The News Corporation
Strategic Management in the Media
The News Corporation
March 23, 2011
1. What where the most important occurrences in the past and how did the new corporation adjust to the new situation?
Key historical developments and recent developments
2. What are the global and corporate strategies ensuring a successful development of the News Corporation?
Corporate Level Strategy
Mix of Business units (BCG matrix)
Role of Rupert Murdoch
3. What is the role of stakeholders and corporate governance within the News Corporation?
Board of Directors & Corporate Governance Committee
4. Which ethical dilemmas did the News Corporation encounter during its operation?
Organizational Culture & Leadership
Decision Making Process
Strong Corporate Governance (CG)
6. Scenarios on corporate strategy
Scenario 1- Change of CEO
Scenario 2- Collapse of stock market
Scenario 3- Crash down of print section
Scenario 4- Governmental Restrictions
7. Decision making
Answer of problem statement
The News Corporation is embodied by Rupert Murdoch that is called a ruthless cunning business operator. He took over his father´s company and made it become a global player. On the company´s way of development he started with horizontal integrations to become a big player in the print industry. Once he decided to expand to other countries he pursuit vertical integration to a) get more competitive advantages in terms of diversification and b) and to become international. Today TNC runs different business unites in:
* Other Assets
* online services
* Direct Broadcast Satellite Television
* Magazines and Inserts
* Filmed Entertainment
* Book Publishing
* News and Information services
* Cable network programming
To stay competitive Murdoch used several strategies to keep its position or even expand its cross-media empire. He made use of economies of scales and standardization to save money encroaching upon all business units of TNC. Nevertheless, these units work individually. Products were and still are introduced mainly via market development and market penetration. To ensure that stakeholders´ needs are combined with management plans the company does have a Board that is responsible for corporate governance. As TNC does have many stakeholders the annual meeting is highly important. There strategic decisions are made to avoid for instance ethical dilemmas the company still faces. Finally, several scenarios about the future had been built up from which one is the most likely one. As the lead figure, Rupert Murdoch, is known for his “strategic gambling” on investments there is a high chance that he gambles too much money away. But this has already been the case and due to his expertise this is not the most awful scenario. The revolution in the print sector does have an even worst effect, when Murdoch does not catch up. If he does not change or innovates his business unit he might lose competitive advantage or even has to sell other units to save his print unit.
With several media divisions in different industries, the News Corporation is the largest media content provider worldwide. Starting out as a small local newspaper in 1923, Rupert Murdoch has created an Imperium like no one else before. This report will discuss the historical developments and current trends while having a look at the product range and business strategies....
Please join StudyMode to read the full document