Q4) Using all the information available to you, complete the following tasks. • Analyse the key arguments for and against Harry Gardner’s proposal. • Make a justified recommendation on whether you think that the Directors of Roberts Media plc should accept Harry Gardner’s proposal. (34 marks)
Harrys proposal to move to a digital only market has many advantages and disadvantages. Firstly the market RM are currently operating in is dealing which lead to them seeing profits fall by 12% last year. If these trends continue RM will its eventually struggle to operate and may even begin to make a loss. The new market Harry is suggesting is in fact growing rapidly with a predicted rise in digital subscriptions from 3-10million in the next 2
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Their skills and expertise in the print market which has previously won awards are potentially going to be lost by changing markets. Not only this re-training might be required which will cost the company a lot of money.
Harrys strategy involved getting rid of the print works and distribution network as they are surplus to requirements. Although this will reduce wage costs and increase ROCE which is an objective of the business, redundancies cost money and with the long serving nature of the work force de-motivation could occur between the surviving staff as long time friends may lose their jobs. 75% of the staff at the company are part of a trade union compared to an industry average of 50% who are not afraid of taking action. Unrest between the staff could lead to industrial action such as strikes which not only create bad publicity for the business but costs RM money as production could be delayed or even halted.
The change in market will cause some old customers to be lost who don't want to read a digital magazine or don't have the ability to. for this reason a launch campaign will be required to attract new customers which will increase the amount of money spent on marketing and might not be viable depending on their budget.
The strategy also plans for relocation of the business to Manchester. The new location is smaller and also cheaper. It also plans to encourage employees to work from home which should also further reduce costs and
1. Based on a careful reading of the case answer the following questions and then complete the table below. In the table below, list in column 1 the most important operational (transactional) activities (i.e. day-to-day work) at WNZ Media Corporation as it operates its business and competes in its markets. Then in column 2 describe the information required to enable or support each of those operations-level requirements.
Dalman Smith, President and CEO and Lei Lee, Vice President and CFO of Sandwich Blitz, Inc., are considering a large scale expansion for their Organization. Lei has found out that two new similar companies will be opening soon and are going to be a direct competition for them. If they expand on a larger scale they would have to open up in other cities and they only have enough resources to open two more stores. Also, the economic decline has dropped the occupancy rate of larger office buildings, which in the past were great locations for. The strengths, weaknesses, opportunities, and threats (SWOT Strategy) of a large scale expansion will be discussed.
The new proposed plan will involve the closure of 50 under performing stores this means that redundancies will take place. This potentially could be very bad for the business resulting in industrial action as 75% of their workforce belongs to an employee group. The potential industrial action could damage the businesses reputation and therefore damage sales and the future potential of hiring high quality staff which could again lead to problems with quality and a decrease in sales .Due to the company changing its human resource management strategy to hard approach instead of its soft approach could lead to problems for the business. The new hard human resource strategy could de-motivate employees as they feel a lack of responsibility ,have low job security and they feel undervalued therefore this could lead to a drop in
Their main focus for revenue growth will be expanding revenue opportunities and this also includes making the customer value stronger and better. The company’s financial goal is to expand in locations within three years and still being profitable consistently. With growth the company will have more employees hired on and this means training for the new employees. The factors of their competition must be considered as well when they expand in location. The company must know where they stand in the market compared to their competitors and with innovative and new technologies the company will be successful and profitable.
While negotiating the brief I had to deliberate on the intended audience, the purpose and the genre markers inherent in my trailer. The trailer will be set in a haunted asylum, three film students will investigate the mental hospital to dismiss the rumours in a documentary format, it of course turns out the rumours are true and the trio need to try and escape the asylum with their lifes still intact. I chose the unisex young adult market for my trailer, persons aged 15 to 25. I also had to decide on what genre markers would be present in my trailer. The trailer is of course an advertisement and it's main purpose is to get the viewers to go and see the full release of the film in cinemas.
Because of the hasty decision to implement the change there is a very high risk of employee resistance to change. The upper management had no investment in the decision and will feel a resentment and lack of control that could trickle down through the organization. The dangers her are that original companies will become infected with a negative attitude toward the new parent company causing
In Summary Robert’s Media’s is a publisher of an industry-leading upmarket fashion magazine, whose customer base is ‘affluent 45 to 54-year-old woman’. Currently, the business is struggling to succeed in its current market due to; the 2008 recession, competition from other magazines and a consumer movement from print to digital media. Due to this struggle the business currently has poor financial performance, which has led to a fall in the firm 's share price, thus there was a Board decision to appoint a new CEO, Harry Gardner, who has experience in marketing for a national newspaper, magazines, and a subscription television channel. Harry 's set a corporate aim to improve ROCE to at least 8% within two years, he also suggests a transformational change in strategy. This involves the migration of Roberts Media print titles to a digital format, which will result in a 20% market share.
So, by 2004, it became clear the Company was so early that the market. From re-launching our eBookstore just over 6 years ago, every metric the company’s track in the digital business is exceeding expectations of the market. The company went from zero share to capture over 20% of the digital trade book market, which got a higher share than the 18%, these eBook sales have been driving the growth of BN.com business, generating over 50% year over year as a comparative revenue. As the early success in this emerging market could be primarily attributed to a few
Time Warner In 1989, the largest Media Corporation was formed. The integration of Time Inc. and Warner communications produced Time Warner, which in 1996 with the acquisition of Turner broadcasting, regained it's status from Disney as the largest media corporation in the world. The company right now, with over 200 subsidiaries world- wide, is becoming fully global with it's profits from the USA falling, and it's profits throughout the world rising.
This briefing pack is to provide help and guidance to the Co-operative Group on business strategy. Included in this pack will be strategic concepts and terms and a discussion of issues the Co-operative group will need to consider
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This will be a key factor in order to establish competitive positioning for HNB with the use of new plan and this will to establish flexibility within the organisation.