External Environment "Are You Future Ready?" Topic Paper \#5: Global Economy In 2018, the economies of China, Brazil, India and Russia grew faster than the US. By the end of 2021, it is projected that China will surpass the US as the largest economy in the World. With 95% of the World's population living outside the US, companies that want to compete will need to source revenue from outside US borders. Coca Cola will spend almost 60% of its capital over the next five years in Africa. AB-InBev spent more than $100B to acquire SAB Miller to gain its distribution network ... (SAB stands for South African Brewery). After reviewing Lecture \#5 (in the Weekly Folder) ... and then using information from www.export.gov and www.worldbank.org as resources, identify 3 "non - BRIC"; "non- North American" countries you think offer the greatest opportunity for "Future" growth and explain your selection (and site sources)... (Yes, you can use your BUS 300 knowledge) The situation: You are the management team for AMC Theaters, the largest movie theater chain in the world. While the pandemic has heightened the situation, many say that the traditional movie theater business model has been going the way of other retail businesses ... but instead of consumers purchasing products via on -line (Amazon), they are watching movies via streaming (Netflix). And now to increase the pressure of the theater business model... 1) Disney+ just announced it has over 180 million subscribers (more than 3 times the year one target); Netflix has about 210 million. 2) Disney moved the movie. Hamilton, from a scheduled theater release to Disney+. 3) Disney by-passed the movie theaters with the "live action" Mulan movie will and went direct to Disney+ for a fee of $30. (Approximately 45% of ticket revenue goes to the theaters.); The Jungle Cruise movie was released simultaneously and generated almost equal revenue from in-theatre versus at-home streaming. 4) Universal Studios has an agreement with AMC that allows it to transition first run movies to streaming after 17 days versus the "traditional" 75 days. Topic Paper \#2: "The Are You Future Ready - Challenge?" As stated in Topic paper \#1 ... Strategic Management is all about managing for the future ... anticipating what the future may look like and planning to leverage it for success. So, while we were all quarantined these past months, how many of you rented a movie from Blockbuster? Oh ... they are no long around; haven't been for a few years. Yet did you know that in 2008 , they were a $6.0 Billion company with more than 9000 stores. And that in 2010 they filed for bankruptcy; and by 2014 they closed their last 300 corporate stores. So, what happened ... well Blockbuster had in place a structured Strategic "Planning Process" but did they have a robust "Thinking Process"? In 2008 Blockbuster CEO Jim Keyes told analysts, "Neither Redbox nor Netflix are even on the radar screen in terms of competition." (They turned down the opportunity to buy Netflix for $50 Million in 2000.)
