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Newscorp Report

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Introduction

CONTENT PAGE 1.0 INTRODUCTION................................................................................. 3 2.0 INTERNAL AUDIT.............................................................................. 3 2.1 Financial Analysis.................................................................... 3 2.2 MARKETING....................................................................................... 4 2.3 HUMAN RESOURCE MANAGEMENT (HRM).............. 5 2.4 OPERATIONAL ANALYSIS................................................ 6 3.0 PRIORITISED STRENGTHS AND WEAKNESSES................... 6 4.0 EXTERNAL AUDIT............................................................................ 7 4.1 PESTIE ANALYSIS................................................................ 7 4.2 PORTER'S FIVE FORCES.................................................... 8 4.3 CRITICAL SUCCESS FACTORS........................................ 8 5.0 PRIORITISED OPPORTUNITIES AND THREATS................... 9 6.0 STRATEGIC POSITION OF NEWSCORP.................................... 10 7.0 POTENTIAL FUTURE STRATEGIES............................................ 10 8.0 SUITABILITY SCREENING............................................................ 11 9.0 ACCEPTABILITY.............................................................................. 12 10.0 FEASIBILITY................................................................................... 12 11.0 RECOMMENDED STRATEGY FOR NEWSCORP................ 12, 13 12.0 REFRENCES.................................................................................... 13 1.0 Introduction This report examines the strategic position of Newscorp and how they have diversified from a local news store to a global multinational media company. Newscorp was formed in 1980 by Rupert Murdoch as a parent company for News Limited. Murdoch formed this company from the Adelaide News a local store he inherited from his father. Newscorp operates in several marketplaces all media link namely Film and television production, television networks, satellite television, newspapers and magazines, book publishing, sports, websites as well as social networking websites 2.0 INTERNAL AUDIT 2.1 Financial Analysis Period ending 31 Dec ROCE Gearing Acid test Ratio Current Ratio Gross Profit Margin P/E Ratio 2003 5.13% 46% 0.9:1 1.60:1 68% 29.67 2002 -18% 49% 0.7:1 1.33:1 62% 26.75 2001 -1.70% 50% 1.3:1 1.64:1 60% 19.68 2000 3.20% 64% 1.2:1 1.46:1 48% 18.77 1999 3.40% 55% 1.1:1 1.56:1 46% 19.58 Analysis of the some of the major findings of NewsCorp financial trends are; * ROCE was 3.40% in 1999 which means every �100 spent, newscorp was getting �3.40 however this was negative (-1.70%, -18%) ...read more.

Middle

NewsCorp have a number of managers, but they have very little time to do anything else because they are concentrating on their own individual activities. This produces a weakness for Newscorp. Newscorp has very little spare capacity so they have to think about how they will implement future strategies. If you haven't got any spare capacity or resources left, you have to think how you're going to put it in operation 4.0 EXTERNAL AUDIT 4.1 PESTIE ANALYSIS The following factors have an influence on News Corp to analyse how the company's strategy had been influenced up to the present date and view these as opportunities and threats to stay ahead of competition and minimise threat. Political and Legal: Policies will differ depending on the host countries government stability, taxation policy, the foreign trade regulations, and social welfare policy and competition law. News Corp has benefited a lot from Murdoch's political friendships. However in the future, they have to take into consideration the likelihood of any political or legal factors changing and if so set their strategy in such a way that it can easily adapt to meet their requirements. Economic: Economic situations vary from country to country, which means that different strategies have to be adopted in each country. These could be determined by the impact of business cycle, interest rates, disposable income and GNP trends. Socio- cultural: News Corp device strategies to accommodate consumer interest as this differ from region to region. Understanding and adapting to consumer needs is always an advantage. ...read more.

Conclusion

The company has distinguished itself by delivering two things above all else quality and choice. If Newscorp acquire Amstrad, it will enable it to accelerate and rollout of enhanced TV services. Newscorp already controls content, and this deal importantly gives it full control over the future direction of its set-top boxes. The acquisition accelerates supply chain improvement and will tem to drive innovation and efficiency for the benefit of their customers Acquiring Amstrad will boost Sky's technical capabilities by allowing it to streamline the process of designing and procuring set-top boxes. For BSkyB the deal means bringing one of its main set-top box suppliers in-house and should speed up the development of new products as it seeks to stay ahead in the increasingly competitive pay-TV market. Until now, BSkyB's developers had come up with product specifications in-house then gone to potential suppliers asking them to come up with detailed designs to be made and sold back to Sky. Making Amstrad a sub-division still cuts out much of the costs for BSkyB and speeds up the process. BSkyB could in the future look to supply Amstrad set-top boxes to other satellite operations around the world owned by News Corporation, which is BSkyB's largest shareholder with a 39% stake. These include Sky Italia, Star TV in Asia and Australia's Foxtel, which News Corp subsidiary News Limited manages with a 25% stake. 13.0 REFRENCES Johnson G, Scholes K and Whittington R, 2006 Exploring Corporate Strategy (text and cases), 7th edition, prentice hall News Corporation, http://www.newscorp.com/investor/annual_reports.html [date accessed 1st December 2007] Reuters, http://stocks.us.reuters.com/stocks/ratios.asp?symbol=NWS&WTmodLOC=L2-LeftNav-16-Ratios [date accessed 1st December 2007] Yahoo finance, http://finance.yahoo.com/q?s=NWS [date accessed 1st December 2007] ?? ?? ?? ?? ...read more.

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