4 An operations management video case study: Vue cinemas
4.1 Background to Vue
This section discusses one of four video case studies used in the T883 course to illustrate some basic concepts of operations management covered by the course.
Vue Entertainment is a relatively young organisation, formed in 2003 with the acquisition of 36 cinemas from the Warner Village chain. At the time of writing (October 2007) it currently operates 579 screens and 130,585 seats over 59 cinemas. It sees its approach as firmly based upon its desire to consistently provide ‘the best and most innovative cinema experience’. Recent innovations include live coverage of Formula 1 motor racing, as well as live rock gigs in full High Definition and surround sound. Vue has also pioneered such things as Gold Class screens (over-18s only, luxury seating, dedicated bar, complimentary popcorn) and Vista ticketing (where guests can purchase their tickets at any retail outlet within the cinema complex). Ancillary sales form an important revenue stream. In 2006, Vue was the subject of a management buy-out. Backed by the Bank of Scotland, the management team retain a 51 per cent stake in the business.
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