Harvard business reports (1930)

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MOKAN THEATERS, INCORPORATED 529 In the selection of managers for its chain of theaters, Mokan Theaters, Incorporated, decided that local management was of extreme importance. Final responsibility in judging what was best for a particular theater would rest with the local manager. The executives believed that without this responsibility, the manager would be unable to take a real interest in the operation of his theater. While he might be loyal and enthusiastic in his relation with the central office, yet it was impossible for him to develop his theater with policies and programs laid down by a central management.2 The corporation desired its managers to become local business men, active in the chamber of commerce and other local work. By so doing, they would be in a position to exercise the best judgment in arranging exploitation plans that would tie up with local business and would benefit thereby. The policy would not necessarily require that the local manager should be a former manager or resident of the city; in some instances, such a manager might be inadvisable and in every instance a new manager of ability should be able to build up a successful relationship in a new town. In the opinion of the executives, a friendly relationship between the public and the theater was all-important in the exhibition of motion pictures and should be protected as far as possible. In order that this relationship might not be injured in the selection of entertainment and yet buying economies be effected, the corporation planned that the local manager should take an active part in the purchase of pictures for his theater. New managers would be selected on the basis of their executive and showmanship ability. In the smaller cities, showmanship ability would be the major qualification as it was thought to be required to a greater extent in such cities. Candidates would be recruited from the "independent" type of theater managers. Commentary :3 This case represents a situation somewhat different from that referred to in the case of the Publix Theaters Corporation. The chain was substantially smaller, and it was not likely that its growth would be so rapid proportionately as that of its larger competitor. It is to be noted further that the plan of control outlined was largely experimental and temporary. As time went by experience 2 See Motion Picture News, April 6, 1929, p. 1029. 3 See also commentary on Publix Theaters Corporation, page 522.