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Harvard Case - Tomer Zvulun and The Atlanta Opera: At Crossroads (A)

"Tomer Zvulun and The Atlanta Opera: At Crossroads (A)" Harvard business case study is written by Michael L. Tushman, Kerry Herman. It deals with the challenges in the field of General Management. The case study is 22 page(s) long and it was first published on : Jan 13, 2018

At Fern Fort University, we recommend that Tomer Zvulun, the new General Director of The Atlanta Opera, adopt a multi-pronged strategy focused on strategic planning, innovation, and community engagement to revitalize the organization and ensure its long-term sustainability. This strategy should prioritize audience development, artistic excellence, and financial stability while leveraging technology and data analytics to drive informed decision-making.

2. Background

The Atlanta Opera, a renowned institution with a rich history, faces a critical juncture. Declining ticket sales, increasing competition from other cultural organizations, and a changing demographic landscape have put pressure on the organization's financial stability and artistic relevance. Tomer Zvulun, a visionary leader with a passion for opera and a proven track record of success in other artistic organizations, is tasked with leading the opera into a new era.

The case study highlights the challenges faced by The Atlanta Opera, including:

  • Declining ticket sales: The opera has experienced a consistent decline in ticket sales, particularly among younger audiences.
  • Competition from other cultural institutions: The Atlanta arts scene is highly competitive, with many other organizations vying for the attention and financial support of patrons.
  • Changing demographics: The Atlanta population is becoming increasingly diverse, but the opera's audience remains largely white and affluent.
  • Financial constraints: The opera faces significant financial challenges, including a budget deficit and a limited endowment.

3. Analysis of the Case Study

To analyze the situation, we can utilize a SWOT analysis framework:

Strengths:

  • Strong reputation: The Atlanta Opera enjoys a strong reputation for artistic excellence and a passionate community of loyal patrons.
  • Experienced staff: The organization boasts a talented and experienced staff, including renowned singers, conductors, and production teams.
  • Strategic location: Atlanta's vibrant cultural scene and growing population provide a strong foundation for potential audience growth.

Weaknesses:

  • Declining ticket sales: As mentioned earlier, the opera has experienced a consistent decline in ticket sales, particularly among younger audiences.
  • Limited audience diversity: The opera's audience remains largely white and affluent, limiting its potential for growth.
  • Financial constraints: The opera faces significant financial challenges, including a budget deficit and a limited endowment.

Opportunities:

  • Growing cultural scene: Atlanta's cultural scene is booming, offering opportunities for collaboration and cross-promotion.
  • Technological advancements: New technologies, such as streaming services and virtual reality, can be leveraged to reach new audiences and enhance the opera experience.
  • Community engagement: Building stronger ties with the community through outreach programs and partnerships can foster a sense of ownership and support.

Threats:

  • Competition from other cultural institutions: The Atlanta arts scene is highly competitive, with many other organizations vying for the attention and financial support of patrons.
  • Economic uncertainty: Economic downturns can impact charitable giving and ticket sales.
  • Changing audience preferences: The opera faces challenges in attracting younger audiences who may prefer other forms of entertainment.

Porter's Five Forces can also be applied to assess the competitive landscape:

  • Threat of new entrants: The threat of new entrants is relatively low due to the high capital investment and expertise required to establish a successful opera company.
  • Bargaining power of buyers: The bargaining power of buyers is moderate, as audiences have alternative entertainment options.
  • Bargaining power of suppliers: The bargaining power of suppliers, such as singers, conductors, and production companies, is moderate, as the opera is reliant on their talent and expertise.
  • Threat of substitute products: The threat of substitute products is high, as audiences have access to a wide range of entertainment options, including movies, concerts, and theater productions.
  • Competitive rivalry: The competitive rivalry in the Atlanta arts scene is high, with many organizations vying for the same audience and resources.

4. Recommendations

To address the challenges and capitalize on the opportunities, Tomer Zvulun should implement a multi-pronged strategy that encompasses the following key areas:

1. Strategic Planning:

  • Develop a comprehensive strategic plan: This plan should outline the opera's mission, vision, values, and goals, along with specific strategies to achieve them.
  • Conduct a thorough market analysis: This analysis should identify target audiences, their preferences, and their willingness to pay for opera tickets.
  • Develop a clear financial plan: This plan should outline revenue generation strategies, cost-cutting measures, and fundraising initiatives.
  • Establish key performance indicators (KPIs): These metrics will track the progress of the strategic plan and measure the opera's success in achieving its goals.

2. Innovation and Audience Development:

  • Expand programming: Offer a wider range of operas, including contemporary works, family-friendly productions, and community-based performances.
  • Embrace technology: Leverage technology to enhance the opera experience, such as streaming services, virtual reality, and interactive exhibits.
  • Develop innovative marketing strategies: Utilize social media, digital advertising, and targeted outreach to reach new audiences.
  • Create a more welcoming and inclusive environment: Implement initiatives to attract a more diverse audience, including offering affordable tickets, providing childcare services, and promoting accessibility.

3. Community Engagement:

  • Build stronger ties with the community: Partner with local schools, community organizations, and businesses to offer educational programs, outreach events, and collaborative projects.
  • Create a sense of ownership: Encourage community involvement through volunteer opportunities, board membership, and fundraising initiatives.
  • Promote the opera's social impact: Showcase the opera's role in fostering cultural understanding, promoting artistic expression, and enriching the community.

4. Financial Stability:

  • Diversify revenue streams: Explore new revenue sources beyond ticket sales, such as corporate sponsorships, foundation grants, and merchandise sales.
  • Implement cost-cutting measures: Analyze operational expenses and identify areas for efficiency improvements.
  • Strengthen fundraising efforts: Develop a comprehensive fundraising strategy that includes major gifts, annual giving, and special events.

5. Leadership and Management:

  • Foster a collaborative and innovative culture: Encourage open communication, teamwork, and creative thinking among staff.
  • Empower employees: Delegate responsibilities, provide opportunities for professional development, and recognize employee contributions.
  • Promote diversity and inclusion: Create a welcoming and inclusive work environment that values diversity of thought and experience.

5. Basis of Recommendations

These recommendations align with The Atlanta Opera's core competencies, mission, and values. They prioritize audience development, artistic excellence, and financial stability while leveraging technology and data analytics to drive informed decision-making.

The recommendations are based on the following assumptions:

  • Audience demand: There is a latent demand for opera among diverse audiences in Atlanta, and the opera can attract new patrons by offering a wider range of programming and creating a more welcoming environment.
  • Technological advancements: Technology can be effectively leveraged to enhance the opera experience, reach new audiences, and increase revenue.
  • Community support: The Atlanta community is supportive of the arts and will respond positively to initiatives that promote community engagement and social impact.

6. Conclusion

By implementing these recommendations, Tomer Zvulun can reposition The Atlanta Opera as a vibrant and relevant cultural institution that thrives in a competitive environment. This strategy will ensure the opera's long-term sustainability, attract new audiences, and solidify its position as a leading arts organization in Atlanta.

7. Discussion

Other alternatives not selected include:

  • Merging with another arts organization: This option could provide access to resources and a larger audience, but it could also lead to cultural clashes and a loss of identity.
  • Focusing solely on traditional opera: This option could appeal to the opera's core audience but may not attract new patrons or ensure long-term sustainability.

The key assumption underlying these recommendations is that the Atlanta community is receptive to a revitalized opera that embraces innovation, community engagement, and diversity. If this assumption proves incorrect, the opera may need to adjust its strategy accordingly.

8. Next Steps

  • Develop a comprehensive strategic plan: This plan should be developed in consultation with key stakeholders, including staff, board members, and community representatives.
  • Implement key initiatives: The opera should prioritize the implementation of key initiatives, such as audience development programs, technology upgrades, and community engagement projects.
  • Monitor progress and make adjustments: The opera should continuously monitor the progress of its strategic plan and make adjustments as needed based on data and feedback.

By taking these steps, The Atlanta Opera can ensure its continued success and solidify its position as a vital cultural institution in Atlanta.

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Case Description

In 2017, Tomer Zvulun, the CEO and artistic director of The Atlanta Opera, was considering next steps. Zvulun had adapted quickly to the new, dual role of chief executive and artistic director, although there had been a steep learning curve. As he gained traction, the Opera's profile as an up and coming arts organization also grew. However, there was still much to be done if Zvulun wanted the Opera to be ranked among the best in the country. Should Zvulun should hire a chief operating officer to help manage day-to-day operations, and if so, should he focus his search on internal or external candidates? More broadly, Zvulun wondered how could he best balance his significant personal, professional, and organizational aspirations?

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