Odeon and Uci Cinema Group and Its Business Environment

Topics: Economics, Recession, Inflation Pages: 11 (2920 words) Published: January 3, 2012
ODEON AND UCI CINEMA GROUP AND ITS BUSINESS ENVIRONMENT

By Viktoriya Nikolaeva Yordanova
BADM 004 Business Environment
Advanced Diploma in Accounting and Finance
London College UCK

08 February 2010

List of contents

SummaryPage 3
Identifying the mission, objectives and responsibilities of ODEON and UCI Cinemas Group Limited and its environmentPage 4 ConclusionPage 12
ReferencesPage 13

Summary

There are many governmental and industrial policies, as well as social and natural and other influences which affect the UK economy today. These are divided into two separate, but interdependent, business environments – the macroeconomic and the microeconomic environments. To better understand what they are and what their effects are on business we are going to look at the Britain’s best known cinema company, namely ODEON and UCI Cinemas Group Limited.

Identifying the mission, objectives and responsibilities of ODEON and UCI Cinemas Group Limited and its environment

The Company

ODEON and UCI Cinemas Group Limited is a limited liability partnership registered in England. Its details are as follows: Registered office:54 Whitcome Street
London
WC2H 7DN
United Kingdom
Registered in England:No: 01854132

ODEON and UCI Cinemas Group LLP (referred to simply as OUCG) is the only subsidiary of ODEON and UCI Cinemas Holdings Limited (set up in 2007 with the sole purpose of refinancing OUCG), which in turn is a subsidiary of the private equity firm Terra Firma.

As a service provider OUCG operates in the tertiary sector of the economy.

As we know, in the basis of every good business is a good management which always has an idea of where it wants the business to be in the future. And that is the mission statement. The Company is keeping true to its mission of delivering excellence and offering pioneering technology for the optimum film viewing experience. This is being achieved because all of its employees share its values of team work within an empowering environment where every day is different and everyone works together to achieve the OUCG’s goals and ambitions.

Objectives are then set in order to achieve those business goals and these are set out in the “Our Strategy” section of the Chief Executive’s Review of the “ODEON and UCI Cinemas Annual Review 2008” report. They are to leverage the benefits of scale achieved after the integration of the ODEON and UCI businesses, to grow the sales per customer and to improve the business by utilising the available technology – website, point-of-sale infrastructure and digital projection (3D and IMAX) to offer an alternative content offering (opera, live Formula One racing, international football, contemporary music).

OUCG is a multinational business which currently operates in seven European markets: United Kingdom, Portugal, Spain, Italy, Ireland, Austria and Germany. In the first four countries it is the market leader, and in the other three countries it ranks second, third and third respectively. It ranks first in Europe with a total number of cinemas and screens standing 200 and 1,802 respectively.

In the UK it holds a 27 percent share of the local market (measured by Box Office).

Revenue for the Group was up 6 per cent year-on-year. Although EBITDA (earnings before interest, tax, depreciation and ammortisation and one-off items) was up by 5 percent to 72 million pounds, OUCG made a loss of 53.2 million pounds, 11.2 million more than in 2007.

There has been increased investment to improve customer experience through refurbishment and introduction of new technology. This has benefited the Group in that it has not seen any substantial decrease in attendance or revenue due to the global economic recession. Cinema has proved to be a recession proof business. OUCG has opened another flagship cinema in the UK...

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Competition Commission. (2010) Competition Commission - About us. [online]. www.competition –commission.org.uk. Available from: http://www.competition-commission.org.uk/about_us/index.htm. [Accessed 7 February 2010].
ODEON and UCI Cinemas Group LLP. (2009). Corporate Structure and Statutory Accounts. ODEON and UCI Cinemas Group. [online]. Available from: http://www.odeonanducicinemasgroup.com/corporatestructure.html. [Accessed 1 February 2010]
ODEON and UCI Cinemas Group LLP. (2009). ODEON and UCI Cinemas Annual Review 2008 ODEON and UCI Cinemas Group. [online]. Available from: http://www.odeonanducicinemasgroup.com/pdf/ar08/ODEONUCI_AR08.pdf . [Accessed 1 February 2010]
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