CASE ORGANISATION - NEWS CORPORATION

Case Organisation: News Corporation

Introduction2

Discussion3

Overview of News Corporation3

De-Merger and News Corporation5

Current Situation of News Corporation6

SWOT Analysis6

BCG Matrix7

Ansoff Matrix8

Porter Five Forces Model9

Strategic Choices and Decisions that led to Demerger10

Models of Strategy to Analyse Demerger13

Conclusion14

References16

Case Organisation: News Corporation

Introduction

News Corporation is listed among 500 Fortune Companies. The company commenced its business operation as a family business in 1923, in Australia by Keith Murdoch. This is a conglomerate, to define itself as media businesses' constellation. This takes in the distribution and production of television programming and motion pictures; the development of digital broadcasting; the distribution and production of advertising and promotional products and services; the publication of books, magazine and newspapers; and cable, satellite and television broadcasting. Moreover, News Corporation also has few major sports teams. News Corporation is an umbrella organisation under that several companies operates, such as Sky, the Sunday Times and the Times, Fox News, Bskys B, Star TV, the New York Post and others.

Vision Statement: “Company has a vision to create and distribute news, sports and entertainment of top-quality across the world countries (News Corporation, 2012, pp.1-98).” This paper provides an overview of News Corporation based on the theoretical foundation. The paper examines mergers undertaken by the News Corporation and to understand the current situation SWOT and Porter Five Forces models are employed. Later section, addresses what strategic choices and decisions led to demerger, and this issue is analysed by simplified linear model of strategic management, as well as discuses why was strategic decisions taken.

Discussion

Overview of News Corporation

News Corporation is a global and diversified media organisation. News Corporation has six business segments: publishing; direct broadcast satellite television; television; filmed entertainment; and cable network programming. Filmed Entertainment involves in the acquisition and production of animated and live-action motion pictures for licensing and distribution in all configurations of all entertainment media across the globe. Cable Network Programming licenses and produces general entertainment, business news, news and movie programming to distribute via direct broadcast satellite operators and cable television systems. Television is involved in network programming broadcasting and broadcast television stations operations. The company has subsidiaries, such as SKY Italia through which the company engages in the direct broadcast satellite business.

News Corporation has involved in the merger and acquisition across its history and is among the first movers in the expansion of a vertically integrated media corporation that help in maximising company's revenue and profits from its content operations by means of presence in a number of distribution segments of the value chain of media (Hall, Jones & Raffo, 2006, pp.28-29). By the acquisition of satellite broadcasting assets, cable and television, News Corporation became an organisation whose assets were greatly in the magazine and newspaper publishing during 80s, which is currently reported to about 63.7% of corporation's assets base in the areas of cable/satellite network programming, television and films (News Corporation, 2012, pp.1-98). The strategy of vertical integration for News Corporation has been a strategic means to create profitable gatekeeper positions and to build up market power in ...