The following appeared as part of a business plan developed by the manager of the Rialto Movie Theater."Despite its downtown location, the Rialto Movie Theater, a local institution for five decades, must make big changes or close i

The following appeared as part of a business plan developed by the manager of the Rialto Movie Theater.

"Despite its downtown location, the Rialto Movie Theater, a local institution for five decades, must make big changes or close its doors forever. It should follow the example of the new Apex Theater in the mall outside of town. When the Apex opened last year, it featured a video arcade, plush carpeting and seats, and a state-of-the-art sound system. Furthermore, in a recent survey, over 85 percent of respondents reported that the high price of newly released movies prevents them from going to the movies more than five times per year. Thus, if the Rialto intends to hold on to its share of a decreasing pool of moviegoers, it must offer the same features as Apex."


Write a response in which you discuss what questions would need to be answered in order to decide whether the recommendation is likely to have the predicted result. Be sure to explain how the answers to these questions would help to evaluate the recommendation.