I have been set the task of Finance Manager to look at, study and if possible solve the problems that face The Apollo Theatre. One of the theatre problems is that if it doesn’t make a profit it will go bust in the very near future. As head of finance I will be expected to produce and analyse balance sheets, profit and loss statements and cash flow diagrams. Some of the objectives of the finance department are to provide the theatre with cash when they need it (if available), to keep ‘the books’, to take financial care of the theatre. To finance new projects if and when they decide to, if we don’t or cant finance these projects The Apollo Theatre may go bust.
Task 2: Collection of InformationThis is a copy of my QuestionnaireQuestionnaire1. How often do you go to the theatre?[] Once a week[] Twice a week[] Once a month[] Twice a month[] More than once a year[] Other _______________2. Please give your opinion on the following aspects of the Theatre.
Like V. Much Good Average Acceptable PoorPrice [] [] [] [] []Location [] [] [] [] []Snacks [] [] [] [] []Price of Snacks [] [] [] [] []Films [] [] [] [] []Parking [] [] [] [] []3. How much would you be willing to spend on a theatre ticket?[] �0-5[] �6-10[] �10-15[] �15+4.
What is your favourite type of film?[] Action[] Comedy[] Thriller[] Horror[] Other _____________5. How much do you earn in a year?[] Under �15000[] �15000-18000[] �18000-19000[] �19000-20000[] �20000+6. If Theatre tickets were cheaper and/or access were easier would you go to the theatre more often?Yes []No []7.
Best services for writing your paper according to Trustpilot
How could the range of Snacks be improved?______________________________________________________________________________8. Which of the following merchandise would you buy if they were on offer?T-shirts []Mugs []Stationary []Other [] __________________None of the above []9. What do you think of the layout of the Theatre?V. Good []Good []Average []Acceptable []Poor []10. A.
Do you prefer Multiplex or local Theatres?Multiplex []Local []Task 3 Investigation Write UpFrom doing my questionnaire I have found out: –How much people are willing to spend on a theatre ticket – This will help the theatre to decide what prices to charge to get more customers into the theatre.-How often people go to the theatre – This will give the firm an idea of how many people will attend their theatre.-What people thing of the layout of the theatre – This will help the –Theatre to make the layout easier to follow.-Most people are happy with the location of the theatre – This shows the theatre is in an acceptable location and people will go there.Task 4 Costing and Cash FlowsFixed CostsCosts that don’t change with productione.g. Rent, Rates, etcVariable CostsCosts that do change with productione.
g. Supplies,Total CostsTotal costs are the Variable Costs plus the Fixed CostsI think the costs that most concern the owners are the fixed costs because they don’t change. e.g. if the theatre closes for a long period of time thy will still have to pay rent, rates, etcTask 5 Final IdeasMemoTo: Mr B LambieFrom: Alan MeadSubject: Final IdeasI have read the report on The Apollo Theatre and I have made some suggestions of my own to boost the profit of the theatre* Provide more performances each month i.e.
35* Lower prices in the hope that this will draw in more customers* Improve the layout of the theatre by installing disabled ramps for wheelchair users.* Expand the car parking facilitiesTask 6 EvaluationStrengths* If the theatre lowers prices more people are likely to attend the theatre.* If ticket prices are lowered then more children will come more often.* If the theatre has easier access then disabled people will be able to come to the theatre.* If the access is easier then people who do not own a car will be able to attend more often.Weaknesses* Less revenue will be gained.* More chance of the theatre going out of business* If less revenue is gained there is not as much to spend on improving the services in the theatre.* Break-even margin increases, so less chance of breaking even.* The theatre might not be able to cope with the increase in customers.* Some people might not like the idea.* There may not be enough room to expand.Opportunities* If one of the theatres opponents an other theatre or cinema closes their customers could come to the ApolloThreats* If new theatres or cinemas open they could take the theatres customers away
