Premium Essay

Shareholders vs Artistic Metrics

In: Film and Music

Submitted By dookie1994
Words 435
Pages 2
Of course, it will be nice to be like Arcade Fire or Nirvana, having a debut album that blows the market away. But despite the fact that only a few musicians have the potential and ability for such success, the prime goal of an entertainment company is to monetize art, not like the purpose of the artist, which is self satisfaction by making great art - but how could companies monetize that? It is crucial to find the tricky balance between art and commerce, and mediating the inevitable conflict between artistic passion and corporate profit artistic passion in order to let the company survive.

Let's start with artists. Artists are often egocentric, sensitive, emotional creatures that are strange in different ways, but one thing they got in common is that they don't like anyone or anything to interfere with the creation process. It's understandable - every creation is like a artist's child to them, and as mothers and fathers, you would not like to be told what your child should look like. Shareholders on the other hand, do not think the same way as artists do. They became shareholders to make money, and it is, the profit margins that they care about. If the artist's creation is not well responded by the market, the shareholders will not gain profit, so they will take any action they could - sometimes interfering the company's business structure, and offending the art creation process as well.

In the Sony case, George Clooney argues that people who understand that the business ebbs and flows should run and make the calls in the business, not by stockholders that are just trying to manipulate the market, and it could be dangerous to the industry when someone who doesn't understand how the industry works uses money to pressure the company and make decisions from a place of fear.

I believe that as content is the king in the entertainment industry nowadays, it is…...

Similar Documents

Premium Essay

Metrics and Staffing Measures

...rStaffing function measures: Quality of hire The quality of employee performance begins with the quality of the hire. companies that define consistent processes and metrics around quality of hire will benefit from a sharp competitive edge in the future. Cost of a Bad Hire The risks and potential losses from making a poor quality hire stem from poor productivity and a reduced quality of output. Poor quality hires may result in poor customer service, which leads to revenue loss and even loss of market share. A workforce with a lower overall quality of worker takes longer to bring products to market, resulting in lost competitive advantage. The cost of goods sold is also higher, as the company has to contend with lower productivity Having made the wrong hiring decision, a company may seek to cut its ongoing losses by replacing the worker. Replacement costs, including sourcing costs, administrative and processing costs, and lost productivity for the hiring manager, all become part of the cost of a bad hire. The cost of a bad hire for a software engineer can exceed mil- lions of dollars, while the wrong choice of a CEO may result in the loss of billions of dollars of shareholder value. Bad hires produce damaging results that can be calculated as the sum of these direct and indirect costs: Productivity loss Loss of customers Loss of brand equity Legal liability Separation costs Replacement costs How to measure QOH Measuring quality of hire amounts to measuring......

Words: 1647 - Pages: 7

Free Essay

Artistic Ability

...Artistic Ability Breathless; I lie face down in a stew of my own self protruded filth~ Lifeless; I scream but only lies come out~ I cant seam to find the fire that lies,lays deap within. Self confidence was the enemy and you were the one that gave me all the energy~ Selfless, a quality I lacked without your eyes upon me An audience was what it seamed i needed to give life, live motivity. Dignity and Honesty; I thought I could live without Hang me by the tongue with your nails, and i'd let it all out, A follower I was never good at, as a leader I could never find my way back but I could pretend, follower-Folloher a con to even the A-rabs. I found bravery at the depths of my feet, so low level that it took a piece to knight me, night the trimuph of darkness Cowards natural cloak, like a hard on for the dude sweatin at the park while your children are runnin' a muck, nasty. Filth is all I've left to give after the media sent true artistic ability to the guilotine of commercial disapibilty. Fuck i'm runnin' off track Breathless; I lie face down in a stew of my own brains Suicide, no it's not, that shits just my artistic train of thought nasty, like the lifeless fucks that can't put a foot ahead of themselves in-U-End-Oh Selfless pricks raped of dignity they deviate from star-dumb into bottles named Ass-prin, recovering from an overdose the kid lacked honesty, No I in team but there is a me, a Knight with a piece stood proud at my feet the......

Words: 314 - Pages: 2

Premium Essay


...shareholder is simply an individual, organization, or company that legally own share(s) of stock in a joint-stock company. By owning shares of stock, a company’s shareholders collectively own the company itself and therefore have the right to vote on decisions that affect how the company is run. This usually means the shareholders as part owners will push for company actions that increase their own financial returns. Definition: A company that uses the shareholder approach to conducting business typically views the impact of business operations on profit. In addition, the length of concern for changes in business operations is usually short-term; such as focusing on meeting quarterly or annual results. Attributes: * Shareholders are primarily concerned with the company’s bottom line. * In a traditional business models, shareholders have the primary influence on the company’s strategy, usually resulting in business model with the foremost objective to increase the company’s stock value. In a shareholder business model, a company only addresses the needs and concerns of four parties: investors, employees, suppliers, and customers; with investors and customers receiving the most attention. Stakeholder approach: To make an analogy, stakeholder and shareholders are like sparkling white wine and champagne. All champagne is sparkling white wine, but not all sparkling white wine is champagne. Similarly, all shareholders are stakeholders, but not all stakeholders......

Words: 857 - Pages: 4

Premium Essay

Shareholders Wealth

...Shareholder Wealth Maximization Shareholder wealth maximization is the idea behind trying to drive a stock's price up. The shareholders are the actual owners of the company. By driving the price up the company becomes worth more than just the value of its assets. The sum becomes greater than the value of its parts. It becomes worth more to keep the business running than it would be to sell off the parts. Maximizing shareholder wealth is often the most important goal of a company; however, the bottom line is that profit is required to increase the dividends paid out with each common stock that constitutes shareholder wealth. Thus, an effective manager will be more concerned with the primary means of profit-making within a company. For example, Coca-Cola makes money by maintaining a powerful brand name and manufacturing an enjoyable consumer product. To maximize shareholder wealth, Coca-Cola must first maintain the status of its brand and product. Coca – Cola is one publicly traded corporation that you believe is maximizing shareholder wealth their vision is “maximizing return to shareowner being mindful of our overall responsibilities.” The company’s major goal is to further increase stake in global beverage market. Coca cola works to use their assets to become an even stronger and more competitive company for is shareowners benefit. Provide the public with beverages that satiates their consumers’ wants and needs. Partner with companies where loyalty is and maximize......

Words: 682 - Pages: 3

Premium Essay

Metric Reporting

...during a daily performance review. I will install a MS Outlook email template on each recruiter’s laptop for easy reporting. Supervisor/Manager will report weekly results to the Sr. Manager. The Senior Manager will develop a MS Excel based management tool to consolidate the results and report to the Sr. Director NLT COB Monday of each week. Team results will be published at the Sr. Director’s discretion. The performance metrics will be used to document work ethic, identify potential training needs, and drive production. Processing week goal – 20 points. A processing week is defined as a work week with no scheduled deployments to training or BOG. Deployment week goal – 20 additional points. A deployment week is defined as a work with a scheduled deployment to training or BOG. Recruiting jeopardy Pitch – Baseball video from the untouchables. Recruiting Script training Kevin Flynn Offer Anthony Niman Offer, reporting instructions Courtney Offer Complete Gary Johnson’s offer Goals – Wounded warrior hire. Connect with 4 TAP sites. Professional development incentive. Metric reporting dashboard. Marketing sheets Proof of citizenship requirements GATA requisitions NSPS Major position Recruiting process charter Agency contact list ...

Words: 318 - Pages: 2

Premium Essay

Stakeholder vs. Shareholder Theory

...SUBJECT-101 BUSINESS, CULTURE AND SOCIETY Shareholder v/s. Stakeholder Theory Under the guidance of Dr. Kuriakose Mamkoottam Professor & Director School of Business, Public Policy & Social Entrepreneurship (SBPPSE) Ambedkar University Delhi (AUD) Submitted by: Amrita Arora S143F0005 Shareholder v/s. Stakeholder Theory The term business refers to any organization that is engaged in making a product or providing a service for a profit. And society, in its broadest sense, refers to human beings and to the social structures they collectively create. Both, business and society, taken together, form an interactive social system. Each needs the other, and each influences the other. The most central and debatable topic on the relation between business and society today is about the fundamental purpose of the business. This question has been answered with the help of two different theories – Shareholder Theory and Stakeholder Theory. Each of them is explained below. The Shareholder Theory (Ownership Theory of the Firm) sees the firm as the property of its owners. The purpose of the firm is to maximize the returns to its shareholders, which is also depicted in its single objective of Value Maximization. Here, managers and boards of directors are agents of shareholders and have no obligations to others, other than those directly specified by law. Many companies, like Apple, have performed exceptionally well while following the shareholder theory because they are of the......

Words: 489 - Pages: 2

Premium Essay

Hr Metrics

...Analysis of LMB hotel in HR metrics perspectives Introduction The raising importance of human resource in organizational operation has increased the needs for contemporary HR to become a strategic partner as finance and marketing do (Lawler III, Levenson and Boudreau, 2003). Therefore, rather than just understand and introduce HR activities and practices, it is more vital for organization to test all aspects of them (in efficiency, effectiveness and impacts). Regarding to the LMB case, if LMB want to go through this difficult period, rather than only adopt HR practices, they should also conduct a comprehensive HR metrics system to facilitate the performance evaluation. This essay will firstly briefly introduce the HR metrics and discuss the importance of HR metrics theoretically. Then, it will identify problems LMB confronts with and propose policies to improve the LMB’s approach to HR metrics. Before giving a conclusion, evaluation of the proposed solution will be presented. Definition and Importance of HR metrics HR metrics, according to Stone (2014), ‘involves a systematic analysis and evaluation of the efficiency and effectiveness of the HRM function and its contribution to the achievement of the organization’s strategic objective’. In a broader view, there are three types of HR metrics—efficiency, effectiveness and impacts—that companies could adopt to evaluate the impact of HR practices on business strategy and organizational performance (Boudreau and Ramstad, 2003)....

Words: 2249 - Pages: 9

Free Essay

Metric Creation

...Properly Craft, Implement and Manage Effective Metrics Metrics are one of the most dynamic tools for getting valuable insight and helping to make effective decisions at very level of an organization. If crafted and implemented in a wrong manner, however, they can do more harm than good. As such, in order to achieve desired results from metrics, they have to be well defined, precise, and conveyed in such a manner that all interested and impacted parties understand them. Moreover, they must stress the aspects critical for the success of an organization and, most importantly, provide actionable information. How to Develop Metrics There are no fixed or predefined set of rules for creating meaningful and effective metrics. In order to create an appropriate set of metrics that best suits your organization/process/project; take into consideration several factors, such as industry, technology, background, maturity and pragmatic quantitative methods for measuring the overall performance or progress. If you generate metrics too often or too quickly, you won’t be able to keep up with the information created. On the other hand, if you use too little or go too slowly, the metrics won’t be taken as a viable or valuable information source to help organizational goals. Before you adopt any metrics, you need to design a process that can help in defining, developing and educating the organization in an agreed-on time interval. Choose Key Metrics that Best Define your Vision, Goals and......

Words: 1592 - Pages: 7

Premium Essay

Performance Metrics

...In recent time, many companies/organisations have starting focusing on non-financial factors which include customer and employee satisfaction, work atmosphere, etc. which are not financial but in long process increase profitability of the organization. Further, right Amalgamation of both financial and non-financial measures can provide key executives with the glimpse of company’s progress well before a financial verdict is made. This paper concentrates on comparing financial and non-financial metrics used in traditional and lean enterprise. Traditional financial measures were first introduced 1900’s and have been used since then to size financial performance of the organization. The following are basic financial measures implemented in traditional organization: Liquidity Metrics: One of the many reasons organization fail is poor cash management, therefore liquidity management play an important role. Doing so, organization can limit and control cash flow problem and induce profitability. One of the most common liquidity ratio applied is current ratio, which is the ratio of current asset to current liability. Current ratio directs the ability of the organization to pay bills. If the ratio is less than one that means the organization is under liability or debt. The ratio of greater than provides safety cushion to the organization. Solvency: For the company to fulfil long term commitments, stay in business and continue making profit require common solvency ratio that is...

Words: 1049 - Pages: 5

Premium Essay

Stakeholder vs Shareholder

...1.0 Introduction Managers often have to endure intense pressure from their employers with regard to the management of the business. Similarly, more pressure often comes from the surrounding people such as the employees, suppliers, competitors or even the surrounding community. Stakeholder and shareholder theories have been discussed intensely with each being viewed and exhibited as having both its merits and demerits. While some argue that the stakeholder theory is crucial in management, others fiercely content the notion. The supporters of shareholder theory argue that a business’ primary objective is to gain profits. Conversely, the proponents of the stakeholder approach contest that there are other things a business ought to be in consideration of besides profits. This never-ending debate often leaves business executives in a dilemma for the appropriate management style. Thus, this paper compares and contrasts the merits of the two theories in relation to the company executives’ responsibilities. 2.0 Theories at work 2.1 Decision-making in the stakeholders and shareholders theories. A stakeholder approach to management will help a business executive make the right decision quickly. One thing the stakeholder theory advocates is the inclusion of crucial stakeholders such as employees in a decision-making process. By utilizing this method, a business executive is likely to end up making the right decision because varied opinions are allowed. Employees and suppliers are......

Words: 3493 - Pages: 14

Premium Essay

Financial Metrics

...Marketing Metrics Forecast better: Cost per lead A specific metric that involves taking a close look at the average monthly costs and total number of leads generated in that specific channel. The ratio of the investment in advertising for a ‘pay-per-click’ campaign to the number of clicks on the advertising link (750 clicks in this case) would deduce the cost per lead. Various strategies can then be implemented to keep the cost per lead to its minimum. Projected ROI This is an important metric that determines the profitability of a marketing campaign. For a positive projected return on investment, the average sales derived from each customer (customer value) should be more that the cost per lead and metrics that define the sale success. MQLS Vs. Goals This metric helps make sure that the marketing strategies are on track to generate enough MQLs (Marketing Qualified Leads) to reach the monthly targets. Also, as companies move through months during the year, the number of leads created should also increase/ the higher the quality of a lead, the faster it will convert into an opportunity of conversion into a customer. Assess Sales and Marketing effectiveness: New Session and Total Visits Google Analytics metric that helps calculating new sessions and subsequently new visitors vs. recurring visitors. If the website is sticky enough, it will be effective enough to retain customers and drive in new traffic thus also increasing total visits.......

Words: 369 - Pages: 2

Premium Essay

Shareholder Wealth Creation

...A critical analysis of AstraZeneca plc.’s shareholder wealth creation in the five-year period from 2010-15 * Xiaoyu Zhang August 2016 MSC in Accounting and Financial Management Global Pharmaceutical Industry Overview Pharmaceutical industry is closely bound up with people’s living standard, which also correlates general economic and deserves thoroughly research and analysis. Due to favorable demographic trends and significant unmet medical needs, the pharmaceutical industry is expected to enjoy long-term growth. According to the research conducted by AstraZeneca, there is 9.5% growth in 2015 of global pharmaceutical sales (AZ annual report 2015, p12). The number of people accessing healthcare is increasing, as is healthcare spending, particularly by the elderly. For example, WHO estimated that, by 2050, the world’s population aged 60 years and older is expected to total two billion, up from 900 million in 2015 and that, by then, 80% of all older people will live in low- and middle-income countries. Emerging markets are expected to continue to boost pharmaceutical growth. Furthermore, the increasing threat of non-communicable diseases (NCDs), such as cancer and cardiovascular, metabolic and respiratory diseases, has killed tens of millions of people. It is estimated that NCDs kill 38 million people each year and especially affect
low- and middle-income countries where nearly three-quarters of these deaths occur (WHO, 2011). As reported, NCDs are often......

Words: 5872 - Pages: 24

Premium Essay


...Homework Module Three: Pricing 1a. Given an anticipated 10% price increase and E= .3, being less than 1, it is inelastic. This means that customers are not sensitive to price change. Since E is inelastic price and quantity move in the same direction. 1b. TR= 50*10,000 = 500,000 TC= 15*10,000 = 150,000 1c.TR= 55 x 10300= 566500 CM= 55-35= 20 TC= 20 x 10300= 206,000 Yes we would recommend the increase in price because contribution margin increased by $56,000 1d. % Profit B/E (50-55)/$15+(50-55) =.5 or 50% 1e. Quantity demanded would have to increase by at least 50% for the price change to be profitable. 1f. The two metrics offer different views. The elasticity metric tells us that the price change makes us more profitable; however, the break even profit metric tells us that the only way we can ensure a profit is to have our the quantity demanded increase by 50%. This sounds like a hard task to accomplish. 2a. Quantity demanded = 3,000 – 200(p) 0 = 3,000 – 200(p) -3,000 = - 200(p) -3,000/-200 = 15 Maximum reservation price = $15 $15 is the maximum price a customer will pay for a good 2b. Q = 3,000 – 200(0) Q = 3,000 3,000 units is the maximum you will sell when the price is $0 2c. Optimal price = (15 + 2.50) / (2) Optimal price = 17.50 / 2 Optimal price = $8.75 2d. Quantity demanded = 3,000 – 200(8.75) Quantity......

Words: 479 - Pages: 2

Premium Essay

Mission vs. Shareholder

...Mission Vs. The Shareholder The mission purpose model is more for the non-profit organizations, whereas the shareholder return is for-profit organizations. The non-profit organizations do not make profit, because if and when they do, it must be reinvested into the company according to the law. On the other hand, the for-profit organizations profits’ go to the shareholders. One of the main benefits of the for-profit organizations is that the shareholders make money from investing in the company itself. I believe that the best model depends on what you are looking to do. Certain situations would call for a different model as the best choice. When it comes to non-profit organizations, they deal with only certain segments of the economy: such as health, education, social services and the arts. With non-profits, most of the goods that are produced are paid for and used by different people. Now that is not the case with for-profit companies. With for-profits companies, products are assumed to be easily judged in terms of quality. This is because the people that buy the product, use the product. With non-profit organizations, because it is based with healthcare and things of that nature, the people that buy it, are not always the ones taking the advantage of it. It is also hard for someone to judge the quality of something that they do not even use. With a lot of the non-profit organizations out there today, they will provide healthcare for third world countries that can’t......

Words: 690 - Pages: 3

Premium Essay


...Business Metrics 1 Can a Metrics Program Positively Affect a Business? Business Metrics 2 Executive Summary In my paper titled “Can a Metrics Program Positively Affect a Business” I will establish the various reason that it positively can affect a business. A metrics program is defined as a standardized measure with a known boundable definition using a standardized unit of measure that is captured in the same manner every time across time. Metrics programs are typically implemented in a business to show how well the organization process are working, to enable the continuation of the organization, and to ultimately keep our jobs. There are also various parts of the com[any that a metrics program effects. I will go into these in to more depth. There are also various stakeholders that are positively affected thru the metrics program. By establishing that metrics are a positive realm for a business I hope companies will adopt metrics programs more widely. Business Metrics 3 Can a Metrics Program Positively Affect a Business? A metrics program is defined as a standardized measure with a known boundable definition using a standardized unit of measure that is captured in the same manner every time across time. Metrics programs are typically implemented in a business to show how well the organization process are working, to enable the continuation of the organization, and to ultimately keep our......

Words: 1603 - Pages: 7