Questions: 1. Explain how strategic management and the strategic management proc
ID: 424699 • Letter: Q
Question
Questions:
1. Explain how strategic management and the strategic management process are illustrated in this case.
2. What challenges do you think MTV might face in crafting future digital and global strategies?
3.What are some performance measures that MTV’s strategic decision makers might use as they evaluate the results of their digital and global strategies?
4. What challenges might a change in strategic leadership bring to a company? How might this affect the strategic management process?
22 STRATEGIC MANAGEMENT IN ACTION 4. How might Iger and his top management team use the stra- Technology, Tradition & The Moase: An Interview with Robent A.I Hrvrnf Rommes. Review, July-A?gust, 2011, pp 112-17, M wes k June 13-June 19, 2011, pp. 24-23, K. Swisher, g Platformns." Wll Street Joarnal. June 6. 201i. p. R2. C. Ruse Charlie Ruve Talks tw Bub lger." Bloumberg Business Week, Manus 14 tegic management process t?"keep the magic comino" in 5. Do some research on CEO succession. What advice might you have for Disney's board of directors as they prepare for March 20, 2011, p. 26, E. Smith, "Ad Raies, Parks Fucl Wall Street Journal, February 9, 2011, p. B3, B. Bames, "Disney Looking Sourees B. Barnes, "Disney Channel to Be Introduced in Russia," Tnto Cradle for Customers, Exit,Wail Street Jourial, October 89,2011, p. B3: A. Ignatius, "Q&A;: The Iger Difference," Fortune, Apil 28, 2008, pp. 90-94 " New York Times Online, February 6, 2011 ork Times Online, October 27, 2011; E. Smith. "Disney's Iger 2010 Annual Report, Wale Disney Company. January 2011: and R. Siklos CASE #3 MTV's New Reality MTV. Is there any college student today who hasn't at least"mine deep vertical slices of pop culture, rather than attempting heard of MTV? The cable TV icon has "proved one thing over to build wide horizontal platforms." For instance, at the Web time ..it knows where the kids are. " In its early years (the com- Site dance.mty.com, which is based on the show America's Best pany was founded in 1981), MTV was a radical newcomer in an Dance Crew, amateur dancers can upload videos showing off industry filled with conventional approaches. With its suggestive suggestive their moves. One analyst said: "What they're doing with these language and racy images, teens and young adults loved the smaller properties is very smart. And the way they market it edgy content and presentation. Then, in 1992, the company with a chance to get on TV is a huge draw. So far, the results pioneered reality television with The Real World, in which seven of its digital online strategy seem to have been working. The young adult strangers lived together in a house and had their number of u lives-the good, the bad, and the downright weird-videota MTV's cutting-edge, real-life programmin taped. g has been, and still 13 percent during the first half of 2008, and the average time spent at the sites grew by 20 is, widely copied. Although ratings for the MTV channel have Then, there's Twitter. When Twitter first came on the scene in stagnated for years, its audience is massive. In 1981, it had 2.1 2007, MTV's VP of wireless saw its potential for MTV's audience million subscribers. Thirty years later, it has more than 100 mil- of early adopters. He felt it could be "the perfect way to give lion. The network remains "far and away the premier address fans more access to the juicy for advertisers seeking to reach its coveted 18-34-year-old and being famous." By the 2010 VMAs (Video Music Awards audience." And in 2010, MTV's ratings in that core audience show), both celebrities and the public were Twitter-literate, and rose 16 icent, the biggest annual increase ce1999 subsidiary of Viacom (the film production and cable television company), MTV Networks owns and operates cable networks MTV, VH1, Nickelodeon, CMT (Country Music Television), Sp Twitter became part of the main event. "The team had to create an entirely new aesthetic that would work online, as part of the preshow TV programming, but also theatrically as part of a live on-stage event." Creating a seamless relationship between what As a ke rv, and other channels, including Comedy Central, TV Land, and was happening on TV and on Twitter wasn't easy, but it worked LOGO. It also operates MTV Films in conjunction with Paramount and worked well. During the show, some 2.3 million tweets Pictures, another subsidiary of Viacom. MTV Networks continues came in and 11.4 million viewers tuned in, up 27 to be the "financial engine" of Viacom. It accounted for some 2009. Even as the media business continues to 61 percent of the company's annual revenue in 2011 and most will need to continually keep moving forward with i of its operating profit Despite its long history of knowing what strat an elusive and fickle audience finds interesting, the executive team must continually juggle the strategic challenges of guiding more than 520 million households in 160 countries. Using itself continuously and in doing so presenting a fast-moving India, and MTV Arabia), MTV is the world's most ubiquitous ary challenges are the company's digital and global strategies company is expanding in key global markets with more MTV this company as it looks for ways to continue its success. "Asa brand, MTV has moved beyond durable, managing to reinvent appeal (such as MTV Asia, MTV Latin A arket strategy that focuses on channels with oroad target that left many would-be rivals in its wake." Today, the pri- network with more than 120 channels worldwide. Now the Pointing to the popularity of social networking sites such Networks brands, like Nickelodéon, by using a range of tech Facebook and Twitter, industry analysts criticized MTV's nologies such as cable, satellite, and cell phones. Analysts cau- gital strategy, claiming that its "lock" on the youth culture tion that the key to MTV's global strategy, however was in danger. Those criticisms escalated when MTV didn't buy with a winning approach t MySpace when it was for sale. It made other blunders in digital with local tastes. That way the company won't c media as well. Its Web video site (Overdrive) never really took cultural imperialist." Despite MTV's far-ranging global reach that mixes universal youth sensibilities off nor did its digital music store (Urge). How ever, MTV manag- a 20 percent annual international growth rate, the U.S. division untered those criticisms by noting the company's plans to still acounts for 73 percent of overall revenue, which meansExplanation / Answer
1. MTV has been using strategic management and strategic management process in a few different ways according to this case study. MTV has had a wide range of teens and young adults that watched their network. They pioneered Reality Television and with this their ratings have skyrocketed. In 2010 they tried out using Twitter in hopes of moving in on the digital media, during the VMA awards, using Twitter and what was happening on TV and it worked. They had over 2.3 million tweets come in and 11.4 million viewers, up 27 percent from 2009. They also have MTV networks in 160 Countries. And are sticking with a winning approach that mixes universal youth sensibilities with local tastes so the company won’t come across as a cultural imperialist.
2. Some challenges they might face is not having CEO, Judy McGrath, who was in charge of that department. I think their main challenge is to come up with a new great digital idea. Since they didn’t buy out Myspace when it was for sale and their web video and music store didn’t do too well. But they did seem to have a pretty well success with America’s Best Dance Crew with their online visits and viewers. So if they keep possibly doing stuff like this they won’t have much trouble. For global strategies being able to remain cultural diverse is the main challenge. Being able to offer something to every culture and keeping up with changes in the market.
3. There are a few ways they might evaluate their results, one would be to get customer feedback by surveys. Live Seminars asking their viewers what they like, what they want, and do they like what they have been doing. Measure the difference between each year. What years have the most activity and what they were doing? For both digital and global markets Mtv could measure its performance using Social Networking. Social Networking is a great tool to measure how a company is doing. Watching trends and seeing things that people are talking about.
4. There a few challenges they might find. One of the challenges they might come across is the other people working for Mtv being able to deal with the change in leadership. Since day one the company had one person that handled the strategic decisions. With each leader comes a different way with leading and making decisions because everyone is different. So a way she might decide to do something someone else might not. This could affect the strategic management process if they don’t have a strategy to deal with this type of change.
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