a report about the management of service operations at cgv cinemas

¢ Stage 5: CGV delivers food & drink to Customers CGV often designs an open space so that when viewed from afar, people can easily see the ticketing area, popcorn counter, waiting area a

INTERNATIONAL SCHOOL

VIETNAM NATIONAL UNIVERSITY, HANOI

Lecturer: Ph.D Tran Cong Thanh

Prepared by: GROUP 7

Nguyễn Lan Anh (Leader) — 18071023

La Thu Trang — 19071523

Lê Thu Phương — 19071069

Nguyễn Tùng Lân — 19071396

Ha Noi, 2022

Table of Contents

1, Introduction

This report focuses on analyzing a CJ CGV examination operation management Our report is included in five main parts: The first part will give the background of CGV, the second part focuses on describing Operation transformation process; the third part discusses Operation objectives; the next part Operation management issues and practices and the last part is to give recommendations CGV is a Korean multinational cinema chain CGV is an abbreviation of the first 3 letters of the words: Cultural, Great and Vital It is one of the top 5 largest cinema clusters in the world and the largest

distributor and cinema cluster in Vietnam

II, Operation Management Process

- Input: Customer with demand and information

- Output: Customer with suitable products and feedback

- Transformation process

¢ Stage 1: Supply chain

CGV cooperates with Nestle, Coca Cola, EV Group, Momo, Zalo, to ensure an

abundant supply, quality, to meet the needs of customers At the beginning of the day, CGV will go to the warehouse to get popcorn, soft drinks, mineral water, bring it to the production counter Preparations are made and strictly controlled to serve customers after opening hours

¢ Stage 2: Inventories & Layout (ticketing environment and cinema room) prepared

Cinemas need to be thoroughly prepared before the first showings begin All elements are considered including popcorn ingredients, machines, and display products such as cups In particular, the cinema room area must be clean, the projector must always be ready

¢ Stage 3: Order taking

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When coming to CGV, customers have 2 options, that is: booking tickets online via the

CGV app and booking tickets directly at the ticket counter

For customers who buy tickets directly at the counter, the ticket sales staff will advise and help customers choose the right movie and seat

If you book tickets online, you can easily view movie showtimes, available seats and pay via card or e-wallet linked by CGV After that, customers only need to go to the theater to get tickets booked online and enter the theater to watch

©Ồ Stage 4: Confirm order and Payment

Ticket sales staff will reconfirm the movie, seat, and ticket number that the customer has

booked Then, ticket sales staff carry out the payment process for guests through 2 ways: payment by card or cash

¢ Stage 5: CGV delivers food & drink to Customers

CGV often designs an open space so that when viewed from afar, people can easily see the ticketing area, popcorn counter, waiting area and even the checking tickets area before entering the cinema

CGV manufactures and combines with food & drink brands to serve customers When guests order food & drinks, CGV staff is responsible for getting the right items that the guest requested CGV arranges a waiting area so that if it's not yet movie time,

customers can sit and wait, take pictures and use free wifi

CGV is often distributed and located at cinemas in commercial centers to attract more customers to watch movies When customers buy movie tickets but it's not yet movie time, they can walk around the mall if they don't want to sit at CGV's waiting area

® Stage 6: Check in & Movie showing

When it's movie time, customers enter the ticket check place to be guided by the staff to their theater area and enjoy the movie CGV also applies many modern and attractive movie projection technologies such as 4DX, a screening room for couples with specially

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designed seats (Sweetbox), VIP screening room (M - Cinema) and the ultimate sound

system

¢ Stage 7: Customers leave & Staff cleaning

After enjoying the wonderful moments of the movie, customers will leave and be greeted by the staff and see you again At that time, the housekeeping staff will quickly clean up to keep the cinema room clean

III, Operation Management Objectives

In the competition with BHD Cinema, Galaxy Cine, and Lotte, although CGV's ticket

price is higher than all other cinemas, CGV is still leading in this market and is highly appreciated for its product quality and service

1, Product Quality

The quality of GCV's products lies in 3 main factors: cinema, film, and food & drink

¥ Cinema: CGV is the most positively evaluated theater for quality with high-

class cinema rooms such as Couple seat, Gold Class, and Private Cinema In

addition, CGV also has high-tech cinemas to satisfy customers' demand for experience when watching movies such as 4DX, Screen X, and IMAX

¥ Movies: A place that always updates the hottest movies both at home and abroad with dense screenings to serve a large number of customers

¥ Food & Drink: CGV created a unique concept “Cultureplex” for customer to enjoy advanced technologies cinema, different service and cuisine only available

at CGV

CGV has added two flavors of caramel and cheese, not only that, it also captures

the drink trend of pink milk tea with 3 different toppings In addition, CGV also has a diverse menu of food such as potatoes, dumplings, sausages, to serve the needs of many hungry customers

2, Service Quality

CGV's goal is always to bring great experiences to customers, therefore, CGV always focuses and improves on service quality

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¥ Service staff: is an indispensable factor in quality assurance at CGV, the staff here will have a probationary period of about 2 months to grasp how to operate

and serve at CGV, and from there, respond to and answer questions and needs of customers

¥Y Parking service: Due to its strength in association with major partners, CGV is present at large commercial centers such as Aeon Mall, Vincom, Parkson, so it uses the shopping center's car park Therefore, customers can easily and safely park their cars here

¥ Service room: CGV is oriented to the standards of the largest cinema system in Vietnam Therefore, CGV is always interested in providing the best service to customers During the movie-watching process at CGV, customers will experience the unique space here with full facilities from the outside such as restrooms, coffee areas, waiting rooms, display and photography areas, and

customer service counters, to the various movie theaters inside Service rooms

are arranged by CGV in an open and airy space with clear signs and signs to help customers easily travel and use them

partners such as Internet Banking, MoMo, Zalo Pay, In addition, the waiting area with

comfortable and quiet space will be an ideal place for "check-in" to increase customer satisfaction while waiting to see the movie

IV, Operation Management Issues And Practices

1, Supply Chain Management

Supply chain management (SCM) is the centralized management of the flow of goods and services and includes all processes that transform raw materials into final products

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By managing the supply chain, companies can cut excess costs and deliver products to

the consumer faster

¢ Foreign: CGV buys foreign film rights from famous film studios, such as

Marvel Studios, Warner Bros, Universal Pictures, In addition, CGV is

authorized by two of Hollywood's largest film distribution companies,

United International Pictures and Buena Vista International, to distribute

exclusively in Vietnam After being acquired by CGV, they have exclusive rights to import more movies released by CJ E, which have good quality in Korea In addition, films from countries such as Japan, Thailand, China, etc are also focused on buying copyrights by CGV for film distribution

¥ Facilities: CGV cooperates with EV Group - a leading unit in the field of consulting, design, supply and installation of professional cinema equipment in Vietnam They provide some products such as projector, lighting systems, audio,

screen, etc

v Foods & Drinks: The menu at CGV is mainly popcorn, soft drinks and mineral

water, in addition to other fast foods such as pizza, french fries, hotdog, snacks, milk tea, etc Popcorn is available in sweet, caramel, chocolate and cheese

flavors CGV cooperates with Coca Cola, Sprites, Fanta to sell

Customers can buy popcorn and water at CGV without watching the movie

~ Services: CGV cooperates with electronic payment parties for the most convenience for customers such as: Momo, ZaloPay, ViettelPay, ShopeePay e- wallets besides ATM Cards (Domestic Debit/Payment/Prepaid Card), Credit

Card, debit card, international prepaid card

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CGV announced a brand new "Mobile Cinema" service that is only for institutional customers (minimum number of viewers 200 people), bringing the cinema to the place so that the audience can enjoy the movie right at the office, company, factory, university hall, school yards across the country

“* Issue

In some cases, when customers go to the movies and want to buy popcorn of all kinds, but CGV runs out of popcorn flavors that customers want to buy The reason is poor supply, not timely

“* Recommendation

The distribution strategy needs to ensure that the warehouse - the moving point can distribute products to the cinemas in an optimal way in terms of both time and cost, while keeping inventory to a minimum CGV needs to plan the number of warehouses, working with a partner to transport goods faster, inventory more carefully to promptly supply enough for the needs of all customers

2, Inventory Management

Inventory management is known as the process of ordering, storing, using, and selling a company's inventory This comprises the storage and processing of raw materials, components, and completed goods, as well as the administration of raw materials, components, and final products

“* CGV’s Inventory

v Product:

¢ Movie: This component will be handled by the machine room department The approaching movie drive will be transferred to the machine room department by the company's team — The machine room department will be in charge of receiving films, inspecting their quality, and verifying the broadcast schedule — The machine room department will copy the movie on a disk to be transferred to the server before it is broadcast The machine room section is also in charge of producing weekly technical reports for prospective films

=> CGV can grasp strengths, overcome weaknesses, and increase the quality of products and services thanks to these assessments

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Tickets: CGV installs E-Invoice software on a server and gives all users at billing theaters access to it By importing excel data files produced from CGV vending machines, these users will generate invoices

=> When compared to paper invoices, E-invoice software helps businesses save money on printing, storage, and shipping; it also helps businesses avoid lost,

damaged, or burnt invoices

Foods & Drinks: CGV will estimate the number of popcorn that will be sold in a day in order to import commodities and prevent inventory, which will lower food quality, particularly popcorn The water will be kept in the fridge CGV uses the following other methods to avoid inventory:

CGV offers a variety of popcorn flavors, including sweet/salty popcorn, cheese, caramel, and chocolate — entices more people to make purchases

CGV theater constantly provides incentives, discounts on items while purchasing, and the selling price is greatly decreased during holidays and Tet with several incentive programs

v Service:

The seats: CGV has 11 different types of screening rooms in Vietnam, CGV offers a way of arranging the right amount of seats for each room, depending on how big or tiny the projection room is Therefore, the different number of seats

at each different theater system will result in a different amount of inventory service For example, the CGV Premium Theater is a small theater with roughly

30 seats that is ideal for small group movie screenings It has far fewer seats than

a typical theater with greater space and more than 200 seats

Issue

Movie: Following the emergence of the Covid epidemic, the government ordered theaters to close for a period of time This prevents CGV from releasing films that have previously been released, are now being released, or are going to

be released, resulting in the films remaining in stock

Ticket: Customers may convert to online ticket booking to save time going to the theater to buy tickets, resulting in paper tickets not being sold and becoming

inventory

The seats: Each CGV theater has its own ticket prices and experiences, such as ticket prices at Premium or Gold Class theaters which are often more expensive than traditional theaters This is also a problem that can make

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customers afraid when purchasing tickets to these theaters, resulting in a large number of empty seats Furthermore, because few people go to the movies on weekdays, the quantity of unoccupied seats is quite large

3, Total Quality Management

Total Quality Management (TQM) is defined as a management model that focuses on the customer and develops products and services that meet or even exceed customer needs In other words, TQM focuses on improving the quality of products and services

of companies to improve customer satisfaction

“+ Customer focus

The first and most important feature of TQM is that the company focuses on its customers The voice of the customer is defined as the expressed requirements and expectations of the customer about a product or service, as documented and disseminated to the members of the providing organization

To be one of the first international standard cinemas in Vietnam, CJ CGV always focuses on bringing unique values to customers as well as their satisfaction when using

the service at CGV:

¥ Cinema accessibility: CGV focuses on convenience, ease of search, and

accessibility during the move for customers when distributing 43 cinema

clusters from north to south, and each theater is located in centers such as Vincom, Aceon Mall, and Parkson,, as a nationwide service provider network

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¥ Buy tickets and pay conveniently: To save time and avoid long queues when buying tickets, CGV has launched the application "CGV Cinemas" to help customers book tickets, and pay quickly and easily, CGV also connects links with electronic payment wallets such as Momo, Zalo Pay, if customers pay through the website

¥ Experience modern technology: Cinema technology at CGV is a highlight at this cinema, helping it to attract more customers than other cinemas With modern and advanced movie projection technology such as 4DX and supporting

devices and special effects such as water, wind, vibrating seats, and scents, it

offers a lifelike viewing experience in the movie

¥ Diverse cinemas: With a constant effort to bring movie lovers unique cinematic experiences, CGV has launched a variety of cinema systems to meet the needs and private experiences of customers Like the SWEETBOX double seats placed

in the last row in each screening room, creating a private space for couples or inspired by the business class seats on the plane, the GOLD CLASS screening room was born to bring a unique atmosphere A luxurious and classy movie viewing space for movie lovers

“ Use of quality tools

In the interview with CGV employees, they said that for accurate quality control, managers will use check sheets to check and control the operation of the parts CGV's operating time will be from 8 am to 10 pm, before opening time, the manager will check the employee's working schedule CGV uses a fingerprint checker to check in and check out every time employees come to work shifts This device is considered a tool to help managers of CGV keep track of the working hours and salary schedule of the employees Next, the staff will prepare food and drink, check the number of tickets and clean up at the screening rooms and then report back to the manager The manager will use the check sheet to record completed and unfinished data such as checking the number of incoming materials, the number of raw materials in stock, the operating

status of the screening rooms, the quality of movie discs, movie showtimes, From that

data, the manager will come up with a solution to that problem

In addition, CGV also uses timesheets to check employees according to the regulations set forth by CGV on uniforms, customer evaluations of employees, regular scores, etc

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