Who are the stakeholders of Cirque do Soleil? Why are they so supportive of Cirque to exist and why? (20 marks) How does the success of serving the interests of stakeholders reinforce the financial...

CIRQUE DE SOLEIL

CIRQUE DE SOLEIL
Strategic Analysis


6/13/2012
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Executive Summary:
In this report we have undertaken the study of Cirque de Soleil. We have looked into the reason why
promoters went ahead and created this business, what’s the unique offering it was making to audience.
Additionally we have looked into the various possible external elements whose efforts and combination
resulted din the success of it. This is apart from a very detailed look into the innovation across various
dimensions of business that has been brought in by them and the resulting financial effect that it has
resulted in.
We have paid special interest and effort on the financial front related to each perspective because for a
business it is its top line and bottom line that matter the most, leave apart all other things. In this report
ne can look into various stakeholders associated with businesses, the interest of stakeholders in keeping
company growing and the alignment of these interests with the financial performance and goals of
company.
We have also identified the various operational innovations achieved and introduced by Cirque in this
business and then have aligned the financial dynamics which these moves and reflected on same. Basis
on these analysis we as a last section have reported on the possible and viable new mission that
company can undertake and should undertake in light of long term sustainability needs.
Why Stakeholders want Cirque do Soleil to exist?
Before we move into studying the reason as to why stakeholders of Cirque do Soleil are supporting for
its existence, it is important to reflect upon the very stakeholders that we are considering. Looked from
a broader perspective the stakeholders would be the owners, the performing artists, the government
and agencies supporting it, the associated vendors and partners at their shows and even we can say the
veteran audiences who have grown viewing it shows and find it to be significant part of their life.
The government of Canada in broader sense would like to keep Cirque de Soleil continue because first of
all it has been its child since the initial troubling days and hence it would always like to see something
being grown and appreciated which it has incubated. Secondly it would like to showcase its image as
believer and creator of something which revolutionized the industry, in this case the circus industry.
Lastly and most importantly it would like it to continue because by its worldwide shows in small or big
manner it would be popularizing the culture of the country and showcasing the talent and abilities of the
resident of the nation.
On the other hand the most important reason for the need for survival of this business would be for the
owners and the employee for obvious reason of economic needs. The truth is definitely the economic
needs as owners have been for decade pursuing these businesses with passion and have no major
alternative business to sustain upon. The more important situation is for the employee since it is this
skill and the acts that they perform that makes them earn the money and recognition. Hence if the
company cease to exist, this form of art shall also cease and hence the collapse of their economic well
being.
The other major reason for them being the commotional connect that they have with the business not
just because of the earning they got but also because of the cheers they brought to thousands of
audience, the recognition they received for bringing out a new form of entertainment, the respect they
received for being brave ones to perform such acts. All this shall go away in dark if the business closes
down and they move out to earn the livelihood doing some odd jobs or something they were never
interested in.
It would be precisely more or less the same feeling as was expressed above when one look into possible
reason as to why a fan or audience would not like it to close down. Another acceptable reason is the
uniqueness of shows presented by it. Till date no exact replica or even near competitors of it has
emerged. This goes on to showcase the passion, talent, intent and richness of the performers and
owners. This for all good reason deserves appreciations and support and hence the expression of need
for this legendary example or even say phenomena to go on or as they say “the show must go on”.
Stakeholder’s interest and Financial Perspective:
While it might not be aptly correct to state that there is 100% co-relation in the positive financial
performance and the stakeholder’s interests but it would never the less equally viable to state that they
are very much significantly aligned. The above statement can be assured from the discussed we had
regarding various stakeholders and related interest of their in keeping the business going. The interest
and the financial perspective reflective from them would make this obvious.
The only major stakeholder whose interest will not be directly financially aligned would be that of the
audiences/Fans. Having said that It has to be accepted that the interest of the fans would be preserved
only when the culture and business continue to exist and as we will discuss next it has happen only
when it if financial viable to be...