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# Please need a guideline for AWA

Author Message
Intern
Joined: 22 May 2014
Posts: 26
Location: India
GMAT 1: 560 Q46 V29
GPA: 3.64

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Updated on: 07 Nov 2017, 08:17
2
The following appeared in a memorandum written by the managing director of the Exeunt Theater Company:
“Now that we have moved to a larger theater, we can expect to increase our revenues from ticket sales. To further increase profits, we should start producing the plays that have been most successful when they were performed in our nation’s largest cities. In addition, we should hire the Adlib Theater Company’s director of fund-raising, since corporate contributions to Adlib have increased significantly over the three years that she has worked for Adlib.”

The managing director of Exeunt Theater company concluded that his company will increase the revenue from increasing ticket sales. In order to increase the profit, the author suggested the two strategy that the theater company reproduce the successful plays and hire the Adlib's fund raising director.
The author's suggestion is flawed for couple of reasons.

First, The author recommends that a reproduction of the successful old plays increase the ticket sales and thereby, this strategy would help in generating revenues. In analysing the argument, The author fails to consider a theatregoer's taste. For example, If the company represents the famous play "the hamilton", which was a big hit before two years, theatregoers may not like to watch the same story. Conversely, If the company shows a play comprising fresh story, fascinating stage setup, and skilled stage performers, theatregoer may love to watch a new concept. Therefore, a new concept may draw the more attention of theatregoer.

Second, The author plans to hire the Adlib's fund raising director who has been contributing significantly to Adlib for three years.
The author assumes that the fund raising director will make the same contribution in his company. The author's assertion will be refuted if Adlib gets the funds not only by the efforts of fund raising director but by the efforts of campaigning and production team. The author's position may be strengthened if he follows the creative course of action boosting the ticket sales and drawing the attention of theatregoer. For example, The company should start the digital lottery system. In digital lottery system, theatregoers will bid for the deeply discounted tickets. In addition, the company needs to implement the "rush ticket" policy, offering a discount for teachers, retiree, arm forced members, and students with valid Identification card. Therefore, finding cheap tickets approach may boost the ticket sales and draw the attention of theatregoers. Moreover, the company may generate the revenues by "closing up" strategy. After the series of competitive plays shown by nemesis, every play starts performing steadily. As a result, the company should announce the closing of play and thus, the announcement may draw a number of theatregoer because people have the last chance to watch the show. For instance, Compared to the previous week, the closing week of the show " Hello Dolly" got a up of 500 audience and therefore, revenue of show rose by thirty percent.

In conclusion, I would like to restate that the author's recommendation was unpersuasive. Despite the hiring of fund raising director, the author needs to implement the different policies which, in summation, may boost the ticket sales and generate the profit. In addition, the author should come up with fresh production line instead of old story concept.

Originally posted by sarasjain20 on 07 Nov 2017, 05:30.
Last edited by sarasjain20 on 07 Nov 2017, 08:17, edited 1 time in total.
Manager
Joined: 01 Jan 2014
Posts: 90
Location: India
GMAT 1: 690 Q48 V35
GPA: 3.82

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07 Nov 2017, 05:56
1
this is just amazing
crisp clear and to the point
bravo
Intern
Joined: 22 May 2014
Posts: 26
Location: India
GMAT 1: 560 Q46 V29
GPA: 3.64

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18 Feb 2018, 07:37
2
thanx.. for reviewing it..
Re: Please need a guideline for AWA &nbs [#permalink] 18 Feb 2018, 07:37
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