Orion Art Centre is located in the heart of Cambridge, UK. It provides a platform for a diverse creative community. Orion hosts film festivals, exhibitions and live music events. It also has 10 screens that are used to play both the latest blockbusters and obscure arthouse films from around the world. The screens are also used to play children’s films on Saturday mornings and world cinema classics in the afternoons.
Orion is a popular entertainment destination for the residents of Cambridge. Cambridge is a university city, and almost 20 per cent of its population comprises students who study at the various colleges there. The city also has a large number of software and biotechnology businesses. Cambridge is located about 50 km from London and has direct rail services to London. Recently, the profitability of Orion’s movie showcasing business has decreased. Earlier this year, the company posted its end-of-year results for 2017 and reported a 40 per cent fall in earnings from film screenings, with revenues falling to almost £22 million, which is a fall of more than £15 million from the previous year.

The cost of showcasing certain movies is very high, and despite near full houses during initial showings, the theatre is unable to recover costs. The movie screenings after a few initial showings have also been witnessing low attendance. George Mellor, the commercial manager at Orion, is concerned by the increasing costs and the decreasing footfalls. Mellor has decided to review the movie screening operations and come up with solutions that might improve the financial position of the art centre. In order to provide a unique experience for the audience and draw more crowds to the cinema, Mellor is thinking of making arrangements for regular talks on Sundays that would feature the cast and the directors of the movies being played. He is also thinking of offering a four-week film course for those who would like to
understand more about what they’re watching on screen. Mellor is in the process of designing a balanced scorecard for Orion to identify the key processes and performance parameters that need to be improved.

Required
1. Determine the customer perspective performance measures that Orion should consider.

2. Identify the learning and growth perspective performance measures for Orion.

3. Identify an internal business process perspective performance measure for Orion.

4. Which performance measures would Orion want to see an increase in?

5. Which performance measures would Orion want to see a decrease in?

6. Determine the classification of performance measures used in the balanced scorecard approach.

7. Does the scorecard have an explicit way of monitoring a competitor’s actions?

8. Outline what you know about SMA.