Business Policy and Strategy INTRODUCTION

Business Policy and Strategy INTRODUCTION 1 State of newspaper publishing industry today 1 Why newspapers are facing declining circulations and revenues 3 Internal assessment 6 Strategies for cope with challenges of publishing industry 7 Steps The Chronicle Gazette might take in order to deal with challenges7 REFERANCES 9 INTRODUCTION Business policies and strategies are very important for functioning of organisation as it helps in providing guidelines to company (Haley and Haley, 2013). 1 State of newspaper publishing industry today Newspapers are very critical part of news landscape but

Business Policy and
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
State of newspaper publishing industry today............................................................................1
Why newspapers are facing declining circulations and revenues...............................................3
Internal assessment......................................................................................................................6
Strategies for cope with challenges of publishing industry........................................................7
Steps The Chronicle Gazette might take in order to deal with challenges..................................7
REFERANCES................................................................................................................................9

INTRODUCTION
Business policies and strategies are very important for functioning of organisation as it
helps in providing guidelines to company (Haley and Haley, 2013). Business policy can be
define as a scope within which an organisation can take decision and these are the guidelines that
leads to provide direction to company. Strategies refer as a plan of actions which helps in
providing direction as well as achieving set goals and objectives. Policies are blueprints on
which organisation works where as strategies are more concerned with organisational decisions
to attain targets. This report is based on The Chronicle Gazette which is a leading newspaper in
major metropolitan. Susan Feinman is a publisher of this newspaper and it is a first rated
newspaper over paper. This report is going to cover state of newspaper publishing industry with
proper data. It also includes issues which newspaper industry is facing. Different strategies used
by this industry to cope up with challenges.
State of newspaper publishing industry today
Newspapers are very critical part of news landscape but in today's world most of
customers are hitting towards digital news. Due to changes in social trends and advance
technology newspapers publishing company are facing serious issues. Traditional retailing
industry has been negativity affected because of online system. Susan Feinman is a publisher of
The chronicle Gazette which is a highly rated newspaper from many years. With rise of internet
Susan's newspapers is face issues and it has been a steady decline in subscription of newspapers.
It has been noticed that in last eight years it newspapers subscription has been fallen to 35%. due
to declining in its total subscription it has been analysed that advertising revenues also dropped
by 28% . Since mid 1990s to present time newspapers publishing companies has faced various
issues and decline in its subscription or customers (Lawton, 2017). Decline of newspapers is a
serious issue faced by this industry as it leads to loss in advertising as well as precipitous drop n
circulation.
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In US market there are three highest circulation daily newspapers are The New York
Times, The Wall Street and The Washington Post. Alliance for Audited Media is a group that is
responsible for auditing circulation figures of various North American newspapers and other
publishing companies. In recent years, these publishers has not been able to fully report their
digital circulation to Alliance for Audited Media. According to AAM data it has been notices
that there is risen in digital circulation of 2018. This data project that there is 6% rise in weekday
as well as 8% in Sunday. As per independently report produced by The New York Times and
The Wall Street Journal, it has been identified that both of these companies has gain substantial
growth in digital circulation. According to data, The New York Times has experience 27% gain
where as Wall Street Journal gain 23% in 2017. total weekday digital circulation world has been
rise up to 17% if independent report of these companies were included with AAM data of 2017
and 2018. These collected figures would also change picture as a combined print and digital
circulation (Rugman and Verbeke, 2017). There is overall drop in circulation in spite of digital
boost driven by these two national brands.
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Illustration 1:Newspaper circulation
Source: Despite subscription surges for largest U.S. newspapers, circulation and
revenue fall for industry overall.

Status of newspapers leaders: New York Times and Wall Street Journal.
The New York Times is an American newspaper company which was established in
September, 1851. The is a New York city based company which influences worldwide readers.
According to data it has been noticed that there is more than 7% drop in print circulation as
compare to last year (Fall in Newspaper Sales Accelerates to Pass 7%, 2019). Analysis shows
that there is 10.5% increase in audience of newspaper Web site in first quarter. The Wall Street
Journal company was founded in July 1889 and it is a English language newspapers in New
York City.
Why newspapers are facing declining circulations and revenues
It has been analysed that newspaper demand is continuously decline and sales
newspapers is decreasing. This is because audience is more attracted towards online news or
digital news. There are various reason behind declining of newspaper circulation and its
revenues. For analysing all reasons or issues faced by newspaper companies which leads to
declining circulation and its revenues.
External assessment
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Illustration: Newspapers circulation 2:
Sources: 5 key takeaways about the state of the news media in 2018.

Several factors for declining newspapers demand is economic, social, cultural,
environmental, political technological, legal and other forces.
Economic forces:
These are refer to those forces that helps in determining competitiveness within
environment in which organisation is operating its activities. Economic forces includes
unemployment level, inflation rate, government changes and fiscal policies (Malerba and et.al.,
2015). Newspapers are very popular before T.V or cabal become regular sources of news.
Newspapers are more costly as compare to internet and Television as its distribution cost were
same irrespective to how much information is available in it. When big paper brands has set their
sufficient distribution network it tends towards monopoly. It has been identified that fixed cost of
distributing information is one of the major reason of declining newspapers.
Social, cultural, demographic and environmental forces:
Changes in social and cultural trends as well as environmental forces is a reason of
declining newspapers demand in market area. Need and want of customers is continuously
changing and audience is more attracted towards new trends of society (Dodgson, 2018). With
the introduction of smart phone, cable T.V, internet and so on customers are influenced towards
digital circulation. Newspapers are leads to affect environment also as it create huge amount of
waste. It affect natural resources and environment of the country.
Political, governmental and legal forces:
These are those forces which includes all rules and regulation set by government and
political parties. Legal and governmental forces have huge impact on business of newspapers as
they are responsible for setting guidelines and policies for newspapers industry. Newspapers is a
sources of providing information to large number to customers. So newspapers are responsible
for providing right and accurate information to audience. For this political and government
bodies has set various laws or rules such as antitrust laws, labour relations, taxation, as well as
commercial speech.
Technological Forces:
Technological forces includes innovative and new technology that helps in providing
better services to customers. Usage of updated and modified technology can be consider as a
major reason for declining newspapers business. Cable television and internet is able to provide
same information in much better and creative way (Hoejmose, Brammer and Millington, 2013).
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Customers and targeted audience is more interest in reading and watching news with high
technology as it is available with them any time and any where. With changes technology it leads
to provide better quality and services to customer which is not possible with newspapers
business.
Competitive forces
For analysing different competitive forces that can have impact on business of The
Chronicle Gazette. Newspapers industry is a huge industry and there are several forces which
can have impact on business of this industry. Porter five force are mention below with their
impact on Chronicle Gazette business. Threat of New Entrants: The Chronicle Gazette company is a well established company
which is first rated company. It has gain trust from its customers and new entrant in this
industry does not affect its sales and revenues. New entrant company needs to develop its
brand image or gain truest from customers and it requires time as well as huge cost. Bargaining power of suppliers: This factor can have moderate impact on business of
Chronicle Gazette. This company requires raw material from suppliers to publish its
newspapers (Mubaraki and Busler, 2013). This company is dealing with many suppliers
so bargaining of one suppliers can not have impact on on its business and operations. Bargaining power of buyers: Buyers are very demanding and bargaining power of
buyers can have major impact on customers. It buyers are major reason of its profits and
growth of business as company focus on full fill needs and wants of customers. Rivalry among players: Competition and rivalry in market area is a very strong forces
which influences sales and profits of Chronicle Gazette. There are some major
competitors such as The New York Times and The Wall Street Journal. Strategies and
techniques of rival companies can have major impact on its business.
 Threat from substitute products: Chronicle Gazette is a does not have major threat from
substitution of its products and services. Information and data of this company is not
same with any other publishes and it has build many loyal customers. So this reduces
chance of product substitution.
External Factor Evaluation Matrix
This is a strategies which can be used by Chronicle Gazette company to analyse and
evaluate external environment (Blackburn, Hart and Wainwright, 2013). This is very helpful in
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identified various opportunities and threat to business. It has been identified that revelry and new
technology is the major threat to business. This company has opportunity to provide online
version of newspapers to meet with demands of customers.
Internal assessment
Internal assessment is a very important for analysing its strength and weakness as well as
determining what are opportunities and threat for Chronicle Gazette business in market area. For
identifying internal assessment company needs to analyse different factors such as its process,
capabilities, financial position and so on.
Organisational processes and structure
Chronicle Gazette operational process and structure is competitive and promising to earn
huge revenues. It is related to finding and writing good news and articles as well as its
advertising team is focusing on selling advertisement space to key people. Motive of this
newspapers publishing company to provide right and accurate news to audience.
HR Capabilities
Work forces of this company is very good at their work and writer of Chronicle Gazette
has won many awards for their work (Wonglimpiyarat, 2016). HR capabilities are very
competitive and focus on developing strategies to attain goals of business. Its staff members such
as photographers, editors, writer publisher etc. come up with amazing work to engaged readers.
Financial position
Financial position of Chronicle Gazette company is can be understand from declining of
newspapers demand in market area. This company needs to work on its financial position as its
revenues are continuously decreasing. Chronicle Gazette have to work on its cost and need to
increase its subscription.
Marketing/ sales capabilities
Marketing and sales term are responsible for increasing customers and subscription for
Chronicle Gazette company. With decrease in sales and demand of newspapers it can be
determined that marketing and sales team needs to develop their capabilities as well as work on
increasing subscription.
Operational capabilities
Chronicle Gazette is using older techniques and technology in its operations which is not
effective for current scenario. This company has maintained its old distribution channel which is
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not able to meet with needs and wants of customers (Hamel and Prahalad, 2017). Company
needs to change its operational capabilities and use more advance technology to gain higher
profits.
Our strength and weakness as a publishers
Strength and weakness of The Chronicle Gazette as a publishers is mention below.
Strengths: The Chronicle Gazette has developed it brand image and it is highest rated company
from many years. It has a very effective team of writer and reporter who are publishing content
as per customers requirement. It has won many awards which leads to gaining trust from
audience and build loyal customers.
Weakness: This company is using old methods and techniques which is affecting its productivity
and profitability. No online version of newspapers can be consider as its weakness because it
minimize scope and market share.
Strategies for cope with challenges of publishing industry
Strategies that can be used by The Chronicle Gazette to cope up with challenges of
publishing industry. There are several strategies mention below that helps in dealing with issues
of this company.
1. The Chronicle Gazette can provide its news and article thought online sources. This will
help company to target large number of customers at same time. By providing online
based newspapers it will leads to attract more customers and full fill their need or wants.
2. Company can offer online subscription of its newspapers to customers (Wagner, Ferreira
and Raposo, 2014). This will help company to gain its subscribers and attain goals and
objective of organisation. The Chronicle Gazette can provide different discount offered
to its online subscribers.
3. Company should focus on developing strong relationship with Newspapers Association
of America and provide its newspapers and advertisement oversea. This will be a very
good opportunity for business in increasing its market share.
Steps The Chronicle Gazette might take in order to deal with challenges
The Chronicle Gazette should take short team and long term steps to deal with
challenges. These steps will help company to achieve its desired goals and objective. Short term
and long term steps to deal with competitive environment and issues is mention below.
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Short term steps- Company should implement online version to provide its news and
articles to customers. Online version of The Chronicle Gazette should have new and updated
features which is not available with any other rival company. This company should focus on
training and developing its staff members to that they can cope up with requirement of modern
audience. It can contact with schools and university to promote their newspapers by offering
student version.
Long term steps- For long term company should take develop new strategies for achieve
its goals and objective. Company can also restructure its operation system and management
process so that staff can work more effectively and efficiently. Company can provide its
newspapers in different stores and restaurants so that it is easy and convenient for customers to
purchase it. The Chronicle Gazette can introduce new features in its online version by adding
interactive features.
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REFERANCES
Books and Journals
Haley, U.C. and Haley, G.T., 2013. Subsidies to Chinese industry: state capitalism, business
strategy, and trade policy. Oxford University Press.
Lawton, T.C., 2017. Cleared for take-off: Structure and strategy in the low fare airline business.
Routledge.
Rugman, A.M. and Verbeke, A., 2017. Global corporate strategy and trade policy. Routledge.
Dodgson, M., 2018. Technological collaboration in industry: strategy, policy and
internationalization in innovation. Routledge.
Malerba, F. and et.al., 2015. Dynamics of knowledge intensive entrepreneurship: Business
strategy and public policy. Routledge.
Hoejmose, S., Brammer, S. and Millington, A., 2013. An empirical examination of the
relationship between business strategy and socially responsible supply chain
management. International Journal of Operations & Production Management. 33(5).
pp.589-621.
Al-Mubaraki, H.M. and Busler, M., 2013. Business incubation as an economic development
strategy: A literature review. International Journal of Management, 30(1), pp.362-373.
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20(1). pp.8-27.
Wonglimpiyarat, J., 2016. The innovation incubator, university business incubator and
technology transfer strategy: The case of Thailand. Technology in Society. 46. pp.18-27.
Hamel, G. and Prahalad, C.K., 2017. Do you really have a global strategy?. In International
Business (pp. 285-294). Routledge.
Wagner Mainardes, E., Ferreira, J.J. and Raposo, M.L., 2014. Strategy and strategic
management concepts: are they recognised by management students?.
Online
Despite subscription surges for largest U.S. newspapers, circulation and revenue fall for industry
overall. 2019. [Online]. Available
through:<https://www.pewresearch.org/fact-tank/2017/06/01/circulation-and-revenue-
fall-for-newspaper-industry/>
5 key takeaways about the state of the news media in 2018. 2019. [Online]. Available
through:<https://www.pewresearch.org/fact-tank/2019/07/23/key-takeaways-state-of-
the-news-media-2018/ >
Fall in Newspaper Sales Accelerates to Pass 7%. 2019. [Online]. Available
through:<https://www.nytimes.com/2009/04/28/business/media/28paper.html>
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