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The News Corporation - Strategic Analysis

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The News Corporation - Strategic Analysis
Case 2
The News Corporation

Case 2
Strategic Management in the Media

The News Corporation

Leeuwarden
March 23, 2011

Content Executive Summary 4 Introduction 1 1. What where the most important occurrences in the past and how did the new corporation adjust to the new situation? 2 1.1 Key historical developments and recent developments 2 1.2 Recent developments 3 1.3 Historical analysis 5 2. What are the global and corporate strategies ensuring a successful development of the News Corporation? 6 2.1 Entry mode 6 2.2 Global strategies 6 2.3 Corporate Level Strategy 7 2.4 Diversification 7 2.5 Synergy 8 2.6 Mix of Business units (BCG matrix) 8 2.7 Role of Rupert Murdoch 10 3. What is the role of stakeholders and corporate governance within the News Corporation? 11 3.1 Governance mechanism 11 3.1.1 Board of Directors & Corporate Governance Committee 11 3.1.2 Stakeholders 12 4. Which ethical dilemmas did the News Corporation encounter during its operation? 13 3.2 Organizational Culture & Leadership 13 3.3 Decision Making Process 14 3.4 Strong Corporate Governance (CG) 14 6. Scenarios on corporate strategy 15 Scenario 1- Change of CEO 15 Scenario 2- Collapse of stock market 15 Scenario 3- Crash down of print section 16 Scenario 4- Governmental Restrictions 17 7. Decision making 18 8. Conclusion 19 8.1 Answer of problem statement 19 8.2 Dilemmas: 19 Bibliography 21 Appendix 25

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



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