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A. Organization and Management
General Manager: manages and coordinates all activities of circus together with departments and make strategic level decisions such as evaluation of tournee routing, evaluation of new investments.
Service Department: The main responsibilities of this department are providing care for the animals, arranging the shows, and managing human resources. The subdepartments corresponding to these job distributions are Animal Care, Show and Human Resources. Health care of the animals and feeding them managed by Animal Care. Training and recruitment are the responsibilities of Human Resources. Show department arranges and performs shows and works with the Animal Care department in a coordinated manner for animal performing shows.
Support Department: This department is responsible for the construction, maintenance and transportation. The department is made up of Construction, Utilities and Transportation subdepartments. Construction staff’s main job is to construct the circus when arrived the city served. Utilities department is responsible for the electrical constructions and maintenance of the circus. Transportation staff includes drivers and other personnel required for transportation and its coordination.
Marketing Department: Marketing department is located at the headquarters providing one of the most important functions of the circus. For that purpose it is divided into Market Research, Advertising, Prices and Planning departments. Market research group provides research data gathered from different kinds of sources to able to make strategic decisions on advertisements and guides personnel dealing with pricing and planning.
Purchasing & Finance: Purchasing all kinds of requirements of the circus is the responsibility of this department. In addition to this, accounting and related financial analysis are conducted by the qualified staff of this department.
Management: The managerial competence of a circus is curicial as in all other business. In "The Big Circus of Pennsylvania", however, one person is adequate for managerial work thanks to the effective and close interactions with the staff from different departments. In addition, being the general manager of the circus, he is well educated and has an experience in entertainment business. Therefore managerial competence is effectively provided.
B. Organizational Design
Matrix type organizational structure is suitable for the circus. In this organization, duties of the technical and show staff are not unique, they work coordinatively. Considering the job description of an entertainment environment, it is expected personnel to specialize in a variety of tasks so that the personnel necessitated by a specific tasks can also be compansated by any other department staff such that a lorry driver can be charged in the tent construction, electricity installation, maintenance, etc. See figure2 for organizational chart of the circus.
C. Overhead Costs
Overhead costs are based on variable costs that are assumed to change
as the number of cities visited, number of shows displayed, total distance
travelled change. Overhead and other pertinent costs including administrative
expenses, the basic food and nutrients, supply materials, utilities, maintanance
and construction costs, etc. may be estimated to be around 30% of the total
yearly costs excluding depreciation, which equals 30%*(salaries inclusive
of training_costs + rents + transportation_costs + leasing_costs + insurance
costs + advertisement ) = 0.30 * (1,728,100 + 270,000 + 480,000 + 504,000
+ 210,000 + 686,731.5) = $1,163,649
