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The National Geographic Society Decision Analysis Problem Statement The revenue of the National Geographic Society has

s fallen down and profitability of the company is at stake with bleak forecast for print market and absence of a strong foothold in e-commerce market. Argument Like many other print publications, National Geographic's subscription revenue has declined significantly, from $284 million in 1999 to $211 million in 2009. Previously, becoming a member of the society was a matter of prestige, but currently this has lost its gloss. The institution has made large bets on various forms of media Internet, movies, TV, cable programmingbut is still trying to figure out the best strategy for integrating them. Despite repeated structural changes, employees still operate in silos. During the societys first 100 years , printed products especially the magazine and its sister publications, remained the main source of revenue and operating income .However the transition from an analogy based, limited platform business with set deliverables to a multiplatform, anytime delivery ,digital business has fundamentally altered the industry . Taking cognisance of the growing Internet, mobile and gaming channels, National Geographic Society has decided to tackle the declining revenues by focusing on these new channels. However to implement this decision, NGS has to consider a radical change, in creating a pivotal senior management position .The position will be responsible for coordinating web-based offerings and outreach across the Society's numerous departments, integrating several direct-mail efforts into a cohesive e-commerce strategy, and leveraging the NGS relationship with subscribers. NSG is now at a predicament on who the new manager should report to. Even though it appears to a simple question, it embeds the larger issue of who is going to control the integrated aspects of e-commerce, and what authorities and what decision rights that person will have relative to the existing divisions. Hence this decision is extremely crucial to the future plans of NSG organization Recommendation It is recommended that the new senior Vice president should report to the Enterprise group , as this would enable the new leader to think holistically about NGS's offerings and how best to approach customers and sell them what they want to buy. Evaluation of Options The criteria for evaluating various options are as below: Impact on the Brand in Changing environment Managerial Communication II Case Analysis

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The position should enable the VP to represent the brand in the changing environment in a way that strengthened the brand rather than diluting or cheapening it Impact on Decision Making Process The radical change of implementing the new position would signal the move towards a customer driven perspective and the option should enable this transition to occur smoothly. Impact on Profitability With growing Internet, mobile and gaming channels, the option should positively impact National Geographic Societys utilization of these channels and hence profitability.

Options NSG is faced with the following options E-commerce head report directly to John Fahey, CEO and President of NSG E-commerce head report to Tim Kelly, CEO and President of Global Media E-commerce head report to Linda Berkeley, head of Enterprise Group Criteria Evaluation 1. E-commerce head report to Linda Berkeley, head of Enterprise Group Impact on the Brand in Changing environment The staffs are already knowledgeable about e- commerce and had the most web experience and hence can be more agnostic with respect to different media and product groups and hence can take better informed decision which will not result in brand dilution. Impact on Decision Making Process The move towards a customer driven perspective requires someone to think holistically about NGS's offerings and how best to approach customers and sell them what they want to buy and the enterprise group offers a holistic view of the customers. Impact on Profitability The goal of the Enterprise group is to generate revenue streams and this position will only further help in enhancing its goal and hence due to good sync, the profits can be affected positively. 2. E-commerce head report to Tim Kelly, CEO and President of Global Media Impact on Profitability

Managerial Communication II Case Analysis

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Pressure on the new e-commerce senior VP would have been immense from the various unitsmagazines, catalogues, and expeditionsto push their products and hence this would affect profits adversely. Impact on the Brand in changing environment Lack of experience of the staff in dealing with the e-commerce domain can lead to unknowingly pushing the brand for monetization too far which can dilute and cheapen the brand for the customers. Impact on Decision Making Process Due to pressure from various units, the new VP will find it difficult to focus on a customer driven perspective and will hinder their decision making process.. 3. E-commerce head report directly to John Fahey, CEO and President of NSG Impact on Profitability As Fahey already has 14 direct reports under him, the time period for getting authorization for various activities can hinder the growth plan and subsequently profits Impact on the Brand in Changing environment Without a holistic view of the organization and the changing environment, wrong decisions can be taken which can lead to the brand dilution. Impact on Decision Making Process With different groups chasing different business opportunities and a centralized position reporting to the CEO, the scope for transition to customer driven business model is very less and hindrance in decision making is more. Action Plan 1. A person with considerable e-commerce experience should be recruited. 2. The senior VP should then report to Linda Berkeley ,head of Enterprise Group 3. Efforts should be made to increase the profitability through digital media while keeping in mind the mission of the organization and brand perception among the customers. Conclusion National Geographic Society is at a crucial juncture and the organization must now move into new frontiers if it has to sustain itself. Creating the new post of VP for e-commerce is a radical change, however this is not enough to guarantee effective implementation. The reporting decision is also important and the new VP should report to the head of Enterprise group which would ensure handsome profitability.

Managerial Communication II Case Analysis

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