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304SEM Venues Operations Management

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304SEM Venues Operations Management

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Course Code: 304SEM
University: Coventry University is not sponsored or endorsed by this college or university

Country: United Kingdom


For a single, selected venue of your choice, give a review of its current level of operational performance (e.g in terms of inputs, processes, outputs and outcomes) and identify a variety of measures which can improve its operational performance over the next year.


The Royal Opera House is home to an opera house and major arts events. It is based in Covent Garden in Central London. The building has undergone a quiet of renovation works n past. The theatre became popular as Royal Opera House in 1892. The current building is the third theatre as there have been reconstructions twice in the past. The royal opera house is not only making business to the owners but is also contributing to the national economy. Undeniably, it has remained a profitable venture over the years. The rate of profitability continues to expand further. The total income was equal to £141.0M in 2017 which is more than it was in 2016 (Lees and Melhuish 2015).
            The business belongs to Art related performance and is one of the oldest industries not just in the United Kingdom but in the world. It is also one of the most sellable industries which continue to prove its worth for the industry and also for its owners. In a similar way, the business and the event industry has remained a popular and potential money spinner for the United Kingdom. There are people who love performances which are purely based on arts. Such performances are a great resource to communicate a message which may significantly have its existence in the past.
The historical events of a country can be communicated in various ways such as through mainstream movies and also the art. Nevertheless, art is one of the most attractive and widely loveable things which have been able to pull a huge population towards it. The industry also has a firm foothold in the United Kingdom where the art markets are continually booming. Notably, the country is one of the world’s leading markets for art lovers. The antiques and arts market generate around 8 billion British pounds a year ( 2018).   
            The range of works which is related with the arts market is generally those covering the events from 1707 till the date of the Kingdom of Great Britain. The events generally cover the English art, Welsh art, Irish art and Scottish art. It also covers some the works from the Western art history (Yoon 2017). On a broader aspect, this particular study is based on analyzing the business performance of chosen event firm the Royal Opera House. The purpose is being served in this study with an evaluation of the firms’ operational performances. It is then followed by short-term actions to improve the performance if there are areas of improvement for the chosen case study firm.
2. An evaluation of the venue’s operational performance, giving any insights or explanations about the operational performance, using a variety of performance measures (e.g. input, output, efficiency, effectiveness etc.)
            Operational performance is an integral part of business which requires the assistance of both concepts and the practical application of established & relevant strategies. According to (Annarelli and Nonino 2016), the operation runs smoother when established and proven concepts are successfully applied to it. It does mean a lot and conveys the importance of a timely usage of various operational concepts. The process which is identified to conduct the needs assessment is as follows (Osei-Kyei and Chan 2017):
Purposes: It is just about setting the purposes and the relevant objectives. The progress is conducted in accordance with the set objectives.
Data: These are all such that gives an identification and understanding of the areas of improvement. Notably, a change management theory can never be applicable to address the issues in marketing & sales department. Data can be collected from a variety of resources like the company’s annual report, the government’s report on the industry, the market statistics and others.
Analysis: The collected data is then analysed against the set objectives and also the chosen theoretical framework for the action.
Relevant actions: This would include identifying the appropriate tools to resolve the issue and enhance the competency level.  
Review the progress: Once the relevant tools are implemented, it could not be left as it is. It is the regular needs to identify or monitor the progress of the implemented strategy or strategies.
Evaluation of the Royal Opera House
            The role of art & culture industry cannot be ignored in terms of job opportunities creation and the contribution to the country’s economy. It creates employment across various roles & responsibilities like performance, music and visual arts economy. The rate of employment is continuously increasing which makes this a potential strategy for the United Kingdom ( 2018). Despite such values, the industry still largely relies on public funding. Arts Council England in England provides government funding to the arts industry. The portfolio of organisations associated with the Royal Opera House is regularly being funded through public funding ( 2018).
It just explains or highlights the dependency of the industry on the investments. The innovation or the suitable action to attract modern customers and retain the old age customers would likely be facing the challenges every time the change is required. The identified issue must be addressed with effective strategies, so that, the Royal Opera House does not suffer from it and continues to implement the innovative thoughts to attract the large audience base.
            ROH seems to have a huge impact on the art lovers. This is the reason why Covent Garden is largely popular because of the Royal Opera House. Notably, the building of ROH does not look like that much attractive. This can be said that it does not make a much of difference to the Covent Garden. However, the contents of the art hall and the class of shows being played on the stage makes ROH a must visit place for the global audience.
Notably, the art making and shows are one of the biggest attractions of the Covent Garden (Guachalla 2017). The analysis identifies one issue which is the infrastructural development of the Royal Opera House. The infrastructural development should also be taken care with utmost and feasible strategies, so that, the building turns out to be an attractive and engaging place to visit.  
            The open door policy of the Royal Opera House might play an impactful role in uplifting its reputation in the country and also at the global level. The open door policy is being made to allow and encourage the modern day customers who rarely have desires for art shows. They are normally very huge lovers of mainstream movies. The Royal Opera House perhaps sensed the urgency for attracting the youth and modern-day population to attain a sustained business performance. The open door policy allows youth audience visiting the ROH and becoming a part of it by witnessing the live relays of ongoing ballet and opera productions (Guachalla 2017). This was done for purposes as such the development of audience and the making of art shows which are appealing at the social level.
The social inclusion was missing in the Royal Opera House and the firm has also responded to it (Guachalla 2017).  The issue that the policy faces is the maintenance of a balance between quality shows and the practices as modern day customers might not be aware of the fundamentals of art shows. It means that the participation of the younger population must not hamper the quality shows which are evidently popular with the Royal Opera House. Additionally, the infrastructural developments would also be tested as the youth or modern-day customers need or demand the ample of facilities into and changes to an art shows company.
They will feel engaged in it once they are pleased with every factor which they expect from this industry. They look for career prospects which are hidden in a fact that to what extent the Royal Opera House is able to pull the audience and increment its profit margins. Apart from career prospects, youth lovers of art shows and drama making are also concerned with the infrastructural developments. It means that the Royal Opera House will need to make the regular investments in incrementing the standards of art shows, the drama making and the infrastructure (Alrhaimi and Mugableh 2017).
            Notably, the number of audiences is rising for the ballet companies not for opera in the Royal Opera House in the last few years. These are the audience for mid and large-scale live performances. The evidence for the fact can be traced in the number of audiences increased or decreased between the period 2008/9 and 2011/12. The number of audience for the performance by the three ballet companies grew from c.700,000 to c.850,000 per annum. The number of performance increased from 515 to 536 on an annual basis ( 2018). On the other hand, the four opera companies had witnessed the significant drops as number or audience dropped from c.700,000 to c.650,000 over the same period.
The number of drama shows decreased from 448 to 415 per annum ( 2018). Both Opera and Ballet are working on their potentials; however, ballet companies have been able to make the huge profits. Opera seems to be working more on new works to attract the youth and the doer day population. Cinema screenings including both of Opera’s and Ballet’s recorded and live performances are potentially attracting the new audiences ( 2018). The issue found in this analysis is related with the overall developments of the quality shows of opera companies in the Royal Opera House. Opera companies, in particular, need to work upon the quality of shows and the infrastructural developments in order to remain profitable and crowd puller.
            Touring companies and venues lack a collaborative approach and work. This may be an issue which is affecting the crowd pulling the new audience developments for ballet and opera companies. Touring companies have the frustrating experience with the venue and claim to have a not so good support from the venue. The venue denies sharing the detailed data of audience. On the other hand, venues’ expertise claims that their hard efforts in selling the tickets do not receive valuable comments from the touring companies. It is also claimed that no consultation is made over education programmes and prices (Trimarchi 2016).
            The Royal Opera House has also been in criticism for some unexpected thing. The cleaners of the Royal Opera House had participated in a protest “Bafta strike action” held in 2014. The protestors were asking the London living wage. The Royal Opera House according to a Facebook post claimed to offer the London living wage to its cleaners to protect its reputation from being distorted. However, the same reporting was not officially confirmed on the news as well. However, ROH had realised the urgency to respond to the call and the company did it actually by fulfilling the demands for London living wage ( 2018). It is important for the Royal Opera House that it takes necessary actions to address such issues. Actually, such thing is one of the essential elements of the organisational values.   
3. An outline of short-term actions to improve the operational performance and the venue services like legal regulations such as health and safety legislation
Short-term actions addressing the different identified issues in the aforesaid section


Possible short-term actions

Investments or the availability of funds

The process of investment or funding is very complicated as the portfolio of ballet and opera companies rely largely on the Art Council England. It is, therefore, necessary for ROH to work in collaboration with touring companies to produce a much better operational output and enhance its attractiveness level for the audience. There is a need to produce quality shows in both mid and large-scale formats (Kruger and Saayman 2017). The potential growth in the audience base for both ballet and opera companies will certainly draw a much healthier support from the Art Council England.

Infrastructural development is required

There is a need for infrastructural development, so that, the ROH building also becomes a point of attraction to those coming to Covent Garden. It is so far not so attractive and is not the crowd puller to Covent Garden. The Royal Opera House has maintained good profits in 2016 and 2017. The profits were respectively equal to £0.2m in 2016 and 2017 ( 2018). ROH should utilise a sum of the total profit and use it for promoting the infrastructural developments.

Open door policy faces certain challenges like audience development and the production of quality shows  

Open door policy of the Royal Opera House faces the challenge in terms of audience development and the maintenance of quality shows. The policy is indeed a potential move; however, it should never be suffered from increasing the number of younger participants. There is a need for younger generations’ association with the ROH to attain a sustained business. However, quality of shows should always remain a primary objective (Pessôa et al. 2015).   

Missing quality shows in opera companies

Opera companies are more concerned with new work. This may be to attract the contemporary audience and those with good analytical understanding. However, it is eventually hampering the other categories of audience. Ballet companies are expanding in terms of the audience base. Hence, opera must maintain a balance between experimental and the regular shows (Abdel-Maksoud, Cheffi and Ghoudi 2016).

A collaborative work between touring companies and venues is missing

Undeniably, a lot can be made to happen in regards to attracting the audience for ballet and opera performances. This is possible only if the touring companies and the venues work together on agreed terms of business. The exchange of valuable supports from either of the side will be seen as an important move thereof (Podgórski 2015). The Arts Council of England should necessarily play an important role in improving the working relationships between the touring companies and the venues. An improved collaboration will also improve the business performance of the opera companies. Notably, those firms have struggled in past in pulling the crowds and increasing the number of shows for both mid and large-scale shows.

Improvement of venue services

Venue services such as health & safety aspect of employees & also the audience and the minimum wage payment should be maintained. Health and safety aspects can be effectively implemented by strictly adhering to the fire safety policies at the workplace, smoking at work policy and workplace temperatures policy ( 2018).

4. Conclusion
            In summary, this can be said that the Royal Opera House is a reputed company in the United Kingdom. People at the global level are aware of it. It showcases mainly the large and mid-scale shows of ballet and opera companies. Ballet companies are contributing to the number of audiences every year. Opera companies have struggled to increase the audience base. Art Council England must take the appropriate actions to form a good bonding of work between touring companies and the venues to promote a healthy development of the ROH. Investments must also be made over the infrastructural developments to make the house much more attractive and engaging as well. It should actually maintain its legacy impact along with engaging features for the youth population. 
Abdel-Maksoud, A., Cheffi, W. and Ghoudi, K., 2016. The mediating effect of shop-floor involvement on relations between advanced management accounting practices and operational non-financial performance indicators. The British Accounting Review, 48(2), pp.169-184.
Alrhaimi, S.A. and Mugableh, M.I., 2017. Reviewing the role of quality management, creativity innovation, imitating and role of strategic human resources on operational performance. Australasian Journal of Business, Social Science and Information Technology (AJBSSIT), 3(1), pp.1-6.
Annarelli, A. and Nonino, F., 2016. Strategic and operational management of organizational resilience: Current state of research and future directions. Omega, 62, pp.1-18.
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Choi, I., 2016. Are Central Government-Affiliated Performing Arts Organizations in South Korea Being Operated Efficiently?. International Journal of Policy Studies, 7(2), pp.1-13.
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Green, R., 2014. Music theatre: concepts, theories and practices. Lulu Com.
Grisolía, J.M. and Willis, K.G., 2016. Consumer choice of theatrical productions: a combined revealed preference–stated preference approach. Empirical Economics, 50(3), pp.933-957.
Guachalla, A., 2017. Social inclusion and audience development at the Royal Opera House: a tourist perspective. International Journal of Culture, Tourism and Hospitality Research, 11(3), pp.436-449.
Guachalla, A., 2017. The Royal Opera House and Covent Garden: A symbiotic and complex touristic relationship. Tourism and Hospitality Research, p.1467358417738309.
Jianqin, Z., Peiyuan, Q., Yingchao, D., Mingyi, D. and Feng, L., 2015. A space-time visualization analysis method for taxi operation in Beijing. Journal of Visual Languages & Computing, 31, pp.1-8.
Kelly, C., 2018. Dancing Up the Glass Escalator: Institutional Advantages for Men in Ballet Choreography. Columbia Undergraduate Research Journal, 2(1).
Kruger, M. and Saayman, M., 2017. Raising the curtain on audiences at The Phantom of the Opera. South African Theatre Journal, 30(1-3), pp.15-29.
Lahou, E., Jacxsens, L., Verbunt, E. and Uyttendaele, M., 2015. Evaluation of the food safety management system in a hospital food service operation toward Listeria monocytogenes. Food Control, 49, pp.75-84.
Lees, L. and Melhuish, C., 2015. Arts-led regeneration in the UK: The rhetoric and the evidence on urban social inclusion. European Urban and Regional Studies, 22(3), pp.242-260.
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Pessôa, L.A.M., Lins, M.P.E., da Silva, A.C.M. and Fiszman, R., 2015. Integrating soft and hard operational research to improve surgical centre management at a university hospital. European Journal of Operational Research, 245(3), pp.851-861.
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Podgórski, D., 2015. Measuring operational performance of OSH management system–A demonstration of AHP-based selection of leading key performance indicators. Safety science, 73, pp.146-166. 2018. Comment: How Bafta strike action made the Royal Opera House pay a decent wage. 
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