationship will also be used to rationalize the success of the company.
1.4 Background of the Company
Cirque du Soleil is an entertainment company incorporated in Canada. This company was founded in the year 1984 by two street performers, Daniel Gauthier and Guy Laliberte. The company experienced accelerated growth through the 1990s and 2000s. Cirque du Soleil expanded its shows from one to 19 covering over 271 cities in all continents of the world apart from the Antarctica. These shows provide employment for over 4000 people around the globe. The company’s annual revenue exceeds US$810 million (Cirque du Soleil, 2008). The permanent Las Vegas shows open its doors to over 9000 theatre goers. These add to the massive 90 million people who frequent their worldwide circuses.
In 2000, Laliberte increased his shareholding in the company by buying out Gauthier’s shares, effectively becoming the majority shareholder. After clinching the 95% ownership of the business, Laliberte has continued to enlarge the company.
2.0 Discussion
2.1 Stakeholders of the Company
Cirque de Soleil was established partially with a grant from the government of Quebec. This makes the government a stakeholder in the circus company. The company was formed as a partnership between two former street performers, Daniel Gauthier and Guy Laliberte. However, the 2000 burnout of Gauthier’s shares effectively conferred the majority stakeholder’s title on Laliberte. The buyout altered the company’s shareholding; transferring the whole share holding to Laliberte (Sylt, 2011).
In 2008, Laliberte split his share by 20% to accommodate two investment partners, Nakheel and Istithmar of Dubai. These new partners each received a 10% shareholding in the company. Laliberte’s motive for the share split was to raise funds to finance the goals of the company. The partnership’s medium term goal was to establish a residency show in Dubai by 2012. However, Dubai’s financial crisis that occurred in 2012 thwarted the plan. Consequently, Cirque has stated that it is in the market looking for another financial partner to fund the company’s long-term plans. Laliberte has been cited as saying that he would be willing to shed off some 10% of...