Analysis

Value Chain Analysis

A value chain is a network of value creating activities, which consists of five primary activities and four support activities. A value chain analysis involves taking the processes of activities that go from transforming the inputs for a product or service into an output that is valued by all customers. A competitive advantage helps determine a value chain structure.

                            

AMC Theaters is primarily a marketing and sales company as their logistics are next to nothing in addition to their manufacturing costs. AMC Theatres is also a customer service oriented company as it is their main source of revenues.

Business Processes

The structured process AMC Theater uses is the software developed by Kobie Marketing Solutions for their rewards programs that allows real time adjustments  made to member accounts. The AMC Stub Loyalty System includes all type of services going from basic questions in account management to membership and registration.
This process is formally designed and standardized for the use of day to day operations. Like mentioned before it helps customers manage and obtain a number of benefits with this loyalty system.

Information Silos

Information Silos exist when data is isolated and not all departments have access to it. Because of this many times information is sometimes lost, duplicated or not accurate. AMC Theaters uses Oracle to prevent this from happening and allows AMC to manage their information more effectively and efficiently.

Information System Components

There are five components to every Management Information System including: Hardware, Software, Data, Procedure, and People. The use of these components help AMC Theaters overall function as well as it helps gain profitably.

Hardware

AMC counts with a number of different hardware devices that help maintain a theater running from day to day starting from computers and registers to more advanced hardware. AMC Theater uses Projector Systems, POS Terminals and other servers that are currently run by a third party to be more cost effective. In case there’s a problem with the hardware devices there’s usually an administrator that is in charge of the maintenance. Without these devices an AMC Theater would not be able to properly function. 

   

Software 

The main operating system that AMC Theaters use is Oracle. Oracle is an enterprise resource planning system that consolidates all business operations into a single one helping the company be more efficient. By utilizing this system, it facilitates all employees at AMC to manage their personal information such as their pay rolls and any adjustments on their salaries. Aside from that, AMC also counts with software for the rewards program called the AMC Stub Loyalty System that is offered to customers to provide them with different benefits.

Data

The information stored into the AMC Stub Loyalty System involves customer’s information such as name, address, email address and telephone number. These information is obtained at the moment a customer signs up for this program, however periodically AMC Theaters works with the NCOA (National Change of Address) a service provide by the US Postal Service to update accounts.  Once signed up, customers are subject to receive many marketing materials such as advertisements and promotions.

 

Procedure

The procedures required in order for the AMC Stub Loyalty Program to work are straightforward and must be followed in order to make full use of it.  It starts out by having the customer interested in joining the program. Once that’s done, there is certain information that is required for an account to be created including a membership fee of $12 a year. This fee covers all benefits such as free upgrades on concessions, $10 AMC Stubs Reward for every $100 you spend, online tickets fees waived and many bigger benefits. There are two ways to sing up, once is to do it online and get a temporary card or do it at any local AMC Theatre and get the actual card right away.  For easy management on the memberships and the rewards available, AMC offer members the option to register the card online and track the account.

 People

People play an important role in the success of AMC Theaters overall as well as in the AMC Stub Loyalty Program. This includes both customers and employees. Employees are an important part of the company’s success because they’re the ones who are always interacting with the customers and offering different services.  Customers want to feel welcomed when they go see a movie and also want to make sure that the person, who is offering the program, knows what they’re talking about. If that’s accomplished they are most likely to come back for future entertainment.

Social Media

A social media information system is the use of information technology to support content sharing among network of users. It brings people of common interest together by applying the three SMIS roles together, which are composed of social media providers, users and communities. AMC Theaters does a great job exposing themselves on the different social media sites such as Facebook, Twitter, and Instagram. AMC uses these as their major social provides to communicate, facilitate, and improve their social relationships. For example, theses mediums of communication are fast and convenient to use.

Social Capital

Social capital is the investment in social relations working together to have a positive outcome with returns in the marketplace. It’s creating a network of relationships when attending business meetings to enforce social capital. An example is giving when people like a photo on social media such as Facebook, Twitter, or Instagram, or recommending someone on LinkedIn. The value of social capital is done in four ways. First by providing information, influencing decisions, having social credentials, and lastly having personal reinforcement. Like mentioned before AMC use of social media makes it easier for interested parties to leave all sort of comments or concerns. The formula given in the text to find Social Capital is the Number of Relationships × Relationship Strength × Entity Resources. Based on this formula, AMC has a high value because it counts with a wide range of relationships as abundant resources.