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Intro to Business Management


The media industry is a fast growing industry especially since it is being facilitated by the evolution of technology. Looking specifically at the film industry, there have been a lot of changes over the past years as the modifications are made according to the changes in the society as well as development of technology. Since the films and media industry operate like other working organizations, they are affected by similar factors based on their environments.  The film making industry is very large and the level of competition is very high therefore, the level of innovation is very high as well (Baker, 1991, pp. 280). The success of an industry will depend on the reception it receives from the viewers and the public. Hence, the industry works hard at trying to engage in activities that will closely relate to the lifestyle of the audience so as to attract their attention. The management of the films produced is determined by the various analyses that are conducted.  Therefore, this paper aims to look at how the PESTLE and Life Cycle analyses are relevant theoretical models in reflection to some of the films.


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The application of the PESTLE and life cycle analysis application in the film industry are considered to be quite theoretical. However, they are very important as facts collected from the analysis can be used to improve the quality of the material and make certain adjustments that will be favorable to the audience (Miller, 2001, pp. 730). The latest films that are being released to the society have a close connection to the current activities taking place. One of the latest films that has stirred some controversies and attracted a lot of attention is the Social Network film.  The film is based on the creation of the largest social networking site, facebook. Facebook has attracted a lot of attention and its popularity is growing on a daily basis making it the most appreciated social networking site.  The fact that the site was created by a college student is very attractive and creates a story that needs to be shared internationally through the film industry. 

The film industry creates the Social Network based on the true story of Mark Zuckerberg and how he founded the network making him change from a student in college to a millionaire. The release of the film stirred missed reaction from the viewers and a lot of skepticism. Most of the viewers looked at it based on the fact that it was based on the inception of facebook rather than the fact it narrated the story of Mark Zuckerberg and what he went through in order to create the site. However, with time the reaction changed and the film was received very well in the market making it win many awards due to the nature of the content. The application of the PESTLE and life cycle analysis are relevant in the release of such a film as there may be certain factors that the film industry have to consider in order to ensure the success of the film.  The creation of these films takes a lot of money and investment of time as well, it is very important that it is successful once released despite the tough competition in order to make sure there are profits earned in the process.

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The PESTLE analysis provides an opportunity for the industry to review the possible factors that may affect the success of the film either positively or negatively once it is released to the public.

PESTLE analysis on Social Network and its relevance

Political factors

Filmmaking is not an easy process as it involves a lot of consideration based on money, time and personnel so as to ensure the motion picture produced is of high quality.  The same aspects were considered in the production of the social network.  The similar amount of attention is giving to the legal issues that should be observed in the process such as the signing of contracts, taking care of the taxes charged and other related activities. The production of the Social Network involved a lot of contract signing and negotiations between the actors, producers, directors and other people that were involved in the process. The film producers also had to observe other factors such as the content of the material to make sure that it would be acceptable politically and that it is not offensive. These are factors that may affect the viewers and the perception of the film in other countries. The relations that the country has with other countries politically may also be considered in the process as it will determine how well the product will be marketed. However, the main political factors that are likely to affect the production of the film are the restriction of producing certain features as they may be termed as explicit or offensive.

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Conducting this analysis on the film is very important as it helps the individuals involved in its production are observing all the legal factors necessary. The signing of the contracts is also very important since there may certain misunderstandings in the process but the individuals have to adhere strictly to the contents of the contract (Baker, 1990, pp. 281). The taxation policies will also have to be followed making sure that the film production group is observing the law.

Economic factors

Economic factors affecting the production of the film are mainly positive since the film industry is known to make a lot of profits. The strength of the consumer spending is very high especially if the film is interesting.  In this case, the production of the Social Network attracted a lot of attention and the work that was invested in its production guaranteed its success. The film reflects on activity that the viewers are accustomed to and learning of the life of its founder adds on to their interest.  The makers of the film had made a budget of $40 million dollars to produce the film and the gross revenue that the producers have received is $221,105,307. The current issues facing the consumers such as unemployment and inflation have not affected the revenue being earned by the production group (Berkhout & Howess, 1997, pp. 82). The film industry is affected by such factors but not as much as the other industries since it is considered as entertainment.  Consumers will always budget for entertainment since purchasing or viewing the film in the cinemas is not expensive and most people can be able to afford the charges. 

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Relevance:  the economic factors are viewed before the production of the film and after it has been released to the public. Looking at the economic issues enables the industry to budget accordingly and the more money spent on the production of the film, the better the content and it leads to the viewers appreciating what they view.  The production group is able to tax according to the level of revenue earned by the film.

Sociological factors

The lifestyle patterns that are displayed in the film highly reflect to the current culture being observed by the young generation.  The culture revolves around university life and education, relationships and entertainment lifestyle as well. Watching the film, the characters are involved in relationships and drinking habits, there is also intimacy exhibited in the film but all this is in reflection to the lifestyle adopted by the young generation (Shugan, 1997, 69).  The attitude given towards education is not very serious but it was quite positive as it reflects on the students' lives at Harvard and how they relate with each other on a social level as well as academically. The film is as reflection of the social network which helps people relate with each other socially hence, the film plays a big role in reflecting the social lives of the individuals.

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The film looks at the social lives of the students and how they related with each other.  Mark Zuckerberg decides to create the social network based on the fact that people needed o relate with each socially at all times. The connection of people through technology is established in the film and it highly relates to its title which is the social network. The media views and perceptions of the people were mixed at first as people had not understood the real meaning behind the film but looking at the reaction now, the response is mainly positive with a few skeptics (Shugan, 1997, pp. 72). The content in the film has also not drawn out any negative views from the religious sects.

The PESTLE analysis is very important in reflecting the social factors associated with the film in the industry as they depend on the response from the public in order to market their product.  Entertainment is not a necessity and the industry has to make it very attractive and interesting for the customers. Considering factors that are likely to stir controversies regarding cultural and religious aspects.

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Technological factors

As mentioned earlier the film industry is facilitated by the application of the latest technology in order to make the product look very unique. The visuals of the film appear to be very sharp n well edited; the application of the sound is also in accordance with the latest technology.  The expenses of the film were mainly to incorporate the technology in the film so as to connect with the audience as they are also using the latest technology in their lives. The technological features used in the film are used to enhance innovation in the as a competitive edge in the industry (Baker, 1991, pp. 285). Being accustomed with the latest technology is able to help the film producers to understand what the viewers want and the films presented to them will be engaging. Communication between the viewers and the producers can be conducted through using the latest technology such as the social network site facebook and other related features. However, it is quite interesting that most of the criticism on the movie is from the technology experts who were not pleased with the release of the movie. 

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The legal factors that surround the film industry mainly revolve around the signing of contracts, rights of intellectual property and other related features,  analyzing such factors in the film industry is important in that they will be able to cover all legal issues and avoid any future problems that may interfere with their work. Any changes occurring in the law will be covered if the analysis is conducted.

Environmental factors

The film industry is not directly related to the pollution of the environment hence, recycling o products is not applicable in their industry.  However, the film industry can use their product to create awareness of environment sustenance and the famous celebrities can attract a lot of attention on the matter.

Application of Life Cycle in the film industry

When a product is introduced in the market it has to make some progress and the growth in the market is monitored in stages. The product life cycle is monitored in a sequence of four stages. These are; the introduction stage, growth, maturity and decline. The product life cycle is also important in the film industry as the film produced is a product and its growth in the industry has to be progressive. However, the film industry may look at the life cycle of their product quite differently from other products are normally looked at.

The cycle of a film is introduced where there are pans to produce the movie in the future but there.  This is a very young stage and it is referred to as 'in the future.' The script being written is usually not complete but the plans on the film are very promising. The Social Network experienced some problems while it was still in this early stage as part of the script was leaked online the year before its release (Berkhout & Howess, 1997, pp. 76). Criticism based on the film begun at this stage but at the same time stirred anxiety in some of the people as they could not wait for its release. This is the first stage in the process and its very important as it is the beginning of a the creation of a product that is bound to be successful

Development is the second stage where the script is finally completed and the producer is looking for funds to facilitate the filming process. For the movies made in Hollywood and other related areas rising the funds is an easy aspect but for other film makers it is near impossible. The film distributor is also located at an early stage to ensure that the distribution of the film is secured. The actors are located during this stage as well where they are able to sign the contract before the actual filming begins.

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The pre production is the next stage where the strategies are set in motion. Any introductions are made at this point and the plans are set well together making sure that the scenes will be shot perfectly. The budget is also synchronized with the activities and the actors are given their various roles (Berkhout & Howess, 1997, pp. 76). At the end of this stage most of the factors are already considered and dealt with ready for the next stage.

The production stage is when the movie is filmed as the actors take on their roles. The reviews of what has been filmed are conducted on a daily basis at the end of the day and any additions are made in the process.

Post production is the stage where everything is being put into order. The production is turned to a movie with all the extra additions and special features that mainly attract the viewers. The sounds are carefully selected to make sure they are in line with the actions and the music selected for the film should be able to relate with the audience.

The distribution stage is very sensitive as the product has to make a positive impact in the market.  The release of the Social Network was introduced by the marketing process where a poster was first released then a trailer that prepared the audience for the release of the film. The trailers were released separately leaving the audience more anxious than before (Miller, 2001, pp. 740).  What made the trailers attract the attention of the viewers is that they were shown to the audience before they viewed movies that had already made a stand in the market. Hence, when the product was finally released, the public was anxious to watch the film and the product had already created its brand name and had already conducted its promotion through the release of the trailers. The attention that he film had attracted on its release was able to market the film further.

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The film industry has to market its product as well so that it may be able to survive the cycle in the market.  The marketing is mainly done through the release of the trailers.  Choosing the movies that attract attention to preview the trailer is very important as well (Miller, 2001, 732). This is relevant in that the initial reception of the trailer by the audience will give an insight on how the film will be received when it is released.

The life cycle is relevant in the film making industry as the production team is able to go over the basics of the film and every detail is accounted for. While the life cycle of other products is reflected in the market after production, the life cycle of the film is determined before it is released in the market.

Therefore, the PESTLE and life cycle analysis are very important in the film making industry despite the fact that it is quite different from other industries. Their relevance is quite similar as applied in the other products as the film makers are able to deal with factors that may appear rather simple but may affect the industry negatively.

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In general, the application of PESTLE and the life cycle are important as they reflect on many factors that may bear positive results for the industry. The film industry is very wide and it is still growing at a fast rate globally; therefore, innovation has to be applied in order for a film to stand out. However, the film industry has to be careful to since the materials produced should observe the cultural aspects of the people.  The production of the Social Network film stirred a lot of controversies since it was based on the creation of technology that is already making billions in the market. The film itself is about the foundation of the network and the life of the young founder.  The application of PESTLE and the Life cycle analysis on the film added to its positive impact and success.



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