Class notes
Cultural Industries Lecture and Seminar Notes
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Includes 7 weeks of notes. Readings also are elaborated on within the lecture and seminar notes.
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Week 1: Analysing the creative and culturalindustries
Lecture 1: Cultural industries
- There are many debates (His monologue)
o Dynastic producer
Political
Nepotism
- Weekly work groups
o Teams apply theories and frameworks from the weeks literature to recent
business case from the cultural and creative industries
Ex. Burning man vs. Climate change
Take up ideas from each weeks reading
How can they make changes on their organisational design?
How can they change their marketing to resolve this issue?
Problem statement
o Case study should be…
From a cultural or creative industry
Level of analysis: Organisation (Easier) or entrepreneur
Make sure all weekly themes can be applied: organisational design,
marketing, technology and competition
PROBLEM STATEMENT (apply concepts and ideas)
Q1: B – Cultural goods require some input of human creativity and should be attributable to
an individual or group producing the good.
- They may not have a utilitarian aspect
Q2: A - Business model reveals the logic for creating capturing value as well as the
organizations approach to renewal
- Shifting analysis from the organisation to the individual (not an organisation device)
Q3: D – Shift for customer preferences and coopetition
What is creative good?
- Creative is a subset of culture
o It can creativity involved and has some symbolic meaning and commercial
value
What is a cultural good?
- Are more than simply utilitarian and serve larger communitive purpose
- Require some input of human creativity
- Original ideas and novel ways of interpreting the world
- Used for more commercial activities
Is the distinction important?
, - Estimates of contribution
- Policy implications (economic versus cultural objectives)
- Economic analysis (supply versus demand perspectives)
When is a new business model needed?
- Address the needs of potential customers
___________________________________________________________________________
Problem definition: The decline in live attendance, exasperated by the increase in televised
presence.
“After just two years, more people now watch the Met Opera in movie theatres that in the
opera house itself (around 850,000).”
- Undermines unique/exclusive appeal and authenticity
o only showing the viewer what they want them to see
- Risks perception of the products quality
o Technology cannot facilitate the full experience
o Television doesn’t do the opera justice in terms of presenting the opera
experience (recordings do not make up for live)
- Risks image and reputation
o Status as a prestigious and history opera house
Theoretical framework:
Solution:
Invest in cultural and heritage marketing:
- Limit television presence to
documentaries
o Rather than televise
performances invite media
organisation to create
documentaries to create an
excitement towards the live
shows
- Increase image and reputation (non-tangible key recourses)
o = More high-profile performers
o = Potential support from government as a cultural organisation
- May run the risk of become obsolete
- Artistic offering via creating a sense novelty may not sufficient
Diversifying via:
- Take advantage of reputational resources to create a creative workshop based on
potential customer preferences with the expertise of artistic professionals
, o Eliminating the advanced 4 year planning scheme to guarantee contemporary
customer preferences are met
o Create an opera like no other
o “Creativity as a strategic resource”
o Capturing value through continuous renewal
- Focus on artistic offering (novelty)
- Increase excitement for live performances and engage a new generation audience
- Become the venue for younger up and coming artistic professionals
Organisation design, marketing, technology and completion
Analyse: Pricing, tangible, none tangible
Week 2: CCI & Organizational Design
Lecture
Reading 1:
Cultural goods
- As experiential goods their value is derived by consumers subjectivity
o Difficult to establish product quality
o Production hard to control
Reading one:
- Discusses five ambiguities or tensions that managers in the cultural industry must
navigate
- It’s a balance! No balance = ineffective organization (production) = FAIL
o Artistic vs. entertainment value
Should the intrinsic value of the art drive decision making, or should
decision driven by the economic value of mass production?
Should I achieve artistic achievements? Or should I reach a high level
of sales?
o Product differentiation vs. market innovation
Should artistic products focus on novelty or familiarity?
Consumers want originality (novelty) but not too much #familiar
Ex. Met gala only outfit or regular outfit ? Balance!
o Demand analysis vs. market construction
Is the consumption of the art driven by consumer taste, or are
consumer tastes driven by artist?
It must be balanced!
Are cultural goods and expressions of consumers wants or is it the
producer that determines what consumers want?
o Vertical integration vs. flexible specialization
Which system of production favours creativity: large in-house
production and distribution, or a flexible network of small producers?
Will be covered in next reading
, Organise effectively, OUTsource!
Pro, flexible/ Con, no control!
o Individual inspiration vs. creative systems
Is creativity an individual or collective product?
Individual genius or collective creativity?
Someone has a vision and drive
You still need collective functions to make the product work
- They all revolve around the question: What organisational from is best suited to
production in the CI
- What tension is most important for your given case?
- How are these tensions balanced?
- Business case:
o What tensions are the most important in giving setting for your case?
o How are these tensions balanced and why?
What are the implications of these tensions for how production,
marketing, distribution and etc. are organised?
Reading 2:
- Look how capabilities have evolved in terms of how organisational forms have
changed.
- Resources:
o Inputs for achieving superior performance
Tangible (money)
Intangible (reputation)
Firms may fail to acquire the best resources (not hire best job
candidates), may lose resources (reputation) or use them suboptimal
(inefficient production).
Firm’s resources need to be upgraded and renewed over time.
- Capabilities
o Processes that integrate, reconfigure, gain and release resources in response
to market conditions.
Routines and practices used to efficiently manage resources
effectively
Ex. Nutella: resources = raw materials, capability = secret recipe
- The resource-based view of the firm
o Sustaining competitive advantage derives from the resources and capabilities
a firm control that area venerable, rare, imperfectly imitable and not
substitutional
If they have the best artwork and best facility, then they may be able
to produce a better product
Selection process needed, hire the best resources
- Mobilizing capabilities
o Routines needed to identify and commit resources (attract the best
resources)
Useful for allocating (mobilising) the best resources to a specific
project
Need for a selection process
Ex. Pre-production phase
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