Essay: Strategic Positioning

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SAMPLE EXCERPT:

[. . .] DD has options before it. First, it should privatize, second it should remain purely public service broadcaster and third, a middle path. The challenge seems to be achievable as DD's immense potential and emerge as a key player in the mass media.

i. What is the best option, in your view, for DD?

ii. Analyze the SWOT factors the DD has.

iii. Why do you think that the proposed alternative is the best?

Answer

(i) For several years Doordarshan was the sole broadcaster of television programmes in India. After the opening of the sector to the private entrepreneur (cable and satellite channels), the market has seen major changes. The number of channels has come into the market and the quality of programmes has improved, backed by technology, has improved. In terms of quality of programmers, advertisement, outreach activities, the broadcasting has become a popular business. Broadcasters too have realised the great business potential in the market. But for this, policies need to be rationalized and be opened to the scope of innovativeness. This would not come by simply going to more areas or without removing bureaucratic hurdles. Strategically the DD needs to undergo a policy improvement. DD, out of three options, namely privatization, public service broadcaster or a middle path, can choose the third one, i.e. A combination of both. The whole privatization does not seem logical under the diversified political scenario. Nor it would be desirable to give the broadcasting emotively in the private hand as it proves to be a great means of communication of many socially lead public programmers. The government could also think in term of creating a corporation (as it did by creating Prasar Bharti) and provide reasonable independence to DD. So, far as its advertisement tariff is concerned that can be made compatible. However, at the same time cost of advertising is to be compared with the reach enjoyed by the doordarshan. The number of viewers may be far more to justify higher tariffs.

(ii) The SWOT analyses involves analysis of strengths, weaknesses, opportunities and threats of an organisation. SWOT factors that are evidently available to the Doordarshan are as follows:

S -- Strength

Covering 90% of population across 70 million homes against only 30 million home by C & S.

Over 20,000 employees and over 1000 transmitters.

W -- Weakness

Non-compromising pricing strategy.

Certain sections of the society do not regard Door Darshan as authentic.

Quality of programs is not as good as compared to C & S. network

O -- Opportunities

Infrastructure can be leased out to cable and satellite channel.

Digital terrestrial transmission.

Regional focused channels.

Allotment of time, slots to other broadcasters.

T -- Threats

Desertion of advertisers and producers may result in loss of revenues.

Due to quality of program the reach of C & S. network is rapidly expanding.

As the C & S. network need the trained staff, some employees of DD may shift to C&S network.

The private channels are using best of the market-technology.

(iii) It is suggested that the DD should follow a middle path. It should have a mix of both the options. It should economized on its operational aspects and ensure more productivity in term of revenue generation and optimization of use of its infrastructure. Wherever, the capacities are underutilized, these may be leased out to the private operations. At the same time quality and viewership of programmes should be improved. Bureaucracy may reduce new strategic initiatives or make the organization less transparent. Complete privatization can fetch a good sum and may solve many of the managerial and operational problems. However, complete public monopoly is not advisable because that denies the government to fully exploit the avenue for social and public use. The government will also lose out as it will not be able to take advantage of rising potential of the market. (Career forums, 2010)

Corporate Governance

California public employees Retirement System defines, the Global principles of accountable Corporate Governance in the following way:

Everywhere shareholders are re-examining their relationships with company bosses -- what is known as their system of 'corporate governance.' Every country has its own, distinct brand of corporate governance, reflecting its legal, regulatory and tax regimes… The problem of how to make bosses accountable has been around ever since the public limited company was invented in the 19th century, for the first time separating the owners of firms from the managers who run them…."

"Corporate Governance: Watching the Boss," THE ECONOMIST 3

(Jan. 29, 1994).

PRINCIPLES of ACCOUNTABLE CORPORATE GOVERNANCE

A. Core Principles of Accountable Corporate Governance

1. Optimizing Shareowner Return

2. Director Accountability

3. Transparency of Company Information

4. One-Share/One-Vote

5. Proxy Materials

6. Adopt a Code of Best Practices

7. Long-term Strategic Vision

8. Shareowner Access to Director Nominations (The California Public Employees Retirement System, 2011)

Corporate governance is linked with social responsibility. Most of the scholars argue that Corporate Governance of the organization is strongly related with the social responsibility of the organization that is what it owes to the society as a whole.

Cultural dimensions

As we discuss earlier that choice of the strategy is important in the strategic positioning. Choice of the strategy largely depends upon the culture of the organization Hofstede model is very popular in this regard and presents a theory of cultural dimensions. Hofstede model is presented below:

Power Distance Index (PDI)

Power Distance Index (PDI) that is the range to which the less powerful members of organizations and institutions (like the family) agreed upon and expect that power is distributed unfairly. This represents inequality. It proposes that the followers as much as by the leaders ratify a society's level of inequality. Power and inequality, of course, are extremely basic facts of any society and anybody with some international experience will be aware that 'all societies are unequal, but some are more unequal than others'.

Higher the power distance index is in the society there is lower upward mobility of its citizens.

Individualism (IDV)

Individualism (IDV) on the one side vs. its opposite, collectivism, individuals are inte-grated into groups to that degree. On the individualist side we find societies in which the ties between individuals are weak: everyone is expected to look after him/herself and his/her immediate family.However, On the collectivist side, we find societies in which people from birth onwards are integrated into strong, cohesive in-groups, often extended families (with uncles, aunts and grandparents) which continue protecting them in exchange for unquestioning loyalty. The word 'collectivism' in this sense has no political meaning: it refers to the group, not to the state. Again, the issue addressed by this dimension is an extremely fundamental one, regarding all societies in the world.

Higher individualism indicates that individual rights are paramount within society. Individuals may tend to form a larger number of loosen relationships.

Masculinity (MAS)

Masculinity (MAS) versus its opposite, femininity means distribution of roles between the genders, which is another basic issue for any society to which a range of solutions are found. The IBM studies revealed that (a) women's values differ less among societies than men's values; (b) men's values from one country to another contain a dimension from very assertive and competitive and maximally different from women's values . The assertive role has been called 'masculine' and the modest, caring pole 'feminine'. The women in feminine countries have the same modest, caring values as the men; in the masculine countries, they are somewhat assertive and competitive, but not as much as the men are, so that these countries show a gap between men's values and women's values.

High the masculinity index indicates there is high discrimination among the genders and vice versa.

Uncertainty Avoidance Index (UAI)

Uncertainty Avoidance Index (UAI) refers to a society's tolerance for uncertainty and ambiguity; it ultimately refers to man's find for Truth. It indicates a culture programs, how its members feel either uncomfortable or comfortable in unstructured situations. Unstructured situations are novel, unknown, surprising, and different from usual. Uncertainty avoiding cultures try to minimize the possibility of such situations by strict laws and rules, safety and security measures, and on the philosophical and religious level by a belief in absolute Truth; 'there can only be one Truth and we have it'. People in uncertainty avoiding countries are also more emotional, and motivated by inner nervous energy. The opposite type, uncertainty accepting cultures, are more tolerant of opinions different from what they are used to; they try to have as few rules as possible, and on the philosophical and religious level they are relativist and allow many currents to flow side by side. People within these cultures are more phlegmatic and contemplative, and not expected by their environment to express emotions.

Higher index of uncertainty avoidance indicates that country has low tolerance for ambiguity and uncertainty and vice versa.

Long-Term Orientation (LTO) versus short-term orientation: this fifth dimension was found in a study in 23 countries around the world, using a questionnaire designed… [END OF PREVIEW]

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