Strategic Management Report: Analyzing MSNBC's Business Operations

This report provides a comprehensive strategic management analysis of MSNBC, examining its corporate profile, competitive forces, and macro-environmental factors. It utilizes Porter's Five Forces to assess the competitive landscape, highlighting the strengths and weaknesses of MSNBC through a SWOT analysis. The report delves into MSNBC's strategic purpose, including its core mission, goals, and vision, as well as its guiding principles and core values. Furthermore, it explores strategic options for growth, offering recommendations for strategy implementation to enhance shareholder value and expand its customer base. The analysis incorporates secondary sources to provide a well-rounded understanding of MSNBC's position in the broadcasting industry and potential avenues for future development. The report concludes with essential conditions for success and a list of references.

STRATEGIC MANAGEMENT

Table of Contents
INTRODUCTION......................................................................................................................1
Corporate profile....................................................................................................................1
STRATEGIC ANALYSIS.........................................................................................................2
Competitive forces..................................................................................................................2
Macro environment analysis...................................................................................................2
Competencies and strengths...................................................................................................3
Weaknesses.............................................................................................................................4
STRATEGIC PURPOSE...........................................................................................................5
Core purpose and mission......................................................................................................5
Main goals and vision.............................................................................................................5
Guiding principles and core values........................................................................................6
STRATEGIC OPTIONS FOR GROWTH.................................................................................6
STRATEGY IMPLEMENTATION..........................................................................................9
ESSENTIAL CONDITIONS...................................................................................................11
REFERENCES.........................................................................................................................12

INTRODUCTION
The process of strategic management is the plan or pattern of a company with which it
can attain their desired objectives. Such procedure is involved in decision making
management, top level management that is led by company’s president and chief executive
officer. If an organization have an effective strategic management then it can get strong
result, which is the core aim of any business. The strategic management is also defined as a
group of formulation, implementation and evaluation of cross-functional decisions that make
it possible for the business to reach its objectives. The following paper is being developed for
analysing MSNBC unit strategic management. It is the biggest broadcasting company of
America that facilitates distinct type of information to consumers regarding varied aspects. At
present news channels are not just offering information in relations to organization but also
avails distinct knowledge type. In this context, the report here is focusing on external and
internal environment analysis as well as its influences on MSNBC unit. Also, the content is
followed by few recommendations to effectively implement strategic options for increasing
shareholder value and customer base. These strategic options are determined by conducting
SWOT analysis of company. Several secondary sources have been utilized for collecting
relevant and authentic data.
Corporate profile
MSNBC is a cable and satellite channel of America that is being owned by the Group
of NBC Universal News that offers news and commentary related to political events. The
company is also a division of NBC Universal. MSNBC is developing as a profitable and
successful unit since the year 1996. The organization faces varied challenges for maintaining
its position in the sector. It is the main reason, which leads the firm to stress on competitive
tactics over the next three years for retaining position in competitive market and earning more
value for shareholders (Alkhafaji and Nelson, 2013). The particular channel is mainly useful
for those entities who wish to receive political information about nation as well as for
individuals who want to engage with political parties and their related activities. The cable
network has distinct channels like CNBC World, CNBC, The Weather Channel, NBC, golf
channel and NBCSN. All channels offers information in single English language and if any
consumer want translation in other language then the digital box is provided by organization
to convert the language. During the period of 2014, the total ratings of MSNBC in age group
of 25 to 54 has been declined by 20 percent. MSNBC only leads in demographic among
Hispanics and African-Americans (Austin and Pinkleton, 2015).
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STRATEGIC ANALYSIS
Competitive forces
To determine external environment of MSNBC, the model Porter’s Five Forces can be
applied to identify its total number of competitors in the market of America. There are many
other cable channels in the country like The Blaze, BBC news channel and WFIO TV. Also,
all such channels are involved in broadcasting live telecast and English news to people
regarding distinct concerts (AUTHOR, 2014). There is high degree of competitive pressure as
there are many channels existing in the market, which is dropping down this unit’s brand
identity. Moreover, there is low switching cost of customers due to less differentiation in
product offerings. Also, the channel of BBC news is posing threat to MSNBC because of its
huge market share, effective promotional activities, and extensive resources as well as
developed base of customer. All competitors can influence heavily the position of MSNBC in
the market and hence would possess negative influence on its financial activities. Thus, there
is intense competition and the company is facing major risk factor. Other risk threatening the
organization is new competitor’s potentials to make entry into American market. New
participants can enter the market, due to increase in globalization. It can greatly influence the
MSNBC business operations due to easy access to distribution, less capital investment and
low differences in services (Chan-Olmsted, 2006).
Similarly, the third factor influencing MSNBC business function is substitute cable
channels threat. Even though, the organization is offering range of channels to clients but the
competitors have equal competency and hence there is high threat in the sector. Customers
can switch over easily to other brand, specifically due to high obtainability of substitute
products. The last factor affecting the company is customer’s high bargaining power, due to
low service and product differentiation and clients can shift to other brands. In other terms,
because of availability of many cable networks, there are many options presented to
customers for getting services (Clegg and et.al., 2011).
Macro environment analysis
There are some main macro aspects that possess threat to the company. The firm’s
economic condition can change according to changes in money flow. MSNBC has been
attempting to serve less priced services to viewers, which is beyond the control as can
influence the company’s profitability. Also, poor conditions of economy reduce the investors
and suppliers economic power that in turn lessen the opportunities of credit. The America’s
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economic recession lessens customer’s purchasing power and hence they spend less on such
products, while some clients shift to other firms (Doerksen, 2012). Lack of credit facilities,
high employment, high interest rates, low purchasing power create impacts on business
operations. Fluctuations in the rates of currency greatly influence the company’s profitability
factor as in that costs of time labour may enhanced by increasing the overall costs of
occupancy. Additionally, the technological factors influence the MSNBC operations as a
minor alteration in technical features can influence the business functionality. Information
technology disruptions can lessen the effectiveness of MSNBC complete operations, as it is
very hard for all to cope up with advancements in technology. The MSNBC operations also
can get influence by legal facets and political parties (Fano, 2012).
Competencies and strengths
SWOT analysis of MSNBC
Strengths
 The biggest broadcasting organization in
the globe
 Telecast various other channels
 Large number of viewers
 Powerful network
 Covers information and news from
various parts of the world
 Diversified business
 About to include other channels
categories
 High loyalty customers
 Less charges of subscription
Weaknesses
 Less differentiation of product
 Customer switching to other firms
 Range of rivalries
 Less efforts in products marketing
 Technical constraints
 Inappropriate employees
 Less budget
Opportunities
 Strong network of supplier
 American market economic growth
 Technical advancements might offer
opportunities of growth
 Compliance with legal policies and rules
can support the organization to lessen the
potential threats level
Threats
 Alterations in economy might lessen the
market share
 Product substitutes threats
 Distractions in technical factors might
affect the business and its financial
outcomes
 Threat from domestic new channels and
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Arrange global procedures to further
strengthen the brand
competitors
The above table is exploring that MSNBC is the biggest broadcaster in world approx.
50,000 employees all-round the branches. The company employs 10,000 and more journalists
throughout the globe, which greatly underpins the business operations. The firm avails
information and news to people as well as generates output of television plus covers online
news on daily basis. In comparison to rivals, the organization has penetrated the overall
market by broadcasting different categories news at distinct places (Grant, 2010). All
MSNBC channels are linked directly with worldwide network and hence it allows them to
make communication with others whenever needed. The company’s other strength is that it
includes information from all part of the globe and its staff members are also available to
provide 24 hour services. One main significant thing regarding this unit is that it charges very
reasonable price from clients for the services. Also, the unit is perfectly focused towards its
customers’ demands and needs as well as supports them in enjoying their high loyalty.
Moreover, 24 hour services is rendered by unit through which clients can get anytime news
about the present conditions of politics and weather. According to some customers, it is the
only channel offering updates, relevant and latest information to clients. Furthermore,
individuals can effectively and easily access the user generated content of company (Hitt,
Ireland and Hoskisson, 2012).
Weaknesses
The organization has been suffering from less differentiation of product and availability
of high substitutes due to which many customers are shifting to other brands. The ITV is
attracting customers towards other channels and it has received TV license. The organization
is providing services for 24 hours, which is beneficial but for this purpose MSNBC is filling
space with needless information and news that in turn influences people interest and at time
they get bored than shift to other channel like sky news to get regular coverage. Due to less
budget, the organization is unable to broadcast programmes and events through actors or
celebrities, as they demand high charges. Despite its main competencies, the firm is going
through with few weaknesses that further lessens the ratio of profitability. For example, at
present the organization is suffering from less budget and due to this it is unable to spend on
activities of promotion, which directly affects its financial abilities (Hodgetts, Luthans and
Doh, 2006).
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Hence, from the above SWOT analysis it can be said that the MSNBC is getting great
recognition from several viewers, as they all are commented on company’s official website. It
is the unit’s brand identity, which can allow the business to operate in distinct nations
(Girotra and Yadav, 2001). On the basis of given strength the organization can plan to
diversify its business North part with an aim to increase clientele base and shareholders value
in next three years. Also, by considering the demands and needs of kids, MSNBC can look
forward for introducing some channels related to cartoon for the children’s entertainment.
The firm is getting good recognition from public as well and this can support the unit to
expand its branches for creating competitive edge over rivals. For the reason to meet
customers’ demands, the company can cover news related to celebrity’s personal interviews
and information about sports too (Jones, Conway and Steward, 2001).
STRATEGIC PURPOSE
Core purpose and mission
MSNBC main purpose is to increase shareholders value and clientele base by offering
range of news and informations to viewers. As given above, the organization is planning to
broadcast seasonal news together with weather information to customers. Also, it is intending
to grow business in remaining nations to improve the corporate image. Moreover, the mission
of company is perfectly linked with these potential strategies, i.e. to augment people for
reviewing live programs that entertain, educate and inform (Kaplan and Norton, 2001).
Main goals and vision
MSNBC vision is to become most innovative company in the world. The unit is
concentrated towards believe and values only in delivering money value and quality. Also,
the unit believes in developing creativity of business and employees as a whole for offering
best services to customers. The seniors of MSNBC puts great emphasis on working together
with members of company as well as believes on diversity to offer valuable and best services
to customers (M S N B C Interactive News L L C, 2016). The vision of organization include
increasing net earnings, cash flows and sales level to build their position as American market
leader for expanding the unit by introducing varied channels. Hence, it can be said that
company’s vision is perfectly in line with designed strategies to introduce cartoon channels
and broadcasting weather informations to target customers (MITCHELL, 2015).
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Guiding principles and core values
An adequate code of conduct has been following by the unit, which assists it in
maintaining reputation, integrity, objectivity and impartiality. The same conduct has been
followed by company for its every department to consider interest of all stakeholders.
Moreover, in MSNBC employees are directed for following guidelines decided by members
of Board and they require to safeguard the firm’s assets for safeguarding stakeholder’s
interest. Such principles or code of conduct will definitely support the organization in
applying new strategies in business and gain profitable outcomes for shareholders (Olsen,
2010).
STRATEGIC OPTIONS FOR GROWTH
In order to determine best strategic growth option, the Ansoff’s matrix model can be
used. It involves the opportunities to offer new and existing products in new or existing
markets as well as risk level linked with each other. The Ansoff’s matrix also defined as
Ansoff’s market and product growth matrix is a tool of marketing planning that generally aids
an organization in identifying its market and product growth (Ward, 2016). The particular
matrix has four alternatives of marketing tactics, such as product development, market
penetration, diversification and market development.
Figure 1 Ansoff's matrix
(Source: Ward, 2016)
Market penetration – This strategy generally covers existing items and also things that are
existing in present market. There can be further products exploitation in this strategy without
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necessarily altering the product or its outlook. It will be possible by promotional methods
utilization, putting several pricing policies that can attract many customers or can make the
distribution process more extensive (Aaltonen and Ikävalko, 2002).
Product development – By following this strategy, company can introduce new products into
current marketplace. The development of product can differ from new products introduction
in present market or can involve existing product modification. By altering the product, one
would possibly change its presentation or outlook, enhance the quality or performance of
products. By undertaking so, it can more appeal to already presented market (Allio, 2005).
Market development – This can be defined as market extension. The business in this tactic,
sells its current products to novel markets. It can be made possible by further segmentation of
market to aid in determining new base of customers. The strategy assumes that present
markets have been exploited completely hence the need to venture into new regions. There
are several approaches to this tactics that comprise new distribution channels, new
geographical markets, different policies of pricing and new packaging of product (Breja,
Banwet and Iyer, 2011).
Diversification – This strategy includes a company selling or marketing new offerings to new
places at the single point of time. It is very risky type of strategy, as comprises two unknown
activities, i.e. development of new products and uncommon issues of development that might
take place in the procedure. Also, there is the fact that the novel market is being targeted,
which would bring issue related to having indefinite features (Cousins and Spekman, 2003).
Here in present case of MSNBC, the market development strategy will be best
appropriate one. This strategic option will support the organization in capturing more share in
the market, which will directly add to shareholders value enhancement as well as achieving
competitive edge over rivals. By adopting this strategy, MSNBC can emphasize on following
strategic options:
Unit expansion into novel markets – As given above, an intense growth has been experienced
by MSNBC in the broadcasting sector from the launch of channel. The organization is
receiving several suggestions from viewers in which they are demanding broadcast of
MSNBC channels in many other nations as it would support a large number of individuals to
access information and news (Doyle, 2010). Generally, the particular strategic option is
adopted by retail firms to expand its business line that also supports in increasing clientele
base. This strategy implement by many companies when they get failure in surviving into
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their current marketplace. Similarly, MSNBC can expand its business operations into other
regions through the introduction of new channels in current line. It has been reviewed by the
organization in its present status that it earns around $500 million in every six months that
enhances resource capabilities and by which the business can achieve high competitive edge
in same industry (Eisenmann and Bower, 2000).
The company will require hire more editors and journalists for the reason to launch new
channels in existing line. On the basis of data reviewed, it has been noted that around 50
million and more people watch MSNBC channels through internet to get information about
politics. To satiate all such viewers, the organization will develop branch in other nations.
The tactic is further supported by changing economic climates and demographics. Also, by
doing so the unit can attract new clients through word of mouth publicity by possible
audiences. Moreover, with an aim to differentiate its offerings from rivals, MSNBC would
broadcast news in distinct languages, as the market have been captured by many competitors
through delivering multi lingual news. The company will able to attain high recognition and
profits from capital market by following the market development strategy as its substantive
growth strategy. Furthermore, it will support in generating more employment opportunities
for the unit (Girotra and Yadav, 2001).
Widening the line of service – Earlier the organization was involved in delivering news in
English language, however for fulfilling the choice of viewers, the unit can introduce set top
box that support in increasing number of audiences and revenue as well. Also, this strategy
will provide recognition opportunity from possible audiences that will further provide them
option to operate business in other nations (Gladden, Irwin and Sutton, 2001). For the reason,
to expand business undertakings in other nations, the organization will be required to
broadcast varied creative channels to customers. The firm by applying market development
strategy should also include some promotional strategies for persuading varied individuals
towards its channels by delivering relevant and authentic information (Vukanovic, 2009).
Furthermore, MSNBC would sell direct services to clients by which customers can contact
with members of unit while not receiving adequate services. With this, the organization will
able to retail its possible clients and hence lessen the customer’s frequency to switch to rivals
(Hülsmann, Grapp and Li, 2008).
Moreover, to survive for long period in the market, the unit can provide services at
reasonable price, as it will support the company to become market leader in the television
programme services. The particular strategy will also assist MSNBC in capturing new
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segment of market with minimum capital investment and risks. The main aim of undertaking
is to enhance viewer’s frequency for the channel. These are most adequate tool that can
support the organization in capturing huge share in the market, promote different channels
among customers and increase shareholders value (Ip and Koo, 2004). Moreover, it will
definitely increase the clientele base. Even though, the organization has been capturing large
number of share in the market without following any specific strategy of marketing, but it is
also recommended the business to not ignore possible threats from rivals who are adopting
powerful marketing tactics and who influence can highly influence the MSNBC business
activities. Furthermore, the company can put concentration on actions of rivals, which will
support in defining best appropriate strategies of marketing. Additionally, the company
should find out innovative plus new alternatives to persuade varied customers and retain their
position in broadcast market (Karlsson and Sköld, 2007).
STRATEGY IMPLEMENTATION
Strategy Implementation – It refers to the stage in the process where strategic plans are
translated into strategic actions. This is the operational process where management focus
should be on efficiently managing resources during the action. Hence it requires distinctive
leadership skills of management and stakeholders’ motivation for combining efforts. It is
essential to look that sufficient resources are provided (Kelley and Rice, 2001).
Strategic Control – It encompasses monitoring the implementation process, reviewing results
against pre-established goals, and analysing the deviations and correcting the same. The main
idea behind strategy management is that the chosen strategy should be able to achieve desired
objectives of the organization. Therefore, assessment of earlier hypothesis about the outcome
of chosen strategy and periodic comparative review of actual performance with past
assumptions become essential for successful strategies. Strategic management control refers
to the process by which the organization encourages various stakeholders to act in a manner
that leads to the realization of organizational mission and objectives (Mishina, Block and
Mannor, 2012).
MSNBC’s strategic plan is to expand the business in other countries by advertising
their programs and channels with already established channels in those countries. It will help
the audience to get to know about the new channels of MSNBC. They can do this by
introducing sports, cartoon and other entertaining channels that can enhance the proficiency
of their business. On one hand this strategy would result in maximising the profitability and
revenue of MSNBC and on the other hand will also contribute in promoting the brand name
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and increasing brand awareness which would be helpful in long run (Nonaka and Toyama,
2007).
MSNBC will require to recognize their strengths and competencies before expanding
the business in other regions. They should also take care of satisfying the needs and demands
of target audience. Here, it should be noted that allocation of available resources are required
to be managed effectively in the action-driven nature of implementation process. It is also
essential to carefully manage the people and finances. Thus MSNBC should focus on placing
the right people for the right job and allocate the right sources according to the right action
plans. Below mention table summarizes the strategy implementation framework for the
strategy that will help MSNBC in achieving the desired objectives (Okumus, 2003).
Strategy Implementation Framework for MSNBC
Time Frame Strategy Action Plan Responsibility
April 2016 – June
2017
Product
Development
Include more exciting products
by introducing sports, cartoon
and other entertaining
channels.
Product
Development
Manager
July 2016 –
March 2017
Market
Development
To speed up expansion develop
new market in other countries
Operations &
Planning
Manager
January 2017 –
December 2018
Market
Development
Advertise channels with
existing channels and create
campaigns and promotions
Advertising
Manager
January 2018 –
December 2019
Market
Penetration
Employ more market research
for being knowledgeable about
audience tastes and preferences
Corporate
Research
Manager
January 2018 –
December 2019
Market
Penetration
Put more efforts in advertising
to generate more awareness
Advertising
Manager
January 2017 –
December 2019
Differentiation Carry out extensive research to
develop distinctive programs as
per the consumer preference
Product
Development
Manager
Thus monitoring and evaluation plays a key role in representing the real facts about
progress of the strategy process and help to review the same. If the problems arise in planning
or implementation can be identified and proper improvements can be planned accordingly.
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