• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Radio One Case

Extracts from this document...

Introduction

RADIO ONE, INC: CASE STUDY I. Problem/Summary Radio One, Inc. is faced with the decision of whether or not to purchase several stations from Clear Channel Communications, which would effectively expand its coverage area and would be in furtherance of the company's strategy to expand into music recording, internet, and other media. This purchase decision would not be without financial implications for the company. In addition to the cost of acquisition, the stations to be acquired would need operating capital as they would not be self-supporting until some point in the future. In addition, should Radio One's management decide to make an offer on these radio stations, it must make a determination of the stations' value in order to make a reasonable, yet favorable offer. The amount of the offer must consider the stations' current profitability potential, the value of the assets being acquired, as well as the amount of capital Radio One, Inc. has available to invest. II. Analysis As part of the due diligence process, it will be necessary for Radio One, Inc. to examine the external environment, to complete an internal analysis, to analyze the attractiveness of the acquisitions, to perform a SWOT analysis, and to consider other alternative means of accomplishing its goals. ...read more.

Middle

Therefore, the management of Radio One, Inc. is experienced and knowledgeable in their industry. In addition, management has made some solid business decisions in the past both regard to format and to expansion into new geographic areas. "By the end of 1996, WKYS had achieved a No. 2 ranking in Washington, and one of the acquired Baltimore stations, WERQ-FM, had become the No. 1 station in its market" (Ruback and Fischer, 2000, p. 2). Radio One has "pursued a clustering strategy within each market by acquiring two or more stations that target different demographic segments within the African-American population" (p. 2). Radio One, Inc. is also financially sound as a result of strong management. "Liggins and Royster worked together to cut costs and create efficiencies. Radio One centralized certain functions, including finance, accounting, legal, human resource management, information systems, and overall program management" (p. 2). Radio One, Inc.'s current ratio and quick ratio for 1997 and 1998 were 5.3 and 3.5, and 5.2 and 3.3, respectively. In addition, Radio One, Inc.'s asset utilization was .41 and .30 for 1997 and 1998. Though Radio One, Inc. suffered losses at the end of 1997 and 1998 which resulted in negative earnings per share, -.74 and -.31 in 1997 and 1998, the company had a positive net operating income prior to interest, taxes, and extraordinary items in both years. ...read more.

Conclusion

"The Internet-listening study suggested that broadcasters should look at acquiring not just conventional signals but also Netcasters; it added that they should look at using Internet audio to serve the uncovered format niches in their own markets" (Ross, Silberman, and Schiffman, 10/31/98, �13). Arbitron's survey indicated that internet usage was having a detrimental effect on both radio-listening and television-viewing and a majority of those surveyed indicated that they would be interested in subscribing to satellite radio and also in listening to out-of-town signals broadcast over the internet. (Ross, 10/31/98, �3). In addition, if Radio One, Inc. was to initially use its internet presence as solely a means of providing a community for its listeners and a venue for disseminating information, it would still be accomplishing much of what Arbitron's survey recommended: "a majority said they would listen to their current favorite station on the Internet, if it were available; and that radio stations were doing a good job of driving people to their World Wide Web sites. The study also cited considerable respondent interest in using a station's Web site to glean more info about a station's sponsors or even to buy products online" (Ross �3). Therefore, it would be in Radio One's best interest to expand its presence to include the internet, whether or not it decides to pursue the Clear Channel purchase. This would increase their coverage area and the size of the audience. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Radio section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Radio essays

  1. The Strengths and Weaknesses of Radio: Exploitation of its Strengths to come up with ...

    throughout the day, and know which station is giving it to them. Emphasize local basics such as personalities, news, public affairs, public service, weather, traffic and even time. Core and New Sampling: Learn from the mistakes of commercial radio programmers.

  2. radio station analysis

    This has much to do with the frequency of the station. A radio station that is easily obtained everywhere is much more likely to have a nationwide audience, (not including BBC's local stations) whereas if somebody living in London wanted to listen to Trent FM, they would have to listen via the internet or Digital Audio Band.

  1. For this coursework I will be reviewing the differences between radio stations. The radio ...

    Iraq but, the presentational style and content of the much later show is vastley different to the 4 o clock show. The show consists of the latest news on Snoop Dogg's new movie and club information. This is news which affects people who listin to the show.

  2. What is local radio better at than National Radio?

    come from big cities such as London, Birmingham and Manchester, they wont be any updates on recent road works in a city like Shipley or Ilkley. * Is Local Radio Better Than Local Newspaper? There isn't much of a difference when it comes to local radio stations and local newspapers.

  1. Free essay

    REVIEWING RADIO STATION

    BBC Asian Network should also regularly offer discussion programmes and specially commissioned documentaries providing in-depth analysis on issues relevant to the audience. Conditions BBC Asian Network should: � Ensure that content is approximately 50% speech and 50% music each year 5.2 Stimulating creativity and cultural excellence BBC Asian Network should

  2. The radio.

    The radio officers on the voyages were called Marconi wireless operators. All vessels were given call signs, which always started with the letter that was assigned to their country so surrounding ships knew where they were from, or on such vessels like the Titanic, the call sign started with an

  1. Describe popular culture in Britain at the beginning of the 1960's (1960 - 1965) ...

    BBC tried to keep up with the culture by presenting "Top if the Pops", however this took a lot longer to become successful. Television changed in a huge way, with it turning controversial, compared to educational in the 50's, meaning that the programmes were aiming to please and influence the audience.

  2. Taking the BBC and at least one other foreign public broadcaster as your focus, ...

    Any description I give here concerning PSB will be open to criticism, because it has become so ambiguous, therefore I revert to the definition agreed by the Committee of Ministers of the Council of Europe (December, 1994). Central to the nine mission statements provided by the body, was a concern

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work