Business Studies Essay Paper on Movie Theatre Organization

Movie Theatre Organization

Legal Environment

The government controls the theatre industry both directly and indirectly (Siedel, 2000). The government will control the industry in ways, such as setting up laws that will govern what the theatre is allowed to air for the audience to watch. This is in place in order to safeguard the interest of the consumers who come to theatres to watch movies. The government will pass laws that will protect the employees of the organization from any unjust or unbiased treatment from employers (Meiners et al., 2014).

The government also has set of laws that protect the makers of the film from being oppressed (Siedel, 2000). This will require the movie theatre to first seek permission from the relevant authorities in order to show a certain film. These factors must be put into consideration with the movie theatre management in order for the organization not to run into many legal battles.

Social Environment

There are many beliefs in the people of America that are attached to watching movies. The movie theater should put them into considerations when outlaying their plans and in their operations. There is a belief that popcorns have to be accompanied with watching a movie (Terpstra et al., 1991). This will force the movie theatre to produce the popcorn services in order to satisfy the customers. People of the United States also have a culture of watching good movies at night (Hill et al., 2013). The movie theatre will have to schedule and operate within the demands of the social environment.

Economic Environment

The economic environment of the movie theatre industry will be divided into the microeconomic and macroeconomic environment (Street et al., 2013). The microeconomic environment affects the decision making by the management of the movie theatre (Street et al., 2013). The microeconomic factors are market size, demand, supply, competitors, and the distribution chain (Street et al., 2013). These factors influence the direction the organization takes in terms of making decisions and other operations. It is a vital component for the operation of a business in both a monopoly and the competitive market.

Macroeconomic environment will influence the broad economic factors that will affect the running and operations of the movie theatre organization (Hayward, 2013). These factors include interest rates, inflation, savings rates, and consumer discretionally income (Hayward, 2013). These factors have an enormous influence on prices of tickets, payments of the workers, and other purchases in the movie theatre. The organization is obliged to operate within the current economic conditions in order to ensure its survival and success in the movie theatre industry (Hayward, 2013).

Management Structure

Just like other business organizations, the movie theatre has an effective and efficient management structure that enables work to be passed from one level to another without any great confusion. The top person in the movie theatre organization is the general manager who might be the owner of the organization or an employee hired directly by the owner of the organization (Ulrich, 2013). The general manager is charged with overseeing every function and ensures that the running of the movie theatre organization is in a smooth manner (Ulrich, 2013). All cases in the movie theatre are always solved and addressed by the general manager.

Below the general manager, there are three managers: maintenance manager, sales and marketing manager, and the human resource manager who are assigned various management tasks that the general manager cannot attend to personally (Ulrich, 2013). The maintenance manager is charged with overseeing all the maintenance duties in the theatre (Siedel, 2000). Under the maintenance manager are repair workers and the projectionist who are very vital to the movie theatre. The repair workers ensure that any malfunction both in the cinema hall and outside the cinema hall is dealt with on time to eliminate any inconveniences (Siedel, 2000). The projectionist deals with the most important part of the theatre, the projector (Ulrich, 2013). The projectionist is charged with maintaining and ensuring the projectors are in good working conditions at all times.

The sales and marketing manager oversees all the sales for the movie theatre organization (Wetherly et al., 2014). Under the manager in the sales and marketing department are the cashiers and the concession clerks (Wetherly et al., 2014). Their work is always to try so hard to sell the reputation of the organization to the customers and other potential customers (Wetherly et al., 2014). They are the most important people since they are in charge of luring customers into the business.

The human resource manager is charged with providing the current and prospective employees with information about policies, job duties, working conditions, and wages (Ulrich, 2013). The manager in this department is very vital for the organization since they are the ones who shape the behaviors of the employees. The behavior of employees is one aspect that sells the organization to the customers and the whole country (Ulrich, 2013). Under this department, there is the security and usher who are charged with ensuring that there is law and order in the movie theatre.

Operational Issues

Vandalism is the major operational issue that affects the running of the organization (Siedel, 2000). Some customers always break the chairs, pour drinks on them, and spoil other facilities of the movie theatre. This creates a strain since the management will have to replace the damaged items with new ones, and by that the company digs deep into the pockets of the organization (Siedel, 2000).

Piracy is another big problem that brings operational issues in the organization (Hayward, 2013). Piracy means that the number of people who will come to the cinemas will be greatly reduced since people download the movies from the internet (Hayward, 2013). This creates a very big operational issue to the organization. Lateness and laziness of workers is a big operational issue that greatly affects the operations of the business. Lazy workers strain the operations of the organization (Hayward, 2013).

Financial Issues

Increase in prices of movies by the producers is a big financial issue that affects the organization (Brooks et al., 2013). The producers increase price without caring what is in store for the movie theatres. If the movie theatres try to increase the ticket prices because of the producer increasing the price, then customers will start avoiding the organization and this is critical financially to the organization. Demand for increase of pay by the workers is another financial issue that affects the organization. Any increase in wages or salary will really suffocate the organization financially.

The organization must adapt to changes that are observed in the industry, especially the technological changes. For instance, the development of 3D screens compelled the organization to adapt to the change in order to continue attracting customers (Brooks et al., 2013). The company should be flexible to changes in its environment, both internal and external for purposes of success of the organization over a long time.


Brooks, R., & Mukherjee, A. K. (2013). Financial management: core concepts. Pearson.

Hayward, S. (2013). Cinema studies: the key concepts. Routledge.

Hill, C. W., Cronk, T., & Wickramasekera, R. (2013). Global business today. Mcgraw Hill Book Company of Aust P/l.

Meiners, R. E., Ringleb, A. H., & Edwards, F. (2014). The legal environment of business. Cengage Learning.

Siedel, G. J. (2000). Six forces and the legal environment of business: The relative value of business law among business school core courses. American Business Law Journal37(4), 717-741.

Street, B. A., & Chambers, P. (2013). Effect of the business environment on supply chain performance.

Terpstra, V., & David, K. H. (1991). The cultural environment of international business. Cincinnati, OH: South-Western Publishing Company.

Ulrich, D. (2013). Human resource champions: The next agenda for adding value and delivering results. Harvard Business Press.

Wetherly, P., & Otter, D. (Eds.). (2014). The Business Environment: Themes and Issues in a Globalizing World. Oxford University Press.