Organization Analysis: Madame Tussauds Case
Billions of people have flocked through the gateways of Madame Tussauds which was opened over two centuries ago. Despite the long period of existence, Madame Tussauds still remains popular as it has ever been. Many reasons have been cited for the enduring success of this company, but all the outstanding goodness lies in the beauty of the old-fashioned curiosity (Madame Tussauds, 2016). Madame Tussauds is a wax museum majorly based in London but has some smaller museum branches in many major cities all over the world. It was founded by a popular wax sculptor, Marie Tussauds in 1835 (Golden Tours, 2016). Among the first main attractions in the museum was the Chamber of Horrors (Madame Tussauds, 2016). It is a tourism epicenter both in London and in the company branches, portraying the waxworks of legendary and historically celebrated individuals. The museums have also been adjusted to display waxworks of the current popular film characters, political leaders and sports personalities (Madame Tussauds, 2016). In 2005, the company was sold to Dubai International Capital, based in Dubai, for US$ 1.5 billion. Later in 2007, the Dubai International Capital sold Marie Tussauds to The Blackstone Group for US$1.9 billion (Madame Tussauds, 2016). The company was merged with Blackstone’s Merlin Entertainments, and Merlin took over all the company’s operations. In the second half of 2007, Merlin sold the freehold of the company to a Nick Leslau, a private investor under a leaseback agreement renewable in 35 years. Currently, the company’s operations are facilitated by the Merlin Entertainments (Merlin Entertainments, 2016). The company ceased existing as a single entity in 2007.
The Legal Form of Marie Tussauds
Madame Tussauds is a privately owned limited company. It is a perfect model of a highly successful leisure business which has achieved even more than the publicly owned leisure companies. Despite the fact that Madame Tussauds is a private company, it has a very great political impact. It is bounded by the government laws, local laws as well as the international legal measures (Madame Tussauds, 2016). The company works in accordance with its memorandum association and the article of association. By so doing, it maintains a high decorum as outlined by the government with regard to taxation policies, environmental regulation, international trade, consumer protection, competition regulation, political stability, political policies and restrictions, employment rules and safety regulation (Madame Tussauds, 2016). These vital measures have been adopted to ensure a healthy relationship between the leisure organization and the political field. Both the company and the political authorities are interdependent to one another; by paying taxes to the governments of their respective locations, they can share in many benefits without any political interference.
Political aspects have also been generated to uphold healthy impacts on the clients. The creation of an ideal business and legal environment also enhances the co-existence of the three parties (the government, the company and the consumers). They can freely enjoy and share in the benefits and gains originating from each other. Consequently, Madame Tussauds embraces healthy political features and receives a grand cooperation in return from the government organisations. The government is among the most reliable sources of revenue in the leisure companies. The Merlin Entertainments which is the umbrella, under which Madame Tussauds operates, ensures that the initial spirit of artistry in the company thrives well.
The Organizational Structure of Madame Tussauds
Madame Tussauds is a constituent company of the greater company Merlin Entertainments. Therefore, all its operations are performed under the governance of the Merlin Entertainments. Merlin Entertainment has a premium rating on the London market of Stock Exchange and is a subject to the United Kingdom DTRs, the Code (Governance Code) and the stock exchange rules (Merlin Entertainments, 2016). The company believes in transparent corporate governance as a key pillar of running company business proficiently and is dedicated to maintain high levels of quality corporate governance among all its constituent companies. In this consideration, Merlin takes a contemplation of all the views and recommendations of the shareholders and the consumers.
The Main Board
The panel is charged with the overall responsibility of supervising the management and the strategy of the Company. The team is supposed to meet at least six times annually. Other meetings can be scheduled on a request from one or more directors. The UK Code demands that for public limited companies, the chairman should be appointed independently. The Merlin’s chairman was appointed in 2009 with the duty to make sure that there is good corporate governance. The chairman should also guarantee the effectiveness of the main board in all its duties, ensure a reasonable communication with the stakeholders, specifying the board’s agenda and also initiating motivational programs for the directors to fully participate in all the processes of the board (Merlin Entertainments, 2016).
The Nomination Committee
The main duty of the Nomination Committee is to assist the Board in fulfilling its responsibilities relative to the Board’s composition. It is responsible for checking the equilibrium of, knowledge, skills, and experience in the board. It also provides constant checks on the structure, composition and the size of the Board, appointments, retirements, and replacement of Board directors (Merlin Entertainments, 2016). The Nomination Committee is composed of the Chairman and three independent Non-executive Directors. The committee should conduct two formal meetings yearly. Adjustments on the holding of other meetings can be made when necessary.
This commission aids the Board in determining its duties in relation to remuneration/monetary compensation. It stands accountable for making proposals on the policy of the company on management remuneration, deciding the individual remuneration and benefits attached to the executive directors. It also recommends and monitors remuneration terms for senior executives under the Board level. Also, the Remuneration Committee approves for the funds of the awards issued to employers with regard to the Company’s Employee Share Incentive Plan (Merlin Entertainments, 2015). This committee holds two formal meetings in a year and can also schedule other meetings if required.
The Audit Team helps the Board to perform its responsibilities relative to the financial reporting, takes control of the internal and external audits. The Audit Committee reviews the annual financial statements, monitors the level of non-audit undertakings by the external audits and recommends on the appropriate appointment of external auditors (Merlin Entertainments, 2015). It also reviews the efficiency of the internal company audits. However, the ultimate duty of assessing and approving annual and semi-annual financial reports are the key responsibilities of the Board. The Audit Committee meets at thrice a year but it convene extra meeting in case of arising issues that they must address.
Health, Safety and Security Committee
This Committee helps the Board in managing health, safety and security issues in the group. It is responsible for suggesting to the Board, monitoring and implementing the health, safety and the security of the group (Merlin Entertainments, 2015). It also reviews the efficacy of the implemented health, safety and security processes, resources, skills, and management programs. This helps the committee to report on the adequacy of the implemented measures. In formal terms, this Committee is expected to meet four times annually and otherwise as appealed. The council is composed of a chairman, who chairs the team and other three non-executive directors.
Madame Tussaud’s Mission Vision and Passion
As earlier mentioned, Madame Tussauds is a constituent of the larger Merlin Entertainments. Therefore Madame Tussauds shares in the mission, the vision and the strategy of the larger company. The overall company aims to deliver an exceptional, tremendous, and outstanding and experiences to the masses of visitors across their developing domain. The company states in their mission that they believe that they can achieve this major purpose through the commitment of their team and the power of their brands which have always and will always be distinct, innovative and challenging (Merlin Entertainments, 2015). The mission also upholds the certainty of the company of being an electrifying firm to be engaged.
The vision of the company is to grow to be the global leader in recognized, location-based, family and social entertainment (Merlin Entertainments, 2016). Ideally, the company is to a great extent featuring its vision. In the current status, the company has numerous entertainment sources under its name.
The passion of the company is that it is the first and leading entertainment company. Their zeal is to plant smiles and screams on the society’s faces and to offer consumers unforgettable experiences. This will be achieved through creativeness, persistent compulsion for excellence. Simply, the entertainment company loves what it does.
Madame Tussauds Strategy
The company’s strategy is to craft a high growth, a lofty, family entertainment institution based on prominent brands and an assortment that is logically balanced alongside the collision with external factors. In 2016 the company focused on shifting its brand vision from being the most attractive brand to a popular one that through the aspects of immersive experiences, entertainment and culture.
Madame Tussauds’ Business Processes
Madame Tussauds is currently running 24 locations with the 25th opening this year in India (Golden Tours, 2016). In 2016, the company experienced a sum of 63.8 million visitors in all the 24 locations. The total revenue was £1.42billion. This company has proven to be exceptionally brilliant in its marketing strategies. Majority of the company’s locations are centrally placed. For instance, The Amsterdam is located right at the center of the city close to some gory museums which give it a competitive advantage.
An estimated figure of over 500 million people has visited Madame Tussauds in London ever since its establishment (Madame Tussauds, 2016). This means that a similar figure has viewed the waxworks and has spent cash on buying of tickets, and other vital local provisions. It is anticipated that the figurines approximately cost $125,000 to create. On average terms, a ticket goes for £25-40. This implies that a total of 5,000 tickets have to be sold to cater for all the figurines displayed. However, several figurines especially those from revered personalities easily attract such that within a few days, their prices can be compensated. The Madame Tussauds group has witnessed a steady economic growth and has continued being stable. The company has also hired 27,000 people so as to channel more money into the local population that may not exist in the absence of the Tussauds (Golden Tours, 2016).Madame Tussauds exhibits a horizontal integration in the chain distribution of the tourism industry. The Merlin Entertainments bought the company though it has always maintained its original name. The retention of the original names makes the general public unaware of the purchase (Biplab Roy & Kuri, 2015). Initially, the two companies were of the same level in the chain distribution.
Factors Influencing Madame Tussauds
Typically, every organization exists in an environment amidst other factors. Companies are also prone to internal strains. Madame Tussauds is never an exception to this. The thriving of the company is occasionally threatened by both internal and external factors. There is a major trend by the consumers to first look for promotions prior their visit to the museum targeting to save money. In addition, customers only pay visits during the holidays which create both peak and off-peak seasons and prices.
Madame Tussauds is part of Merlin Entertainments which is the second world’s attractions operator after Disney. This gives the company a competitive advantage, minimizing the competition in the UK. However, the company still experiences competition from other the local companies. To counter this, the Tussauds have always been on the forefront introducing new attraction every year.
Owing to the large numbers of visitors during the peak seasons, the museum experiences some accommodation challenges. Often, the company requires huge parking lots to accommodate the coaches carrying the large numbers of visitors. This also creates an overcrowded environment and too much work for the employees to cater for all the visitors. This may end up denying the customers the golden chance to experience with the celebrity wax figures.
Madame Tussauds is a large brand name and a worldly applauded museum; it is currently fast-paced and offers an interactive experience enabling visitors to get intimate with their celebrated figures. It is a typical model for a thriving leisure industry which focuses on each section of its services- leisure and tourism, advertising and an ideal customer service. It maximizes its profits by identifying the key concepts that can drive the organization into achieving its objectives. It is a unique brand and is recognized for distinctive experiences and great reputation. Ideally, the company is likely to attain more in the technology era. Leisure is among the envied involvements in the modern world. The company should, therefore, expand its operations as they are quite certain of their prosperity. Opening doors in more states will attract more consumers leading to higher profits.