The News Corporation - Strategic Analysis

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  • Topic: Rupert Murdoch, News Corporation, British Sky Broadcasting
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Case 2
The News Corporation

Case 2
Strategic Management in the Media

The News Corporation

Leeuwarden
March 23, 2011

Content
Executive Summary4
Introduction1
1. What where the most important occurrences in the past and how did the new corporation adjust to the new situation?2
1.1Key historical developments and recent developments2
1.2 Recent developments3
1.3Historical analysis5
2. What are the global and corporate strategies ensuring a successful development of the News Corporation?6
2.1Entry mode6
2.2Global strategies6
2.3Corporate Level Strategy7
2.4Diversification7
2.5Synergy8
2.6Mix of Business units (BCG matrix)8
2.7Role of Rupert Murdoch10
3. What is the role of stakeholders and corporate governance within the News Corporation?11
3.1Governance mechanism11
3.1.1Board of Directors & Corporate Governance Committee11
3.1.2Stakeholders12
4. Which ethical dilemmas did the News Corporation encounter during its operation?13
3.2Organizational Culture & Leadership13
3.3Decision Making Process14
3.4Strong Corporate Governance (CG)14
6. Scenarios on corporate strategy15
Scenario 1- Change of CEO15
Scenario 2- Collapse of stock market15
Scenario 3- Crash down of print section16
Scenario 4- Governmental Restrictions17
7. Decision making18
8. Conclusion19
8.1Answer of problem statement19
8.2Dilemmas:19
Bibliography21
Appendix25

Executive Summary

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:

*
* Television
* Other Assets
* online services
* Direct Broadcast Satellite Television

* Magazines and Inserts
* Filmed Entertainment
* Book Publishing

* News and Information services
* Cable network programming
* others

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.

Introduction

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....
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