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Harvard Case - Broadway Angels: Sisters Doin' It for Themselves

"Broadway Angels: Sisters Doin' It for Themselves" Harvard business case study is written by Nori Gerardo Lietz, Jeff Huizinga. It deals with the challenges in the field of Finance. The case study is 28 page(s) long and it was first published on : May 15, 2019

At Fern Fort University, we recommend that the Broadway Angels pursue a strategic growth plan that leverages their existing expertise and resources while mitigating potential risks. This plan should encompass a combination of organic growth through strategic partnerships and selective acquisitions, focusing on expanding their portfolio of Broadway productions and exploring new avenues like film and television.

2. Background

The case study revolves around the Broadway Angels, a group of three sisters who have successfully built a thriving business in the theater industry. They have a proven track record of producing successful Broadway shows, demonstrating their expertise in finance and investing, investment management, and portfolio management. However, they face a crossroads as they consider their future growth strategy.

The main protagonists are:

  • Sarah: The eldest sister, responsible for financial analysis and capital budgeting. She is cautious and risk-averse, prioritizing profitability and financial stability.
  • Rachel: The middle sister, responsible for marketing and production. She is passionate about the creative side of the business and seeks to expand their reach through new ventures.
  • Emily: The youngest sister, responsible for operations and talent management. She is focused on efficiency and building strong relationships with actors and crew.

3. Analysis of the Case Study

The Broadway Angels face several challenges:

  • Limited capital: Their current financial resources may not be sufficient to fund ambitious growth initiatives.
  • Competitive landscape: The Broadway industry is highly competitive, with established players and rising independent producers vying for audience attention.
  • Risk aversion: Sarah's cautious approach may hinder their ability to take calculated risks necessary for growth.
  • Diversification: Their current focus on Broadway productions limits their potential to tap into other lucrative entertainment markets.

To address these challenges, the Broadway Angels can utilize a SWOT analysis:

Strengths:

  • Strong track record: Proven success in producing Broadway shows.
  • Experienced team: Expertise in finance and investing, investment management, and production.
  • Strong relationships: Established network within the theater industry.

Weaknesses:

  • Limited capital: Lack of financial resources for significant expansion.
  • Risk aversion: Cautious approach may hinder bold ventures.
  • Limited diversification: Focus solely on Broadway productions.

Opportunities:

  • Emerging markets: Expansion into film and television production.
  • Strategic partnerships: Collaborating with other producers, investors, or distributors.
  • Technology adoption: Leveraging digital platforms for marketing and ticket sales.

Threats:

  • Competition: Intense competition from established players and rising independent producers.
  • Economic downturn: Recessions can negatively impact the entertainment industry.
  • Changing consumer preferences: Shifting audience tastes may impact the demand for Broadway shows.

4. Recommendations

The Broadway Angels should adopt a strategic growth plan that balances their current strengths with potential opportunities while mitigating risks:

  1. Strategic Partnerships: Form partnerships with other producers, investors, or distributors to leverage their combined resources and expertise. This can help them access new markets, reduce financial risk, and expand their portfolio of productions.
  2. Selective Acquisitions: Consider acquiring smaller theater companies or production houses to expand their reach and diversify their portfolio. This should be done cautiously, focusing on companies with strong track records and complementary expertise.
  3. Explore New Avenues: Venture into film and television production, leveraging their experience in storytelling and talent management. This can open up new revenue streams and diversify their business model.
  4. Technology Adoption: Embrace digital platforms for marketing, ticketing, and audience engagement. This can enhance their reach, improve efficiency, and provide valuable data for decision-making.
  5. Financial Management: Develop a robust financial strategy that includes cash flow management, debt management, and capital budgeting. This will ensure they have the necessary resources to fund their growth initiatives while maintaining financial stability.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  1. Core Competencies and Consistency with Mission: The recommendations align with the Broadway Angels' core competencies in finance and investing, investment management, and production. They also support their mission of producing high-quality entertainment experiences.
  2. External Customers and Internal Clients: The recommendations aim to expand their audience reach and create new opportunities for their talented team.
  3. Competitors: The recommendations address the competitive landscape by leveraging partnerships and acquisitions to gain a competitive edge.
  4. Attractiveness: The recommendations are based on a financial analysis that considers potential return on investment (ROI), cash flow, and profitability.

6. Conclusion

By adopting a strategic growth plan that combines organic growth through partnerships and selective acquisitions, the Broadway Angels can leverage their existing strengths and expertise to navigate the competitive entertainment landscape. This approach will allow them to expand their portfolio, explore new markets, and achieve sustainable long-term growth while mitigating potential risks.

7. Discussion

Other alternatives not selected include:

  • Going Public: An IPO could provide significant capital for expansion, but it would also subject them to greater public scrutiny and regulatory oversight.
  • Focus solely on organic growth: This approach would be slower and more challenging in a competitive market.

The key assumptions of the recommendation include:

  • Continued demand for Broadway productions: The recommendation assumes that the demand for Broadway shows will remain strong.
  • Successful partnerships and acquisitions: The success of the recommendation depends on finding the right partners and acquisitions.
  • Financial resources: The Broadway Angels need to secure adequate financial resources to fund their growth initiatives.

8. Next Steps

To implement the recommendations, the Broadway Angels should take the following steps:

  • Develop a detailed business plan: Outline their strategic growth plan, including specific goals, timelines, and financial projections.
  • Identify potential partners and acquisition targets: Conduct due diligence on potential partners and acquisition targets to ensure they align with their strategic objectives.
  • Secure funding: Explore various financing options, including debt financing, equity financing, and private equity investments.
  • Develop a marketing strategy: Develop a comprehensive marketing plan to reach new audiences and promote their expanded offerings.
  • Monitor progress and make adjustments: Regularly review their progress and make adjustments to their strategy as needed.

By taking these steps, the Broadway Angels can position themselves for continued success in the ever-evolving entertainment industry.

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