Strategic management at the news corporation

The performance of different companies has been influenced by internal and external factors. These environmental factors specifically affect or impact management functions. Among the solutions that the management should consider is the implementation of proper or effective management function. Generally, the primary goal of this newspaper is to analyse THE NEWS HEADLINES Firm through the given case study. Herein, the Paper will provide information about the proper position of Media Corporation by using SWOT evaluation. Furthermore, this newspaper will also evaluate the rational and inspiration behind the News Firm strategy of diversifying into satellite broadcasting and measure the advantage and drawback of acquisition as method of development with particular mention of the acquisition performed by The News Corporation. Lastly, this paper is designed on providing a suggestion for a proper development arrange for TNC from 2006 to onwards.

Overview of the Company

Accordingly, News Company is a publicly traded media corporation that delivers media services all over the world. The company is formerly an Australian corporation but when they have got reincorporated in 2004, Media Corporation steps its headquarters from Adelaide, Australia to NEW YORK of the United States. After the reincorporation, the organization has had the opportunity to increase the S&P Index in later part of 2004 and have been able to generate about 75% of its earnings as well as its earnings in the United States. The company's business stock portfolio includes television encoding, motion picture production, TV, cable television and satellite tv broadcasting, publishing of newspaper, book and newspaper as well as the distribution and advertising of advertising campaign materials and services.

The major shareholder of the organization is the family of its creator which is Chairman Rupert Murdoch who have been able to invest his 50 years with the company. Murdoch's family control buttons 30% show of the business. Murdoch has been able to build a media empire you start with his possession of the Adelaide news, which his dad has established. In 1964, he founded The Australian which is the first national daily papers and then purchased British and American marketing properties to develop his business collection. The subsidiaries of the News Organization include Twentieth Century Fox and Fox Entertainment group movie studio room. In addition, the corporation in addition has 34% stake in the DIRECTV Group and also have the possession of over 30 American television channels, Boston Herald and NY Post newspapers and various Britain major ciculation newspapers which include The News of the World, SUNLIGHT and THE CHANGING TIMES. Moreover, the organization has the intensive business functions across European countries, Australia, Asia and Latin America.

News Organization also brought Intermix Press Inc in July 2005 which is the owner of the largest sociable networking portal in the World Wide Web MySpace. com and about 30 other websites. It is said that with this process and with the formation of the Fox Interactive Media, the acquisition of Intermix underscores the company's commitment to expand their business procedures in the internet. In the last mentioned part of 2007, the company has been able to obtain Dow Jones & Company which is the publisher from the Wall Neighborhood Journal and others in information and information. In 2006, the news headlines Corporation revenue was reported to be $25. 3 billion in 2006 (Murdoch, 2008).

Strategy Options

The most dominating proper or effective management paradigm in recent years is known as the strategies model (David, 2001). Porter (1998) claims that the power of competition in an industry is neither a matter of coincidence or bad luck. Rather, competition in any business industry is rooted in its main economic framework and runs well beyond the behaviour of current rival companies. Generally, strategy refers to the long-term plan of actions which is made to allow companies to attain their organizational goal. It is the basis that may serve as a typical for the business to efficiently achieve their goal.

Based on the give case, it can be said that the key strategic approach of the company is with regards to their ability to transform the entire corporation into a company that provides the latest in the advertising corporations accordingly, the main goal of Media Corporation is to set-up a business which is unified, logical and creative. The goal of the management is to construct an industry with the agility and alertness to find strategic opportunities when they happen, with the idea to anticipate and intervene issues by using conventional wisdom.

With the quest of the company to provide the finest quality content through the easiest of distribution channels among various customers, the business has had the opportunity to provide quality and status of the arts advertising services and productions that suits the needs of the folks in the global market.

Theoretical Framework

This part of the paper will analyse News Corporation through the use of Business design and Analytical tools. The business model to be looked at is the strategic option to diversification and the analytical tools would be the use of SWOT research.

Business Model (Inspiration for Diversification to Dish Broadcasting)

Accordingly, Strategic or effective management is known as the procedure of formulating, implementing and assessing cross-functional decisions which allows different firms to attain their organizational goal (Drejer, 2002). With this explanation, strategic or effective management is said to give concentrate on integrating marketing, management, financing, research and development creation/operations and computer information system to support competitive advantages. This explanation is reported to be in the modern-day business, however, good perspective of the very best management, tactical or effective management is the ability of the company to choose the markets where the company's distinctive capabilities gain competitive position. In addition, the management views strategic or effective management as the one which is adaptive and incremental in aspect and seeks on satisfying the expectation of the stakeholders. Appropriately, stakeholders are comprised of the management of the business, the employees and staff the customers, neighborhoods and other shareholders and competitors. The management seeks on having a technique which enables those to supply the needs of the stakeholders (Campbell, 2002).

In doing so, the management is trying to find ways to meet up with the needs of the stakeholders and this is performed through continuous communication. By means of communication, the management has had the opportunity to obviously relay the purpose of the business to support competitive advantage. It has been also presumed that key to having proper or effective management is through empowering their stakeholders, permitting them to participate your choice making process and permitting them to be part of the business procedures (David, 2001). The management perspective of proper or effective management is to deliver superior stakeholder experience through direct, comprehensive stakeholder marriage and support programs tailored to meet stakeholders need.

In the situation of THE NEWS HEADLINES Corporation, it could be said that the business has been able to use a strategic business model to have the ability to stay static in their competitive position and also to have the ability to provide quality services to their target audiences. One of the business models used by the business is the diversification with their business profile into satellite broadcasting. Accordingly, the primary goal of the News Company to diversify is to focus on the emerging needs of the market. In this respect, the News Corporation has had the opportunity to launch the united kingdom Sky Television set on Feb 5, 1989. The Sky television set is a direct-to-home satellite broadcasting. The main motivation of Information Company to diversify is to predict the intensifying communication in terms of communications dish broadcasting services. In addition, News Corporation also diversify to become more impressive in providing their services and mass media coverage with their target audience in terms of turning from analogue to digital and consider multichannel broadcasting.

Furthermore, another inspiration of the news headlines Organization to diversify into Satellite broadcasting is to provide a new strategy in conditions of programme material circulation. Through this diversification the business has had the opportunity to provide opportunities for just about any broadcaster to increase their route distribution that allows the syndication of different programmes to different countries.

Analytical Tool

This area of the newspaper will analyse the tactical position of Information Corporation through the use of SWOT analysis. Based on the given circumstance, the proper position of the news headlines Company specifically their BSkyB's position has been challenged because of the changing situations of the media market. Rival business of the company has been able to declared the establishment of the first quadruple play multimedia company in the global market which offers television, broadband, set brand and mobile marketing communications. The announcement of this company affects the proper position of the entire News Corporation. To be able to make sure that the company will never be left behind, Information Corporation has had the opportunity to entail themselves into the expansion to scientific developments.

Through the utilization of SWOT analysis, the proper position of News Firm in 2006 will be analysed.

Strengths. Being a competitive and internationally recognised media company, News Corporation has been able to have tactical position in the global market. In fact, when News Corporation streamlined in 2003 to 2006, it already possessed the benefit of size. With several consecutive years of multibillion profits, the business has outshined its major rival companies to become model company. Also, News Corporation's decision to focus on varied market and by considering dish broadcasting and stepping into the internet market through MySpace. com was a courageous one, but it has led to its current position as one of the top global brands. The company has also been characterised by many experts with an ability to adjust to changing market conditions to be able to maximise earnings. Hearing and figuring out with consumers has allowed Information Corporation to construct a commercial culture that bears little resemblance to the News Corporation of days gone by.

The potential to continually renew and enhance their service in the media, internet and communication while effectively controlling the needs of their target audience is the key to maintaining Reports Corporation's leader position and the key for succeeding in having proper position.

Weaknesses. Not absolutely all of diversification and strategy have prevailed which is regarded as one of the flaws or weaknesses of the company. Experts have accused the company of centering too much on the high-end acquisitions and diversification in spite of the risky ramifications of such decisions.

Opportunities. The basis for long-term competitiveness is the capability to develop continually new generations of more advanced mass media products and services. Therefore one of the company's opportunities is to tap into more markets consequently of the inventions being launched in the media and tv set and internet industry Localised features enabling or even improving such co-operation will always change lives when it comes to first-mover advantages. The chance to penetrate new progress marketplaces where internet advertising adoption still has room to visit, Leveraging Information Corporation's infrastructure business to get first choice and more robust position against rivals is also an opportunity. There is also the chance to get ahead of their rival companies, which should be the case, since the said market is a potential sizeable income source. The development of considering the internet market also show cases new opportunities for the company specifically with their acquisition of the MySpace. com

Threats. Rival companies are major threats to the business. News Corporation, in contrast, started out in other lines of business and entered broadcast and marketing capabilities of the company. The firm's lack of ability to keep up with enhancements, or recognise its demand, creates a threat for these people, a risk that they may be displaced by other industry market leaders. The legal and politics environment in the countries where they operate in may potentially affect the business negatively. Their visible complacence could be utilized by their rival companies to their advantage, and take News Corporation by delight, with the second option realising too overdue they are not the industry leader anymore.

Application (Benefits and drawbacks of Acquisition Method)

With regards to the major media bargains from 1981 to 2002, The News Company has been involved in one of these media deals. The business has had the opportunity to obtain Gemstar-TV Guide and TNC also acquire DirecTV and also brought small stakes of 20th century fox and other local Tv set stations. In addition, the company began a satellite TV system because of their UK readers and also invested in another Tv set system in Asia which is Superstar and has their cable television Fox News Network. The most recent acquisition of the news headlines Company is their acquisition of MySpace. com which is the greatest cultural networking website in the internet.

Primarily, the acquisition methodology of News Company has used some advantages and disadvantages to the overall performance and strategic position of the company. Consequently, there are two basic types of acquisition, some may be through cash and the other is through the stock swap. Based on the given case, one of the features of acquisition in Information Corporation is within terms of market progress. With the purchased company, News Firm has had the opportunity to diversify their products and business profile and meet the needs and requirements of their market. Furthermore, through the acquisition, the company has also had the opportunity to see their potentials in various market like the internet market. The management has also been able to grow in conditions of investment and grow in terms of market stocks. The business has more opportunities to provide the latest products or services in the interactive marketing which might lead to further success of the company.

Although the business has some advantages with their acquisition, News Firm also confronted some disadvantages. One of this is actually the threat of not satisfying the needs of the received company which results in major downturn or bankruptcy of the whole industry. Furthermore, with so much company at stake, the management has been challenged to have the ability to meet all the needs of each of the company acquire to remain competitive in the market position. The acquisition includes large prices of money involved and if the company probably would not have the ability to manage the obtained industries strategically, all their effort will end to major fallback for the whole industry. In order to maximize the benefit and minimize or get rid of the disadvantages, the business must be able to use tactical management method of handle all their subsidiaries and purchased industries.


Based on the given analysis, it can be shown that with the management procedure of the news headlines Corporation, the company has been able to grow in the multimedia market effectively and successfully. With the power of the management to visualize what is needed to develop in the media and broadcasting market, the management considered different approaches and business models such as diversification and acquisition approach. Analysis also demonstrates with the purpose of the company to stay in the competitive and proper position, they are able to anticipate major troubles and take full advantage of their strategic skills to meet the needs of their market and outgrow rival industries in the global market.


Based on the findings, the following are the proper development plan for the company from 2006 onwards. Strategic Planning is part of the marketing approach wherein the management team establishes ways and techniques to initiate the corporate discount in a corporate and business unit. Tactical planning can be used in when an organisation intends to instigate or initiate a certain marketing decisions that will enhance the competitiveness of the organisation (Elkin, 1998). With proper execution of such plan and with the strong determination of the management as well as the employees with this plan, growth, balance and competitive benefits will be achieved by the organization.

For this strategic development plan, it is strongly recommended that the management of Reports Corporation should focus on controlling all the conglomerate and subsidiaries of the company. Furthermore, to be able to maximize their advantages in acquiring MySpace. com, the management should be able to control this strategically. Based on the marketing development, the business should maximize the utilization of their money in the latest trends on the market environment. They also need money, to support their strategic development in considering employee trainings to ensure that the changes consistent with their interactive media planning sill be successful.

In this proper development, it could be said that the commonness of the two is the initiation of the strategic planning. Accordingly, tactical Planning is part of the proper development wherein the management team identifies ways and techniques to initiate the development or perform their objectives. Proper planning can be utilised when an company intends to instigate or initiate a certain job, in cases like this the News Organization it development and interactive press development and the marketing strategy development that will improve the competitiveness of the company (Elkin, 1998).

The proper plan for each development, specifically in terms of their resource planning, assures that the business only utilised a tactical planning methodology that will advantage the company to accomplish its goal. In this manner, the management of Media Corporation should be able to incorporate proper planning and implementation in line with its resources for both strategic developments.


It can be concluded that the management must be able to know what is happening in the internal and exterior environment of the business enterprise. This is also done to know if changes are needed to meet the needs of these factors and also to avoid problems in conditions of the four management functions. Hence, proper management through proper planning, arranging, leading, and handling is necessary. Through this, the management may also be able to counter the negative impact of globalization, technology, advancement, variety and ethics.

Also We Can Offer!

Other services that we offer

If you don’t see the necessary subject, paper type, or topic in our list of available services and examples, don’t worry! We have a number of other academic disciplines to suit the needs of anyone who visits this website looking for help.

How to ...

We made your life easier with putting together a big number of articles and guidelines on how to plan and write different types of assignments (Essay, Research Paper, Dissertation etc)