The Film – Arnie and the Forces

Since the origin of man there has been an urge to achieve goals and pursue dreams. Along with this pursuit, a field of study called management has emerged. The far most important role in the development from man being an autonomous self-supporting unit to become a small spider in a global web has been the corporation. Local enterprises have grown to become global conglomerates – not only through hard work and determination, but also through effective management! The management of corporations has provided tools for them to succeed and many are those who have developed and influenced the management discourse. Albeit mankind has come a long way already, the desperate need for management persists!

 

As we have entered the 21st century, the world has changed. Instead of corporations being the center around which everything else revolves, individual persons have grown to be equally important. Today, athletes, actors and politicians build long and successful careers. They are superstars that have formed personal conglomerates that are renowned all around the planet. What is it then that sets the tools for succeeding as an actor from a company apart? Does the management field provide the same guidance and support? To a large extent, the theories and models are equally applicable for the corporation as for the actor or the athlete!

 

In this film we take a closer look at what management has to offer for us to understand what it is that drives and influences the likelihood of succeeding. Management helps setting you apart from your competitors, encourages analytical thinking in telling strengths from weaknesses. Management activity is simply the act of getting a group of one or more people or entities together to for the purpose of accomplishing a goal! A clear plan is essential and a pioneer in creating a globally recognized conglomerate around his person is Arnold Schwarzenegger!

 

With an almost unpronounceable surname and a thick Austrian accent, who would have ever believed that a hotheaded, quick talking bodybuilder from a small European village would become one of Hollywood’s biggest stars, marry into the prestigious Kennedy family, amass a fortune via shrewd investments and, finally, become the Governor of California! Arnold – or Arnie – is truly a man of superlatives. As he has had three careers already, he serves as the perfect example for management analysis. Arnie is entrepreneurship, Bluechip corporation and authority embedded in one entity!

 

To analyze Arnie and his journey from Austria to Hollywood to the Californian political throne – let us introduce the man at the other side of the story. A man named Michael E. Porter. Porter is the man behind the Five Forces Analysis, which is a simple but powerful tool for understanding the multiple dimensions of competitiveness, and serves as a strategic check list for managers. The Five Forces Analysis is by no means an exhaustive management instrument, but as we’ve seen during this course there’s no such thing as an almighty recipe that captures all of the dimensions of management. Hence, Porters renowned model serves the purpose as well as would the 7S, the BCG Matrix, Six Sigma, BPR or any other management model.

 

This is where Arnie meets Porter. This is Modern Management!

 

Force One – The threat of Substitutes

Throughout his career, regardless being a bodybuilder or an actor, the threat of substitutes has been contant. The fans could easily find new interests and idols. The substitutes had leaner bodies and fewer one-liners, which ultimately made Arnie leave the silver screen. The audience’s attention went from muscle power to super power!

 

Force Two – The threat of New Entrants

The threat of entry of new competitors has followed Arnie since he started out as a body builder. But as the Governor of California he has conquered a market with high barriers of entry. To do so you must have an enormous amount of money, hang out with the right crowd and of course by having the winning smile. Arnie has the money, his wife is related to the Kennedy family and he has both the outmost interesting background and the perfect smile!

 

Force Three – The Intensity of Competitive Rivalry

The intensity of competitive rivalry has been a major determinant of Arnie’s career choices. As a body builder and as an action muscle hero, the competition was harsh and the cost of being number one was eventually too high for the Austrian. But Arnie found his blue ocean in politics. As a politician in the US, the diversity is low and Arnie has the clearest edge against his boring and not so controversial political competitors.

 

Force Four – The Bargaining Power of Customers

The bargaining power of customers has been far less problematic for Arnie than for many others. Even though he has made two career U-turns, he has been able to make incremental improvements to his credibility. Today, Arnie’s customers are the voting people of California. These are the same people who were amused by the Terminator’s one-liners and impressed by his look as Mr. Universe! America loves their Austrian hero who came to Hollywood – Arnold is the American Dream impersonated. His fans will follow him ‘til Judgment Day!

 

Force Five – The Bargaining Power of Suppliers

The bargaining power of suppliers was, together with the threat of substitutes, a problem that Arnie had to deal with before shifting to politics. Apart from being the Terminator, Arnie struggled with getting leading parts in the blockbuster films he used to get. However, as the Governor with the winning smile – Arnie has made most of his suppliers dependent on him by being unique – there’s no one like Arnie! They do much of the work, but Arnie’s runs the show!

 

Arnie surely is one of his kind – a true inspiration. Some said that it couldn’t be done – that an Austrian farm boy could come to America and be successful in the movie business. Without hopes and dreams, the chance of getting somewhere is small, but dreams alone don’t guarantee success – we need the guidance and support. Arnie is one of many who have managed to reach unexpected heights through effective management! Arnie has inspired people all over the world to hold onto their dreams and with the help of management – he has shown that it can be done! In their future pursuits we are likely to experience many more Cinderella stories coming true – and you can count on Porter and his peers being present at all times!