Colorado Creative Music

1598 WordsJun 16, 20187 Pages
Colorado Creative Music A company without a strategic vision is like a fish out of water gasping for air. This analogy strikes an honest chord with Colorado Creative Music (CCM). In order for a company to be success in the marketplace, it must have a clear vision statement. The company must also be founded by core business competencies that will allow the business to operate flawlessly. This essay will provide an overview of CCM, a situational analysis, a problem analysis including analysis of each business function, recommendations for the company, and a plan for implementing the proposed recommendations. Case Overview Darren Curtis Skanson, an aspiring musician with hopes of establishing a brand of music within the…show more content…
Another problem for CCM is Skanson is currently the general manager, leading talent developer, and the leading performer. Skanson spends a majority of his time on tour promoting his music, which leads to little time for managing the company. Distribution Distribution channels are another problem for CCM. CD revenues generated from performances accounted for approximately 85% of total sales in 2000. Wholesale revenues were approximately 6% of total sales. Direct mail sales accounted for approximately 6% of sales, while online sales accounted for a mere 3% of sales. CCM recognized that the price its wholesalers were charging chain stores was preventing its music from entering the market. Financial Financially, CCM is in distress. The company realized a net profit of $20,626.70 in 1998, but despite additional sales growth and additional years of experience, the company only realized $4,292.00 in net income in 2000. The company’s gross profit increased steadily form 1997 to 2000, but expenses have also increased steadily. Technology CCM isn’t technologically up-to-date. The company is currently operated out of a large rental house. If CCM wants to grow and attract potential artists and employees, the company should move into a facility equipped to handle a record label. If CCM wants to be considered a reputable record label, it needs to have all the amenities of a recording studio. For
Open Document