1- Analyzing CCI

Question 1

summarize modelling the cultural industries by throsby

Answer 1

discusses the boundaries of cultural industries, and examines six tools for economic analysis that can be applied to cultural industries.

Question 2

three characteristics of cultural industries

Answer 2

1. human creativity
2. symbolic messages
3. intellectual property

-> transcends purely economic valuation

Question 3

three characteristics of creative industries

Answer 3

1. human creativity
2. goods and services
3. commercial use

-> extends beyond cultural goods

Question 4

are cultural goods a subset of creative goods?

Answer 4

YES
, cultural goods and services can be seen as a sub-
set of a wider category of goods that can be called creative goods and services.

Question 5

how does the product-group concept distinguish cultural vs creative industry

Answer 5

In the product-group concept, cultural industries are defined by intangible cultural content

Creative industries include both cultural and non-cultural products, differing in their levels of creativity and applications.

=> In summary, cultural industries focus on products deeply rooted in specific cultural contexts, whereas creative industries encompass a broader array of innovative and artistic products that may or may not be tied to specific cultural traditions.

Question 6

define industrial organizational theory

Answer 6

considers standard economic variables like gross production value, employment levels etc.

looks at market concentration of sellers and buyers, product differentiation, entry-exit conditions

Question 7

apply industrial organizational theory to cult. ind

Answer 7

1) market concentration: studying how concentration effects competition in areas like music. high concentration might lead to limited diversity.

2) product differentiation: analyzing how unique offerings influence consumer choices

3) entry and exist conditions: exploring barriers faced by new creatives

Question 8

define value chain analysis

Answer 8

a method that breaks down the process of creating and delivering cultural products into distinct stages.
It starts from the initial creative idea and traces how it evolves, transforms, and reaches consumers through various steps.

Question 9

apply value chain analysis to cultural industries

Answer 9

1) creation and idea formation: analyzing how creative ideas originate loking at how cultural and social factors affected it.
2) product and development: examining how ideas are turned into tangible products, like movies or artworks. analyzing techniques, technologies, and collaborations involved in production.
3) Studying how cultural products are distributed to consumers, whether through theaters, streaming platforms, or galleries.

Question 10

define inter industry analysis -> input output analysis

Answer 10

examining relationships between different sectors of the economy.
one method of doing this is input-output analysis which traces how money, and gods travel between different sectors of the economy.

Question 11

apply inter industry analysis (input output analysis) to cultural industries

Answer 11

1) data challenges: cultural activities are often broadly categorized in economic data, making detailed analysis challenging.
2) social accounting metrices (SAM) are comprehensive economic databases that show transactions in the entire economy
- in cultural industries SAM’s offer a simplified but holistic view.

Question 12

define locational analysis

Answer 12

locational analysis examines the clusters of firms in urban and regional areas.
looks at how demand and supply are affected by location.

Question 13

apply locational analysis to cultural industries.

Answer 13

1) spatial dynamics: cultural industry firms often cluster in specific areas because of demand concentration, and network benefits.
2) demand side factors: demand factors like tourism can lead cultural businesses to open in certain places
3) supply side network effects: networks create reciprocal benefits for cultural firms close to each other

Question 14

define contract theory

Answer 14

contract theory is the unique contractual arrangement essential for complex productions like films.

Question 15

apply contract theory to cultural industries.

Answer 15

1) uncertainty of demand: since final results of complex productions are unclear, its challenging to crate contracts.
2) art for arts stake: creative workers prioritize quality which can sometimes mean less demand. therefore, the passion and economic motivations of an artist influences negotiations

Question 16

define trade and development

Answer 16

the global exchange of cultural goods and the economic progress of nations

Question 17

apply trade and development to cultural industries

Answer 17

1) comparative advantage: cultural products are more than commodities, they reflect cultural values so they can get exceptions in trade negotiations.
2) local cultural expression: developing countries face challenges in preserving local cultural expression. emphasizing local production is crucial.

Question 18

define organizational device

Answer 18

structural elements within a company, including processes, hierarchies, and strategies, designed for operational efficiency and coordination.

Question 19

what was the main trigger that drove Ferran Adria’s business model?

Answer 19

his quest for creative freedom

Question 20

why are business models not just organizational devices

Answer 20

business models are also useful in idenitfying triggers and mechanisms associated with changes.

organizational devices ensure internal efficiency, business models outline the entire strategic approach of a company.

Question 21

describe the periods of ferran adria’s business model

Answer 21

Period 1 -> being an employee himself, he expands his knowledge
Period 2 -> owner-manager, builds his own brands, and techniques
Period 3-> triggered by a quest of recognition, Adria becomes an entrepreneur (creates organizational structures, teams with a purpose)
Period 4 -> triggered by quest for influence, he becomes famous worldwide, developing a new culinary language.

Question 22

why is it important to distinguish cultural and creative industries? (4)

Answer 22

1) economic precision- researchers can analyze the secotrs and look at their unique dynamics
2) policy relevance-policymakers need specific insights to formulate policies
3) cultural preservation- recognizing cultural industries seperately highlights their role in preserving heritage
4) innovation and creativity: creative industries often emphasize innovation - through differentiation this can foster more exploration

Question 23

what’s the difference in focus between cultural and creative industries?

Answer 23

Cultural Industries: Focus on preserving cultural heritage, carrying symbolic and cultural value, often with emphasis on authenticity and tradition.

Creative Industries: Emphasize innovation, entrepreneurship, and commercial success, encompassing a diverse range of products and contributing significantly to the economy.

Question 24

define business models

Answer 24

Encompasses external strategies for the entire business, defining how the company creates value, delivers products/services, and generates revenue.

Question 25

what triggered chef to go from period 1 (employee) to period 2 (owner manager)

Answer 25

quest for authenticity

Question 26

what triggered chef to go from period 2 (owner manager) to period 3 (entreperneur)

Answer 26

quest for recognition

Question 27

what triggered chef to go from period 3 (entrepreneur) to period 4 (leader)

Answer 27

quest for influence

Question 28

define value mechanisms

Answer 28

strategies and processes employed to create and enhance value

Question 29

define Customer value proposition

Answer 29

a statement explaining why a customer should choose a particular product. It outlines the unique benefits and value that it provides to the customer.

Question 30

what are the components of a business model according to Poisson de Haro & Montpetit (4)

Answer 30

1. customer value proposition
2. profit formula
3. key resources
4. key processes

Question 31

what are key resources

Answer 31

property based (owning a venue), knowledge based, intangible (reputation), tangible (financial)

Question 32

what are key processes

Answer 32

creative process
production
human resources
information technology
-> the relation between processes and resources is crucial!

Question 33

what’s the profit formula?

Answer 33

cost structure -> customers willingness to pay

Question 34

when is a new business model needed according to poission de haro and montpetit (4)

Answer 34

1) opportunity to address potential customers
2) capitalizing on new technology
3) bringing focus where one didnt exist yet
4) respond to competition