Business proposal

We at Bright Horizons Consulting are excited to bring forward a proposal to reinvigorate AMC’s market performance. With the rise of Covid-19 around the world, many challenges are being pushed onto the consumer and business alike. With the current social distancing in places such public places such as movies. AMC now faces the lowest number of attendees in the company’s long 100-year history. Our proposal seeks to alleviate these problems and make movie going once again a safe and rewarding experience for everyone. In this proposal we have laid out multiple action plans that can be taken by AMC, with the primary goal of utilizing existing resources and reducing the cost of resource implementation. Therefore, we can expect greater profit margins for this quarter and the next.  These action plans include leasing theater rooms, promotional genre watch weekends, and gearing theater hours for more early bird watchers. With these action plans we can expect greater attendees’ turnout and end AMC’s 100-year anniversary looking towards the future.

The Problem

The pandemic has been taking a huge toll on AMC’s revenue. During the most recent quarter, AMC saw their revenue fall 91%. The graph below illustrates this fall in revenue by showing the quarterly data from2019 through present day.This problem has been generated and compounded by strict health mandates, which have seen less and less people willing to risk their health for a movie night. Although there have been attempts to solve this issue, including the recent move to offer private screenings for groups, nothing has seemed to be able to turn the situation around. Another driving factor in the loss of revenue is the drought of new movies, seeing many – such as “Bios”, starring Tom Hanks – have a delayed release.  If AMC does not address these two issues, they risk bankruptcy.

A Triumphant Return

To make a successful return to the post-pandemic community, Bright Horizons Consulting will promote community support and increase AMC’s financial standing.By altering a few current operating methods and marketing strategies, we offer AMC the chance to drastically improve their financial performance whilst maintaining the national pandemic safety guidelines through thin implementation of the following plans:

• Implementing options of “Watch Parties” for parties of under 20 individuals
• Hosting designated classis movie genre nights
• Decrease movie ticket price while promoting the purchase of genre catered concessions and merchandise
• Enacting the operation of morning hours

While upholding Covid-19 social distancing rules, watch parties allow friends to gather and enjoy the cinema experience previously denied by the long state shutdown.  To perform proper sanitation and preparations for watch parties, individual theatre rooms will be booked online with a down-payment subject to the number of individuals in the watch party.  Display of the classic Hollywood films throughout history will attract a large demographic of costumers to the enjoy the experience of theatre again whilst revisiting film history.

From 2014 to 2019, the average price of an AMC movie ticket has fluctuated between $9.26-$9.61.Revenue from movie tickets sales willall typically be sent to the movie studios themselves, leaving AMC more pressured to sell concessions and other paraphernalia.  Thus, movie ticket price will be decreased to promote an increase attendance while promoting the sale of movie genre specific catered concessions andother merchandising.  Finally, since current AMC theatres are limiting their hours of operation from 2 p.m.-10 p.m., the update of morning hours will allow more diverse population of costumers to enjoy the theatre with less congestion of people in the theatre at these increased hours.

Detailed below is the estimated AMC budget for the year of 2021 with the implementation of the proposal by Bright Horizon Consulting (B.H.C.).

To implement this smashing plan, only B.H.C. company fees need be met which is to be added to the AMC theatre expenses.  The annual B.H.C. fees and service compensation is detailed below:

Bright Horizons Consulting Qualifications

Bright Horizons Consulting is a family-founded company with its founding in 1930.  Our founder Joseph Carter started the counseling firm to help businesses maintain their financial standing during the Great Depression which ravaged the financial markets and businesses across the United States.  With a history of over 90 years, we have aided many businesses to regain their business standing and community support, we are experts in advising:

• Promoting original content during CBS’s falling status during the 1990’s
• Revived Six Flags Entertainment from near bankruptcy in 2009
• AdvisedShutterfly’s inception during the Dot Com Bubble

Over the years, Bright Horizons Consulting has advised several largely public companies through challenging financial and businesscrises.

References

AMC Entertainment Holdings Revenue 2013-2020 | AMC. (n.d.). Www.Macrotrends.Net. Retrieved November 23, 2020, from https://www.macrotrends.net/stocks/charts/AMC/amc-entertainment-holdings/revenue