Cineplex Case - case PDF

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BUS 217W

In-class Activity (Case Analysis)

IMPORTANT: Please bring this handout back to class each week. DIRECTIONS: Read the following case description. CASE: Cineplex Expansion You work for Cineplex Inc., a successful Canadian entertainment company that operates 162 movie theatres across Canada1. In 2017, the company grossed 1.5 billion CAD and is still growing. You are head of the Research and Development division at Cineplex headquarters in Toronto, Ontario. You received a phone call today from the Cineplex CEO, Ellis Jacob, who has news about a site for a possible new Cineplex theater in Delta, British Columbia. He has heard that Tsawwassen Mills, a large mall within the City of Delta, is looking for an entertainment company to open a theater on a large plot of land next to the mall. The City of Delta has three districts: Tsawwassen, Ladner, and North Delta. About a year ago, Delta obtained the status of “City.” According to a 2016 census by Statistics Canada, Delta’s overall population was 101,238. That number has risen and, with talk of a large, ten-lane bridge being built to replace the current 4-lane tunnel that connects Delta with Richmond and Vancouver, the population is expected to continue to rise. Tsawwassen is in the Southern region of Delta and is home to one of the main ferries that shuttles passengers between the mainland and Vancouver Island. Domestic and international tourists often come through Tsawwassen on their way to and from the ferry. With the construction of Tsawwassen Mills mall in 2016, other businesses have sprouted up around the mall such as restaurants, retail shops, and a commercial gym. One developer has even announced that he is getting approval to build a nearby hotel and casino. Many of these businesses depend on the projected growing population, the seasonal influx of tourists, and consumers from nearby cities like Richmond and White Rock. Ellis Jacob tells you he is excited about the possibility of a Cineplex theater in a growing area, but he also has concerns about the project. He is not sure if Delta will grow enough to make a large movie theater profitable longterm. Tsawwassen is land-locked and the amount of land upon which to build more homes and apartments is shrinking. Tsawwassen, traditionally part of a large farming community, still has several farms near the mall, all of which are legally protected farmland and cannot be developed. Many local residents have also complained that if Delta grows too big, it will destroy the small-town charm of the area. Consequently, Delta has passed rigid by-laws for its three districts, which discourage against large-scale residential densification. For instance, the tallest apartment complex in Tsawwassen is five stories high. Additionally, the nearest Cineplex to Tsawwassen is Cineplex Riverport in southern Richmond, which is a twentyminute drive away. Riverport is a large entertainment complex, which would be the model for a Cineplex theater in Tsawwassen. However, Riverport already services many nearby cities, including Delta. Jacob is worried that if they build a theater complex in Delta, they will end up stealing many of their own customers, taking away from the success of the Richmond Theater.

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In-class Activity (Case Analysis)

Ellis Jacob wants more information to find out if the company should pursue this project. He has asked you to develop a recommendation from your analysis of strong, secondary sources. He wants your recommendation and rational in a detailed memo. You are to send a copy to him and to the Cineplex Board. He has given you two weeks to complete the memo. He will wait to speak to the Tsawwassen Mills representatives until he and the board receive and review your recommendation.

CRITICAL THINKING 1. How clear is this case description? What terminology is familiar/unfamiliar to you? To think critically and communicate effectively, it is important to build up a lexis of business terminology. Familiar Business Terminology

Unfamiliar Business Terminology

2. Think critically about the case description using the critical thinking criteria discussed in class. How will you clarify what you are being asked to do?

Critical Thinking Criteria a. Clarity What would you want the manager to clarify? What elaboration, examples or illustrations would help the team?

b. Accuracy What hypotheses or facts do you need to check, test or verify?

c. Precision What needs to be more specific, detailed or exact?

d. Relevance Is there irrelevant information in the case description? Is relevant information missing that would help 2 BUS217W / Spring 2020

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In-class Activity (Case Analysis)

you deal with the issue?

e. Breadth What perspectives are presented in the case description? Are these narrow or broad? What other perspectives might be considered?

f. Logic How strong is the reasoning in the case description?

g. Focus on Significance What are the most important details in the case description that must be considered?

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3. Stakeholder / Shareholder Analysis Analyze who will be impacted by the success and/or lack of success of the business by identifying and exploring the stakeholder/shareholder groups for the company. Group

Category: Shareholder or Stakeholder

Examples:

How might they be impacted by issues identified in the case?

1 .

Owners

Shareholder

Owners: Cineplex Theatre, Franchise Ownership?

Fund providers

2 .

Investors

Shareholder

Purchase stock

Financial profit or loss

Stakeholder

Creditors, incl. banks or anybody who lends money Front-line staff, managers. Wages, hours, responsibilities

3 .

Employees

Stakeholder

4 .

Customers

Stakeholder

People who go to the movies, other?

Receive/purchase services and product

5 .

Community

Stakeholder

Nearby theatres, neighborhood/community / environment

Lost or developed community atmosphere

6 .

Competition

Stakeholder

Other entertainment businesses, other movie theatres, other?

Help/improve the entertainment business

7 .

Suppliers

Stakeholder

Concession supplies, food, printing, cleaners, other? Delivery merchants

Reduced/increased business

8 .

Government

Stakeholder

Municipal, federal, provincial

Receive taxes, food/business permits (PST & GST) 4

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In-class Activity (Case Analysis)

4. Activity: Argument Mapping or Unpacking Elements of Reasoning. What are your conclusions about what the company should do? How did you arrive at that conclusion? What evidence are you relying on? How does it address the business situation? CONCLUSION:

REASONS

EVIDENCE

Why is your conclusion the best course of action for the company?

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In-class Activity (Case Analysis)

5. Activity: Unpack the kinds of information presented in the case description and generate types of information and search strategies for finding information. What information do you need that is not provided in the case description that would help the company make the best decision? What information would help the company make the best decision?

Where or how would you find Why is this information necessary? it? How might it help?

Factual information

Biographical information

Maps, images, and other graphical information Statistical information Products Patents Research information Professional commentary or interpretation Popular opinion People, organizations, and companies

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In-class Activity (Case Analysis)

6. Activity: Describe the obstacles to critical thinking in relation to the case description? What obstacles or barriers to critical thought would you likely face if you were working on this business problem? How would you overcome them?

7. Decision Criteria: list in the table below the decision criteria that will assist in solving the problem? Decision Criteria

Potential Solution #1

Potential Solution #2

Rank Your Solutions: 1. 2. 3.

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In-class Activity (Case Analysis)

8. Action Plan: note your key steps to advance your #1 potential solution What are the steps to your recommendation?

How does this recommendation affect each of your stakeholders?

How will you clearly communicate your action plan to the relevant stakeholders?

How will you get support and buy-in?

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