CBL cases Strategic Management
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Strategic Managament
Study: Media and Entertainment Management
School: Stenden University of Applied Sciences, Leeuwarden
(Stenden Hogeschool)
Study year: 3
Subject: CBL (Cased Based Learning)
Written in year: 2014
This document consist of all CBL cases from the module Stategic Management with
regard to Media & Entertainment Management.
Every case has a problem statement including sub questions. Answers are based on
literature. The problem statements and sub questions relate to strategic
management in the media sector, so for example corporate and global strategies,
external en internal environment, implementation of strategies, etcetera. To apply
for every case, a real practical topic is used for the problem statement and sub
questions.
The following cases are included:
1. Strategic overview in the media context
2. Internal analysis
3. External analysis
4. Strategies
5. Business and corporate level strategy
6. Global strategies and corporate governance
7. Strategic implementation
8. Strategic changes
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Case 1: Strategic overview in the media context
Problem statement: How can Brown Bag films develop a strategic plan to ensure their current
position in the next five years?
First of all, related to the Strategic Planning Process of Olsen (2011), Brown Bag Films has to know
the mission and goals and the whole environment and has to select strategies to build on the
strengths and correct its weaknesses of Brown Bag Films itself. If Brown Bag Films will be develop
these aspects, they create a strategic plan which would be suitable for a good current position.
Based on the trends and developments are two aspects important: the creating of special effects and
making animation movies for the whole family. However, the current situation, based on the
literature, is probably at this moment better than a few years ago (much success for example). The
question is: do they have to change their strategic plan, because they probably have a good plan
now.
Learning goals:
1A: What is strategic planning?
Strategic planning describes how a company executes a strategy which is chosen. The plan tells more
about the future of the company (long term plans): where is the organization going about a year, and
how do they get there? With strategic planning every person in the company is involved (Olsen,
2011). That's why strategic planning is called the alignment between the organization and the
environment. You also have to take into account the opportunities and threats and strengths and
weaknesses of the organization (Olsen, 2011; Allaert & De Klerck, 1998).
Besides that, a strategic plan gives you information about to build your competitive advantage,
communicates the strategy to the staff, gives the preference for the financial needs (which you
need), and gives focus and direction to move from plan to action (Olsen, 2011).
Sources:
Allaert, G. & Klerck, P. de (1998). Krijtlijnen voor een betere aanpak van strategische planning en management
in Vlaanderen. Accessed via Google Books.
Olsen, E. (2011). Strategic planning for Dummies. Accessed via Google Books.
1B: What is the difference in strategic planning between the media industry and other industries?
Strategic planning in the media industry is more based on developments over the last years, like the
impact of new technology on strategic planning for media industries. Technology plays nowadays a
big role in the strategic planning in the media industry. Besides that, strategic planning has more
creativity because of the innovation factor.
However, the lack of media industries with other industries is that they have a lack of strategic
recognition, like economic importance: ‘Because they have not been targeted as strategic industries,
they have not received the kind of preferential treatment that has been occurred to the industries
promoted by the developmental state’ (Yusuf, Nabeshima & Yamashita, 2008, p. 124). For example, a
publishing of performing arts industry is often regulated by a ministry.
Sources:
Kϋng, L. (2008). Strategic Management in the Media: theory to practice. London: SAGE Publications.
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Slevin, J.J. (n.d.). Strategic management in the media. Lecture accessed via Blackboard.
Yusuf, S., Nabeshima, K. & Yamashita, S. (2008). Growing Industrial Clusters in Asia: Serendipity and Silence.
Assessed by Google Books.
2: What is the strategic planning process?
Because of the differences between organizations, no strategic planning process will be the same
(Olsen, 2011). For example, the strategic planning process do you have in eight steps :
1. Getting ready. For example: create a planning committee, clarify roles of the group and
develop a profile for the organization.
2. Articulate mission/vision. Like what is important for the organization (why does the
organization exists, what are the important values for the organization)?
3. Review strategic position. If you collected the information of your internal
strengths/weaknesses and external opportunities/threats, you will be able to develop and
understanding the critical issues.
4. Agree on priorities. To focus on the priorities you have to identify the broad approaches for
dealing with critical problems and the results which you have to find out (long-term and
short-term objectives/goals).
5. Organize the plan. Put everything together in one document, 'that is practical, can be
implemented, and easily managed and monitored' (Olsen, 2013, p. 44).
6. Identify next actions. After step 5 chose which actions do you and your need have to make
(individual and department).
7. Roll out & implement. In this step you will communicate the whole plan across the
organization.
8. Hold everyone accountable. Monitoring the performances during staff meetings with metrics
every month or quarter. Besides that, keep people responsible for organizational activities
which will be planned, evaluate performances, and manage or make corrections for e.g.
future results.
Another source, Jones Hill (2010), writes in his book Theory of Strategic Management about five main
steps:
1. Select the corporate mission and the major corporate goals.
2. Analyze the external competitive environment of the organization, to make clear the
organization's opportunities and threats.
3. Analyze the internal operating environment of the organization, to make clear the
organization's strengths and weaknesses.
4. The selecting of strategies 'that build on the organization's strengths and correct its
weaknesses in order to take advantage of external opportunities and counter external
threats' (Hill, JAAR, p. 12).
5. This last step is for implementing the strategies (Hill, 2010).
Sources:
Hill, J. (2010). Theory of Strategic Management (9th edition). South-Western: Cengage Learning.
Olsen, E. (2011). Strategic planning for Dummies. Accessed via Google Books.
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3: What is the current situation of Brown Bag Films?
The situation of Brown Bag Films seems to be changed in a very positive way. In 2013 Brown Bag
Films released Henry Hugglemonster, which premiered on a Disney channel in over 150 countries
(Brown Bag Films, 2014). In 2012 Doc McStuffins broke records for most watched preschool
premiere ever. In 2009 they received an Oscar nomination for Best Animated Short Film for Granny
O’Grimm’s Sleeping Beauty (Awardsdatabase, 2014).
Besides that, they are looking for new personnel. On Facebook they are looking for a Post-Production
Coordinator and also a Recruiter. Furthermore they tell about prizes which they won recently, and
new seasons which are coming next year.
So the current situation of Brown Bag Films is that they are a very successful company at this
moment.
Sources:
Awardsdatabase. (2014). Research and Preservation. Accessed on 05-02-2014 via
http://awardsdatabase.oscars.org/ampas_awards/SessionTimeout.jsp;jsessionid=252B385D71470FD321E69EE
5497FF231
Brown Bag Films. (n.d.). About. Accessed on 06-02-2014 via http://www.brownbagfilms.com/
Facebook. (2014). Brown Bag Films. Assessed on 05-02-2014 via https://www.facebook.com/BrownBagFilms
4: What are the trends and developments in the animation industry?
A new trend in the animation industry is special effects: new animation movies which will be made
have new special effects. Besides that, the movies are not only for children, but for the whole family,
like the animation movie Avatar (2009), which had a very high budget for animation quality and
special effects as well (Tioloiro, 2012). Furthermore, after the animation movie Avatar in 3D the
results are that many movies nowadays are filmed in 3D and that development will be still continue.
By the developments of new technology there are nowadays very new jobs suitable, like Animation
Scripting and Technique, Animation Engineering, Photo Communication, Visual Principles and
Syntactics, etcetera. So many people could be educated and find a job in this new part of the
animation industry.
Sources:
Hayes, D. (2013). Acting and Performance for Animation. Accessed via Google Books.
Tiolorio. (05-05-2012). Nieuwste trends in animatie-industrie. Accessed on 05-02-2014 via
http://www.tioloiro.nl/nieuwste-trends-in-de-animatie-industrie.html
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Case 2: Internal analysis
Problem statement: How can MTV still create value for the target group, to sustain their competitive
advantage in the rapidly changing Internet age, in 2019?
By making an internal analysis and understand their internal analysis and choose a business model
and strategies, they should be able to get a sustained competitive advantage.
With an internal analysis they know which value they have to create. MTV can still create value for
the target group by using the latest developments which is suitable for the target group for example,
like the MTV Mobile provider and tv series which could be seen on every moment when the target
group wants.
Learning goals:
1: What steps does an internal analysis entail and how to use them?
An internal analysis is used for identifying strengths and weaknesses of a company. It helps managers
to develop plans in light of the history, and also for the current status, the capabilities, and strengths
and weaknesses of a company (Hirsch, 2000). The analysis is used together with the external
environment of a company. The internal analyses entail three steps:
1. 'Managers must understand the process by which companies create value for customers and
profit for themselves, and they need to understand the role of resources, capabilities, and
distinctive competencies in this process' (Hill, 2010, p. 74);
2. Understand how the following features create value and generate high profitability: superior
efficiency, quality, innovation and customer responsiveness;
3. Managers should be able to analyze 'the sources of their company's competitive advantage
to identify what is driving the profitability of their enterprise and were opportunities for
improvement might lie' (Hill, 2010, p. 74).
With this information the managers received from the steps, they should be able to choose a
business model and strategies for getting a sustained competitive advantage.
Sources:
Hill, J. (2010). Theory of Strategic Management (9th edition). South-Western: Cengage Learning.
Hirsch, M.L. (2000). Advanced Management Accounting. Accessed via Google Books.
2: Apply the value chain on MTV (especially primary activities).
The value chain of Porter, a construct which is used for create value with resources they have, has
five primary activities. The purpose of the value chain is to make a competitive advantage. The five
primary activities are:
1. In-bound logistics (actually to start the production). In this case, for example, MTV is looking
for makers for new reality shows for example.
2. Operations (all activities related to production). In this case MTV is filming a reality show.
3. Out-bound logistics (all activities of distribution related to end-products). In this case MTV
does the post-production of the reality show.
4. Marketing & sales. In this case MTV shows a commercial about a new reality show on the
channel MTV. Besides that, billboards could be shown the new reality show for example.
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5. Service (such as repair, maintenance). In this case MTV should give information about the
reality show, for example MTV gives information on the website if fans could expect a new
season.
(Kϋng, 2008).
Besides that, according to Kϋng (2008), MTV started by adding a new stage to the value chain,
especially for the television industry: aggregation, bundling music videos into channels. This stage is
between (1) content creation and (2) scheduling. The other steps are (3) distribution platform and (4)
user interface.
Sources:
Koning, C. (2007). Marketing. Accessed via Google Books.
Kϋng, L. (2008). Strategic Management in the Media: theory to practice. London: SAGE Publications.
3A: What is the current situation of MTV?
The current situation of MTV is that they earned much more money in 2013 than in 2012 (they made
a profit of 402 billion euro). Which is mainly due to more viewers all over the world (ANP, 2014;
AFN/Bloomberg, 2014).
Viacom recovered from a bad start over 2013. In the second part of the year, Viacom got more
viewers and asked more money to cable operators.
Besides that, the top managers of Viacom received a very high bonus because of the high profit
(AFN/Bloomberg, 2014).
Sources:
AFN/Bloomberg. (25-01-2014). Kassa rinkelt voor topmannen Viacom. IEX. Accessed on 12-02-2014 via
http://www.iex.nl/Nieuws/ANP_ANP-250114-067/Kassa-rinkelt-voor-topmannen-Viacom.aspx
ANP. (30-01-2014). Moederbedrijf MTV trekt meer kijkers. RTLNieuws. Accessed on 12-02-2014 via
http://www.rtlnieuws.nl/economie/home/moederbedrijf-mtv-trekt-meer-kijkers
3B: What is the business model of MTV?
Detailed information about the business model is not really clear and easy to find. However, some
people have written about aspects and developments of the business model of MTV.
According to Jones & Hill (2011) Viacoms (or MTVs) business model was a failure during the year
2000. 'A media giant could simply add new media properties to its existing ones to increase
profitability' (Jones & Hill, 2012, p. C319).
Another source write about the previous CEO of MTV, Mel Karmazin, who was doomed by the
business model during that time. He created the ultimate media battleship with almost only
advertising and marketing. Five years later, the battleship of marketing didn't work. Karmazin didn't
look at video games, satellite radio, video-on demand, etcetera, which other companies did. 'Those
are the companies with the better models, the better technology', (Cramer, n.d.).
The current business model of MTV is unknown. However, we know that MTV made a profit of 402
billion euro, which is mainly due to more viewers all over the world (ANP, 2014; AFN/Bloomberg,
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2014). So the current business model has to be a new better created business model of MTV.
Sources:
Cramer, J.J. (n.d.). Viacom SOS. NYMag. Accessed on 12-02-2014 via
http://nymag.com/nymag/columns/bottomline/9302/
Hill, C. & Jones, G. (2012). Strategic Management: An Integrated Approach. Accessed via Google Books.
4A: What are the competitive advantages of MTV (the four building blocks)?
You have a competitive advantage if your profitability is greater than the average profitability of all
companies in its industry (Hill, 2010). The four building blocks are efficiency, quality, innovation, and
customer responsiveness (Hill & Jones, 2011; Hill, 2010).
In this case, MTV has with the advantage efficiency a big competitive advantage, because they could
broadcast the same tv series in different countries, without paying again. For example, Jackass is an
original American program but is broadcasted in almost every country in the world.
Quality: MTV has one of the most important music events in the world, like the MTV Europe Music
Awards. Big stars from all over the world visited this show. The MTV Europe Music Awards is also
broadcasted on MTV in different countries.
Related to innovation MTV created a new network provider for mobile phones (MTV Mobile). If you
have MTV as your network provider, you automatically get access to MTV shows and MTV music on
your mobile phone (MTV, n.d.). You also have access to festivals and events. So MTV combines a
mobile network with the possibility to watch MTV on your mobile phone for free.
Customer responsiveness is to recognize changing customer needs. Because of the very many digital
channels of MTV, you could say that MTV recognized the trend that people want to see more about a
special tv program or genre, 24 hours a day, like the channels MTV Games, MTV Hits, MTV Dance,
MTV Base, etcetera (Viacom, n.d.).
Sources:
Hill, C. & Jones, G. (2011). Essentials of Strategic Management. Accessed via Google Books.
MTV Mobile. (n.d.). Waarom MTV Mobile? Accessed on 12-02-2014 via
http://shop.mtvmobile.nl/mtv/mcsmambo.p
Viacom. (n.d.). Viacom Brands. Accessed on 12-02-2014 via
http://www.viacom.com/brands/pages/default.aspx
4B: What are the strengths and weaknesses of MTV?
In general strengths for a company are opportunities, resources, and skills to implement strategies,
implementing strategies and the approaching of the goals as well. Weaknesses for a company are a
lack of skills and a lack of opportunities and resources to reach the goals of the company.
Strengths:
