Submitted to

MGT-210
Organizational Management
Case Analysis On
“Not Sold Out”
(Chapter 3, Case No.2)

Mohammad Asif Gazi (MAG)

Department : Management

North South University

Submitted By

Md.Omar Faruk ID: 1713026630

Galib Hasan Nizum ID: 1712522630
Leza Akter ID: 1713077630

(Group-5)
(Section : 21)

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 LETTER OF TRANSMITTALS

19th February, 2018

To
Mohammad Asif Gazi (MAG)
Department of Management
North South University

Subject : Submission of Case Analysis.

Dear Sir.
The purpose of this letter is to let you know that we are the Group-5 of
MGT 210 (Principle of Management) in section 21. Our group consists of
Four members and one have not participated in this Case Analysis.
Therefore, this letter seeks your earnest approval of the Case Analysis
submission. Our group is obliged to be asked for any queries regarding
the Case Analysis work at any time you feel convenient.

Sincerely yours,
Md.Omar Faruk ID: 1713026630
Galib Hasan Nizum ID: 1712522630
Leza Akter ID: 1713077630

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 Table of Contents

Contents Page Number

CASE APPLICATION 2 (Not Sold Out) 4-5

Not Sold Out (Summary) 6

Questions Answer 7-8

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 CASE APPLICATION 2 : Not Sold Out
Competitors in the movie theater industry had hoped that they were through the
challenges they’d faced during the economic downturn. 65 After ticket sales
revenue in 2011 fell 4 percent from the previous year, revenue in 2012 was up 6.1
percent. However, in 2013, revenues were up again, but just barely—not even by
1 percent. The numbers of people going to see a movie continue to stall. So, the
industry has tried to pump up revenue with high-profile movies, higher ticket
prices, and premium amenities.
The number of movie screens in the United States totals a little more than
39,000.Together, the four largest movie theater chains in the United States have a
little over 19,200 screens—and a lot of seats to fill. The largest, Regal
Entertainment Group (based in Knoxville, Tennessee), has more than 7,300
screens. AMC Entertainment (based in Kansas City, Missouri) has almost 5,000
screens. The other two major competitors are Cinemark (based in Plano, Texas—
about 4,400 screens) and Carmike Cinemas (based in Columbus, Georgia—almost
2,500 screens). The challenge for these companies is getting people to watch
movies on all those screens, a decision that encompasses many factors.
One important factor, according to industry analysts, is the uncertainty over
how people want their movies delivered, which is largely a trade-off between
convenience and quality (or what the experts call fidelity experience). Will
consumers choose convenience over quality and use mobile devices such as iPads?
Will they trade some quality for convenience and watch at home on surround-
sound, flat-screen, high-definition home theater systems? Or will they go to a
movie theater with wide screens, high-quality sound systems, and the social
experience of being with other moviegoers and enjoy the highest-fidelity
experience—even with the inconveniences? Movie theater managers believe that
mobile devices aren’t much of a threat, even though they may be convenient. On
the other hand, home theater systems may be more of a threat as they’ve become
extremely affordable and have “acceptable” quality. Although not likely to replace
any of these higher-quality offerings, drive-in theaters, analysts note, are
experiencing a resurgence, especially in geographic locations where they can be
open year-round. The movie theater chains are also battling IMAX Corporation for

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customers as movie screens get bigger and bigger. Over the last five years, the
number of these oversized screens built by the five largest theater companies has
grown to the point where it almost equals the number of IMAX locations. The
movie theater chains have invested in these formats because it can add several
extra dollars to the ticket price, resulting in increased revenues.
Another factor managers need to wrestle with is the impression consumers
have of the movie-going experience. A consumer lifestyle poll showed that the
major dislike about going to the movies was the cost, a drawback cited by 36
percent of the respondents. Other factors noted included the noise, uncomfortable
seats, the inconvenience, the crowds, and too many previews/commercials before
the movie.
A final question facing the movie theater industry and the major film studios is
how to be proactive in avoiding the problems that the recorded music industry
faced with the illegal downloading of songs. The amount of entertainment
streamed online (which includes both music and video) continues to experience
double-digit growth. The biggest threat so far has been YouTube, which has
become a powerful force in the media world with owner Google’s backing. But now
Amazon and Netflix are flexing their movie muscles as well. To counter that threat,
industry executives have asked for filtering mechanisms to keep unlawful material
off these sites and to develop some type of licensing arrangements whereby the
industry has some protection over its copyrighted film content.

Discussion Questions:
3-21. Using Exhibit 3-2, what external components might be most important for
managers in movie theater chains to know about? Why?
3-22. According to the case, what external trends do managers at the movie theater
chains have to deal with?
3-23. How do you think these trends might constrain decisions made by managers
at the movie theater chains?
3-24. What stakeholders do you think might be most important to movie theater
chains? What interests might these stakeholders have?

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 Not Sold Out (Summary)

Rivals in the motion picture theater industry had trusted that they were
through the difficulties they'd looked amid the monetary downturn. The
number of individuals going to see a motion picture keep on stall. So, the
industry has attempted to pump up income with prominent movies, high
ticket prices, and premium amenities. The four biggest motion picture
theater chains in the United States have a little more than 19,200
screens. The challenge for these organizations is inspiring individuals to
watch motion pictures on those screens, a choice that envelops
numerous factors. According to industry investigation, is the
vulnerability over how individuals need their motion pictures delivered.
Which is to a great extent an exchange off amongst accommodation and
quality. Movie theater administrators trust that cell phones aren't quite
a bit of a threat, even however they perhaps convenient. On the other
hand, home theater frameworks might be to a greater extent a risk as
they've turned out to be extraordinary moderate and have "adequate
quality. Another factor, managers need to grapple with is the impression
customers have of the motion picture going experience. A last inquiry
confronting the motion picture theater industry and the real film studios
is the manner by which to be proactive in staying away from the issues
that the recorded music industry looked with the illicit downloading of
songs. The greatest danger so far has been YouTube, which has turned
into an effective power in the media world with proprietor Google’s
backing. To counter that threat, the industry has some insurance over it's
copyrighted film content.
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 Questions Answer

3-21. Using Exhibit 3-2, what external components might be most

important for managers in movie theater chains to know about? Why?
Answer: There are four main external Components that important for
managers of movie theater chains to know about; they are economic,
demographic, technological, and sociocultural. Economic Component is
the most important because it's always important to watch these trends
of how much spending money people have to spend on entertainment.
Demographically, they need to know the ages and types od people whom
go out to the movies and when so they know what movies to Show at
time. Technological is important it. Any chain because you Will always
need it for jobs (other than some jobs out there) which leads to
sociocultural. Meaning, what’s going on around, sometimes traditions
can become difficult.

3-22. According to the case, what external trends do managers at the

movie theater chains have to deal with?
Answer: Managers at movie theater chains have to deal with external
tends such as ‘convenience over quality', saving money and not going out
to the monies, and they, might prefer the comfort of their own home
more.

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3-23. How do you think these trends might constrain decisions made
by managers at the movie theater chains?
Answer: External trends effect decisions made by managers at the movie
theater chains because they need to pay attention to their viewers to
make sure things are comfortable enough for them, they need to watch
sells to see which movie sells more, or if a price of an item is too much,
and more.

3-24. What stakeholders do you think might be most important to

movie theater chains? What interests might these stakeholders have?
Answer: Customers are the most important stakeholders in movie
theater chains and they are interested in quality, pricing, genre, etc.
Competitors are also stakeholders because they are always competing
to do better than each other. Suppliers are also affected by the theater
due to ticket sales or amount of showings.

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