Optimal performance Essay Example

over the building. They reopened it in 2007 after making interior changes while keeping the outer tent intact. The transformed facility now includes an arena in the center surrounded by restaurants, bars, clubs, shops, cinemas, and an exhibition center among other amenities (The 02, 2013). This is one of United Kingdom's largest arenas with a massive capacity of 20,000 inside its main arena. There is also a smaller arena that accommodates 3,000 people for more intimate concerts. The arena hosted athletic events during the London Olympics in 2012 and has become a highly sought-after destination for globally acclaimed singers and actors (The O2 Arena Official Website). Additionally,the venue can be converted into a sports arena for basketball, boxing,and tennis competitions.The arena is renowned for its stage shows and theaters (The O2 Arena Official Website).The organization has seen consistent revenue growth since it was established in July 2007. It has become a market leader in entertainment in the United Kingdom and gained global recognition. The skilled management team has formed partnerships with renowned entertainment pubs and attracts big stars to perform at The O2 (The O2, 2013). They collaborate with external companies experienced in the service industry to benefit AGE.

While these organizations are performing well, there have been some customer service issues. To address this, the organization is expanding its functions and introducing new ideas to its existing services. Previously, they created a platform on top of the 02 building for visitors to take pictures and enjoy the view. Another addition near 02 is the Amaranths cable car that connects Greenwich Peninsula to Prince Regent on the Thames.

These innovations and developments keep customers interested in the

organization's services, resulting in increased sales. However, this report aims to identify gaps in marketing activities and evaluate how filling these gaps can further boost revenue. In the entertainment industry, customers rely on organizations for information about their services. The 02 and similar organizations can enhance their performance by implementing effective online marketing strategies.Currently, the organization's marketing efforts primarily target show promoters. However, if organizations increase their marketing activities, significant improvement can be achieved. Unlike promoters, the organization maintains continuous communication with customers and is better positioned to provide accurate information and details about additional services. This can be seen as up-selling and cross-selling of services. Customers are more familiar with the organization itself rather than the show promoters. By utilizing direct marketing strategies, organizations can build trust immediately. Reporters believe that organizations have the capability and resources to enhance their marketing efforts by leveraging customer information obtained during visits at 02. Some existing systems are not effectively utilized, resulting in market problems. Streamlining these systems and evaluating their performance in relation to investment and expenses could further enhance marketing management. Despite the availability of more affordable marketing solutions that meet customer needs, organizations hesitate to adopt them without substantial justification. If organizations aim to grow in the future, they must consider adopting modern technological solutions as customer information needs constantly change and relying on outdated systems indefinitely will not suffice.
The rapid pace of technological advancement necessitates organizations to adapt and keep up in order to thrive. However, the 02 management currently lacks a platform to align the organization with shifting business environment (The 02, 2013). Analyzing the market situation, also known as STEEPLE Analysis,

involves examining external factors that impact an organization. These factors can be categorized into various elements, including society which consists of individuals living in a specific environment and sharing common values. It is essential for organizations to understand societal trends and values for effective marketing and communication with customers. By staying updated on social values, organizations can achieve their broader goals and objectives in a timely manner (Asker and McLaughlin, 2007). Organizations can adapt to changing social needs by comprehending society and informing their own organization about anticipated changes. The renowned 02 Arena in London serves as a social hub where well-known singers, actors, and athletes attract people from all over the country. Marketers at 02 can gather information regarding people's preferences, locations, and availability to inform the marketing management team who then invite suitable celebrities. Understanding people's needs enables 02 to host appropriate events and concerts efficiently.Technology plays a crucial role in all aspects of an organization, such as manufacturing, management, finance, and marketing management. The use of information technology can enhance customer care, services, and management practices. Modern organizations allocate a significant portion of their budget to access and utilize modern technology in order to improve their operations.

According to McDonald (2007), having access to genealogy and skilled employees are vital for optimal utilization of technology in organizations. Prudent organizations recognize the importance of developing skills within their workforce to effectively harness technology's potential. By doing so, they can maximize the benefits derived from technology investments.

Organizations face a major challenge in keeping up with frequent changes in technology. They must continuously adapt and readjust their technological systems to align with changing market conditions. Since

2002, the use of technology has become commonplace across various organizational functions.

In marketing specifically, technology is employed for collecting and analyzing customer information. However, it should be noted that not all utilized technologies are highly advanced; manual processes still exist. These manual tasks consume more time for employees when inputting information and obtaining results. Implementing a more automated system would enhance employee efficiency and increase the accuracy of marketing information.
Adoption of advanced technology could also result in enhancements in customer services and care (The 02, 2013). In a study conducted by Wilson and Gilligan (2005), it was discovered that economic conditions significantly affect the purchasing power of customers. Customers with higher incomes and disposable income are more likely to spend money on various necessities. Typically, individuals prioritize spending on basic needs before expanding their expenditures on luxury products and services. Luxury products, specifically those within the entertainment industry, often take a backseat to fundamental needs.

During depressed economic conditions, organizations frequently reduce prices to make their offerings more accessible to a wider range of customers. In the case of concerts, ticket charges are determined not by the organization itself but rather by promoters. Nonetheless, organizations such as 02 can still be stakeholders and provide suggestions for affordable prices. Promoters have a closer connection to the customer segment attending the concert and possess a better understanding of their financial circumstances (The 02, 2013).

Additionally, Gilligan and Wilson (2009) emphasize that consideration for the physical environment is also imperative in organizational strategy. Socially responsible organizations employ measures to safeguard and conserve the environment. By making customers aware of their dedication to society, organizations boost their reputation.Organizations that produce materials

and chemicals have a more detrimental impact on the environment, while service organizations have a lesser environmental footprint due to their lack of involvement in physical deliveries. Nevertheless, service organizations still prioritize maintaining a clean environment as part of their social responsibility. For instance, the 02 Arena encourages customers to use public transportation instead of cars to protect the environment. Additionally, these organizations allocate a significant portion of their budget towards cleaning and mitigating health and safety risks.

Political factors can also significantly affect businesses operating within a specific environment, such as changes in tax rates and inflation control. These factors ultimately impact society's individuals and subsequently influence organizations operating within that area (The 02, 2013; Harrington and Attendances, 2011).

Being the largest governing body, the government prioritizes its citizens' welfare by having the authority to request the closure of organizations if they deem them non-beneficial for society. The renowned entertainment venue known as the 02 arena in London attracts people from all over the world for concerts. The United Kingdom's political system is well-established and stable, creating a safer business environment with fewer fluctuations. Moreover, the government actively seeks to attract more investment and maintains a positive outlook towards businesses.Laws and regulations have a direct or indirect impact on businesses, aiming to protect the rights of organizations and individuals. Legal action can be taken if an organization consistently endangers visitors or violates people's rights, with courts having the authority to enforce compliance. Both organizations and individuals must follow these laws for societal functioning.

In order to avoid legal action, organizations in the entertainment industry are taking proactive measures to address concerns regarding health and safety at gatherings.

The security of individuals attending concerts is crucial, ensuring their well-being and enjoyment without any risks. Increasing security measures and providing stewarding services help maintain smooth operations and public safety.

To further reduce risks, organizations also develop contingency plans for emergencies. Ethics play a significant role in society as they influence people's preferences and decisions regarding certain beliefs. These ethical values stem from society itself, meaning that organizations operating within a specific community must respect these values and align their business practices accordingly.The more alignment an organization has with societal ethics, the more likely they are to attract customers. However, it is important to note that ethical values may change as societal shifts occur.
Organizations must constantly adapt and align their operations with evolving societal needs in order to remain successful. This is particularly crucial in the entertainment industry, where organizations must ensure that the entire concert experience reflects ethical values. If any issues arise, they should be promptly addressed and resolved. The media also plays a role in uncovering ethical issues within organizations and bringing them to public attention.
In the entertainment industry specifically, customer retention heavily relies on ethical values. Individuals may quickly switch to another entertainment venue if their own values are not considered. (Abram and Klein, 2003).
When conducting a SWOT analysis of the 02 Arena, both internal and external factors need to be taken into consideration (Carlson and Anderson, 2011). The first two elements of the analysis focus on the organization's internal environment including strengths and weaknesses while the latter two pertain to its external environment which includes opportunities and threats.
According to Doyle (2008), internal analysis focuses on variables that can be controlled through

effective strategies, policies, and planning. By examining internal forces such as strengths and weaknesses, organizations can develop realistic strategies based on their core competencies and limitationsLocation is crucial in the entertainment industry, as it can greatly influence the success of a business (Doyle, 2008). The 02 Arena understands this importance and has strategically positioned itself to easily attract customers. Situated in Greenwich, which is famous for being home to the Prime Meridian and Greenwich Mean Time, the arena holds global recognition. It is also conveniently located near the financial hub of the United Kingdom. The surrounding area boasts various historical landmarks such as the Old Navel College and Royal Observatory.

In terms of accessibility, the 02 Arena is well-connected to different transportation options including cars, buses, tube services, and Thames clipper services that depart every 15 minutes. International visitors can also enjoy easy access as City Airport is only a short distance away.

Another key factor contributing to its success is its strong management team. Over six years, they have successfully attracted significant concerts by securing renowned celebrities and providing exceptional customer service. As a result, the O2 Arena has become known as the busiest arena in terms of concert numbers held.The O2 hosts an average of 15 concerts per month, with potential variations throughout the year. It is owned by AGE Group, a renowned entertainment group that also possesses other top arenas globally. This ownership allows the O2 to have a better understanding of industry demands. The venue has secured strong contracts with singers, actors, and sports bodies, enabling them to attract top talent for customer enjoyment.

The exceptional services provided by the O2 have earned them

a solid reputation as a premier service provider. Consequently, they are able to charge higher prices and achieve higher profit margins. The distinctive building design resembling half a football is a popular attraction for visitors looking to take pictures.

While the main arena can accommodate 20,000 people, there are additional spaces outside where smaller arenas like Indigo, exhibition centers, clubs, bars, and shops are located under one roof. By offering these supplementary services alongside their main attractions, the organization maximizes revenue.

However, there are weaknesses within the organization's structure. Firstly, operating in an economically vulnerable environment directly impacts customer attendance. During economic downturns or depressions especially when priorities shift elsewhere customers may not prioritize attending events at the O2.One weakness of 02 is its high prices compared to competitors like Humble Arena in the same areas. This can lead customers to choose a more affordable alternative if they perceive that 02 does not provide the same level of service or if they have limited funds for entertainment. Even parking alone at 02 costs ?28, and other services within the organization are also expensive. Many customers complain about these high prices, making it difficult for those with average incomes to enjoy their time at 02.

Unlike 02, there are numerous organizations offering different services that have more control over common resources. As a result, 02 outsources various services such as parking and security from different organizations. However, despite this outsourcing, the organization prioritizes its customers' needs. If customers do not receive satisfactory services from these external organizations, it reflects poorly on 02 even though they have no direct control over them.

Moreover, their marketing efforts have been unsuccessful in attracting

visitors. Customers can only obtain information from a few marketing sources as there is no centralized campaign effectively communicating concepts to them. Different stakeholders conduct their own marketing in various ways which causes confusion among customers and potentially leads to loss of business for the organization.The text suggests that expanding the organization's business to other cities in the UK, such as Manchester and Birmingham, presents opportunities for growth. Additionally, establishing hotels near the 02 building and increasing hotel sales during event days can generate additional revenue. With available resources and facilities, investing in these opportunities is beneficial. The development brought about by 02 has resulted in several buildings being built nearby, including a college, TFH building, and private offices.

To attract more visitors to the area, it is suggested to add other relevant businesses within proximity. Introducing innovative ideas like the Ice Rank outside the 02 has been successful so far and could continue to attract customers. Investing in social welfare projects can also enhance the hotel's reputation within society. This marketing strategy serves as a long-term investment that improves visibility and earns higher ratings from modern customers who value organizations working for social welfare (The 02, 2013). However, it is important to consider potential threats from competing organizations with better entertainment ideas that could potentially harm the hotel's benefits.Despite the need for increased investment, there are potential investors who may be willing to contribute towards the development of larger venues than the 02 Arena. The nearby Excel Centre has the capacity to accommodate a significant number of people. If they convert their exhibition centre into an arena, they could become competitors for the 02 Arena.

The

business of the 02 Arena can be significantly impacted by various changes, particularly in their club business. There are challenges faced by the police every weekend and if this continues, restrictions may be imposed on pubs and clubs by the courts. This not only affects the business but also has benefits for customers.

There is also a possibility that legal claims could result in substantial compensation being paid by the organization. Additionally, if key personnel depart, it can ultimately affect the performance of the organization as finding suitable replacements in the entertainment industry can be challenging.

Figure 1 - Impact of telecommunication with Marketing Methods Objectives outlines a plan to increase revenue at the 02 Arena by 15% through a combination of online and offline marketing strategies in 2013.

Financial growth is a goal for all organizations, with revenue serving as a crucial indicator. An increase in revenue signifies growth and attracting more customers or selling products and services at higher profit margins. Organizations set revenue targets for future forecasting and measure their performance against these objectives.According to Greenback (2001), the performance measurement system connects actual performance with expected performance, which allows an organization to achieve its objectives. Setting specific and operationally linked objectives is important for organizations, as emphasized by Go and Hiccough (2010). It is crucial to find a balance in setting achievable but challenging goals, as overly optimistic or pessimistic goals can demotivate employees. If goals are too optimistic, employees may feel incapable of reaching them and performance may decrease. Conversely, if goals are set too low, employees may not strive for optimal performance, resulting in lower overall performance and negative impacts on financial and

organizational objectives. Blackburn et al. (2008) stress the importance of finding achievable objectives within a certain range to motivate employees. Organizations should carefully assess their objectives in order to achieve higher productivity and profitability. Additionally, the use of other utilities at the workplace can hinder goal accomplishment according to Harrington and Attendances (2011). Therefore, it is crucial for organizations to determine a balance between optimistic and pessimistic objectives while considering their relevance in achieving success.According to Blackburn et al. (2008), organizations can determine a variety of achievable goals by examining their past financial data and other relevant information.