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Business Plan

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Business Plan

  1. 1. BUSINESS STRATEGY - MARCH 2015 1 Business Strategy MGMT 490 2316 W 1st Ave, Spokane, WA 99201 p. (509) 456-3931 f. (509) 363-5303 themac@northwestmuseum.org www.northwestmuseum.org
  2. 2. BUSINESS STRATEGY - MARCH 2015 2 Table of Contents I. Purpose II. The Survey III. Marketing Ø Primary Data and Analysis Ø Secondary Research and Suggestions IV. Management Ø Location Ø Hours of Operation Ø Programs V. Human Resources Ø Current Staff Ø Hiring Costs Ø Overall Implication VI. Management Information Systems Ø Customer Database Ø Website VII. Finance/Accounting Ø Revenue Budgetary Comparison Ø Expense Budgetary Comparison Ø Implications VIII. Appendix IX. Citations
  3. 3. BUSINESS STRATEGY - MARCH 2015 3 Purpose The goal of our efforts is to optimize the quality of exhibits and make sure the best artifacts and pieces are displayed. The museum wishes to achieve the highest level of customer involvement. The group would also like to allow the MAC to become well known throughout the Pacific North West as a destination museum. Increasing MAC popularity will allow the museum to switch from public to private funding. The Survey
  4. 4. BUSINESS STRATEGY - MARCH 2015 4
  5. 5. BUSINESS STRATEGY - MARCH 2015 5 Marketing Primary Data and Analysis After completing the coding and frequency tables in excel for the survey results the group found that our target market is going to be Caucasian male and females between 56 to 65 years of age. The majority of survey takers said that they took that does not know what the MAC is. However individuals that are aware what the MAC is have visited or participate in MAC activities. The target market also consists of people within the zip code of 99203. These people will also make an annual income of 45,001-75,000 and have a 4-year college degree, 8.6% of survey takers choose not to disclose their income level. Once lickert scale results were evaluated by percentage the group found that people want to see more exhibits with: native history and hands on experiments. The final lickert scale showed these topics as the top three interests: non-fiction books, rock music, and food prep/cooking. After completing the coding and frequency tables in excel for the survey results we found that our target market is going to be Caucasian male and females between 56 to 65 years of age. The majority of survey takers said that they took that does not know what the MAC is. However individuals that are aware what the MAC is have visited or participate in MAC activities. The target market also consists of people within the zip code of 99203. These people will also make an annual income of 45,001-75,000 and have a 4-year college degree, 8.6% of survey takers choose not to disclose their income level. Once lickert scale results were evaluated by percentage we found that people want to see more exhibits with: native history and hands on experiments. The final lickert scale showed these topics as the top three interests: non- fiction books, rock music, and food prep/cooking. New Market Opportunity A beneficial new market would be the post secondary educational system. By creating an alliance with local universities and private colleges the MAC could grasp the attention of today’s youth through presentations and demonstrations, along with sponsorship and marketing opportunities. Marketing through the educational system brings awareness to the prime demographic of 18-24 years of age. Age 23.70% 56-65 Years of Age Visited the MAC (Know where it is) 69.89% YES Gender 49.40% Male & Female Know of MAC 72.26% NO Marital Status 41.90% Married History 32.30% Native Ethnicity 91.20% White Hands-On 40.53% Household Size 40.86% 2 People Reading 40.20% Non-Fiction Zip Code 99203 Music 25.80% Rock Income Level 24.73% 45,001-75,000 Food/Cooking 26.90% Food Prep/Cooking Education 39.8% 4-year college degree
  6. 6. BUSINESS STRATEGY - MARCH 2015 6 The MAC can also expand marketing efforts by creating strategic alliances with local business owners that share the same pacific north west history such as: restaurants, grocery stores, small merchant shops, northern quest casino, etc. Strategic alliances allow a company to gain market power, and community awareness. These strategic alliances will promote discounts, special group rates, and promotional events. The demographic would be ranging anywhere from 2-70 years of age. The MAC is a destination spot for travelers; it is family friendly, and culturally enlightening. Promoting special rates on a popular coupon app will bring awareness throughout the Pacific Northwest and surrounding states. Groupon requires a purchase before the coupon is received. Theretofore it will promote sales and increase overall revenues. Groupons age demographic is male and females between the ages of 12-65+. The majority of people who use this app fall into the age category of males and females between 18-44. Groupon is viewed daily by an estimated 10,732,000 U.S citizens; opening a new market focusing on special deals and promotions. Secondary Research and Marketing Suggestions Social Media: Social media is not only a cost effective way to reach new markets, but with planning and coordination social media can quickly become the MAC’s primary mode of communication with its customers. In today’s day and age more people use social networking mediums such as, Facebook, Twitter, and Instagram to get their daily news and stay up to date with, not only what’s happening in their circle, but the worlds. Currently the Northwest Museum of Arts and Culture has social networking sites on Facebook, Twitter, and Instagram. Currently with 6,542 “likes” on Facebook, 1,753 followers on Twitter, and 114 followers on Instagram, the MAC has been able to build up a small group of people who are interested in what the MAC has to offer. The group believes that with the right planning, scheduling, and post detailing that the MAC can greatly improve these number to help build recognition for the upcoming centennial, and also for the switch from a public to private entity. Even though the MAC has a following of almost 6,600 people on Facebook, the amount of what is called “active followers” is low. Through visiting the MAC’s page and closely monitoring it during the duration of our time working the MAC currently receives 1-5 “likes” on average for each post. Facebook is a great medium to let customers know about upcoming events, RSVP for them, post opinions, and also see pictures and/or videos of what is inside the MAC. Posting during high click and peak times will greatly help the MAC receive more participation from its followers. Someone “liking” a post on the MAC’s Facebook communicates it to those who follow that person and so on. Thus, creating a snowball effect that can increase the amount of reach the MAC has. On Facebook, these high click times are between the hours of 1-4 PM each day, with the peak time being 3-4 PM on Wednesday. ne common mistake made by those who run social networking sites for businesses is assuming that Twitter and Instagram users are synonymous. With a follower count of 1,753 on Twitter, yet only 114 on Instagram the group greatly believes that the MAC could benefit from organizing and planning posts on each of these sites. One common mistake that the MAC has made while using Twitter is the linking of Instagram posts. It is a quick and easy way to simultaneously post, but that is assuming that the 114 people who follow on Instagram—not accounting for number of actual “active” followers—fall into the 1,753 that follow the MAC on Twitter. Instagram is a great way to share pictures of what the MAC offers and events that are happening, but by posting the same exact post on Twitter it requires the follower (customer) to click on the tweet up to 3 times before viewing the content. Simply posting the same picture through Twitter (so it shows as the follower scrolls through their feed) will allow for my interaction with the post by the MAC’s twitter followers.
  7. 7. BUSINESS STRATEGY - MARCH 2015 7 Knowing what time to post, and how to post is very important to create a bigger following for the MAC and also to increase awareness in new markets. While spending time on a social network the average user does not respond to lengthy posts, or those cluttered with the use of hash tags. Keeping a post to the point, and limiting the amount of hash tags used can greatly increase the amount of interaction and reach for each one. In the appendices is a basic “rule of thumb” cart for posting on both Facebook and Twitter. Print: Print ads are one of the most powerful and innovative approaches in marketing today. Through printed advertisements a brand can create a message, be easily identifiable, and evolve. The consulting team has decided to continue advertising in Spokane’s weekly magazine entitled “Pacific Northwest Inlander” due to its trendy influence in the Spokane community. It prints 51,000 to 52,000 copies each week. The PNW Inlander is a free weekly magazine that displays: news, culture, food, music, film, health, events, festivals, farmers markets, seasonal attractions, and other suitable promotions. Due to a vast amount of demographically relevant research the group has found that the PNW Inlander is read by individuals between 18-75+ years of age within the Spokane and Kootenai counties. The MAC’s current target market cohorts can be segmented into Pre-K through elementary school children, middle/high school aged children, young adults (with college degrees), young adults/middle aged suburbanites with kids, and college educated retirees. The advertisement has the potential to expose the MAC to around 84% of our market, which includes over 200,000+ readers. Although the MAC currently prints advertisements in the Inlander, the group found current advertisements lackluster (See Example)In today’s media-cluttered world, an advertisement has to be able to catch the attention of the reader. Our printed advertisement will run for 4 weeks occupying the bottom half of a page priced at a total of $1,227. The bottom half was chosen because it is less expensive than whole page advertisements. Consumer behavior classes have taught that readers notice an advertisement when it is on the right page. A current advertisement for Super Saturday is on the right page, but gets overpowered by other ads, getting lost in the clutter. A larger ad will also allow more information to be shared with the reader.
  8. 8. BUSINESS STRATEGY - MARCH 2015 8 The MAC should insist on having an advertisement on the right page and following an engaging article that relates to current target market interests. Although interests needs further testing, the articles the MAC should target focus on food and foodprep, Native American history, and rock music. By printing an advertisement in the PNW Inlander the group will grasp and demand the communities’ attention for less than half a penny per person, fabricating an exceptional marketing opportunity. Our research found that print is going to be the best secondary source of advertising: THE MEDIA AUDIT TARGET QUICK PROFILE All Groups TOTAL Page 1 REPORT MARKET: SPOKANE, WA (SPOKANE AND KOOTENAI COUNTIES) REPORT BASE: ADULTS AGE 18+ REPORT PERIOD: FEB-MAR 2013 TARGET: PAST 4 EDITION CUME--THE INLANDER (PACIFIC NORTHWEST) BASE POPULATION: 477,740 % IN TARGET: 42.0 TARGET PERSONS: 200,439 Target Profile Median Miles Past Week: 100 Median Home Value: $173,025 Home Owners: 77% Median Age: 45 Median Income: $51,386 Total Income: $12,355,711,500 0 15 Age Analysis 7% 8.9% 18.7% 8.5% 7% 20.3% 16.3% 4.6% 8.8% 75 + 65-74 55-64 50-54 45-49 35-44 25-34 21-24 18-20 0 35 Gender Profile 50.2% 49.8% FEMALE MALE 0 65 Ethnicity Profile 1.1% 85.1% BLACK WHITE Annual Income 8.5% 4% 15K-25K < 15K Education Profile 23% 4.5% H.S. GRADUATE H.S. OR LESS
  9. 9. BUSINESS STRATEGY - MARCH 2015 9 SPOKANE EASTERN WASHINGTON NORTH IDAHO 2014 RATE CARD COLOR ADVERTISING Rates Effective 01/01/14 ADVERTISING DEADLINES SPACE RESERVATION...................Thursday, 3pm SUBMIT CAMERA READY ADS....Friday, 5pm (seven days prior to distribution date) (six days prior to distribution date) AD COPY/ARTWORK SUBMISSION...Friday, Noon ALL ADVERTISING FINAL ............Monday, 3pm (six days prior to distribution date) (three days prior to distribution date) SPACE CANCELLATION.................Friday, 5pm E-MAIL ADS TO..............design@inlander.com (six days prior to distribution date) PREMIUM POSITION Premium advertising space (located on pages 3-19) sells for 12% above normal space charges. The back cover and page 2 are a 20% premium. Premium positions are sold on a first come, first served basis. Check with your account executive for availability. NON-PROFIT ADVERTISING RATE Advertisers with proof of non-profit status qualify for this discounted, non-commissionable rate ...............$101 per advertising unit INSERT ADVERTISING Insert advertising is available. See separate rate sheet for pricing information. CLASSIFIED ADVERTISING Classified section advertising is available. See separate rate sheet for pricing information. SHORT TERM FREQUENCY DISCOUNTS 1 UNIT 2 UNITS 3 UNITS 4 UNITS 5 UNITS 6 UNITS 8 UNITS 9 UNITS 10 UNITS 12 UNITS 15 UNITS 16 UNITS 20 UNITS OPEN RATE 140 280 420 560 700 840 1120 1260 1400 1680 2100 2240 2800 4 CONSECUTIVE 10% 128 256 384 504 624 749 991 1114 1227 1460 1825 1930 2412 7 ADS IN 13 WEEKS 12% 126 251 377 495 613 735 972 1094 1205 1433 1792 1894 2368 13 CONSECUTIVE 16% 121 242 363 476 590 708 936 1053 1160 1380 1724 1823 2279 LONG TERM 1 UNIT 2 UNITS 3 UNITS 4 UNITS 5 UNITS 6 UNITS 8 UNITS 9 UNITS 10 UNITS 12 UNITS 15 UNITS 16 UNITS 20 UNITS 13 ADS IN 52 WEEKS 14% 123 247 370 485 601 722 954 1073 1182 1406 1758 1859 2324 18 ADS IN 52 WEEKS 18% 119 237 356 467 578 694 917 1032 1137 1353 1691 1788 2235 26 ADS IN 52 WEEKS 25% 110 221 331 434 538 645 853 960 1058 1259 1573 1664 2080 52 ADS IN 52 WEEKS 35% 98 197 295 387 480 576 762 857 945 1125 1406 1487 1859 SIZE DISCOUNTS 2% 3% 3% 4% 4% 5% 6% 6% 7% 7% The Pacific Northwest Inlander ~ Spokane, Washington MODULAR SIZES 20 UNITS 9.3" wide x 11" tall 16 UNITS 7.4" wide x 11" tall 15 UNITS 9.3" wide x 8.2" tall 12 UNITS (V) 5.5" wide x 11" tall 10 UNITS 9.3" wide x 5.4" tall 9 UNITS 5.5" wide x 8.2" tall 8 UNITS (H) 7.4" wide x 5.4" tall 8 UNITS (V) 3.6" wide x 11" tall 6 UNITS (H) 5.5" wide x 5.4" tall 6 UNITS (V) 3.6" wide x 8.2" tall 5 UNITS 9.3" wide x 2.6" tall 4 UNITS (H) 7.4" wide x 2.6" tall 4 UNITS (V) 1.7" wide x 11" tall 4 UNITS (S) 3.6" wide x 5.4" tall 3 UNITS (H) 5.5" wide x 2.6" tall 3 UNITS (V) 1.7" wide x 8.2" tall 2 UNITS (H) 3.6" wide x 2.6" tall 2 UNITS (V) 1.7" wide x 5.4" tall 1 UNIT 1.7" wide x 2.6" tall 12 UNITS (H) 7.4" wide x 8.2" tall THE INLANDER: 1227 W Summit Parkway Spokane, WA 99201 PHONE: (509) 325-0634 AX: (509) 325-0638 EB: www.inlander.com PRODUCTION CONTACT WAYNE HUNT Production Manager (509) 325-0634 xt. 232 wayne@inlander.com Camera Ready Ads E-mail......design@inlander.com FTP...........contact Production Manager On Disk....CD/DVD-ROM/DVD-R/Zip Disk/Floppy 1. Convert all text to outlines, paths or curves 2. EPS or PDF format is preferred (PDFs must have fonts embedded) 3. To ensure color accuracy submit color proof 4. Convert all colors to CMYK or grayscale, no RGB 5. Include linked images for InDesign or Quark files 6. All images must be at least 200dpi at 100% image size
  10. 10. BUSINESS STRATEGY - MARCH 2015 10 Radio: Through secondary research the group believes that radio would be a great tool to use to help explore new markets for the MAC and also to increase awareness about events and new exhibits. Potential customers usually interact with radio as they’re on the go and planning out their day. With nearly 242 million daily listeners in the United States, and 56.2 million of these being between the ages of 56-65 using the radio to advertise the MAC would be a great option to reach both the Spokane regions and other close by areas. With rock music being one of the top genres on the radio, airing advertisement for the MAC on local station 92.9 ZZU would be a great way to reach the MAC’s current market and also be able to explore others. Provided on the next page is a media package card for this station. FORMAT: Modern Adult Contemporary DESCRIPTION: 92.9-ZZU is a Modern Hit Music station, playing upbeat and cutting edge music. 92.9-ZZU, Modern Hit Music targets adults with active lifestyles, featuring Dave and Ken from 6-10 with Molly to provide upbeat energy and localism. Modern Hit Music appeals to a demographic that likes pop music without the rap, and softer rock bands with melodic hooks. 92.9-ZZU is designed to be in the car, in the office, at the beach and on the ski hill. A “must listen to” radio station for the 18- 49 year old. TARGET DEMOGRPAHIC: AGE: 18-49 PRIMARY GENDER: 60% female / 40% male PROMOTIONS: 92.9-ZZU promotions are geared toward the active working adult. You’ll find us everywhere from Lake Coeur d’Alene Party Cruises, Family Feast nights with the Spokane Indians, martini parties to parades, from shopping malls to concerts. If it’s “THE” place to be 92.9-ZZU will be there. SAMPLE ARTISTS: 3 Doors Down Nickelback Coldplay Rob Thomas U2 Gavin Degraw Dave Matthews John Mayer
  11. 11. BUSINESS STRATEGY - MARCH 2015 11 Marketing Calendar (Timeline): Management Location Hours of Operation MAC Galleries/ Museum Store: Wed-Sun 10:00am-5:00pm Campbell House/ Carriage House Activity Center: Wed-Sun 12:00pm-4:00pm (Tours at 12pm, 1pm, 2pm, 3pm) (Saturdays are and open house format from 12:00pm-4:00pm) Café MAC: Wed-Sat 11:00am-4:00pm, Sun 12:00pm-3:00pm MAC Galleries are closed Monday and Tuesday ** (I HAVE HOLDIDAY HOURS AND ADMISSION PRICES BUT I AM UNSURE IF YOU WANT THAT INFORMATION FROM ME OR NOT)
  12. 12. BUSINESS STRATEGY - MARCH 2015 12 Mobius Science Center Hours Tues-Sat: 10am - 5pm Sunday: 11am - 5pm Monday: Closed Mobius Children’s Museum Hours Tues-Sat: 10am - 5pm Sunday: 11am - 5pm Monday: Closed Jundt Art Museum Hours Mon-Sat 10:00am-4:00PM Closed on Holidays Seattle Museum of Flight Open 7-Days a week 10:00am-5:00pm Free First Thursday’s (Free admission 5pm-9pm) Seattle EMP Museum Open 7-Days a week 10:00am-5:00pm Pop Kitchen & Bar 10:00am-5:00pm (Happy Hour 5pm-7pm Thursday-Saturday) Museum Stores Open Daily 10:00AM-5:00PM (Online as well) Seattle Art Museum Museum and SAM Shop Mon–Tues: Closed Wed: 10:00am-5:00pm Thurs: 10:00am-9:00pm Fri–Sun: 10:00am-5:00pm Taste (restaurant) Mon-Tues: Closed Wed-Sat: 11:00am-Close Sun: 11:00am-4:00pm (all-day brunch) Programs Museum Programs For more secondary research the group was instructed to research what different types of programs were offered at various museums. The museums the group chose were the SAM (Seattle Art Museum) which is also affiliated with the Asian Art Museum, and the Olympic Sculpture Park. Also, the group researched the Portland Art Musuem. After looking at the MAC’s website for what programs it offers, the group came across four separate choices for which the group will explain in more detail below. MAC Programs School Visits: Like most museums, the MAC offers a program that will allows classrooms of students come in for a tour. They are offered Wednesday- Friday, 10:00AM- 2:00PM.
  13. 13. BUSINESS STRATEGY - MARCH 2015 13 Teacher: For teachers, the following program is offered; Visual Thinking Strategies (VTS) is a research-based teaching method that improves students' 21st century skills — such as analytical skills, creativity, and innovation. They collaborate through discussion of carefully chosen visual images. VTS promotes growth between many participants, from children in underserved communities to ELL learners to medical students. Adult Programs: As for adult programs, there doesn’t appear to be any set programs for this designation. This may be an area the MAC would like to attempt to inform new adult target markets. However, the MAC indicates it is recruiting adults who would like to teach a program for any wide variety of topics. Teens: The MAC has been offering a teen program for the past four summers. It is called Teen Interpreters. This program allows teens to lead interactive tours for visitors of the MAC. The teens gain knowledge of the museum as well as leadership experience. Seattle Art Museum Programs The SAM offers a variety of programs. The group is going to cover the programs that are unique, and different from MAC offerings. The following are in the “Public Programs” section. SAM Creates: These workshops provide a forum for artists to explain the philosophies underlying their work and for you to delve into the artistic, practical, or quirky processes at work in your daily lives. SAM Films: For more than 30 years, SAM has offered some of the most innovative film programming in the country. SAM screens films that explore a diverse cross-section of artists and genres. SAM Performs: SAM Performs features a wide range of styles, genres, and disciplines. Performances are often accompanied by discussions among artistic collaborators. SAM Talks: A timely and innovative forum that addresses pressing issues in art and society, SAM Talks bring together some of the most compelling thinkers on a given cultural subject, and include lectures by artists, critics, curators, and scholars related to the work in SAM’s special exhibitions, First Friday Lectures, and Art + Environment Panel discussions. SAM Remix: Dueling bands. A silent dance party at the top of the escalators. A lone trumpet wailing in the contemporary galleries. Art making in every corner. Spoken word throw-downs in front of oil paintings. Tap and burlesque and contemporary dance. The only guarantee: no two Remixes are the same. Held three times a year (in the summer, get down in the Olympic Sculpture Park). Ages 18+. SAM Family Programs The family programs is a section that the group were not surprised to see when the group were looking for programs at a museum. However, the MAC doesn’t appear to have designated family programs. This is an area of “programs” that the group would suggest the MAC look in to. Family and Community Festivals are full of art-making activities, live music, storytelling, performances, and family-friendly art tours—all with the participation of SAM’s community partners. These all-day art celebrations are guaranteed to get your family inspired, moving, creating, and connecting with your community.
  14. 14. BUSINESS STRATEGY - MARCH 2015 14 Family Fun Workshops: Introduce your family to a variety of cultures and artistic traditions during a Family Fun Workshop. This art experience is designed to engage both kids and adults in two hours of learning and creating together. Every workshop begins with a sketching tour of the galleries. With the guidance of a Teaching Artist and a wealth of provided art-making materials, just harness your imaginations to create a masterpiece inspired by your art adventure. Family Fun Workshoppers have created portraits of important women in their lives, wearable art inspired by contemporary Japanese fashion, gold pendants, abstract dot paintings inspired by Australian Aboriginal art, and puppets! Designed for kids ages 3–12 and their parents or guardians. Support for Family Fun Workshops provided by the Thanksgiving Foundation. SAM Teen Programs Art Lab: Art Labs are designed for high school–aged young people to delve into the creative process with artists, designers, and cultural producers. Participants work one-on-one with local artists on 2-D, 3-D, and digital projects. Every art lab begins with a tour of SAM’s collections and special exhibitions. Then channel your artistic genius to create your ownwork with the guidance of an artistand the provided art-making materials. Design Your ‘Hood: Teens, take control of your world! Get the tools you need to communicate your ideas about the spaces you live and learn in. Design Your [Neighbor]hood is a multi-session intensive workshop focused on visual art, design (in the broadest sense), and community change. In this experience-based program, you'll go on site visits to businesses and organizations that create designs and make decisions that pervade our everyday experiences. These behind-the-scenes opportunities inspire you to think beyond high school and expose you to careers in art, architecture, design, fashion, urban planning, and social activism. You'll also develop a studio practice where you'll acquire the skills needed to articulate your process and design three-dimensional models that communicate your ideas. Previous projects include partnerships with Arts and Academics Academy where students redesigned the school’s computer lab and hallway, and a partnership with Seattle’s Youth Violence Prevention Initiative, where the young designers worked in teams to propose three teen-friendly concepts for the Seattle Waterfront. Education and Community Engagement Committee: The SAM has a committee with a sole-purpose of finding new ways to be involved with the community. The committee is ran by the Board of Trustees at the Seattle Art Museum to make the museum a more inclusive place that welcomes diversity and reflects this diversity in all aspects of its operations and programming. The committee works with staff to meet this challenge by implementing plans that encourage heterogeneity among trustees, staff, and volunteers of the museum. The committee works to increase diversity in programming, membership, and visitors to the museum. The committee supports the goals and objectives of the museum’s education and public programs, including special exhibitions, teens, families, schools, educators, films, community outreach, and academic activities. The committee includes community representatives, members of the Board of Trustees, the Chairman of the Docent Committee and the Chairman of the Volunteers Executive Committee. It also receives and reviews reports from the staff on the museum’s education, public, academic, and outreach programs. The committee is a great tool for directly finding out what interests the community.
  15. 15. BUSINESS STRATEGY - MARCH 2015 15 Portland Art Museum Public Programs Artist Talks Series Second Thursdays, 6-8 p.m. $5 members, $15 non-members the second Thursday of each month offers the opportunity to join artists in the galleries for discussion about works of art and how they relate to their practices. Participants depart at 6 p.m. from the Hoffman Lobby. Talks are followed by a complimentary happy hour until 8 p.m. Midday Art Breaks Second Wednesdays, 12:30 p.m. Free for members or with Museum admission Tour of one of the Museum’s permanent collections or special exhibitions with a curator, Museum educator, or special guest. Tours depart from the exhibition or collection entrance. Art & Conversation Third Thursdays, 9:15 a.m. Free for adults 55 and over. Join us the third Thursday of every month for coffee and conversation followed by a lecture. Coffee at 9:15 a.m.; lecture at 10 a.m. Family Programs Miller Free Sunday FREE FOR EVERYONE! Miller Free Sunday allows visitors to explore exhibitions through art-making, music, interactive activities, demonstrations, and performances the whole family can enjoy. Family Tour CHILDREN UNDER 17 ARE FREE! Sundays, 12:30 p.m. Meet us in the front lobby to get up close and personal with works of art during a family-friendly docent tour.
  16. 16. BUSINESS STRATEGY - MARCH 2015 16 Conclusion Looking at the Portland and Seattle museum websites, the group easily found all of the programs that were offered, including the dates and times of them. The MAC did not offer dates nor times in most their Programs sections. The Seattle museum website offered a variety of programs on their website and provided many exciting pictures that gave a visual of what a guest could expect when they sign up for said program. The MAC museum had one picture that the group could find in all of their Programs section. Art museum websites need to be as visually appealing as the museum itself. If someone is researching whether or not they would like to go to a museum, and they come across their website and it’s nothing but words then they are more than likely not going to want to see what that museum has to offer. The MAC could use some work in this area. The group mentioned this earlier but both the Seattle and Portland museums offered family programs. The MAC offers no family-designated programs that the group could find. Possibly implementing some sort of community outreach committee, one similar to the Seattle Art Museum, has the potential to help engage the community on newer levels. According to the secondary research, the MAC could use some work in the programs area. After being asked to find what programs other museums were offering, the group hope the information the group found will guide the MAC in the right direction. Human Resources Current Staff The survey featured one question on current staff experiences. The good news is that a 90.2% of the people rated the staff as either helpful, knowledgeable, or engaging/entertaining. During our meeting with the board, this was a source of anxiety and this information will hopefully ease that a bit. Of the remaining respondents 6.5% rated the staff as discourteous, 2.2% rated the staff as unhelpful, and the remaining .9% rated the staff a mix of the choices. According to the survey, the overall impression of the staff was overwhelmingly positive. Hiring Costs Throughout the quarter there was a discussion of possibly using smartphones and tablets to bring the museum to life in ways that have never been possible before. In my analysis to see if the data backed up the overall desire and warranted the need to spend the $64,000 annual salary to hiring an app developer or spend the $50,000+ needed to hire a consulting firm (formotus.com) to develop the apps required to make this happen. The scale used in the survey ranged from 1 to 6 (one being not interest and 6 being very interested), and using only those responses of either 5 or 6 on the scale as the group feel those people would be most likely to visit if exhibits incorporated smartphone technology. The results were 31% of survey takers ranked their interest as a 5 or 6. With an average age bracket of 36- 45 years old. This response was not as desired as previously hoped. Overall Implications In analyzing the overall interests of what people desired: self-paced, smartphone, drama, classes, crafts, and hands-on and out of 92 responses to the survey: the number of people who selected either 5 or 6 in each category were as follows, 60.9% people were interested in a self-paced experience, 54.3% people want a more hands on experience, 44.6% were interested in crafts, 39.1% were interested in attending classes, 31.5% in the use of smartphones. From the overall interests, the results of the survey data show that the general area of interest for staffing purposes may not be
  17. 17. BUSINESS STRATEGY - MARCH 2015 17 hiring new candidates but creating a more self-paced atmosphere that visitors can view and interact with exhibits at their leisure with the ability to be hands on with the exhibits as much as possible. When the group first began the analysis the group was almost 100% sure the group would be recommending that the MAC begin the process of potentially hiring an app developer and further increasing the staffing budget. However according to the survey results, overall impression are not to hire new personnel but re-appropriate the existing staff to create a hands-on and interactive exhibit that will engaged visitors as demonstrated in the Telegraph. This news source in the UK stated “Ms Birkett said: "Children don’t want interactive to be computer screens and buttons. They want hands-on to mean just that – handling real things, dressing-up, getting messy.”(Adam, Stephen 2010) The group doesn’t feel that this only pertains to young children, but people of all ages seem to desire this same type of atmosphere, which is backed up by the survey results. Management Information Systems Customers’ Database The customer’s database is an important aspect to an organization because every department relies heavily on the database to meet certain goals. The MAC has approximately 37,000 records of individuals and organizations in their database, excluding inactive and deceased constituents. The organization do keep records of former addresses as well as records that detail their relationship to their customers which includes obituaries and documentation requests. They also keep track of certain aspects of their customers, noting if they have been members of their board at any point, if they’ve participated in major fundraisers, if they are former employees, and other aspects of their relationship with the museum. “Capturing this information is crucial for an organization to show the impact its programs, to measure how people are perceiving the organization, and to show the gaps regarding where and how the organization's messages are being communicated (Cravens)”. Users can also update and access the data the same time, which these are instantly saved into the database. It is very important that the customer’s database is being kept up-to-date because the adequacy of current information systems will help the organizations build ongoing funding for their programs and services. Keeping track of their customers will also help build a customer relationship management (CRM) strategy. “It helps you build and maintain long-term relationships, through discovering how your audiences want to interact with you, and actively meeting their stated and unstated wants and needs (Dunnett)”. The MAC have different levels of involvement with their database based on what is applicable to the staff needs. They sort the data based on the report they are pulling and organize it in the best way for those reading. Sorting and tracking information needed most will help the operation within the departments run smoothly. All managers have full access to the database and all employees have access to the general CRM and event schedule, but specific details for certain revenue and other sensitive records are restricted to ensure constituent privacy. The database should include information like affiliation, volunteer times and hours, program interested in, financial amount donated, and date information was last updated. By knowing who their customer is affiliated with, will help the marketing team reach out and make more connections to increase attendance as well as sponsorship, potentially. If the MAC keeps track of volunteer time and hours, the organization can contact those constituents when they need a
  18. 18. BUSINESS STRATEGY - MARCH 2015 18 helping hand for upcoming events. If the museums knows what program the people are interested in, they might want to donate their time and money to those specific areas. Also if information was sorted in a variety of different ways, it will help staff members with the goals they are trying to reach. For example, “fund-raising staff may want a list of volunteers each quarter who have also made financial contributions; the executive director may want to occasionally see what city and county officials have attended your organization's events; the marketing staff may want to know to know weekly who or what referred people who call your organization” (Cravens). The database should keep track of only information that will help benefit the organizations and the information-tracking system should serve the entire department. Website The MAC’s website content is very easy on the eyes but the design of the homepage lacks excitement. The website contain contents that is easy to navigate and understand. On top of the MAC’s homepage includes big and functional tabs that people can navigate through. The tab bar topics consist of ‘visit’, ‘exhibits’, ‘learn’, ‘support’, and ‘events’. There is also a membership and donation link on top of the page, which is very convenient for viewers to find. The layout also includes 5 slides of upcoming events in the middle of their homepage. At the bottom of the website, viewers will find images links to the programs and services they offer, links about the MAC, and contact, location and hours of operations information provided. The MAC’s website color scheme do help make it look professional and attractive. Overall, the MAC’s website is repetitive and it needs to be update to draw more attentions. The content and design of a website is important to the existing and potential visitors. The content and design of a website can draw viewers in to explore their gallery and information which could potentially help increase attendance and participation. Although the homepage includes some type of movement and animation it is still not enough with just providing slides of their upcoming events. They homepage should include pictures of their current collections which will help distinguish it from being a ‘museum’ website. If there was some sort of video on the homepage, it will help and grab viewer’s attention. The video could be the sole purpose of the content. The video could be about the museum, its collections, or the programs it provides. “Your website must fulfill its greater purpose, and if it isn’t, you’re just dealing with a bunch of fluff and decorations that will render your product or services useless” (Gaines). The ‘about the MAC’ link should have its own individual tab on top of the page. The ‘about the MAC’ tab should consist of a drop down list of information like the mission statement, history, career and volunteer opportunities, annual report, collection policy, and contact information. All of thos information is important for viewers to read. Through the website, the organization is able to target a large audience. Accounting/Finance Analysis Northwest Museum of Arts & Culture accounting analysis is based on the Management’s Discussion and Analysis (MD&A) of the financial activities of the Eastern Washington State Historical Society (EWSHS), an agency of state of Washington as well as a not-for-profit organization, for the fiscal year of 2012, 2013 and 2014. In 2012, a one-time booking to align the agency accounting system with the state capital assets management system (CAMS) resulting in the variance of $10,386 between the Statement of Revenues, Expenditures, and Changes in Fund Balances and the reconciliation at bottom of the Statement of Revenues, Expenditures, and Changes on Capital Outlays and Collections Acquisitions. In fiscal year 2013, the major variances were due to the reclassification of Reserve
  19. 19. BUSINESS STRATEGY - MARCH 2015 19 funds in Committed and Assigned Fund balances from June 30, 2012 to June 30. For Fiscal Year 2012 the Reserve Funds, which were created by an action of the Board of Trustees, were reported as Committed Funds. For Fiscal Year 2013 the Reserve Funds are being reported as Assigned Funds. The current report presentation is more consistent with the intent of GASB 54. Also, the subsequent event is on January 12, 2012, a serious injury occurred while performing work duties to a member of the staff of the Eastern Washington State Historical Society. This accident resulted when a shipping crate tipped while an incoming exhibition was being unloaded. The injury resulted in hospitalization and time off from work. But all medical and time loss pay for the employee were covered by the Department of Labor and Industries For the overall budget, the basic rule is to understate revenue and overstate expenses. The main goal for the Mac’s museum is to keep the revenue and expenses balanced and if the balanced has been achieved, there will be profits. From the total original budget and the final budget, most part of the revenue is understated and expenses is overstated. This is a good sign because this is following the basic rule of budgeting. From the total final budget and actual, the revenues are changing in a reasonable range. Revenues Budgetary Comparison 1. Actual 2012: $2,670,607 (final budget overstate $90,875) Actual 2013: $2,416,161 (final budget overstate $110,210) Actual 2014: $2,853,539 Revenues decreased from 2012 to 2013 and then increased in 2014. 2. The fiscal year of 2012 total original budget and total final budget is much higher than the fiscal year of 2013. Based on the situation, the actual revenues in 2012 is higher than the revenues in 2013. The Mac’s total original budget and total final budget is reasonably good. 3. In 2012, the admissions for the budget and the actual are higher than in 2013. From 2012 to 2013 the admission final budget decreased by $224,482 and the actual difference is $235,293. In 2014, the actual admissions keeps decreasing over $16,000. There is a huge gap of admissions after 2012. 4. From the original budget to the final budget, the tickets increased a lot in 2012 and 2013. In 2012 there is a huge gap between the tickets final budget and actual. In 2012, the final budget ticket is 4 times lower than the actual. Between 2012 and 2013, the actual tickets in 2012 is 2x higher than 2013. However, tickets in 2014 increase rapidly, which is $38,041 greater than 2013. 5. In 2012 that final budget and actual in sales are higher than 2013. The difference between the actual sales is $39,886. 6. Actual fees in 2014 are over 2X higher than 2013 and 2012. 7. For both years, the original budget and final budget has a big difference in the miscellaneous income. For 2012 the difference is over $10,000 and the final budget and the actual is exactly the same. In 2013, the original budget for the miscellaneous income is 0, but the actual is almost $6,000. As you can see there is a huge difference here.
  20. 20. BUSINESS STRATEGY - MARCH 2015 20 Expenses Budgetary Comparisons 1. Actual 2012: $2,743,068 (final budget overstate $9,368) Actual 2013: $2,596,833 (final budget overstate $123,443) Actual 2014: $2,696,909 The trend of expenses is almost the same as revenues. Expenses decreases first in 2013 and it increases in 2014. 2. As revenues increases, the related expenses should increase. Even though the expenses in 2012 is much higher than 2013, the revenues can offset them better than 2013. If the group ignore the inter-funds transfer, the operations are better in 2012. 3. Between 2012 and 2013, there is not a huge difference in the supplies. From 2012 to 2013 the supplies in the final budget and actual decreased more than $10,000. 4. For the repairs and maintenance, the original budget is almost the same but the final budget and actual increased almost 2x the amount from 2012-2013. 5. In 2012, the agency service fees between the original budget and actual had increased over $10,000 but in 2013 the situation is reversed. 6. In 2013, as the group compared the insurance final budget and actual, the group see the cost is exactly the same. 7. In 2012, the vehicle maintenance final budget and actual is totally the same. 8. In 2013, it has a new account in expenses, Capital Outlays. The original budget is $0, and the final budget and the actual is exactly the same, $5,606. In 2014, the account amount increases to $17,914. 9. For collection acquisitions, although the original budget and the final budget in 2012 is the same, the actual result increases by 126X. In 2013, the account number is decreased until $0. Implications 1. The MAC should continue sticking to the basic rules of budgeting: understate revenues and overstate expenses. The Mac should always make sure that the museum have backups for other plans and subsequent or unexpected events. 2. Both years have net revenues under expenses, $(72,461) in 2012, and $(180,672) in 2013. At the same time, inter-fund transfers in 2012 is $4,920 and in 2013 is $180,672. Although both years have losses, 2012 is relatively better than 2013. The goal is to keep balanced and get rid of losses in the future. The MAC can save inter-fund transfers if they have less loss during their operations. When it comes to 2014, net revenues are over expenses about $156,630. However, because there is no inter-fund transfers and there was a lower beginning fund balance, the ending fund balance in 2014 is the lowest among 3 fiscal years. 3. As revenue increases, the related expenses increases. So the MAC should have trade-off between revenues and expenses. If expenses are too high than that of revenues, the MAC had better not consider the idea now. 4. Even though total revenues from local funds and revenues from state treasury funds, which takes about 60% revenues, can’t be changed a lot, the MAC should try other revenues accounts. The MAC’s amount is almost the same. The emphasis of revenues should be on admissions, contributions and other flexible revenues. In 2012, there was Leonardo Da Vinci Exhibit, which made total revenues higher. The group recommends the
  21. 21. BUSINESS STRATEGY - MARCH 2015 21 MAC should have more programs like this to attract more people to visit the museum. Also, the MAC can make more use of resources, such as foreign student association activities and school classes held in the museum to improve reputation. Therefore, the contribution and donation would improve the overall operations. 5. The rule of creating budget shouldn’t be changed too much according to the adjustment. The financial staff should be required to know about the budgeting concept and operation situations well. It is necessary and important to have these staff trained. 6. The MAC should pay attention to wearied situations, such as great increases in the first year but another huge drop during the next year vice versa. Good communication with operating staff from other departments would also help the better understanding of certain issues and prevent the potential risks that can occur. 7. Financial staff shouldn’t change the budget a lot or even keep the same amount as the actual. The group came across numbers from the final budget that are exactly the same with those from the actual, and the group also came across $0 on the numbers on original budget. This may cause problems of operation and management. The MAC should keep controlling the process of creating budget.
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  25. 25. BUSINESS STRATEGY - MARCH 2015 25 Appendix Citations Cravens, Jane. “Customer Database Principles.” Coyote Communications, 1996-2011. Web. 13 Mar. 2015 <http://www.coyotecommunications.com/tech/dbprinc.html> Dunnett, Helen. “The Importance of Having a CRM Strategy.” Arts Marketing Association. Web. 13 Mar. 2015 <http://blog.a-m-a.co.uk/the-importance-of-having-a-crm-strategy/> Gaines, Kendra. “4 Ways to Go from a Boring to Amazing Website.” Treehouse, Island, Inc, 2012. Web. 13 Mar. 2015 <http://blog.teamtreehouse.com/4-ways-to-go-from-a-boring-to-amazing-website> Adams, Stephen. "Museums 'should Provide More Hands-on Experiences for Children'" The Telegraph. Telegraph Media Group, 12 Jan. 2010. Web. 16 Mar. 2015. <http://www.telegraph.co.uk/culture/culturenews/6965817/Museums-should-provide-more-hands-on- experiences-for-children.html>. Figuring the Costs of Custom Mobile App Development | Formotus." Mobile Forms and Applications Blog. Formotos, 21 Feb. 2015. Web. 24 Feb. 2015. <http://www.formotus.com/14018/blog-mobility/figuring-the-costs-of- custom-mobile-business-app-development>.

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