Reference no: EM133054000

According to Henri Bergson, "To exist is to change, to change is to mature, to mature is to go on creating oneself endlessly".

Shangre's Theatre runs a chain of multiplex theatres. Due to the pandemic, the government had ordered all the theatres to be closed.

Shangre's Theatre had a steady business before the pandemic. In the lockdown, the organisation is facing losses. Now in the month of September 2021, the government passed an order to open the theatres with 50% capacity. Due to intense competition and restrictions, Shangre must find innovative ways to gain momentum.

Shangre's Theatre decided to run its business in two ways, one being ordinary film shows and the other being TTH or "Take Theatre Home'. TTH allows customers to enjoy a cinema experience at home at a low cost. With this new business model in mind, Shangre launched an online portal. This portal receives requests from customers for TTH and takes online bookings for theatre. There are some gaps in the online portal. Firstly, the new system was not user friendly. Office employees do not understand the system, as no training was given to the employees. Shangre's management did not foresee that training was essential for the smooth functioning of the system. The operations manager brought up training in a management meeting, but there was no response from the management. A few of the IT skilled employees partly understood the system and started using it by trial and error, while other employees with no IT skills are reluctant to use the portal. Secondly, customers were not getting timely responses.

When the problem was raised with the IT solution provider, they told the operations manager that employees need proper training to run the portal. FAQs were proposed to guide customers in using the portal. When these incidents came to management's notice, the operations manager was asked to train employees as soon as possible. Due to these glitches, Shangre's Theatre lost a month's business, but it was better late than never.

QUESTION

Critically analyse the business risks associated with Shangre's NEW business model.