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Cirque Case Study Analysis

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0% found this document useful (0 votes)
15 views12 pages

Cirque Case Study Analysis

Uploaded by

Joel Tsafack
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as ODT, PDF, TXT or read online on Scribd
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Table of Content

I. Data Analysis:...................................................................................................................................... 4
i. Analysis............................................................................................................................................ 4
a. Cirque du Soleil Overview:........................................................................................................... 4
b. Financial Overview:...................................................................................................................... 4
c. Human Resource Management:.................................................................................................. 4
d. Safety Incidents:.......................................................................................................................... 4
e. Cultural Diversity Management:.................................................................................................. 4
f. Career Transition Program:.......................................................................................................... 4
ii. Consolidated Factors Analysis:......................................................................................................... 4
a. Financial Challenges:.................................................................................................................... 4
b. Safety Incidents:.......................................................................................................................... 5
c. Human Resource Management:.................................................................................................. 5
d. Cultural Diversity Management :................................................................................................. 5
e. Career Transition Program:.......................................................................................................... 5
f. Strategic Initiatives :..................................................................................................................... 5
II. Problem Definition:............................................................................................................................. 6
i. Financial Instability:......................................................................................................................... 6
ii. Safety Concerns:.............................................................................................................................. 6
iii. Talent Management:........................................................................................................................ 6
iv. Cultural Diversity Challenges:.......................................................................................................... 6
v. Strategic Evolution:.......................................................................................................................... 6
vi. Conclusion:...................................................................................................................................... 7
III. Alternative Solutions Analysis for Cirque du Soleil:.......................................................................... 8
i. Financial Stability:............................................................................................................................ 8
a. Diversification and Expansion:..................................................................................................... 8
b. Cost Optimization and Show Enhancement:................................................................................ 8
ii. Safety Assurance:............................................................................................................................. 8
a. Comprehensive Safety Training:................................................................................................... 8
b. Third-Party Safety Audits:............................................................................................................ 8
iii. Talent Management:........................................................................................................................ 8
a. Improved Working Conditions:.................................................................................................... 8
b. Career Transition Support:........................................................................................................... 8
iv. Cultural Diversity Challenges:.......................................................................................................... 8
a. Enhanced Cultural Training:......................................................................................................... 8
b. Cross-Cultural Teambuilding:....................................................................................................... 9
v. Strategic Evolution:.......................................................................................................................... 9
a. Gradual Market Entry:................................................................................................................. 9
b. Strategic Partnerships:................................................................................................................. 9
vi. Conclusion:...................................................................................................................................... 9
IV. Recommended Solution:............................................................................................................... 10
i. Financial Stability:.......................................................................................................................... 10
ii. Safety Assurance:........................................................................................................................... 10
iii. Talent Management:...................................................................................................................... 10
iv. Cultural Diversity Challenges:........................................................................................................ 10
v. Strategic Evolution:........................................................................................................................ 10
V. Implementation Plan :....................................................................................................................... 11
Cirque du Soleil’s Global Human Resource Management Practices
I. Data Analysis:
i. Analysis
a. Cirque du Soleil Overview:
 Founded in 1984 by Guy Laliberté.
 Initially, a small troupe, it grew to a global entertainment giant.
 Innovative approach – mix of circus arts and street entertainment.
 Shows known for creativity, artistry, and audience engagement.
b. Financial Overview:
 Cirque experienced financial challenges in 2012 and 2013.
 2012: First non-profitable year despite global revenue of C$1bn.
 2013: Laid off 400 employees, reduced shows, cut costs, saved $100 million.
 Revenues dropped to $850 million in 2013 from $1 billion in 2012.
c. Human Resource Management:
 Global employee base, 50 nationalities, 25 languages.
 HR focus on talent acquisition, creative scouting, and cultural diversity.
 Employee engagement initiatives, well-being programs, and career transition.
 High attrition rate in 2011 (20%) attributed to demanding working conditions.
d. Safety Incidents:
 Accidents in 2013 and 2009 raised concerns.
 2013: Sarah Guillot-Guyard's death led to OSHA citations and fines.
 Cirque’s response included a safety review, committees, and health programs.
 2009: Ukrainian acrobat's death during training.
e. Cultural Diversity Management:
 More than 50 nationalities and 25 languages represented.
 Equal opportunity employer, fostering diversity.
 Challenges in communication, conflicts due to cultural differences.
 Training programs, partnerships, and an Employee Assistance Program.
f. Career Transition Program:
 Recognizing short-lived careers of performers.
 ‘Crossroads’ program aiding artists in transitioning to alternative careers.
 Varied choices offered, including stage management, coaching, and naturopathy.
 Emphasis on holistic support, education, and skill development.

ii. Consolidated Factors Analysis:

a. Financial Challenges:

 Issue: Cirque du Soleil faced financial difficulties in 2012-2013, leading to layoffs and
cost-cutting.

 Implication: Financial constraints impact creativity, innovation, and overall show quality.

 Recommendation: A strategic financial plan to ensure stability while maintaining artistic


excellence.
b. Safety Incidents:

 Issue: Accidents in 2013 and 2009 raised safety concerns, leading to OSHA citations and
fines.

 Implication: Safety incidents damage public trust and brand image.

 Recommendation: Continuous improvement in safety protocols and transparent


communication about safety measures.

c. Human Resource Management:

 Issue: High attrition rates, demanding working conditions, and challenges in talent
acquisition.

 Implication: Employee well-being and job satisfaction are crucial for performance and
creativity.

 Recommendation: Focus on employee engagement, well-being programs, and talent


retention strategies.

d. Cultural Diversity Management :

 Issue: Managing a diverse global workforce, communication challenges, and cultural


conflicts.

 Implication: Effective communication is essential for teamwork and show quality.

 Recommendation: Enhanced cultural diversity training, fostering an inclusive workplace,


and addressing communication gaps.

e. Career Transition Program:

 Issue: Short-lived careers of performers and challenges in transitioning to alternative


roles.

 Implication: Supporting artists in career transitions is crucial for long-term well-being.

 Recommendation: Strengthen the career transition program, providing comprehensive


support for artists' post-performance life.

f. Strategic Initiatives :

 Issue: Cirque's response to financial challenges involved layoffs, restructuring, and global
expansion.

 Implication: Strategic decisions impact workforce morale, company culture, and global
market presence.

 Recommendation: Careful planning, transparent communication, and a balanced


approach to cost-cutting and expansion.

Cirque du Soleil, a global entertainment powerhouse, faced financial setbacks and safety incidents,
impacting its workforce and creative processes. The company's response included cost-cutting measures,
safety reviews, and initiatives to manage cultural diversity. The emphasis on career transition and holistic
support for artists showcased a commitment to employee well-being. Challenges in talent retention,
cultural diversity management, and financial sustainability require strategic interventions for Cirque's
continued success.

II. Problem Definition:

Cirque du Soleil is grappling with a multifaceted challenge that demands strategic intervention. The core
problem can be succinctly defined as the need for comprehensive organizational rejuvenation to address
critical issues across financial stability, safety assurance, talent management, and strategic evolution. The
series 1-3 data reveals a complex scenario requiring a holistic approach.

i. Financial Instability:

 Issue: Financial downturn in 2012-2013 leading to losses, layoffs, and reduced shows.

 Impact: Threatens the sustainability of operations, show quality, and overall brand
strength.

 Implication: Urgent need for a robust financial strategy to ensure stability and future
growth.

ii. Safety Concerns:

 Issue: Fatal accidents in 2013 and 2009, accompanied by OSHA citations and fines.

 Impact: Jeopardizes public trust, performer safety, and the brand's reputation.

 Implication: Immediate and ongoing enhancements in safety protocols and practices are
imperative.

iii. Talent Management:

 Issue: High artist attrition (20% in 2011) due to demanding working conditions.

 Impact: Risks show quality, continuity, and overall team morale.

 Implication: A focus on talent retention, engagement, and well-being programs is


critical.

iv. Cultural Diversity Challenges:

 Issue: Communication gaps, conflicts, and challenges arising from a diverse global
workforce.

 Impact: Hinders collaboration, potentially affecting show quality and team dynamics.

 Implication: Strengthening cultural diversity programs and fostering understanding are


essential.

v. Strategic Evolution:

 Issue: Need for strategic shifts to overcome financial challenges and ensure long-term
growth.

 Impact: Directly influences the organization's future relevance and success.


 Implication: Caution and precision required in implementing diversification plans and
engaging external investors.

vi. Conclusion:

Cirque du Soleil faces a pivotal moment where a comprehensive problem definition underscores the
urgency for strategic, financial, and operational recalibration. The interconnected nature of financial,
safety, talent, and strategic challenges necessitates an integrated approach for a sustainable and
prosperous future.
III. Alternative Solutions Analysis for Cirque du Soleil:
i. Financial Stability:
a. Diversification and Expansion:

- Pros: - Context: Cirque du Soleil has a strong global brand. - Resources: Financial stability for initial
investment. - Willingness: Proven history of expansion. - Cons: - Context: Economic uncertainties in
potential markets. - Resources: High initial investment. - Willingness: Resistance from creative teams on
diluting artistic focus.

b. Cost Optimization and Show Enhancement:

- Pros: - Context: Need for financial stability. - Resources: Utilization of existing creative talent. -
Willingness: Potential alignment with cost-cutting for sustainability. - Cons: - Context: Creative resistance
to cost-cutting measures. - Resources: Balancing cost reduction without compromising show quality. -
Willingness: Balancing cost-cutting with maintaining artistic integrity.

ii. Safety Assurance:


a. Comprehensive Safety Training:

- Pros: - Context: Historical safety incidents. - Resources: Allocation for safety programs. - Willingness:
Commitment to performer safety. - Cons: - Context: Initial resource investment. - Resources: Continuous
reinforcement needed. - Willingness: May face resistance to cultural change.

b. Third-Party Safety Audits:

- Pros: - Context: Past safety violations. - Resources: Budget for external audits. - Willingness:
Demonstrates transparency. - Cons: - Context: Resistance to external assessments. - Resources: Costs
associated with third-party audits. - Willingness: Internal stakeholders' reluctance.

iii. Talent Management:


a. Improved Working Conditions:

- Pros: - Context: Attrition rates and working conditions. - Resources: Initial investment in workplace
improvements. - Willingness: Positive impact on employee morale. - Cons: - Context: Balancing
improvements with artistic intensity. - Resources: Initial costs of improvements. - Willingness: Resistance
from creative teams.

b. Career Transition Support:

- Pros: - Context: Short-lived career of performers. - Resources: Career transition programs. -


Willingness: Positive employer branding. - Cons: - Context: Resistance from artists fearing loss of identity.
- Resources: Allocation for career transition support. - Willingness: Artists' reluctance to transition.

iv. Cultural Diversity Challenges:


a. Enhanced Cultural Training:

- Pros: - Context: Communication gaps due to diverse workforce. - Resources: Investment in cultural
training. - Willingness: Improving workplace harmony. - Cons: - Context: Resource-intensive for ongoing
training. - Resources: Potential disinterest from employees. - Willingness: Sustained engagement in
training.
b. Cross-Cultural Teambuilding:

- Pros: - Context: Challenges arising from cultural diversity. - Resources: Investment in team-building
activities. - Willingness: Strengthens team cohesion. - Cons: - Context: Initial time and resource
investment. - Resources: Ensuring sustained engagement. - Willingness: Balancing activities with work
demands.

v. Strategic Evolution:
a. Gradual Market Entry:

- Pros: - Context: Economic uncertainties in potential markets. - Resources: Controlled and strategic
expansion. - Willingness: Minimizes risks associated with rapid expansion. - Cons: - Context: Slower
revenue growth compared to aggressive entry. - Resources: May miss early-mover advantages. -
Willingness: Potential impatience for quick results.

b. Strategic Partnerships:

- Pros: - Context: Need for financial and operational support. - Resources: Leverages partner expertise. -
Willingness: Collaborative approach to market entry. - Cons: - Context: Careful selection of partners
required. - Resources: Balancing decision-making with partners. - Willingness: Potential conflicts in
creative processes.

vi. Conclusion:

The choice of alternative solutions should be tailored to Cirque du Soleil's specific context, available
resources, and organizational willingness. A combination of these alternatives may offer a
comprehensive strategy to address the challenges faced by the company. The key is to align solutions
with Cirque du Soleil's unique strengths, constraints, and strategic objectives.
IV. Recommended Solution:
i. Financial Stability:

 Implement a strategy of Cost Optimization and Show Enhancement to balance financial stability
without diluting artistic focus. This involves leveraging existing creative talent, aligning with cost-
cutting measures for sustainability, and ensuring a balance between cost reduction and
maintaining show quality.

ii. Safety Assurance:

 Prioritize a Comprehensive Safety Training program to address historical safety incidents.


Allocate resources for ongoing safety programs, committing to continuous reinforcement to
ensure performer safety and a positive cultural shift.

iii. Talent Management:

 Focus on Improved Working Conditions as a priority. Make initial investments in workplace


improvements to address attrition rates and enhance employee morale, while carefully
balancing improvements with the intensity of artistic expression.

iv. Cultural Diversity Challenges:

 Implement an approach that includes Enhanced Cultural Training to address communication


gaps arising from a diverse workforce. Invest in ongoing cultural training programs and foster
sustained engagement from employees.

v. Strategic Evolution:

 Advocate for a Gradual Market Entry strategy to navigate economic uncertainties. Opt for a
controlled and strategic expansion approach, minimizing risks associated with rapid growth, and
aligning with Cirque du Soleil's unique strengths and capabilities.
V. Implementation Plan :

Objective Action Steps Timing and


Responsibilities

Financial Conduct a thorough Cost- Q1 - Finance Department


Stability Benefit Analysis for led by CFO.
potential cost optimization
measures.

Initiate a phased Show Q2 - Creative Team and


Enhancement Program to Show Directors.
introduce new elements to
existing shows.

Safety Assurance Launch a Comprehensive Q1 - Human Resources


Safety Training program, and Safety Department
including workshops, collaboration.
simulations, and ongoing
drills.

Establish a dedicated Safety Q2 - Chief Safety Officer


Oversight Committee to and designated Safety
monitor and enforce safety Managers.
protocols.

Talent Undertake a Workplace Q1 - Operations and


Management Improvement Assessment Human Resources.
to identify key areas for
enhancement.

Implement identified Q2 - Facilities


improvements, starting Management and
with immediate concerns. Employee Engagement
Teams.

Cultural Diversity Introduce an Enhanced Q1 - Human Resources


Challenges Cultural Training Program and Cultural Diversity
with modules for effective Experts.
communication.

Establish a Diversity and Q2 - HR and appointed


Inclusion Task Force to Diversity Officers.
address ongoing cultural
challenges.
Strategic Develop a Gradual Market Q1 - Strategy and Market
Evolution Entry Plan considering Research Teams.
potential markets and entry
strategies.

Conduct a Risk Analysis Q2 - Executive


Workshop to identify and Leadership and Risk
mitigate potential risks Management Team.
associated with expansion.

Monitoring and Establish a Monthly Review Cross-Functional


Adaptation Mechanism to evaluate Monitoring Team with
progress against set representatives from key
milestones. departments.

Create a Cross-Functional Adjust strategies based


Monitoring Team with on feedback and
representatives from key evolving market
departments. conditions.

Communication Develop a Communication Regular Town Hall


Plan to keep all Meetings to address
stakeholders informed concerns, share
throughout the progress, and gather
implementation. feedback.

Appendices Detailed schedules,


resource allocation plans,
and a communication
calendar.

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