The Movie Exhibition Industry

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Question Description

Case 12 C-141

For this case analysis, your group will prepare a written analysis of 3 to 5 pages that uses the text and other credible sources as appropriate. Your group paper should have 1" margins, be double spaced, and use APA formats for

  • topic and subtopic headings
  • citations
  • references

Your group case must minimally address the following issues / questions:

  • Review trends in the general environment that affect the movie exhibition business, and establish whether their effects are helpful or harmful to theater owners.
  • Assess the five competitive forces at work in the industry environment. Identify the forces that threaten the profitability of prevailing movie circuits, and prescribe the level of competition that can be anticipated amongst industry rivals.
  • Perform comparative situation and strategy analyses for the four companies with dominant market share. What are the advantages and disadvantages for each of the industry’s top competitors?
  • Evaluate the revenue sources and major costs for movie exhibitors. Discuss how the income structure of their business impacts their financial results.
  • Summarize your findings and the current situation for exhibitor circuits. Based on your analysis, what strategic actions do you propose for theater operators to increase the appeal of the theater setting to attract the audiences needed for improved performance under existing industry conditions?

Your grade for this assignment will be based on the Group Submission ONLY (see the rubric for more details).

This assignment is due at the end of Module 3.

Rubric

The Movie Exhibition Industry: 2015 -GROUP

The Movie Exhibition Industry: 2015 -GROUP

CriteriaRatingsPts

This criterion is linked to a Learning OutcomeGroup - External analysis of trends in the general environment

3.0 pts

Exceeds expectations and indicates critical opportunities and threats with potential to affect the success of theater owners.

2.0 pts

Analysis fully and accurately identifies the external conditions that influence growth and performance in the film industry.

1.0 pts

Analysis identifies the external conditions that influence growth and performance in the film industry.

0.0 pts

Analysis fails to identify some of the external conditions that influence growth and performance in the film industry.

3.0 pts

This criterion is linked to a Learning OutcomeGroup - External analysis of competitive forces in the industry environment

4.0 pts

Exceeds expectations and weighs the competitive forces to provide a reliable prediction of the intensity of rivalry anticipated in the industry.

3.0 pts

Assessment accurately estimates the competitive forces with potential to reduce theater profitability and determines their likely effect on competitive rivalry.

2.0 pts

Assessment includes and accurately estimates the competitive forces which have the potential to reduce theater profitability.

1.0 pts

Assessment excludes or inaccurately estimates some of the competitive forces which have the potential to reduce theater profitability.

4.0 pts

This criterion is linked to a Learning OutcomeGroup - Competitor analysis of companies with dominant market share

3.0 pts

Exceeds expectations and integrates the advantages and disadvantages of each of the competitors' strategies into the analysis.

2.0 pts

Analysis provides a comprehensive and precise overview of the top competitors' business situations and approaches.

1.0 pts

Analysis provides a good overview of the top competitors' business situations and approaches.

0.0 pts

Analysis fails to provide a complete overview of the top competitors' business situations and approaches.

3.0 pts

This criterion is linked to a Learning OutcomeGroup - Evaluation of revenue sources and major costs associated with theater operations

3.0 pts

Exceeds expectations and emphasizes the severe constraints of managing an unprofitable business model.

2.0 pts

Financial review presents a thorough and detailed accounting of the industry's income structure and discusses its impact on the financial performance of exhibitors.

1.0 pts

Financial review considers the revenue sources and major costs that impact today's film exhibitors.

0.0 pts

Financial review does not consider all of the revenue sources and/or major costs that impact today's film exhibitors.

3.0 pts

This criterion is linked to a Learning OutcomeGroup - Grammar, Writing, APA Format

2.0 pts

Information is appropriately sequenced with topical headings and subheadings. Language use, grammar, spelling, and punctuation are at an appropriate graduate level, with no errors. Uses paragraph form with topical sentences that are supported by the remainder of the paragraph, and effective transitions. Writing is clear, concise, and in correct voice and tense. Correct application of APA format. Up to two to three errors in citations and references.

1.0 pts

There is some order to the information with some heading usage. Presentation has two to four misspellings or grammar errors, or two or three word use errors. Uses paragraph form but sentences within the paragraph may not be related. Somewhat correct application of APA format. Four to six errors in citations and references.

0.0 pts

Limited structure or no topical headings used. Presentation has more than four misspellings or grammar errors, or more than four word use errors. Language use makes it difficult to understand the intended meaning. Incorrect application of APA format. Several errors in or missing citations and references.

2.0 pts

Total Points: 15.

Only need to answer to object 5

Unformatted Attachment Preview

STRATEGIC MANAGEMENT Competitiveness & Globalization Concepts and Cases 12e Michael A. Hitt Texas A&M University and Texas Christian University R. Duane Ireland Texas A&M University Robert E. Hoskisson Rice University Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest. Important Notice: Media content referenced within the product description or the product text may not be available in the eBook version. Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Strategic Management: Competitiveness & Globalization: Concepts and Cases, 12e © 2017, 2015 Cengage Learning® Michael A. Hitt, R. Duane Ireland, and Robert E. Hoskisson ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced, transmitted, stored, or used in any form or by any means graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, Web distribution, information networks, or information storage and retrieval systems, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the publisher. Vice President, General Manager, ­Social Science & Qualitative Business: Erin Joyner Product Director: Jason Fremder Senior Product Manager: Scott Person WCN: 02-200-203 Content Developer: Tara Singer Product Assistant: Brian Pierce Marketing Director: Kristen Hurd Marketing Manager: Emily Horowitz Marketing Coordinator: Christopher Walz Senior Content Project Manager: Kim Kusnerak For product information and technology assistance, contact us at Cengage Learning Customer & Sales Support, 1-800-354-9706 For permission to use material from this text or product, submit all requests online at www.cengage.com/permissions Further permissions questions can be emailed to permissionrequest@cengage.com Manufacturing Planner: Ron Montgomery Unless otherwise noted all items © Cengage Learning. Production Service: Cenveo Publisher Services Library of Congress Control Number: 2015955692 Senior Art Director: Linda May Cover/Internal Designer: Tippy McIntosh Cover Image: © RomanOkopny/Getty Images Intellectual Property Analyst: Diane Garrity Project Manager: Sarah Shainwald Strategic Focus: © RomanOkopny/Getty Images Watercolor opener: © BerSonnE/Getty Images ISBN: 978-1-305-50214-7 Cengage Learning 20 Channel Center Street Boston, MA 02210 USA Cengage Learning is a leading provider of customized learning solutions with employees residing in nearly 40 different countries and sales in more than 125 countries around the world. Find your local representative at www.cengage.com. Cengage Learning products are represented in Canada by Nelson Education, Ltd. To learn more about Cengage Learning Solutions, visit www.cengage.com Purchase any of our products at your local college store or at our preferred online store www.cengagebrain.com Printed in Canada Print Number: 01 Print Year: 2016 Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. To My Family: I love each and every one of you. Thank you for all of your love and support. — Michael, Dad, Papa To Mary Ann: “Now everyone dreams of a love lasting and true.” This was my dream that you have completely fulfilled. Thank you for all of the love, support, and encouragement throughout our life together. — R. Duane Ireland To Kathy: My love for you is eternal, and I hope that we can be eternally together. Thanks for all the support and love you’ve given me throughout my life. — Bob Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Brief Contents Preface, xiii About the Authors, xx Part 1: Strategic Management Inputs 1. Strategic Management and Strategic Competitiveness, 2 2. The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis, 38 3. The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages, 76 Part 2: Strategic Actions: Strategy Formulation 4. Business-Level Strategy, 108 5. Competitive Rivalry and Competitive Dynamics, 142 6. Corporate-Level Strategy, 172 7. Merger and Acquisition Strategies, 204 8. International Strategy, 236 9. Cooperative Strategy, 276 Part 3: Strategic Actions: Strategy Implementation 2 108 308 10. Corporate Governance, 308 11. Organizational Structure and Controls, 344 12. Strategic Leadership, 382 13. Strategic Entrepreneurship, 416 Part 4: Case Studies C-1 Name Index, I-1 Company Index, I-20 Subject Index, I-23 iv Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Contents Preface xiii About the Authors xx Part 1: Strategic Management Inputs 2 1: Strategic Management and Strategic Competitiveness 2 Opening Case: Alibaba: An Online Colossus in China Goes Global 3 1-1 The Competitive Landscape 7 1-1a The Global Economy 8 1-1b Technology and Technological Changes 10 Strategic Focus: Starbucks Is “Juicing” Its Earnings per Store through Technological Innovations 11 1-2 The I/O Model of Above-Average Returns 14 1-3 The Resource-Based Model of Above-Average Returns 16 1-4 Vision and Mission 18 1-4a Vision 18 1-4b Mission 19 1-5 Stakeholders 19 Strategic Focus: The Failure of BlackBerry to Develop an Ecosystem of Stakeholders 20 1-5a Classifications of Stakeholders 21 1-6 Strategic Leaders 25 1-6a The Work of Effective Strategic Leaders 25 1-7 The Strategic Management Process 26 Summary 28 • Key Terms 28 • Review Questions 29 • Mini-Case 29 • Notes 30 2: The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis 38 Opening Case: Are There Cracks in the Golden Arches? 39 2-1 The General, Industry, and Competitor Environments 41 2-2 External Environmental Analysis 43 2-2a Scanning 43 2-2b Monitoring 44 2-2c Forecasting 44 2-2d Assessing 45 2-3 Segments of the General Environment 45 2-3a The Demographic Segment 45 2-3b The Economic Segment 48 2-3c The Political/Legal Segment 49 2-3d The Sociocultural Segment 50 2-3e The Technological Segment 51 2-3f The Global Segment 52 Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. v vi Contents 2-3g The Sustainable Physical Environment Segment 53 Strategic Focus: Target Lost Its Sway Because Tar-zhey No Longer Drew the Customers 54 2-4 Industry Environment Analysis 55 2-4a Threat of New Entrants 56 2-4b Bargaining Power of Suppliers 59 2-4c Bargaining Power of Buyers 60 2-4d Threat of Substitute Products 60 2-4e Intensity of Rivalry among Competitors 60 2-5 Interpreting Industry Analyses 63 2-6 Strategic Groups 63 Strategic Focus: Watch Out All Retailers, Here Comes Amazon; Watch Out Amazon, Here Comes Jet.com 64 2-7 Competitor Analysis 65 2-8 Ethical Considerations 67 Summary 68 • Key Terms 68 • Review Questions 68 • Mini-Case 69 • Notes 70 3: The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages 76 Opening Case: Data Analytics, Large Pharmaceutical Companies, and Core Competencies: A Brave New World 77 3-1 Analyzing the Internal Organization 79 3-1a The Context of Internal Analysis 79 3-1b Creating Value 81 3-1c The Challenge of Analyzing the Internal Organization 81 3-2 Resources, Capabilities, and Core Competencies 84 3-2a Resources 84 Strategic Focus: Strengthening the Superdry Brand as a Foundation to Strategic Success 85 3-2b Capabilities 88 3-2c Core Competencies 89 3-3 Building Core Competencies 89 3-3a The Four Criteria of Sustainable Competitive Advantage 89 3-3b Value Chain Analysis 93 3-4 Outsourcing 96 3-5 Competencies, Strengths, Weaknesses, and Strategic Decisions 96 Strategic Focus: “We’re Outsourcing that Activity but Not That One? I’m Surprised!” 97 Summary 98 • Key Terms 99 • Review Questions 99 • Mini-Case 100 • Notes 101 Part 2: Strategic Actions: Strategy Formulation 108 4: Business-Level Strategy 108 Opening Case: Hain Celestial Group: A Firm Focused on “Organic” Differentiation 109 4-1 Customers: Their Relationship with Business-Level Strategies 112 4-1a Effectively Managing Relationships with Customers 112 4-1b Reach, Richness, and Affiliation 113 4-1c Who: Determining the Customers to Serve 114 4-1d What: Determining Which Customer Needs to Satisfy 114 Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Contents 4-1e How: Determining Core Competencies Necessary to Satisfy Customer Needs 115 4-2 The Purpose of a Business-Level Strategy 116 4-3 Types of Business-Level Strategies 117 4-3a Cost Leadership Strategy 118 4-3b Differentiation Strategy 122 Strategic Focus: Apple vs. Samsung: Apple Differentiates and Samsung Imperfectly Imitates 126 4-3c Focus Strategies 127 4-3d Integrated Cost Leadership/Differentiation Strategy 129 Strategic Focus: RadioShack’s Failed Focus Strategy: Strategic Flip-Flopping 130 Summary 134 • Key Terms 135 • Review Questions 135 • Mini-Case 135 • Notes 136 5: Competitive Rivalry and Competitive Dynamics 142 Opening Case: Does Google Have Competition? Dynamics of the High Technology Markets 143 5-1 A Model of Competitive Rivalry 146 5-2 Competitor Analysis 147 5-2a Market Commonality 147 5-2b Resource Similarity 148 Strategic Focus: Does Kellogg Have the Tiger by the Tail or Is It the Reverse? 150 5-3 Drivers of Competitive Behavior 150 5-4 Competitive Rivalry 152 5-4a Strategic and Tactical Actions 152 5-5 Likelihood of Attack 153 5-5a First-Mover Benefits 153 5-5b Organizational Size 155 5-5c Quality 156 5-6 Likelihood of Response 157 5-6a Type of Competitive Action 157 5-6b Actor’s Reputation 158 5-6c Market Dependence 158 5-7 Competitive Dynamics 159 5-7a Slow-Cycle Markets 159 5-7b Fast-Cycle Markets 161 5-7c Standard-Cycle Markets 162 Strategic Focus: The Ripple Effect of Supermarket Wars: Aldi Is Changing the Markets in Many Countries 163 Summary 164 • Key Terms 166 • Review Questions 166 • Mini-Case 166 • Notes 167 6: Corporate-Level Strategy 172 Opening Case: Disney Adds Value Using a Related Diversification Strategy 173 6-1 Levels of Diversification 175 6-1a Low Levels of Diversification 176 6-1b Moderate and High Levels of Diversification 177 6-2 Reasons for Diversification 178 6-3 Value-Creating Diversification: Related Constrained and Related Linked Diversification 179 Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. vii viii Contents 6-3a Operational Relatedness: Sharing Activities 180 6-3b Corporate Relatedness: Transferring of Core Competencies 181 6-3c Market Power 182 6-3d Simultaneous Operational Relatedness and Corporate Relatedness 184 6-4 Unrelated Diversification 185 6-4a Efficient Internal Capital Market Allocation 185 Strategic Focus: GE and United Technology Are Firms that Have Pursued Internal Capital Allocation and Restructuring Strategies 186 6-4b Restructuring of Assets 187 6-5 Value-Neutral Diversification: Incentives and Resources 188 6-5a Incentives to Diversify 188 Strategic Focus: Coca-Cola’s Diversification to Deal with Its Reduced Growth in Soft Drinks 190 6-5b Resources and Diversification 192 6-6 Value-Reducing Diversification: Managerial Motives to Diversify 193 Summary 196 • Key Terms 196 • Review Questions 196 • Mini-Case 197 • Notes 198 7: Merger and Acquisition Strategies 204 Opening Case: Mergers and Acquisitions: Prominent Strategies for Firms Seeking to Enhance Their Performance 205 7-1 The Popularity of Merger and Acquisition Strategies 206 7-1a Mergers, Acquisitions, and Takeovers: What Are the Differences? 207 7-2 Reasons for Acquisitions 208 Strategic Focus: A Merger of Equals: Making It Happen Isn’t Easy! 209 7-2a Increased Market Power 210 7-2b Overcoming Entry Barriers 211 Strategic Focus: Different Strategic Rationales Driving Cross-Border Acquisitions 212 7-2c Cost of New Product Development and Increased Speed to Market 213 7-2d Lower Risk Compared to Developing New Products 214 7-2e Increased Diversification 214 7-2f Reshaping the Firm’s Competitive Scope 215 7-2g Learning and Developing New Capabilities 215 7-3 Problems in Achieving Acquisition Success 216 7-3a Integration Difficulties 217 7-3b Inadequate Evaluation of Target 218 7-3c Large or Extraordinary Debt 219 7-3d Inability to Achieve Synergy 220 7-3e Too Much Diversification 221 7-3f Managers Overly Focused on Acquisitions 221 7-3g Too Large 222 7-4 Effective Acquisitions 222 7-5 Restructuring 224 7-5a Downsizing 224 7-5b Downscoping 224 7-5c Leveraged Buyouts 225 7-5d Restructuring Outcomes 225 Summary 227 • Key Terms 228 • Review Questions 228 • Mini-Case 228 • Notes 230 Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Contents 8: International Strategy 236 Opening Case: Netflix Ignites Growth Through International Expansion, But Such Growth Also Fires Up the Competition 237 8-1 Identifying International Opportunities 239 8-1a Incentives to Use International Strategy 239 8-1b Three Basic Benefits of International Strategy 241 8-2 International Strategies 243 8-2a International Business-Level Strategy 243 8-2b International Corporate-Level Strategy 246 Strategic Focus: Furniture Giant IKEA’s Global Strategy 248 8-3 Environmental Trends 250 8-3a Liability of Foreignness 250 8-3b Regionalization 251 8-4 Choice of International Entry Mode 252 8-4a Exporting 253 8-4b Licensing 253 8-4c Strategic Alliances 254 8-4d Acquisitions 255 8-4e New Wholly Owned Subsidiary 256 8-4f Dynamics of Mode of Entry 257 8-5 Risks in an International Environment 258 8-5a Political Risks 258 8-5b Economic Risks 259 Strategic Focus: The Global Soccer Industry and the Effect of the FIFA Scandal 260 8-6 Strategic Competitiveness Outcomes 262 8-6a International Diversification and Returns 262 8-6b Enhanced Innovation 263 8-7 The Challenge of International Strategies 264 8-7a Complexity of Managing International Strategies 264 8-7b Limits to International Expansion 264 Summary 265 • Key Terms 266 • Review Questions 266 • Mini-Case 266 • Notes 268 9: Cooperative Strategy 276 Opening Case: Google, Intel, and Tag Heuer: Collaborating to Produce a Smartwatch 277 9-1 Strategic Alliances as a Primary Type of Cooperative Strategy 279 9-1a Types of Major Strategic Alliances 279 9-1b Reasons Firms Develop Strategic Alliances 281 9-2 Business-Level Cooperative Strategy 284 9-2a Complementary Strategic Alliances 284 9-2b Competition Response Strategy 286 9-2c Uncertainty-Reducing Strategy 287 9-2d Competition-Reducing Strategy 287 Strategic Focus: Strategic Alliances as the Foundation for Tesla Motors’ Operations 288 9-2e Assessing Business-Level Cooperative Strategies 290 9-3 Corporate-Level Cooperative Strategy 290 9-3a Diversifying Strategic Alliance 291 Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. ix x Contents 9-3b Synergistic Strategic Alliance 291 9-3c Franchising 291 9-3d Assessing Corporate-Level Cooperative Strategies 292 9-4 International Cooperative Strategy 292 9-5 Network Cooperative Strategy 293 9-5a Alliance Network Types 294 9-6 Competitive Risks with Cooperative Strategies 295 Strategic Focus: Failing to Obtain Desired Levels of Success with Cooperative Strategies 296 9-7 Managing Cooperative Strategies 297 Summary 299 • Key Terms 300 ...
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TutorHN
School: Carnegie Mellon University

Attached.

1
Running head: MOVIE THEATERS

Movie Theaters
Student’s Name
Institution

2
MOVIE THEATERS
Movie theaters
Findings and the current situation
It is important to note that the availability of the substitutes is affecting the movie theater
business. Currently, movies are available from many sources unlike before when Movie Theater
were places people would enjoy a good movie. With this, it means that movie theater business
operation is having trouble. Second, it is apparent that most of the ticket prices which are
charged as movie entrance are used as rent. With this the only way movie theaters can survive in
such a hostile environment is by concessions and running advertisements. The availability of the
substitutes means it is very difficult for the movie theaters to be innovative. Currently the
economic decreases and also the demographic trends are extending their effects to the movies
business. With the current situation, it means that the only way movie theaters can earn some
profit is by these advertisements and concessions. Without these, it will be almost i...

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Anonymous
Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

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