From the second e-Activity, determine the level of responsibility management had for the business failure you researched. Provide specific examples to support your response.
Create a list of three best practices that not only would have helped the company you researched from failure, but would also apply to the rest of the industry your company was part of. Explain your rationale for selecting these best practices.
CBGB was at one time one of the most legendary rock clubs in the world. The headquarters were in New York City and the club had legendary bands constantly coming through such as Guns ‘n Roses and the Ramones. CBGB became the ‘cool’ and ‘hip’ spot to go to for all the fans whom loved rock, alternative and punk music. CBGB provided over thirty years of music and it eventually closed after thirty years.
CBGB should have looked at increasing gross margins to continue to make a profit. In the business industry it is easy to forget about the profit margins that are made. Many clubs want to focus strictly on the attraction of the top bands and attracting a large number of people without making sure that profits are made. The club needed to cut costs or increase revenue to make sure that the margins were made.
Continuous innovation needs to be continuously looked at in the music industry as well. As the music changes there should be changes made in the clubs in order to be relevant. If a particular band is not selling well then the club needs to make the appropriate changes to stay relative and continually attract customers.
Market share needs to be carefully scrutinized as well. As CBGB was losing the market share in the New York City area then there needed to be changes made. Through making the necessary changes such as bands, employees, advertising or the structure of the club then CBGB could have maintained a certain percentage of the market share to continue being a successful club.
Through these best practices that could have been maintained by CBGB they could have continued to be a successful club for many years to come. Through these best practices of profit margins, continuous innovation and market share any club in the music industry can have long-term success.
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