Management Control System
Q1. Describe NYTD’s evolution to date. What is the strategy of NYTD? Are the organization and control consistent with the strategy?
Evolution: New York Times first ventured into the Internet in 1995. Back then, the company was calledthe New York Times Electronic Media Company. At first, the organization included four more employees.Later during the first year, Martin Niesenholtz was hired as a president and the project consisted of onlyone webpage; NYTimes.com. Mr. Niesenholtz reported to both the general manager and the editor of the newspaper. Later, Bernie Gwertzman was assigned to direct the editorial operations of NYTimes.com. At this time there was a need for an own newsroom for the digital version of thenewspaper. In 1999, a new operating division, Times Company Digital, was created, which reporteddirectly to corporate management. The new division included NYTimes.com, Boston.com, NYToday.com,GolfDigest.com, WineToday.com, and Abuzz. The new division had a very decentralized structure anddifferent organizational structures but still with similar roles as a common newspaper. The differentwebsites were combined in the new organization to be able to learn from eachother. However, in 2000, the organizational structure changed and “product” manage rs were nominated as well as functionalheads. A lot of effort was then put into creating a culture of team-work and openness, and the NYTDmoved into a new building. This separated unit, first organizationally and then physically, led to tensionsbetween the original Company and the new division. The new culture and employees hired from outsidethe Company created a very competitive internal environment.Strategy: The main strategy of NYTD is to convert printed newspapers into website content that wouldbe displayed over the internet. The NYTD aimed to find new and creative ways to utilize the fullpotential of internet multimedia. The division encouraged conversation and cooperation to inspire newideas between groups of
Evolution: New York Times first ventured into the Internet in 1995. Back then, the company was calledthe New York Times Electronic Media Company. At first, the organization included four more employees.Later during the first year, Martin Niesenholtz was hired as a president and the project consisted of onlyone webpage; NYTimes.com. Mr. Niesenholtz reported to both the general manager and the editor of the newspaper. Later, Bernie Gwertzman was assigned to direct the editorial operations of NYTimes.com. At this time there was a need for an own newsroom for the digital version of thenewspaper. In 1999, a new operating division, Times Company Digital, was created, which reporteddirectly to corporate management. The new division included NYTimes.com, Boston.com, NYToday.com,GolfDigest.com, WineToday.com, and Abuzz. The new division had a very decentralized structure anddifferent organizational structures but still with similar roles as a common newspaper. The differentwebsites were combined in the new organization to be able to learn from eachother. However, in 2000, the organizational structure changed and “product” manage rs were nominated as well as functionalheads. A lot of effort was then put into creating a culture of team-work and openness, and the NYTDmoved into a new building. This separated unit, first organizationally and then physically, led to tensionsbetween the original Company and the new division. The new culture and employees hired from outsidethe Company created a very competitive internal environment.Strategy: The main strategy of NYTD is to convert printed newspapers into website content that wouldbe displayed over the internet. The NYTD aimed to find new and creative ways to utilize the fullpotential of internet multimedia. The division encouraged conversation and cooperation to inspire newideas between groups of