Strategic Module Book M2 201617 PDF

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! Module!Book!
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Strategic!Management!in!the!Media!
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! Media!&!Entertainment!Management!!
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! 2016%2017,(Year(3,(Module(1,(2,(3(&(4(
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University!of!Applied!Sciences!! Module!coordinators:!
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! Module'1'&'3:' ' '
! Mr.!Marc!‘t!Hart!
Rengerslaan!8,!! marc.t.hart@stenden.com!
P.O.!Box!1298! Office:!! !2.21!
8900!CG!Leeuwarden! !
The!Netherlands! Module'2'&'4:'
! Mrs.!Fan!Ding! !
! fan.ding@stenden.com!
! Office:!! !2.18
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Strategic(Management(in(the(Media(2016%2017(
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! Media!&!Entertainment!Management! 2!
Preface!
Dear!students,!
!
Welcome! to! the! 3rd! year! module,! Strategic( Management( in( the( Media!! This! is! a! compulsory!
subject! offered! during! the! 3rd! year! of! studies! in! the! Media! &! Entertainment! Management! BA!
degree!course!at!Stenden!University!of!Applied!Sciences.!!
!
!Strategic(Management(was! originally! a! compulsory! module! developed! for! 3rd! year! students! of!
Leisure,! Tourism! and! Media! &! Entertainment! Management! studies.! Due! to! increasing! student!
numbers,! and! the! required! changes! in! the! points! structure! at! the! Media! &! Entertainment!
Management! (MEM)! faculty,! it! was! decided! in! the! academic! year! 2010X2011! to! revise! the!
module!each!year.!We!have!chosen!to!customise!the!strategic!management!module!especially!for!
MEM!students!by!focusing!on!the!media!&!entertainment!industry.!The!cases!have!been!chosen!
for!their!realistic!approach!in!broadening!the!students’!horizons!in!the!media!&!entertainment!
field.!
!
Changes!made!based!on!evaluations!in!2011G2012:!
Based!on!the!outcomes!of!comments!made!by!students!and!staff,!the!following!adjustments!were!
made!in!the!academic!year!2012X2013:!
• MiniXcase!3!updated!to!early!2012!situation;!
• MiniXcases!4!and!7!were!updated;!!
• MiniXcase!5!was!changed!from!‘Microsoft’s!innovation!challenges’!to!‘Corporate!strategy!
choices!for!Axel!Springer’,!in!order!to!fit!the!subject!better;!
• Different!business!news!sources!were!added!to!Student!Led!Seminars;!
• Individual!components!were!added!to!case!reports!1,!2!&!3!by!relocating!film!reflection!
and!inserting!an!essay!on!organisational!design.!
!Some!minor!adjustment!were!made!in!the!academic!year!2013G14!including:!
• Updating!the!role!play!in!week!6;!
• Case!report!3:!the!Google!case!was!replaced!by!a!practical!challenge!given!by!a!Googler!
(Double!Click)!located!in!Amsterdam;!
• Assessment! criteria! for! case! report! 1,! 2! &! 3! were! reconstructed! according! to! the! caseX
based!learning!research!approach.!!
Changes!made!for!the!Academic!year!2015G2016:!
• Contents!of!the!roleXplay!were!updated.!!
• Individual! assignments! 1! &! 2! were! changed! and! updated! according! to! learning!
objectives.!
• SLS!has!been!changed!slightly.!Students!have!to!write!a!proposal!paper!and!all!students!
are!involved!in!the!seminars!by!giving!them!clear!assignments!during!the!seminars.!
• The! BGCXmatrix! assignment! that! comes! with! case! 5! has! been! altered.! A! proper!
introduction!is!added!and!specific!questions!are!asked!to!the!students.!
Changes!made!for!the!Academic!year!2016G2017:!
• The! research! part! of! the! module! was! changed! from! simulation! gaming! to! writing! a!
research!proposal.!This!part!of!the!module!(the!workshops)!will!be!offered!in!Dutch!to!
the!Dutch!stream!students.!
• The!module!assignment!no!longer!consists!of!three!reports.!Students!will!write!two!case!
reports,!but!the!first!assignment!will!contain!parts!of!the!content!of!the!previous!module!
assignment!2.!
• Module! assignment! 3! consists! of! a! caseXstudy! accompanied! by! a! caseXlecture,! followed!
by!a!test!in!week!8.!
• The!SLSXassignment!has!been!adjusted.!
• CBLXcase!3!has!been!slightly!adjusted!and!updated.!
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This!module!book!begins!by!explaining!the!rationale!behind!the!module!design!and!describing!
the!subjects!covered!by!various!educational!methods.!The!first!chapter!explains!the!theoretical!
framework!on!which!the!module!is!based!and!defines!the!targets!and!learning!outcomes! to!be!
attained! in! the! module.! The! module! book! then! presents! an! overview! of! the! different! teaching!
and!assessment!methods!and!hours!of!instruction!and!outlines!the!structure!and!assessment!of!
the!module.!It!concludes!with!a!description!of!each!of!the!module!components.!
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We!look!forward!to!sharing!a!great!learning!experience!with!you!in!the!coming!9!weeks.!Keeping!
the!students!in!mind,!we!have!tried!to!incorporate!a!mixture!of!teaching!methods!in!the!module!
design.!We!wish!to!promote!learning!by!sharing,!by!acknowledging!autonomy!and!by!play.!We!
trust! you! will! remember! this! educational! experience! and! make! use! of! the! knowledge! to! serve!
your!future!careers.!
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Best!of!luck!!
Fan!Ding!&!Marc!‘t!Hart!!
! !
Table!of!contents!
1! Introduction!...............................................................................................................................!6!
1.1! Programme!rationale!.....................................................................................................................!6!
1.2! Phase!rationale!................................................................................................................................!8!
1.3! Module!rationale!.............................................................................................................................!9!
1.4! Theoretical!framework!..............................................................................................................!12!
1.5! Contents!of!the!Module!...............................................................................................................!13!
1.6! Competencies!and!learning!objectives!.................................................................................!15!
1.7! Module!objectives!........................................................................................................................!19!
2! Structure!and!Assessment!...................................................................................................!21!
2.1! Module!design!...............................................................................................................................!21!
2.2! Contact!hours!.................................................................................................................................!23!
2.3! Compulsory!reading!....................................................................................................................!25!
2.4! Assessment!and!deadlines!........................................................................................................!25!
2.5! Resits!................................................................................................................................................!27!
2.6! Communication!.............................................................................................................................!27!
3! CBL!...............................................................................................................................................!29!
3.1! Introduction!...................................................................................................................................!29!
3.2! Learning!objectives!......................................................................................................................!29!
3.3! Assessment!and!evaluation!.......................................................................................................!29!
3.4! Customised!CBL!5Gstep!method!process!...............................................................................!31!
3.5! Detailed!assessment!criteria!....................................................................................................!32!
5! Case!reports!and!Module!test!.............................................................................................!64!
4.1! Introduction!...................................................................................................................................!64!
4.2! Writing!skills!..................................................................................................................................!64!
4.3! Case!1:!The!rise!and!fall!of!Blockbuster!................................................................................!65!
4.4! Case!2!The!Netflix!expansion!....................................................................................................!67!
4.4! Case!3:!The!Programmatic!Revolution!in!advertising!.....................................................!70!
5! StudentGled!Seminar!(SLS)!..................................................................................................!71!
6! Business!Economics!..............................................................................................................!74!
7!! Research:!Writing!a!research!proposal!.........................................................................!76!
7.1! Introduction!...................................................................................................................................!76!
7.2! Research!Proposal!Writing!Workshops!...............................................................................!77!
Sources!..............................................................................................................................................!80!
Appendix!1.!Assessment!sheets!................................................................................................!81!
Appendix!2.!Writing!skill!requirement!assessment!..........................................................!85!
Appendix!3.!Module!evaluation!form!.....................................................................................!87!
Appendix!4.!Case!Texts!1!............................................................................................................!91!
Appendix!5.!Case!Texts!3!............................................................................................................!96!
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1 Introduction!
1.1! Programme!rationale!
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The! professional! field! for! the! graduates! of! the! Media! and! Entertainment! Management!
programme! is! broad! and! constantly! developing.! As! a! Media! and! Entertainment! manager,! you!
might! work! in! a! number! of! different! types! of! businesses! that! can! be! classified! into! three!
categories:!!
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• Companies! whose! core! business! is! to! take! Media! and! Entertainment! products! and!
services! to! the! market.! This! includes! businesses! such! as! magazine! publishers,! TV!
broadcasters,! game! producers,! and! event! organisers.! It! includes! companies! such! as!
Gruner!+!Jahr,!SEGA,!RTL!and!ID&T.!
• Companies! that! use! Media! and! Entertainment! to! bring! their! real! core! products! and!
services! to! the! attention! of! the! relevant! target! groups.! This! entails! working! in! a!
marketing!department!or!in!the!communication!department!of!a!forXprofit!or!nonXprofit!
organisation,!such!as!Unilever,!on!the!one!hand,!or!War!Child,!on!the!other.!
• Consultancies:! Companies! that! advise! other! businesses! on! their! media! and!
communication!strategies.!In!this!case,!you!would!work!at!a!media!consultancy!firm!or!a!
communication!consultancy!firm,!such!as!Lost!Boys,!Zenith!Optimedia!and!Bartle,!Bogle,!
Hegarty!(the!advertising!agency!of!the!Axe!brand!in!London).!!
There! are! lots! of! different! types! of! businesses! and! jobs! for! you! in! the! market! as! an! M&E!
graduate,!but!what!they!all!have!in!common!is!that!you!will!participate!in!steering!creative!and!
technical!processes,!and!that!you!will!have!an!understanding!of!financial,!commercial!and!legal!
affairs.!As!far!as!the!actual!contents!of!the!programme!is!concerned,!this!means!that!you!will!deal!
with!four!different!learning!tracks!over!the!years!of!study:!
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1. Management!and!organisation!(red)!
2. Marketing!and!research!(orange)!
3. Media!culture!(blue)!
4. Production!(green)!
The! red! and! orange! learning! tracks! comprise! the! (media)! organisation! and! its! vision,! mission,!
objectives!and!strategy.!The!red!learning!track!is!primarily!internally!focused!on!the!corporate!
structure!and!culture!in!the!broadest!sense!of!the!word.!The!orange!learning!track!is!primarily!
externally!focused!on!the!market,!the!marketing!and!the!branding!of!the!products!and!services!
that! the! (media)! organisation! offers.! The! red! and! orange! learning! tracks! come! together! in! the!
thirdXyear!module,!Strategic!Management.!
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The! green! and! blue! learning! tracks! focus! on! the! media! product1;! namely! on! the! development,!
translation!and!production!of!the!media!product.!The!blue!learning!track!is!primarily!focused!on!
the!contents!and!meaning!of!the!media,!while!the!main!focus!of!the!green!learning!track!is!on!all!
the!production!aspects,!including!the!technical!skills.!The! blue!and!green!learning!tracks!come!
together!in!the!thirdXyear!module,!Media!Production.!!
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The!following!is!a!diagrammatic!representation!of!the!learning!tracks:!
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1
!‘Media!product’!may!in!all!instances!be!read!as!!‘services’.!
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Figure'1.1'Learning'lines'Media'&'Entertainment'Management'
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Research!skills!
The!production!of!media!products!or!services!can!be!broken!down!into!three!phases:!The!first!
phase! is! the! development! of! the! idea.! In! technical! terms:! concept! development.! The! second!
phase! is! the! actual! realization! X! production! –! and! the! third! phase! involves! the! sale! and!
distribution! of! the! product! or! service.! It! is! crucial,! in! all! three! phases,! to! check! whether! the!
product! or! service! still! fulfils! the! customer’s! wishes! and! requirements.! In! addition,! you! are!
required!to!write!a!Bachelor!thesis!to!complete!your!studies.!The!foundation!for!writing!a!thesis!
lies! in! understanding! and! being! able! to! carry! out! the! research! process! adequately.! For! that!
reason,! research! and! the! development! of! research! skills! are! essential! competencies! in! the!
curriculum! and! are! infused! in! almost! all! parts! of! the! programme,! from! PBL! to! module!
assignments!and!specific!research!and!statistics!classes!and!workshops.!!
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Form!and!contents!
As!a!professional!in!the!M&E!industry,!you!will!deal!with!the!question!as!to!how!you!can!inspire!
your!target!group!to!buy!your!specific!products!or!services.!What!motivates!the!people!that!you!
are!targeting?!What!do!they!consider!important?!How!would!they!like!to!be!addressed?!Which!
particular! aspects! interest! them?! Which! language! and! imagery! will! you! use! to! connect! with!
them?! Which! symbols! will! you! use! to! convey! the! exact! meanings?! M&E! products! and! services!
are!leisure!products;!products!and!services!that!you!do!not!really!‘need’!in!the!strictest!sense!of!
the!word.!M&E!products!and!services!appeal!to!needs!that!are!different!from!physical!survival!
needs.!They!fulfil!the!need!to!express!ourselves,!to!show!that!we!are!trendsetters!and!to!show!
that!we!are!members!of!specific!subcultures.!They!also!fulfil!the!need!to!relax!and!the!need!for!
escapism:! to! escape! from! the! harsh! realities! of! everyday! life! for! a! little! while.! By! attuning! the!
form!and!contents!of!your!product!or!service!to!the!specific!–!often!not!directly!evident!X!needs!
of! your! target! group! and! thereby! creating! value,! you! will! increase! the! chances! of! actually!
fulfilling!your!objectives.!While!working!in!the!learning!company,!you!will!learn!how!to!convert!
the!ideas!in!your!head!and!on!‘paper’!into!actual!products.!!
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Managing!
This! is! a! management! program! that! focuses! on! preparing! you! to! be! able! to! assume! a!
management! role! later! on! in! your! career.! Being! able! to! take! the! lead! and! leading! others! are!
integral!components!of!this!programme.!It!starts!immediately!in!the!first!PBL!session!in!the!first!
week! in! which! one! of! the! students! will! act! as! the! chairperson.! You! will! gain! a! great! deal! of!
experience!in!leadership!throughout!the!years!of!study:!in!PBL,!in!the!learning!company!and!in!
the! module! assignments.! The! underlying! training! courses! take! place! in! the! Management! Skills!
component.!Being!a!leader!demands!a!great!deal!of!selfXknowledge.!You!will!work!on!your!selfX
knowledge! in! years! 1,! 2! and! 3:! Not! only! through! reflection! on! your! personal! behaviour! in! the!
learning! company! and! in! presentations,! but! also! in! the! assignments! that! you! do! and! the!
interviews! you! have! with! your! personal! coach.! The! central! focus,! over! all! four! years! of! the!
programme,!is!‘the!whole!person’.!In!other!words,!it!is!not!only!about!‘what!you!know’,!but!also!
about! your! attitude! and! about! how! you! behave! in! relation! to! yourself! and! your! colleagues.!
Leadership!is!something!you!can!learn,!as!long!as!you!strive!towards!an!open!and!active!attitude!
towards!your!studies.!!
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In! concrete! terms,! you! will! have! to! be! able! to! do! the! following! as! a! Media! &! Entertainment!
manager:!
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• Develop!media!concepts!
• Translate! them! into! concrete! products! and! services! with! added! value! that! fulfil!
customers’!wishes!
• Be!able!to!conduct!(or!have!conducted)!all!the!related!research!!
• Steer!all!the!different!parties!involved!in!the!process!
• Carry!out!the!required!financial!analyses!
• Structure!the!required!production!process!!
• Work!within!the!legal!and!ethical!standards!!
• While! doing! all! the! above,! you! will! still! need! to! be! a! pleasant! human! being,! both! to!
yourself!and!to!others.!!
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1.2! Phase!rationale!
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The!Main!Phase:!deepening!theoretical!insight!!
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Following! the! orientation! period! in! year! 1,! the! student! delves! much! deeper! into! the! theory! in!
years! 2! and! 3! of! the! programme.! In! this! phase,! the! student! lays! the! foundations! for! the!
theoretical! perspective! on! the! subject! of! his! or! her! graduation! thesis.! The! focus,! in! deepening!
theoretical!insight!in!the!four!learning!tracks,!is!on!the!following!themes!and!subjects:!
!
• Human! resource! management! and,! in! the! broader! sense! of! the! word,! managing!
relationships! inside! and! outside! the! media! organisation.! These! are! the! main! themes! in!
the!Media!&!Relations!module.!
• The! significance! of! media! in! our! Western! culture! and! the! interaction! between! media!
content!and!cultural!content!are!the!main!themes!of!the!Media!&!Culture!module.!
• InXdepth! study! of! the! marketing! theory,! mainly! as! it! applies! to! branding! and! concept!
development! in! the! media! industry.! This! is! all! covered! in! the! Branding! and!
Communication!module.!
• The!main!focus!of!the!From!Concept!to!Action!module!is!on!the!theory!related!to!crossX
media!concept!development.!This!module!is!the!only!secondXyear!module!that!includes!a!
practical!component!in!that!the!students!are!required!to!also!partly!execute!the!concept!
that!they!have!developed.!!
Management! Skills! also! plays! an! integral! role! in! the! second! year! and! covers! the! subjects! and!
skills!that!the!leader!and!manager!needs!in!his!or!her!daily!practice!and!that!the!student!will!also!
(partially)!encounter!in!his!or!her!industrial!placement:!holding!job!performance!interviews!and!
job! evaluation! interviews,! dealing! with! conflict,! and! presentation! and! pitching! skills.! Research,!
both!desk!and!field!research,!recurs!at!knowledge!and!application!level!in!all!four!of!the!secondX
year!modules!and!thereby!consolidate!the!foundation!for!the!research!that!must!be!conducted!
for!the!graduation!thesis!in!the!fourth!year.!!
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The! selfXmanagement! component! in! year! 2,! with! its! job! application! training,! prepares! the!
students!for!the!industrial!placement!in!year!4.!This!programme!also!helps!the!students!to!keep!
an!eye!on!their!study!progress!and!to!consider!in!depth!the!opportunities!offered!by!the!minors!
in!the!third!year.!!
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The! theoretical! component! of! the! programme! is! concluded! in! the! thirdXyear! Strategic!
Management! in! the! Media! module.! This! is! an! EnglishXlanguage! module! at! the! highest! level! of!
abstraction! offered! in! the! programme.! The! perspective! adopted! in! this! module! is! ‘commercial!
management! and! longXterm! planning’.! It! is! in! contrast! to! the! modules! in! the! previous! years! in!
which!the!perspective!was!on!specific!projects!and!shortXterm!planning.!Strategic!Management!
covers! the! theories! and! management! models! applicable! to! strategic! business! planning! in! a!
longerXterm.!The!module!covers!models!and!analytical!instruments!that!the!students!are!able!to!
use!in!their!graduation!thesis.!!
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1.3! Module!rationale!
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The!roots!of!strategic!management!can!perhaps!be!traced!back!as!early!as!320!BC!to!the!work!of!
Sun!Tsu,!a!successful!war!strategist!in!China;!while!during!the!last!decades,!related!theory!and!
research! have! been! widely! illustrated! and! developed! by! scholars.! Nowadays,! strategic!
management!is!commonly!employed!in!politics,!the!military,!sports,!games!and!industry.!!
!
McKinsey! Quarterly! (Sep.! 2014)! published! an! article:! “What( strategists( need:( A( meeting( of( the(
minds”,!which!emphasises!the!challenges!that!scholars!faced!in!developing!relevant!theories!and!
a!framework!for!strategic!management!in!order!to!bridge!the!gap!between!theory!and!practice:!
!!
“Over!the!last!50!years,!the!theory!and!practice!of!business!strategy!have!taken!a!variety!
of!twists!and!turns.!In!the!1960s,!strategy!was!equated!largely!with!corporate!planning;!
in!the!1970s,!the!emphasis!switched!to!diversification!and!portfolio!planning.!The!focus!
shifted! to! the! economics! of! industry! attractiveness! and! value! chains! in! the! 1980s,! and!
the! 1990s! were! characterized! by! a! concern! with! core! competencies.! More! recently,!
practitioners! and! academics! alike! have! been! grappling! with! the! impact! on! strategy! of!
rapid!market!and!technological!change,!growing!external!risk,!and!the!advent!of!big!data.!
What! comes! next?! How! relevant! are! existing! frameworks! and! tools! to! the! needs! of!
leaders!seeking!to!develop!and!implement!winning!strategies?!“!
!
Selecting! relevant! theoretical! frameworks! is! not! the! only! challenge;! the! complex! and! rapidly!
changing! nature! of! the! media! industry! is! also! a! reality! for! managers.! “The! media! industry! is!
changing!fundamentally!and!fast.!This!represents!a!very!real!challenge!to!managers!tasked!with!
planning! a! strategy! and! implementing! it! successfully…”! (Küng,! 2008)! If! you! see! yourself! as! a!
future! media! &! entertainment! manager,! it! is! important! to! develop! the! competency! of! strategic!
thinking!in!order!to!succeed.!!
!
Media!&!Entertainment!Management!is!a!wide!and!rapidly!developing!and!emerging!field,!which!
is!one!of!the!major!challenges!in!management’s!strategic!decisionXmaking!in!a!globalising!world.!
As! a! future! Media! &! Entertainment! manager,! you! might! work! in! a! broad! range! of! media!
organisations!in!different!sectors!around!the!globe,!such!as!broadcasting,!music,!film,!news!and!
publishing!with!all!the!challenges!of!managing!content!across!platforms.!The!field!is!expanding!
and!finds!itself!at!the!intersection!and!transformation!of!media!convergence.!The!eco!system!of!
the! media! industry! has! become! more! dynamic! with! new! players! with! new! standards;! diverse!
consumer! behaviours! and! the! fragmented! media! content! troubles! media! companies! in! their!
strategic! decisionXmaking.! Furthermore,! rapid! technological! developments! in! communication!
and! media! provide! many! new! opportunities! and! enormous! challenges! for! both! existing!
traditional!and!startXup!media!companies.!
!
The! module! covers! case! studies! of! both! traditional! media! and! new! media! organisations,! and!
many! of! them! tackle! the! impact! of! the! fast! changing! networked! technologies! on! organisations!
and! strategic! decisionXmaking! in! this! uncertain! “network! society”! (Castells,! 2000).! Figure! 1.2!
illustrates!the!substitution!power!of!the!Internet!media!as!a!disruptive!force!in!all!media!sectors.!
Future! media! managers! will! continue! to! deal! with! the! transformational! characteristics! of! the!
media!industry.!!
!
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Figure'1.2'Sectors'of'the'media'industry'(Küng,'2008,'p.7)'and'convergence'in'the'media'
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' New$Media?$
• Where should it be
positioned?
• How does it impact
on the media
sectors?
• What special
function(s) does the
! Internet serve?
Participation!! Network!
‘3XC’!Model!of!Convergence!(Küng,!2008)!!
Conduit!
(Telecoms)!
Computing! New! Content!

!!!!!!!!(IT)! Media! (Media)!
!
!
!
This! English! language! module! intends! to! provide! students! with! an! opportunity! to! study! the!
rational! strategic! planning! process,! basic! strategic! management! theory! and! practical! insights!
into! the! media! &! entertainment! sectors! and! how! (un)successful! strategic! decisions! and!
implementations! are! made.! Furthermore,! the! module! has! been! customized! by! focusing! on! the!
media!and!entertainment!industry!from!a!communication!media!professional’s!perspective,!and!
has!tried!to!build!a!bridge!between!theories!and!the!practices!in!the!media!context.!The!module!
also! touches! on! the! understanding! of! the! limitations! of! the! rational! approach! to! strategic!
management! –! cognitive! bias! in! decisionXmaking,! which! pinpoints! the! importance! of! mindXset!
and!the!need!for!behavioural!strategy!in!a!dynamic!environment.!Students!work!with!recent!and!
realistic! case! studies! involving! various! media! sectors! during! this! module,! which! requires! a!
higher! level! of! desk! research! and! analytical! skills! compared! to! the! second! year! programme.!
Thinking! and! planning! strategically! from! a! management! perspective! aimed! at! the! future! (2X5!
years)!is!essential!for!completing!this!module.!This!module!stresses!the!strategic!management!of!
media!organizations!in!a!challenging!context.!!
!
Figure'1.3'Module'Rationale'J'A'strategic'planning'process''
'
!
Monitoring,$Evaluation$&$Feedback$Loop$
!
!
The! transformational! development! in! the! media! &! entertainment! industry! enabled! by! the!
networked!communication!technology!has!troubled!many!traditional!organisations!in!the!“risk!
society”! (Castells,! 2000).! While! following! the! rational! strategic! planning! process! is! still! highly!
relevant!to!media!organisations,!the!intended!strategies!are!shaken!and!threatened!by! the!fast!
changing! market! situation,! but! emergent! strategies! have! often! been! approached! reactively!
rather! than! proactively.! This! has! resulted! in! many! traditional! media! organisations! setting! cost!
cutting!as!their!strategic!priority,!especially!the!ones!that!depend!highly!on!government!cultural!
subsidies.!Lots!of!jobs!have!been!lost!and!many!organisations!are!going!through!a!tough!period!
of! restructuring! and/or! reXengineering.! Many! traditional! media! companies! have! considered!
redefining! their! business! models! in! order! to! regain! ground! in! the! media! &! entertainment!
industry.! Media! organisations! face! the! challenges! of! making! choices! to! provide! both! content!
differentiation!and!cost!leadership!simultaneously!with!an!effective!organisational!design.!
!
The! module! is! organised! for! the! 3rd! year! students! at! MEM,! who! have! followed! 1st! and! 2nd! year!
modules.! The! module! is! aimed! to! activate! students’! prior! knowledge,! and! deepen! the! level! of!
learning.! Thinking! and! planning! strategically! from! both! the! management! and! societal!
perspectives!is!essential!for!this!module,!and!students!should!especially!focus!on!the!context!of!
the!fast!changing!media!&!entertainment!industry!and!its!organisational!challenges.!!
!
While! strategic! management! is! applicable! to! every! type! and! size! of! organisation,! an! important!
role! for! managers! is! to! achieve,! sustain! and! create! competitive! advantages.! This! requires! not!
only!that!an!organisation!should!be!fit!for!its!purpose,!but!also!that!it!should!have!a!strategy!to!
create!value!that!will!enable!it!to!compete!effectively!with!rivals!or!collaborate!within!the!value!
network!to!add!value!to!the!organisation!and!society.!!
!
The!module!is!designed!mainly!according!to!a!strategic!planning!process,!which!is!indicated!in!
figure! 1.3.! The! process! begins! with! an! introduction! to! strategic! management! and! the!
characteristics! of! the! media! context,! and! is! followed! by! a! strategic! analysis,! which! includes! an!
internal!and!external!analysis.!After!concluding!the!SWOT!of!the!company,!future!strategies!on!
various!organisational!levels!can!be!formulated!(e.g.!TOWS)!and!evaluated.!Finally,!these!chosen!
strategies! should! be! implemented! by! considering! some! important! areas! in! the! organisational!
design.! Moreover,! the! weekly! topics! are! presented! throughout! the! rational! strategic! planning!
process,! which! forms! the! foundational! structure! of! this! module.! In! principle,! this! planning!
process! can! be! applied! to! general! strategic! management! studies! in! a! broad! area! of! industries.!
However,!in!our!aim!to!bridge!the!industry!specifics!and!the!theoretical!background!of!strategic!
management,! we! blend! in! two! other! approaches! to! strategic! management! in! order! to! deepen!
and!broaden!the!understanding!of!the!complexity!of!this!subject.!!
1.4! Theoretical!framework!
The! theoretical! foundation! of! the! module! seeks! to! provide! a! brief! overview! of! the! field! of!
strategy! and! of! strategic! concepts! and! tools! that! can! be! applied! to! the! media! industry.! Küng!
(2008)! emphasises! the! fact! that! providing! such! an! overview! is! no! easy! task! for! a! number! of!
reasons.!First,!the!field!of!strategy,!while!tremendously!rich,!is!at!the!same!time!very!extensive.!
Back!in!1965,!the!management!scientist,!Starbuck!noted!that!potentially!every!single!thing!ever!
written! about! organisations! can! theoretically! be! described! as! concerning! strategy,! and! since!
then! the! field! has! expanded! massively,! further! increasing! the! range! of! concepts! and! tools! that!
could!potentially!be!applied!to!the!media!industry.!Second,!although!managers!and!researchers!
use! the! collective! term! of! “the! media! and! entertainment! industries”,! in! reality,! this! sector!
comprises! a! broad! range! of! different! subXsectors,! ranging! from! academic! journal! publishing! to!
radio!broadcasting,!from!textbooks!to!Hollywood!movies,!to!the!networkXbased!media,!and!each!
of! these! subXsectors! have! very! different! environmental! contexts,! underlying! technologies,!
regulatory! influences,! and! so! on.! Hence! the! relevance! of! strategic! tools! can! vary! greatly!
according!to!the!sector.!Third,!because!the!field!of!media!management,!that!is!to!say,!the!body!of!
research!which!applies!the!principles!of!management!specifically!to!the!media!industry,!is!still!
relatively! new,! there! is! as! yet! no! agreement! on! which! of! this! very! broad! range! of! strategic!
theories!is!most!relevant!to!managers!working!in!the!field.!
!
Figure'1.4.'Continuum'of'strategy'perspectives'(Küng,'2008)'
'
!
!
Rationalist$ Adaptive$ Interpretative$ !
! $ About!social! !
About! About! architecture!
positions!and! processes!of! Focus!on!
!
products! adaptation!to! culture,! !
Focus!on! environment!! mindset,!vision! !
!
!
! Source:!Adapted!from!Johnson,!1987;!Chaffee,!1985!
!
Figure! 1.4! shows! the! theoretical! background! and! foundation! of! strategic! management! in! the!
media!module.!One!means!of!reducing!the!complexity!in!the!field!of!strategy!and!organising!the!
many! different! concepts! within! it! is! to! view! all! strategic! theory! as! falling! into! three! broad!
approaches,!or!‘schools’,!which!can!be!situated!on!a!single!continuum:!rationalist,!adaptive!and!
interpretative.!
!
The! rationalist! approach! to! strategy! refers! to! the! essence! of! a! plan,! formed! by! a! methodical,!
sequential!analysis!of!the!environment!and!the!evaluation!of!the!extent!to!which!organisational!
resources! can! be! utilised! to! take! advantage! of! environmental! opportunities! or! to! address!
environmental! threats.! This! approach! is! applied! mainly! to! the! rational! strategic! planning!
process! by! using! relevant! management! models! such! as:! Porter’s! value! chain,! 5Xforces!
competitive!analysis,!BCG!matrix!in!order!to!form!a!well!founded!SWOT!analysis!with!a!rational!
planning!approach.!!
!
If!rationalist!approaches!see!strategy!as!a!plan,!adaptive!ones!see!strategy!as!a!pattern,!a!‘pattern!
in! a! stream! of! decisions’! (Mintzberg,! 1978)! that! emerges! over! time! and! is! often! only! really!
visible!in!hindsight.!This!is!a!‘messier’,!less!clearly!orchestrated!approach!by!which!strategy!does!
not! involve! a! series! of! oneXoff! analytic! exercises,! but! rather! a! gradual,! iterative,! evolutionary!
process.! Thus! strategy! is! not! decided! upon! and! then! implemented,! but! develops! gradually!
through! monitoring! the! environment! and! making! changes! in! response! to! it,! and! hopefully!
gaining! a! degree! of! control! over! the! impact! of! the! environment.! This! approach! is! especially!
relevant!in!dealing!with!the!fast!emerging!media!industry.!!
!
Rationalist! approaches! in! particular! have! been! criticised! for! failing! to! accommodate! the!
diversity!and!disorder!of!organisational!life!–!Mintzberg!once!famously!claimed!that!90!percent!
of!rationale!strategies!are!never!implemented!successfully.!The!interpretative!school!of!strategy!
focuses!on!exactly!those!elements!that!often!prevent!strategic!plans!being!implemented,!namely!
the!deeper!‘hidden’!aspects!of!the!organisation!such!as!mindXset,!values,!motivation,!emotions,!
power!and!politics.!These!elements!are!often!ignored!in!strategic!activities,!partly!because!they!
are! highly! subjective! and! somewhat! ethereal! and! partly! because! working! with! such! elements!
requires!a!certain!level!of!selfXknowledge!and!reflection!on!the!part!of!the!individuals!developing!
and! implementing! the! strategy.! Researchers! in! this! field,! however,! argue! that! interpretative!
elements! can! both! help! and! hinder! strategic! change! and! successful! strategies! take! these!
powerful!but!hard!to!manage!forces!into!consideration.!!
!
1.5! Contents!of!the!Module!!
!
This! module! is! structured! around! 8! weekly! topics! (See( table( 1.1).! Each! week,! you! will! be!
introduced! to! a! different! topic! involved! in! strategic! management! incorporated! in! a! CBL! miniX
case!and!a!matching!topic!lecture.!!
!
Vertically,!these!weekly!topics!are!rationally!designed!as!a!part!of!the!strategic!planning!process;!
from! analysing! a! company’s! internal! and! external! environment,! to! strategy! formulation! and!
implementing!strategies!in!a!corporate!business!unit!at!a!functional!level.!All!the!activities!taking!
place! in! the! module! are! structured! around! the! weekly! topics.! Students! should! focus! on! the!
weekly! topics! step! by! step,! but! also! link! these! topics! within! the! process.! At! the! end! of! the!
module,!you!should!be!able!to!connect!all!these!topics!and!understand!strategic!management!as!
a!whole.!!
!
Horizontally,! we! have! highlighted! several! important! themes! in! the! fast! developing! media! &!
entertainment! industry! with! some! emphasis! on! the! adaptive! and! interpretative! approaches! to!
strategic!management,!including:!!
!
!
Impacts!of!globalisation!!
•
Decentralisation!and!the!network!society!
•
Technological!development!and!media!convergence!!
•
Participatory!media!and!policy!challenges!!
•
Environmental,!social!and!economical!impacts!on!sustainability!!
•
Managing!innovation!and!creativity!
•
Strategic!leadership!and!entrepreneurship!!
•
Strategic!storytelling!
•
Managing!strategic!change!and!organizational!design!
•
!
These! themes! are! especially! chosen! and! designed! to! tackle! the! onXgoing! challenges! faced! in!
many! media! organizations! that! operate! in! the! networked! environment! with! longXterm!
perspectives.!!!!
!
Table'1.1'Contents'of'the'Module'and'weekly'topic'overview'
!
Week! Topic! Lecturer!
1! Strategic!overview!in!the!media!context!! Dr.!Ronald!Dikkeboom!
2! Internal!analysis!! Dr.!Ronald!Dikkeboom!
3! External!analysis! Marc!‘t!Hart!!
4! Strategy!formulation!and!strategic!choice'! Ronald!van!den!Berg!&!Matthijs!
Veenstra!
5! Business!&!corporate!level!strategy! Bastiaan!Nijbroek!!
6! Global!strategy!and!corporate!governance! Fan!Ding!&!Rick!Reyneveld!
7! Strategic!storytelling!and!strategic!implementation! Elger!Abbink!&!Marc!‘t!Hart!!
8! Managing!strategic!change!! Marc!‘t!Hart!!
!
Teaching! methods! include! selfXdirected! learning! in! weekly! miniXcase! studies! (CBL)! in! small!
groups;! research! focusing! on! game! simulation! research! studies,! business! economics! working!
with!corporate!finance;!a!studentXledXseminar!discussing!issues!that!many!media!companies!are!
facing!in!strategic!management;!and!film!reflection!aiming!to!indicate!the!importance!of!ethics!
and!business!responsibility.!!
!
!
!
Strategic)Management)in)the)Media)201632017)
1.6$ Competencies$and$learning$objectives$
Table&1.2&Translation&of&M&EM&competencies&to&learning&objectives&&
&
MEM$ Sub<competency$ Learning$objectives$ Teaching$ Assessment$
Competency$ Students(should(be(able(to:$ methods$
1.(Different( 1.1(The(successful(Media(and( Innovative$research<game$theory:( (Lecture( Essay(
types(of( Entertainment(manager(and( • Understand(the(principles(of(game(theory( ( (
research((or( entrepreneur(does(research(or(has( • Explain(what(is(meant(by(and(be(able(to(apply(the(prisoner’s(dilemma.(
has(it(done)(for( research(done(into((inter)national( Research$proposal:$ Workshops( Research(proposal(
concept,( trends,(concepts(and(products(in( • identify(and(define(a(problem(area(in(the(media(and(entertainment(industry;( assignment(
product(and( the(field(of((digital)(Media(and( • develop(an(appropriate(research(design;(
business( Entertainment,(and(analyses(the( • select(an(appropriate(methodology(and(techniques;(
development( results(for(his(/(her(organisation( • present(coherent(and(structured(arguments(for(the(research(design(choices;(
( (market(research).( • exercise(critical(judgement.(
( (
( 1.2(The(successful(Media(and( Desk$research<External$analysis$(competitive$analysis$week$3)$ CBL(( CBL:(PP(and(CR(
Entertainment(manager(and( Trends$and$developments$in$various$media$industries:$ Topic(lecture( (miniNcase(1,(3,(4(
entrepreneur(is(responsible(for( • Review(the(technique(of(analysing(competition(in(an(industry(environment;(i.e.(the(5N (week(3)( &7)(
ensuring(that(the(company(remains( forces(model(&(the(6(force(N(complementor;(and(understand(stages(in(the(industry( Case(analysis( Seminar(
up(to(date(on(and(deals(with(onN life(cycle.(( lectures(1&2( presentation((
going(technological(developments( • Describe(trends(&(development,(and(give(strategic(recommendations(on(the( Student(Led( Case(report(1,2&3(
and(substantive(developments.( following(industries:(animation(industry((miniNcase(1);(Smartphone(industry((miniN Seminar((SLS)(( Progress(test(
case(3);(social(network(industry((miniNcase(4);(news(broadcasting(industry((miniN
case(7)(
• Discuss(communication(media(industry(transactions(in(participatory/peer(media.((
Desk$research<$External$analysis$(macro$environment$analysis$week$3)$ CBL(Topic( CBL:(PP(and(CR(
• Explain(the(nature(and(characteristics(of(strategic(management(in(the(media(context.(( lecture((week( (miniNcase(4,(5,(6,(7&(
• Summarise(the(impact(of(trends(and(changes(in(the(macro(environment((PESTEL)(on( 1&3)( 8)(
a(company,(and(develop(scenarios(accordingly.(( Case(analysis( Seminar(
• Determine(a(company’s(opportunities(and(threats(by(an(external(analysis.(( lectures(1&2( presentation((
• Discuss(the(advantages(and(risks(involved(as(a(firstNmover(in(the(media(industry.(( Student(Led( Case(report(1,2&3(
• Diagnose(the(innovators’(dilemma.(( Seminar((SLS)(( Progress(test(
(
!
4.(Develops( 4.1(The(successful(Media(and( Strategic$planning$process$(week$1)$ CBL(( CBL:(PP(and(CR(

and( Entertainment(manager(and( • Analyse(a(company’s(strategic(environment(and(process,(formulate(and(develop( Introduction( (miniNcases(1)(
implements(a( entrepreneur(compiles(a(complete,( suitable(strategies(for(the(near(future((3N5(years),(and(recommend(a(strategic( lecture(Topic( Case(report(1,2&3(
strategic( consistent(and(feasible((strategic)( implementation(plan(to(the(company.( lecture((week(1)( Seminar(
business(plan.( business(plan(and(a((strategic)( • Activate(prior(knowledge(gained(in(years(1(&(2,(and(apply(management(related( Case(lecture( presentation((
( marketing(plan(and(implements(the( theoretical(models(to(realistic(case(companies(in(the(media(&(entertainment( (1,2&3)( Progress(test((
( plan(in(the(Media(and( industry.(( Student(Led(
( Entertainment(industry.( • Define(the(basic(terms(of(strategic(management.( Seminar((SLS)((
• Describe(the(steps(of(a(strategic(development(process.((
• Explain(the(nature(and(characteristics(of(strategic(management(in(the(media(context.((
Strategy$formulation$and$choices$(week$4)$ CBL(( CBL:(PP(and(CR(
• Define(competitive(positioning(and(explain(the(tradeNoffs(between(differentiation,( Topic(lectures( (miniNcases(4)(
cost,(and(pricing(options.(( (week(4.1(&(4.2)( Case(report(1&3(
• Specify(a(company’s(SBU((strategic(business(unit)(strategies(and(purposes;( Student(Led( Seminar(
differentiate(businessNlevel(and(corporate(level(strategies.(( Seminar((SLS)(( presentation((
• Formulate(strategies(by(diagramming(SWOTN(TOWS(matrix.(( Progress(test((
• Understand(strategic(choices(made(and(how(strategies(are(evaluated.((
Business$level$&$corporate$level$strategy$(week$5)( CBL(( CBL:(PP(and(CR(
• Explain(how(a(company(can(navigate(through(the(life(cycle(to(maturity.( Topic(lectures( (miniNcases(5)(
• Describe(how(corporateNlevel(strategy(can(strengthen(or(destroy(a(company’s( (week(5)( Case(report(1&2((
business(model(and(businessNlevel(strategies.(( Student(Led( Seminar(
• Recognise(growth(strategy(as(practised(in(media(companies.( Seminar((SLS)(( presentation((
• Explain(the(concept(of(horizontal(&(vertical(integration(and(related(and(unrelated( Progress(test((
diversification(in(the(media(industry,(and(differentiate(the(internal(value(chain(and(
the(industry(value(chain.((
Strategic$implementation$(week$7)$ CBL(( CBL:(PP(and(CR(
• Translate(chosen(strategies(into(actions.(( Case(lecture(2( (miniNcase(7)(
• Understand(how(organisational(design(requires(strategic(managers(to(select(the(right( Topic(lecture( Case(report(3(
combination(of(organisational(structure,(control,(and(culture.(( (week(8)( Seminar(
• Discuss(how(effective(organisational(design(enables(a(company(to(increase(product( Student(Led( presentation((
differentiation,(reduce(its(cost(structure,(and(build(competitive(advantage.(( Seminar((SLS)(( Progress(test((
Business$Economics$( BE(Workshop(( BE(Homework((
• Use(company(and(market(data(to(estimate(the(net(benefit(or(cost(of(a(strategic( ( BE(assignment(
business(opportunity,(as(well(as(to(choose(among(or(prioritize(various(opportunities( (
when(finances(are(limited.(
(
4.2(The(successful(Media(and( Internal$analysis$(value$creation$&$competitive$advantages$week$2)$ CBL(( CBL:(PP(and(CR(
Entertainment(manager(and( • Identify(competitive(advantages(and(understand(the(link(between(competitive( Case(lecture(1(( (miniNcase(2)(
entrepreneur(in(a(Media(and( advantage(and(profitability.(( Topic(lecture( Case(report(1,2&3(
Entertainment(company(compiles( • Explain(the(concept(of(value(creation(by(analysing(the(value(chain(in(the(media( (week(2)( Seminar(
personnel(plans(and(resource(plans( industry,(and(discuss(the(concept(of(sustaining(distinctive(competitive(advantages.(( Student(Led( presentation((
that(match(the(environment(that(is( • Discuss(how(to(achieve(efficiency(through(functionalNlevel(strategies.(( Seminar((SLS)(( Progress(test((
characterized(by(the(management( • Determine(a(company’s(strengths(and(weaknesses(by(an(internal(analysis.(& (
!
of(creative(processes.(
4.3(The(successful(Media(and( Business$responsibility$(global$strategy$&$corporate$governance$week$6;$ CBL(( CBL:(PP(and(CR(
Entertainment(manager(and( sustainability$in$managing$strategic$change$week$8)(( Topic(lecture( (miniNcase(6(&(8(
entrepreneur(does(business(in(a( • Analyse(the(role(of(stakeholders(and(the(importance(of(corporate(governance.(( (week(6.1)( including(a(roleNplay(
sustainable(and(socially(responsible( • Identify(the(main(ethical(issues(that(arise(in(business(and(the(causes(of(unethical( Film(reflection( on(stakeholder(
way.( behaviour.(( 1&2(( analysis)((
• Raise(awareness(of(environmental(issues(and(business(responsibility(in(strategic( Student(Led( Case(report(2((Film(
management(and(understand(the(importance(of(doing(business(in(ethical(and( Seminar((SLS)(( reflection(2)(
sustainable(ways.(& Seminar(
presentation((
(
5.(Manages( The(successful(Media(and( Global$strategy$(encounter$culture$differences$when$entering$foreign$markets$ CBL(( CBL:(PP(and(CR(
( Entertainment(manager(and( week$6)( Topic(lecture( (miniNcase(6)(
( entrepreneur(directs(people,(a( • Understand(the(process(of(globalisation(and(its(impacts(on(a(company’s(strategic( (week(6.2)(( Case(report(2(
( process,(a(project,(a(department(or( choices.(( Student(Led( Seminar(
a(company(in(the(knowledge(that( • Discuss(the(motives(for(expanding(internationally.(( Seminar((SLS)(( presentation((
technological(renewal,(and(high( • Review(the(different(global(strategies(employed(by(media(companies.( ( Progress(test((
creativity(can(bring(about( • Explain(the(pros(and(cons(of(different(modes(of(ownership(for(entering(foreign( (
competitive(advantages(and( markets.(( (
demand(specific(forms(of(direction.( • Recognise(the(intercultural(aspects(that(media(companies(face(when(expanding(
This(entails(that(she/he:( globally.((
5.4(Manages(collaborating( • Work(and(communicate(effectively(with(national(and(international(students.((
disciplines,(crossNcultural( (
personnel(and(different(
professionals,(all(with(their(own(
particularities.(
5.5(Compiles((quality)( Managing$strategic$change$(week$8)$ CBL(( CBL:(PP(and(CR(
improvement(plans,(and(develops,( • Explain(the(importance(of(strategic(leadership(and(organisational(culture(in(strategic( Topic(lecture( (miniNcase(8)(
implements(and(evaluates(a(change( management.(( (week(8)(( Case(report(2&(
process(based(on(the(plan.( • Express(possible(ways(of(managing(strategic(change,(relating(to(restructuring(and( Student(Led( module(test(
reengineering.(( Seminar((SLS)(( Seminar(
• Relate(change(management(to(the(fast(changing(media(industry(and(to(the(challenges( presentation((
organisations(face.(( Progress(test(
• Discuss(how(strategic(storytelling(emerges(with(strategic(implementation(and(
managing(strategic(change.((
6.(Does( 6.1(The(successful(Media(and( Business$Economics$(week$1<8)$ BE(workshop(( BE(assignment(
financial( Entertainment(manager(and( • Explain(the(types(of(business(decisions(that(are(made(in(the(capital(budgeting( Introduction( Progress(test(
analyses(and( entrepreneur(compiles(a(budget( process;( lecture( (
financial( estimate(and(financial((project)( • Demonstrate(an(understanding(of(the(concept(of(the(time)value)of)money;( (
accounting( report(that(fulfils(the(basic( • Calculate(the(present)value(and(future)value(of(a(single(sum(of(money(or(a(stream(of( (
( principles(of(business(economics( equal(payments((i.e.,(annuities);(
( for(a(Media(and(Entertainment( • Explain(the(Net)Present)Value((NPV)(method(of(evaluating(the(attractiveness(of(a(
( project(or(company((national(and( business(opportunity;(
!
international).( • Explain(the(key(differences(between(debt(financing(and(equity(financing;(
• Explain(the(term(cost)of)capital(and(its(relevance(for(firm(strategy;(
• Estimate(the(cost(of(debt(financing(for(a(single(firm;(
• Demonstrate(an(understanding(of(the(Capital)Asset)Pricing)Model((CAPM);(
• Estimate(the(cost(of(equity(financing(for(a(single(firm(by(applying(the(CAPM;(
• Demonstrate(an(understanding(of(the(weighted3average)cost)of)capital((WACC);(
• Calculate(the(WACC(for(a(single(firm;(
• Understand(the(difference(between(the(arithmetic(mean(and(geometric(mean;(
• Apply(the(geometric(mean(in(making(financial(calculations;(
• Explain(the(most(salient(financial(considerations(related(to(a(merger(or(acquisition;((
• Explain(the(most(salient(financial(considerations(related(to(a(divestiture;(
• Demonstrate(proficiency(in(using(the(software(program(Excel(to(apply(relevant(
mathematical(techniques(in(manipulating,(describing(and(presenting(data;(
• Determine(the(optimal(capital(structure(of(the(firm(that(minimizes(the(financing(costs(
associated(with(firm(strategy.(
9.(Social(and( 9.1(Collaborates(in(a(professional( Strategic$implementation$&$managing$strategic$change$$ CBL(( CBL:(PP(and(CR(
communication( environment(and(thinks(along( Strategic$storytelling$(week$7&8)$$ Topic(lecture( (miniNcase(7&8)(
competency( about(goals(and(the(setup(of(the( • Discuss(how(strategic(storytelling(emerges(with(strategic(implementation(and( (week(7(&8)( Seminar(
( organisation;(from(which( managing(strategic(change.(( Student(Led( presentation((
( requirements(are(derived(that(are( • Practise(social(learning(and(social(production(by(participating(in(the(Facebook(study( Seminar((SLS)(( (
related(to(the(following( group.( Facebook(study(
characteristics:(multidisciplinary( • Practise(interpersonal(communication(skills.(( group:(Strategic(
and(interdisciplinary,( • Teach(as(a(process(of(learning.( management(in(
customer(orientation,(fellowship,( • Provide(meaningful(feedback(to(colleagues(.(& media(
leadership((the(social(aspect(of(the( Case(analysis(
competency).( lecture(2&3(
12.(Problem( 12.1(When(confronted(with(new( Strategic$management$in$the$media$(week$1<8)( CBL(( CBL:(PP(and(CR(
solving(skills(&( situations,(our(students(are(able(to( • Practise(the(CBL(5Nstep(method(in(the(correct(manner.(( Topic(lecture( (miniNcase(1N8)(
inventiveness( analyse(them(and(find(alternative( • Work(as(a(group(to(solve(common(problems(by(carrying(out(desk(research.(( (week(1)( Case(report(1,2&(
( solutions(or(potential(solutions.( • Comprehend(required(readings(from(literature.( module(test(
( • Use(reliable(sources(to(approach(learning(goals.(( (
( • Summarise(answers(to(the(learning(goals(and(put(them(in(writing.(( (
( • Apply(management(theories(to(media(related(miniNcase(companies.(( (
( • Define(alternative(solutions(and(answer(the(problem(statement.(( (
• Understand(the(synergy(of(sharing.((
• Deal(with(conflicts(in(a(group.((
• Take(various(roles(in(the(group(process:(chairperson,(minuteNtaker,(board(writer(and(
group(member.((
• Provide(meaningful(and(reflective(feedback(to(peers(and(one(self.((
!
1.7$ Module$objectives$
!
The!overall!objective!of!the!module!(strategic!management!in!the!media)!is!to!give!students!an!
overall! insight! into! strategic! management! in! the! media! and! entertainment! industry.! After!
completing! this! 3rd! year! compulsory! module,! students! should! be! able! to! analyse! a! company’s!
strategic!environment!and!process,!formulate!and!develop!suitable!strategies!for!the!near!future!
(3?5! years),! and! recommend! a! strategic! implementation! plan! to! the! company.! Students! should!
be! able! to! activate! prior! knowledge! gained! in! years! 1! &! 2,! and! apply! management! related!
theoretical!models!to!realistic!case!companies!in!the!media!&!entertainment!industry.!!
!
Weekly$objectives$
!
After!following!each!weekly!topic,!students!should!be!able!to:!
!
Week!1:!Strategic!overview!in!the!media!context!
• Define!the!basic!terms!of!strategic!management.!!
• Describe!the!steps!of!a!strategic!development!process.!!
• Explain!the!nature!and!characteristics!of!strategic!management!in!the!media!context.!!
!
Week!2:!Internal!analysis!
• Identify!competitive!advantages!and!understand!the!link!between!competitive!advantage!
and!profitability.!!
• Explain!the!concept!of!value!creation!by!analysing!the!value!chain!in!the!media!industry,!
and!discuss!the!concept!of!sustaining!distinctive!competitive!advantages.!!
• Discuss! how! to! achieve! quality,! efficiency,! innovation! and! customer! responsiveness!
through!functional?level!strategies.!!
• Determine!a!company’s!strengths!and!weaknesses!by!an!internal!analysis.!!
)
Week!3:!External!analysis!
• Apply!strategic!implications!of!stages!in!the!industry!life!cycle.!!
• Review! the! technique! of! analysing! competition! in! an! industry! environment;! i.e.! the! 5?
forces!model.!
• Summarise! the! impact! of! trends! and! changes! in! the! macro! environment! (PESTEL)! on! a!
company,!and!develop!scenarios!accordingly.!!
• Determine!a!company’s!opportunities!and!threats!by!an!external!analysis.!!
!
Week!4:!Strategy!formulation!and!strategic!choice!!
• Apply!competitive!positioning!and!explain!the!trade?offs!between!differentiation,!cost,!and!
pricing!options.!!
• Understand!strategic!choices!made!and!how!strategies!are!evaluated.!!
• Explain!how!a!company!can!navigate!through!the!life!cycle!to!maturity.!!
• Formulate!strategies!by!diagramming!SWOT?TOWS!matrix.!!
• Discuss!the!advantages!and!risks!involved!as!a!first?mover!in!the!media!industry.!!
!
Week!5:!Business!level!&!corporate!level!strategy!
• Diagnose!innovators’!dilemma.!!
• Specify! a! company’s! SBU! (strategic! business! unit)! strategies! and! purposes;! differentiate!
business?level!and!corporate!level!strategies.!!
• Recognise!growth!strategy!as!practised!in!media!companies.!!
• Describe! how! corporate?level! strategy! can! strengthen! or! destroy! a! company’s! business!
model!and!business?level!strategies.!!
• Explain!horizontal!&!vertical!integration,!related!&!unrelated!diversification!and!strategic!
outsourcing!in!the!media!industry,!and!differentiate!between!the!internal!value!chain!and!
the!industry!value!chain.!!
!
Week!6:!Global!strategy!and!corporate!governance!
• Understand!the!process!of!globalisation!and!its!impact!on!a!company’s!strategy.!!
• Discuss!the!motives!for!expanding!internationally.!
• Review!the!different!global!strategies!employed!by!media!companies.!!
• Explain!the!pros!and!cons!of!different!modes!of!ownership!for!entering!foreign!markets.!!
• Analyse!the!role!of!stakeholders!and!the!importance!of!corporate!governance.!!
• Identify! the! main! ethical! issues! that! arise! in! business! and! the! causes! of! unethical!
behaviour.!!
• Recognise!the!intercultural!aspects!that!media!companies!face!when!expanding!globally.!!
!
Week!7:!Strategic!implementation!
• Translate!chosen!strategies!into!action.!!
• Understand! how! organisational! design! requires! strategic! managers! to! select! the! right!
combination!of!organisational!structure,!control,!and!culture.!!
• Discuss! how! effective! organisational! design! enables! a! company! to! increase! product!
differentiation,!reduce!its!cost!structure,!and!build!competitive!advantage.!!
• Discuss!communication!media!industry!transactions!in!participatory/peer!media.!!
!
Week!8:!Managing!strategic!change!
• Discuss! how! strategic! storytelling! emerges! with! strategic! implementation! and! managing!
strategic!change.!!
• Explain! the! importance! of! strategic! leadership! and! organisational! design! in! strategic!
management.!!
• Express! possible! ways! of! managing! strategic! change,! relating! to! restructuring! and!
reengineering.!!
• Relate! change! management! to! the! fast! changing! media! industry! and! to! the! challenges!
organisations!face.!!
• Discuss!the!concept!of!sustainability!and!how!to!implement!it!in!a!media!company.!
• Link!up!previous!weeks’!knowledge!and!draw!conclusions.!!
!
$
!
!
!
$
$
$
$
$
$
$
$
$
$
2 Structure$and$Assessment$
$2.1$ Module$design$
This! module! is! structured! around! 8! weekly! topics,! which! form! the! strategic! planning! process!
mentioned!in!the!module!rationale.!To!complete!the!module!successfully,!students!will!follow!a!
journey! that! takes! 9! weeks! of! full?time! effort.! Each! week,! you! will! be! introduced! to! a! different!
topic! involved! in! strategic! management! incorporated! into! a! CBL! mini?case! and! a! matching!
weekly!topic!lecture!to!engage!knowledge!and!apply!management!theories!and!models.!Several!
teaching!and!assessment!methods!are!involved!in!the!module!based!on!both!individual!and!team!
performances,! which! require! hardworking,! knowledge! sharing,! research,! comprehensive! and!
analytical!skills.!The!module!has!12!European!Credits!(ECs).!It!is!only!possible!to!obtain!this!total!
of!12!ECs!in!a!pass!or!fail!construction.!The!workload!encompasses!approximately!336!(1EC=28!
hours! of! study! load)! learning! hours,! which! combine! both! classroom! teaching! hours! (contact!
hours)!and!self?study!hours.!!
!
The! educational! activities! in! table! 2.1! are! further! explained! separately! in! the! latter! sections! of!
this!module!book.!Each!weekly!topic!is!tackled!by!way!of!a!mini?case!study!during!CBL,!and!the!
module! assignment! includes! 3! case! analysis! reports! connected! to! 2! individual! film! reflections!
and! an! individual! organisational! design! report;! a! BE! assignment,! a! research! assignment! and! a!
student?led!seminar!presentation.!!
!
Table!2.1!Educational!activities!!
!
Educational$Methods$ Form$ Subjects$
CBL!! Self?directed!small!group!
Extra:!1!debate,!1!role?play! learning!! Mini!cases!+!theory!!
Topic!lecture!! Lectures! Topic!related!theory!
Case!analysis!lectures!1,!2!and!3! Analysis!lecture/workshop! Case!reports!and!module!test!support!
Individual!reflection!essay! Documentaries!! Business!responsibilities!!
Student?led!seminar! Interactive!lecture! Topic!related!presentation!&!discussion!!
Business!economics!! Lecture/workshop! Corporate!&!investment!finance!
Research! Lecture/Workshop! Writing!a!research!proposal!
Facebook!discussion!! Social!media! Knowledge!sharing!and!networking!
!
Table! 2.2! (next! page)! maps! out! the! entire! module! organisation! and! workload! spending! the!
module!duration!of!9!weeks.!The!weightings!allocated!to!each!educational!activity!are!based!on!
workloads! and! importance,! which! include! both! contact! hours! and! self?study! hours.! In! total,!
students! should! spend! approximately! 336! hours! studying! in! order! to! fulfil! the! 12! EC!
requirements.! The! teaching! methods! were! carefully! designed! and! selected! based! on! the!
characteristics! and! competencies! of! students! required! at! MEM,! Stenden! University! of! Applied!
Science.!The!contents!are!designed!for!3rd!year!students!who!have!sufficient!prior!knowledge!of!
management!studies!in!the!media!&!entertainment!field.!This!module!requires!students!to!apply!
theoretical! knowledge! to! realistic! cases! that! have! been! chosen! from! a! broad! range! of! media!
sectors.! Furthermore,! students! must! be! aware! of! the! on?going! challenges! involved! in! both! the!
macro! and! industry! environment,! and! they! should! aim! to! complete! the! future! (2?5! years)!
strategic! decision?making! of! organisations.! Hence! many! relevant! themes! (see! chapter! 1.3)! are!
blended!into!the!module!design,!to!prepare!students!adequately!for!future!job!challenges!in!the!
field!of!media!&!entertainment!management.!!
!
The! following! table! shows! an! overview! of! the! number! of! contact! (classroom?teaching)! hours!
taking! place! and! self?study! hours! required! during! the! 9! weeks,! and! 104! classroom?teaching!
hours!(45!minutes!per!hour)!in!total!planned!in!the!module.!!
!
!
Table&2.2&Module&organisation&and&total&workload&&
!
SCH="Student"Contact"Hour"(45"minutes)" " ! ! ! "
Self="Self"Study"Hour"(60"minutes)" " " " " "
"
The" total" 109" contact" hours" (45" minutes" based)" are" planned" over" the" 9" weeks" of" the" module." All" the" classroomFteaching" activities" are" shown" on" your"
schedule,"and"it"is"essential"for"you"to"attend"these"classes"in"order"to"deepen"the"knowledge"required"to"pass"the"module.""
Detailed"information"about"these"classroomFteaching"hours"is"given"in"the"following"weekFbyFweek"table!
"
2.2# Contact#hours#
Table&2.3&Classroom&teaching&activities&
Code% Activity! Duration# Topic! Lecturer!

45#min.#
Week#1#
LCINTR! Introduction!lecture!! 1! Introduction!to!the!module! Marc!‘t!Hart!!
LCWK1! Weekly!topic!lecture!1! 2! Strategic!management!in!the! Ronald!Dikkeboom!
media! !
SLS! StudentCled!seminar!! 1! Introduction!to!SLS! Marc!‘t!Hart!
LCRES! Research!Lecture!! 1! Introduction! Floris!Hegger!
LCBE! Business!Economics! 2! Corporate!Finance!! Harro!Prins!!
lecture!
CBL!1! Starting!up!miniCcase!1! 3! Brown!Bag!Films!! Tutor!
CBL!2! Rounding!off!miniCcase!1! 2! Brown!Bag!Films!! Tutor!
Total# # 12# ! !
Week#2#
LCWK2! Weekly!topic!lecture!2! 2! Internal!analysis! Ronald!Dikkeboom!!
SLS! StudentCled!seminar!! 2! Students’!seminars! Ronald!Dikkeboom!&!
Marc!‘t!Hart!!
WSBE! Business!Economics! 2! Corporate!Finance!! Harro!Prins!!
workshop!1!
CASEAN! Case!analysis!lecture!1! 2! The!rise!and!fall!of! Marc!‘t!Hart!
Blockbuster!
WRRES! Workshop!research!! 2! Writing!a!research!proposal! Research!tutor!
CBL!1! Starting!up!miniCcase!2! 2! MTV! Tutor!
CBL!2! Rounding!off!miniCcase!2! 3! MTV! Tutor!
+!Debate!
Total# # 15# ! !
Week#3#
LCWK3! Weekly!topic!lecture!3! 2! External!analysis! Marc!‘t!Hart!!
Marc!‘t!Hart!!
workshop!2!
CBL!1! Starting!up!miniCcase!3! 2! Smartphone!industry! Tutor!
CBL!2! Rounding!off!miniCcase!3! 2! Smartphone!industry! Tutor!
Total# # 10# ! !
Week#4#
LCWK4! Weekly!topic!lecture!4.1! 2! Strategy!formulation!and! Ronald!van!den!Berg!!
strategic!choice!
LCPSY! Weekly!topic!lecture!4.2! 2! Strategy!formation!as!a! Matthijs!Veenstra!
mental!process!
Marc!‘t!Hart!!
WRRES! Workshop!research! 2! Writing!a!research!proposal! Research!tutor!!
workshop!3!
CBL!1! Starting!up!miniCcase!4! 2! Friendster!and!Facebook! Tutor!
CBL!2! Rounding!off!miniCcase!4! 2! Friendster!and!Facebook! Tutor!
Total# # 14# ! !
Code! Activity! Duration# Topic! Lecturer!

45#min.#
Week#5#
LCWK5! Weekly!topic!lecture!5! 2! Business!&!Corporate!level! Bastiaan!Nijbroek!
Strategy!
Marc!‘t!Hart!!
CASEAN! Case!analysis!lecture!2! 2! Netflix!concurs!the!world! Fan!Ding!
CBL!1! Starting!up!miniCcase!5! 2! Corporate!strategy!choices! Tutor!
for!Axel!Springer!
CBL!2! Rounding!off!miniCcase! 2! Corporate!strategy!choices! Tutor!
5! for!Axel!Springer#
Total# # 12# ! !
Week#6#
LECWK6! Weekly!topic!lecture! 2! Global!strategy!&!Corporate! Fan!Ding!
6.1! Governance!
LECLEG! Weekly!topic!lecture! 2! Legal!issues!concerning! Rick!Reyneveld!
6.2! strategic!management!
Marc!‘t!Hart!!
workshop!4!
CBL!1! Starting!up!miniCcase!6! 2! MTV!Networks:!A!Global! Tutor!
Brand!Goes!Local!
CBL!2! Rounding!off!miniCcase! 3! MTV!Networks:!A!Global! Tutor!
6!+!RoleCplay! Brand!Goes!Local!
Total# # 13# ! !
Week#7#
LECWK7! Weekly!topic!lecture! 2! Strategic!Implementation! Marc!‘t!Hart!
7.1!
LECSTOR! Weekly!topic!lecture! 2! Strategic!Storytelling! Elger!Abbink!
7.2!
CASEAN! Case!Analysis!3! 2! A!Googler’s!challenge!! Fan!Ding!
SLS! StudentCled!seminar!! 2! ! Ronald!Dikkeboom!&!
Marc!‘t!Hart!!
workshop!5!
CBL!1! Starting!up!miniCcase!7! 2! CNN!and!its!implementations!! Tutor!
CBL!2! Rounding!off!miniCcase! 2! CNN!and!its!implementations!! Tutor!
7!
Total# # 12# ! !
Week#8#
LCWK!8! Weekly!topic!lecture!8! 2! Managing!strategic!change! Marc!‘t!Hart!!
Marc!‘t!Hart!!
workshop!6!
CBL!1! Starting!up!miniCcase!8! 2! How!Adobe!systems!benefit! Tutor!
from!“being!green”!
CBL!2! Rounding!off!miniCcase! 2! How!Adobe!systems!benefit! Tutor!
8! from!“being!green”!
Total# # 12# ! !
! #
2.3# Compulsory#reading#
We!have!selected!2!compulsory!textbooks!for!this!module,!and!you!can!purchase!these!books!at!
the!Study!Store!inside!NHL!or!borrow!them!from!the!Stenden!library:!!
!
1) Jones! &! Hill.! (2010).!Theory) of) Strategic) Management.! (9th!Ed.).! SouthCWestern,! Cengage!
Learning.!UK!!
2) Küng,!L.!(2008).!Strategic)Management)in)the)Media:)From)Theory)to)Practice.!SAGE.!London!
!
Not!compulsory,!but!certainly!a!good!additional!source,!especially!for!week!4,!7!and!8:!!
3) Johnson,!Scholes!&Whittington.!(2011).!Exploring)Strategy,!Text!and!Cases.!9th!Ed.,!Prentice!
Hall.!Harlow!
!
The!following!table!indicates!the!weekly!topics!and!required!reading.!
&
Table&2.4&Overview&of&chapters&in&the&required&literature&&
)
Week# Topic# Jones#&#Hill# Küng# Johnson#et#al#
1! Strategic!overview!in!the!media!context!! Ch.!1! Ch.!1,!5! Ch.!1!
2! Internal!analysis!! Ch.!3,!4! Ch.!2! Ch.!3!
3! External!analysis! Ch.!2,!7! Ch.!3,!4,!5,!6! Ch.!2!
4! Strategy!formulation!and!strategic!choice&! Ch.!5,!6,!7! Ch.!3,!5,!7! Ch.!10!
5! Business!level!&!corporate!level!strategy! Ch.!6,!9,!10! Ch.!4! Ch.!6,!7!
6! Global!strategy!and!corporate!governance! Ch.!8,!10,!11! Ch.!9! Ch.!4,!8!
7! Strategic!implementation! Ch.!11,!12! Ch.!8,!9!! Ch.!12,!13!
8! Managing!strategic!change!! Ch.!13! Ch.!10,!11! Ch.!14!
!
2.4# Assessment#and#deadlines#
To! pass! the! module! successfully,! you! must! obtain! a! minimum! total! grade! of! 5.5,! which! is! a!
compilation! of! grades! from! all! the! assessed! module! components! measured! according! to! the!
weightings.!The!assessment!is!carried!out!along!the!lines!of!an!assignment!grading!system!with!
grades! from! 1! to! 10.! The! norm! of! 5.5! is! applicable! to! each! part! of! the! module! assignment,! but!
there! are! two! special! components! that! require! a! minimum! grade! of! 5.5,! including! BE! and!
Research.!If!your!total!grade!for!the!module!on!Progress!comes!to!5.5!or!higher,!and!at!the!same!
time!your!grades!of!both!BE!and!research!are!higher!than!5.5,!then!you!have!passed!the!module!
and!will!obtain!the!12!ECs.!Detailed!assessment!criteria!are!explained!further!in!each!section!of!
the! module! component.! The! ratio! of! the! passing! norm! is! defined! according! to! MEM! faculty!
standards.! Each! component! of! the! assessment! product! (see! table! 2.5)! is! weighted! for! its!
importance!and!workload.!Your!total!grade!is!derived!from!the!sum!of!subC!grades!received!for!
each!component!and!its!weightings.!!
!
Table&2.5&Module&assessment&overview&
!
Assessment#Methods# Weighting# Grades# Norm# Minimum# Form# Contact#Person#
CBL—PP! 15%! 1—10! 5.5! CC! Individual! Tutor!
CBL—CR! 25%! 1—10! 5.5! CC! Individual! Tutor!
Case!report!1! 2%+8%=10%! 1—10! 5.5! CC! Individual!/Team! Marc!‘t!Hart/!Fan!Ding!
Case!report!2! 2%+8%=10%! 1—10! 5.5! CC! Individual!/Team! Marc!‘t!Hart/!Fan!Ding!
Case!3!Module!test! 10%! 1—10! 5.5! CC! Individual! Marc!‘t!Hart/!Fan!Ding!
Marc!‘t!Hart/!Ronald!
StudentCled!seminar! 3%+5%=8%! 1—10! 5.5! CC! Individual/!Team!
Dikkeboom!
Business!economics! 3%+9%=12%! 1—10! 5.5! 5.5! Individual/Team! Harro!Prins!
Research! 2%+8%=10%! 1—10! 5.5! 5.5! Individual/Team! Floris!Hegger!
Total# 100%# 10# 5.5# # # #
!
The! module! assessment! involves! both! individual!
(52%)! and! teamwork! (50%)! performances! and!
outcomes.! A! team! should! consist! of! 3C4! students,!
and! the! same! team! works! on! various! activities! in!
the! module.! All! team! members! receive! a! common!
grade!for!all!team!products,!while!individual!efforts!
are!assessed!individually.!!
!
!
Business# economics# and# Research# have# a# minimum# score# of# 5.5.# If# your# grade# is# lower#
than#this#minimum#score#you#will#not#pass#the#module.!!
! Points# Grade#
CaseCbased! learning! (CBL),! business! economics! (BE)! and! the! studentCled! 130! 10.0!
seminar!(SLS)!are!exceptional!components!in!the!assessment!system!because! 120! 8.9!
the!participation!of!individuals!is!assessed.! 110! 7.8!
! 100! 6.6!
CBL!is!measured!by!a!5Cpoint!system!(in!total!130!points!=!40%!weighting),! 97.5! 5.5!
which!is!then!transferred!into!a!matching!grade.!The!table!on!the!right!gives! 80! 4.9!
an! overview! of! the! measurement! transformation.! CBL! homework! must! be! 70! 4.4!
completed!and!handed!in!individually!on!time.! 60! 3.8!
! 50! 3.3!
The!total!12%!weightings!of!BE!is!segmented!into!two!parts,!3%!of!weighting! 40! 2.7!
is! transferred! to! participation! and! individual! homework,! the! other! 9%! is! 30! 2.1!
allocated! to! the! written! BE! assignment.! The! same! applies! to! SLS,! but! 3%! is! 20! 1.6!
assigned!to!participation!and!5%!to!the!presentation!performance.!! 10! 1.0!
! Attendance! Grade#
The! participation! part! is! measured! by! your! presence! at! 9C6! Attend!all!sessions! 10!
workshops!in!total!and!by!your!completed!BE!homework!during! Miss!1!session! 8!
Miss!2!sessions! 6!
the!module.!
Miss!3!sessions!or!more! 1!
!!
All! the! written! assignments! must! be! printed! out! and! handed! in! formally! at! the! Front! Desk!
located! inside! the! MEM! learning! company! (Room! 0.44)! at! Stenden! University! of! Applied!
Sciences.! Handing! in! too! late! has! the! serious! consequence! that! your! report! might! not! be!
considered!valid!for!assessment;!see!exam!regulation!details!in!the!MEM!study!guide!2012C13.!
Late! submission! of! the! digital! of! the! digital! version! of! the! report! on! the! Blackboard! is! also!
governed!by!the!same!consequence.!!
!
All!module!assignments!must!follow!the!standard!requirements!for!writing!skills!as!outlined!in!
the!MEM!study!guide.!Please!make!sure!that!you!write!down!your!names!with!relation!numbers,!
the!group!number!and!the!name!of!the!assessor!on!the!handing!in!sheet!at!the!Front!Desk.!The!
assessor!for!each!module!assignment!component!is!indicated!in!table!8.!!
!
The!assessment!of!work!that!is!handed!in!and!the!active!participation!of!Media!&!Entertainment!
students! is! governed! by! the! Module! Examination! Regulations! for! Media! &! Entertainment!
Management!(MTR),!which!are!set!out!in!the!Student!Charter.!You!are!expected!to!be!aware!of!
the! Module! Examination! Regulations.! Different! assessment! methods! are! used! to! assess! your!
performance! in! different! areas.! The! different! components! that! make! up! the! module! are! listed!
below.!The!assessment!methods!and!the!way!in!which!the!credits!are!distributed!are!described!
in! the! following! table! as! well.! The! table! shows! all! the! components! on! which! you! are! assessed!
during!the!module.!Each!component!has!a!certain!weight!for!your!final!grade.!!
!
& &
Table&8.&Written&module&assignment&deadlines&and&assessors&&
&
Assignments# Weighting# Week#&#Day# Time# Assessor#
Case!report!1! 10%! Week!5,!Friday! Check!at!LC! Tutor!
Case!report!2! 10%! Week!9,!Friday! Check!at!LC! Tutor!
10%! Week!8!or!9! Check!in!schedule! Marc!‘t!Hart!&!
Case!3,!module!test! Fan!Ding!
Research! 10%! Week!9,!Monday! Check!at!LC! Research!teacher!
Business!economics!! 9%! Week!9,!Monday! Check!at!LC! Harro!Prins!
Total# 49%# # # #
2.5# Resits#
Once! the! module! results! are! published! officially! on! Progress,! and! you! notice! that! your! total!
module!grade!is!lower!than!the!norm!of!5.5,!or!that!your!grades!for!the!BE!assignment!or/and!
the!research!assignment!are!below!the!minimum!requirement!of!a!5.5,!then!you!have!failed!the!
module.!!
!
If!you!have!not!passed!the!module,!you!can!choose!to!do!a!resit.!The!resit!of!the!module!consists!
of!a!oneCoff!resit!of!as!many!insufficient!components!as!you!wish!(with!the!exception!of!
presentations:!SLS).!Resit!assignments!will!be!made!available!on!ELO!within!two!weeks!after!the!
results!of!the!module!are!published,!but!no!later!than!Week!4!of!Module!Period!2.!You!can!
download!the!resit!assignments!you!need!and!complete!the!assignments.!Don’t!forget!to!collect!
the!feedback!from!your!assessor!!
!
If!you!have!scored!a!grade!below!5.5!on!a!component!of!the!module!assignment,!you!are!entitled!
to!follow!a!resit,!which!involves!improving!the!original!assignment.!This!resit!can!be!carried!out!
individually!or!with!the!assignment!team.!The!same!assessor!will!grade!the!resit!according!to!the!
original!assessment!form.!Please!contact!the!relevant!assessor(s)!if!you!have!failed!a!part!of!the!
assignment,! and! they! can! provide! you! with! feedback,! so! that! you! can! improve! the! assignment!
with!clear!instructions.!!
!
Please!contact!the!module!coordinator!if!you!have!further!questions!after!failing!the!module.!&
!
The# resit# assignments# must# be# submitted# at# least# six# weeks# after# the# grades# were#
published.!Assignments!that!are!handed!in!later!will!not!be!assessed!!Both!the!hardcopy!and!the!
digital!versions!of!the!assignments!have!to!be!handed!in!on!time!according!to!the!information!in!
the!module!book.!In!case!of!force)majeure)a!written!request!can!be!sent!to!the!Exam!Committee.!
!
If!you!still!did!not!pass!the!module!(component)!after!the!resit!attempt,!you!will!need!to!follow!
the!module!(component)!again!the!next!time!it!is!offered.!
!
For&more&information,&please&check&out&the&resit&rules&and&regulations&mentioned&in&the&TER&
of&MEM&faculty&via&iStenden.&
!
2.6# Communication#
2.6.1&Stenden&Blackboard&
You! can! find! this! course! on! the! Stenden! Blackboard.! Please! make! sure! to! enrol! in! the! course!
Strategic) Management) in) Media! yourself! at! the! beginning! of! the! module.! We! mainly! use! the!
Blackboard!as!a!means!of!communication,!for!handingCin!assignments!and!as!a!material!storage!
place;! changes! in! the! module! organisation! will! be! posted! under! course! announcements,! and!
study!support!materials!and!PPT!lecture!slides!will!be!added!to!folders!accordingly.!And!more!
importantly,!handing!in!a!digital!version!of!every!written!assignment!is!obligatory!for!plagiarism!
checks.! If! we! are! confident! that! plagiarism! appears! to! be! committed,! your! reports! will! be!
subjected!to!the!Exam!Committee!for!further!investigation.!!
!
You! must! upCload! a! digital! version! of! the! following! written! reports! on! Blackboard! in! the!
appropriate!folder!for!submissions:!
• Case!report!1!&!2!(both!team!and!individual!parts)!
• Individual!assignment!Case!3!
• BE!assignment!
• Research!assignment!
&
Failure&to&hand&in&either&the&printed&or&digital&version&of&these&assignments&will&result&in&no&
assessment.&
&
&
2.6.2&Teamwork&and&winLwin&Agreement&
&
As!a!3rd!year!student!at!Stenden!University,!you!may!already!have!experienced!some!difficulties!
in! coCoperating! with! your! fellow! assignmentCteam! members.! Teamwork! is! essential! for!
succeeding! in! completing! this! module.! How! can! we! ensure! the! quality! and! fairness! of! working!
together?!!
In!this!module,!you!are!highly!recommended!to!make!a!winCwin!agreement!with!the!assignment!
team!members.!Please!write!a!short!agreement!about!teamwork!and!add!your!signatures!at!the!
beginning! of! the! module.! Should! a! member! or! members! of! your! team! fail! to! keep! the! promise!
you!made!in!the!agreement,!you!can!request!a!meeting!with!the!module!coordinator!by!showing!
the!agreement!you!have!signed!before!week#4.!The!module!coordinator!will!decide!whether!the!
team!continues!to!work!together!or!is!split!up!in!the!following!weeks!of!the!module.!!
#
2.6.3&We&are&on&Facebook&
!
Yes,!you!can!find!us!on!Facebook!as!well.!The!impact!of!social!networks!has!been!a!popular!and!
yet!useful!topic!in!the!media.!Since!it!is!an!effective!tool!for!sharing,!networking!and!learning!and!
not!only!because!it!is!popular,!we!would!encourage!you!to!participate.!As!creators!of!a!Strategic)
Management)in)Media)study!group!on!Facebook,!we!wish!to!promote!a!sharing!and!collaborating!
environment!in!education.!Perhaps!this!activity!provides!you!with!an!opportunity!to!experience!
a!social!network!tool!that!would!also!be!appreciated!in!your!future!job.!It!is!also!where!play!is!a!
vehicle!for!learning.!!
#
You!are!not!obliged!to!join!the!discussion!group!on!Facebook;!it!is!100%!voluntary.!However,!we!
strongly! suggest! you! to! give! it! a! try! at! least,! so! that! we! can! liven! up! the! sharing! process! and!
discussions!with!your!participation.!We!will!share!study!material,!topics!related!to!the!module!
theme! and! interesting! links! with! you! daily.! Please! do! share! your! valuable! opinions! with! each!
other.!It!is!an!open!group,!so!you!can!join!the!group!on!Facebook!easily;!you!do!not!have!to!be!
friends!with!fellow!students!or!lecturers!in!this!case.!!
3 CBL#
3.1# Introduction#
Give)a)man)a)fish;)you)feed)him)for)the)day:)
Teach)him)how)to)fish)you)feed)him)for)lifetime.)
LLTraditional&expression&
)
Case!Based!Learning!(CBL)!is!another!fundamental!teaching!method!in!line!with!Problem!Based!
Learning!(PBL)!in!the!Media!&!Entertainment!Management!programme.!Both!methods!are!based!
on!a!selfCdirected!learning!process!in!a!small!groupCteaching!environment.!However,!instead!of!
following! the! 7Cstep! method! used! during! PBL! sessions,! you! will! be! introduced! to! a! 5Cstep!
method!in!order!to!work!through!several!case!studies!together!with!your!fellow!group!members.!
Similar! to! the! PBL! method,! the! members! of! the! group! assume! several! roles! during! each! CBL!
session,! including! a! chairperson,! a! secretary,! a! board! writer! and! group! members.! You! will! be!
working!with!several!realistic!miniCcases!in!the!field!of!media!and!entertainment!management!
the!contents!of!which!are!more!complex!than!the!problems!dealt!with!in!PBL.!!
!
3.2# Learning#objectives#
After!participating!and!completing!startCup!and!roundCoff!sessions!with!the!relevant!miniCcase!
of!the!week,!students!should!be!able!to:!
!
• Practise!the!CBL!5Cstep!method!in!the!correct!manner.!!
• Work!as!a!group!to!solve!problems!agreed!on!by!carrying!out!desk!research.!!
• Comprehend!the!required!reading.!
• Use!reliable!sources!to!approach!learning!goals.!!
• Summarise!answers!to!the!learning!goals!and!put!them!into!writing.!!
• Apply!management!theories!to!mediaCrelated!miniCcase!companies.!!
• Define!alternative!solutions!and!answer!the!problem!statement.!!
• Understand!the!synergy!of!sharing.!!
• Deal!with!conflicts!in!the!group.!!
• Assume!various!roles!in!the!group!process:!chairperson,!minuteCtaker,!board!writer!and!
group!member.!!
• Provide!meaningful!feedback!to!peers.!!
!
3.3# Assessment#and#evaluation##
!
The! aim! of! CBL! method! is! to! activate! students’! prior! knowledge! and! to! reflect! on! the!
comprehension! of! the! designated! theories,! which! are! then! applied! to! a! realClife! business!
situation! in! an! effective! analysis! process.! Students! should! be! able! to! follow! the! 5Cstep! method!
correctly! in! order! to! understand! the! overall! situation! of! the! case! company;! identify! main!
problems! addressed! in! the! case;! analyse! the! case! according! to! an! effective! analysis! method;!
define! alternative! solutions! for! the! case! study;! make! decisions! on! recommendations;! and!
implement!the!selected!course!of!action!in!a!creative!manner.!!
!
The! assessment! focuses! on! individual! performance,! which! is! demonstrated! by! active!
participation!and!selfCidentified!preparation!during!each!session.!A!thorough!desk!research!and!
study!of!the!relevant!literature!is!required!for!adequate!reporting.!The!evaluation!centres!on!the!
individual!development!of!professional!&!personal!skills!and!teamwork!process.!!
!
Following! CBL! session! 1! each! week,! the! tutor! will! evaluate! the! contents! of! reporting!
(homework).!At!the!end!of!each!session,!the!tutor!and!fellow!group!members!will!evaluate!each!
other’s!professional!&!personal!performances!and!skills.!!
&
3.3.1& General&Method&&
!
The! CBL! sessions! are! organised! around! the! weekly! topics.! There! are! 8! miniCcases! assigned! to!
each!weekly!theme/topic.!So,!you!will!be!introduced!every!week!to!a!different!miniCcase!related!
to!the!theme!of!that!week.!!
!
Two! CBL! sessions! are! planned! each! week,! so! in! total,! 16! sessions! are! included! in! the! module.!
You! startCup! the! appropriate! miniCcase! in! the! first! session! of! each! week,! giving! you! an!
opportunity! to! earn! a! maximum! of! 5! points! (PP)! per! session;! during! the! second! session! of! the!
week,!you!roundCoff!the!case,!allowing!you!to!gain!a!maximum!of!10!points!(CR).!These!10!points!
are!divided!into!2!parts:!5!points!are!assigned!to!homework,!and!the!other!5!for!how!well!and!
complete! each! member! does! the! reporting! in! class.! Preparation! is! required! for! every! CBL!
session,! and! besides! homework,! some! other! preparatory! activities! are! indicated! weekly!
depending!on!the!contents!of!CBL!for!each!miniCcase.!!
!
A!chairperson!will!lead!fellow!group!members!during!each!session.!The!tutor!will!merely!guide!
you!through!this!learning!process.!The!chairperson!in!the!startingCup!session!of!each!week!will!
lead!the!group!through!Steps!1!and!2,!and!the!chairperson!in!the!roundCoff!session!will!lead!the!
group! in! completing! Steps! 3,! 4! and! 5.! The! secretary! of! the! session! should! write! down! all! the!
steps! carried! out! in! the! CBL! minutes,! excluding! the! homework.! You! should! be! able! to! work!
independently!in!your!CBL!group!led!by!the!chairperson.!
!
You!can!gain!a!maximum!of!120!points!for!16CCBL!sessions!in!total!in!this!module,!including!40!
points!for!professional)&)personal)competencies!(PP),!and!80!for!reports!(CR).!Table!3.1!provides!
an!overview!of!the!way!in!which!credits!are!distributed!in!CBL.!
!
3.3.2&Points&structure&
&
You!will!participate!in!2!CBL!sessions!a!week,!adding!up!to!a!total!of!16!sessions!in!8!weeks.!You!
can!earn!a!maximum!of!5!points!for!starting!up!a!case,!a!maximum!of!10!points!for!completing!
the!case!study,!which!include!5!points!for!homework!and!another!5!points!for!participation!in!
class.! An! extra! session! (1! x! 45! minutes)! is! planned! for! the! final! module! evaluation! in! week! 9.!
There!are!no!points!for!this!session.!
!
Table&3.1.&CBL&point&structure&overview&
!
Week# 1# 2# 3# 4# 5# 6# 7# 8# Total#
Session# 1.1# 1.2# 2.1# 2.2# 3.1# 3.2# 4.1# 4.2# 5.1# 5.2# 6.1# 6.2# 7.1# 7.2# 8.1# 8.2# #
Professional!&!Personal! # # # # # # # # # # # # # # # # #
Competencies!(PP)! 5# 5# 5# 5# 5# 5# 5# 5# 40#
! # # # # # # # # # # # # # # # # #
!Reports*!(CR)! 10# 10# 10# 10# 10# 10# 10# 10# 80#
! # # # # # # # # # # # # # # # # #
Special!Activities!**! 5# # 5# 10#
(P&P)!
Total# # # # # # # # # 130#
!
*!Assessment!of!the!reports!takes!place!during!the!second!session!of!each!week,!you!can!earn!a!maximum!
of! 10! points! for! these! roundingCoff! sessions,! which! include! 5! points! for! homework,! and! 5! points! for! the!
way! in! which! you! report! in! class..! Not! showing! up! will! result! in! forfeiting! your! right! to! homework!
assessment.!!
*!*!Special!activities!include!a!debate!in!week!2,!in!an!extra!CBL!hour;!as!well!as!a!roleCplay!in!week!6.!You!
can!obtain!a!maximum!of!5!points!for!each!of!these!activities.!!
!
!
! Points# Grade#
3.3.3& From&points&to&a&grade& 130! 10.0!
& 120! 8.9!
CBL!is!measured!by!a!5Cpoint!system:!in!total!130!points!weighting!40%.!These! 110! 7.8!
points!are!then!transferred!into!a!matching!grade.!The!table!on!the!right!gives! 100! 6.6!
an!overview!of!the!measurement.!! 97.5! 5.5!
80! 4.9!
3.4# Customised#CBL#5Zstep#method#process# 70! 4.4!
60! 3.8!
!
50! 3.3!
Start3up)session)(1st)session)of)the)week,)max.)5)points):)
40! 2.7!
#
30! 2.1!
Step#1:#Identifying#the#main#problem(s)#or#question#(s)##
20! 1.6!
)
10! 1.0!
• Read!out!the!miniCcase!together!in!class,!and!clarify!unknown!terms.!!
• Summarise!the!case!text!in!your!own!words!and!make!sure!everyone!understands!the!case!
on!a!similar!level.!
• Discuss! your! opinions! about! the! case! company! and! carry! out! the! required! preparatory!
activities.!!
• Recognise! the! main! problem/issue! the! company! is! facing! in! the! case! and! formulate! a!
problem!statement!directed!at!the!final!goal!or!solution!for!the!case.!!
! !!
Step#2:#Gathering#the#facts#
)
• Choose!an!analysis!method,!e.g.!mindCmap,!the!board!writer!writes!the!related!case!facts!
logically!on!the!white!board.!!
• Make! several! learning! goals/research! questions! for! the! case! study! by! organising! the!
information!on!the!board.!
• Research! the! formulated! learning! goals! and! apply! theories! to! the! case! company.!
(Homework)!!
• Give! recommendations! to! the! company! in! the! form! of! solutions! of! the! problem/issue!
addressed!in!step!1.!Answer!the!problem!statement.!(Homework)!
!
Round3off)session)(2nd)session)of)the)week,)max.)5)points):)
)
Step#3:#The#alternative#courses#of#action#
)
• Discuss!your!findings!of!the!learning!goals!together!in!class.!You!should!be!able!to!come!up!
with!possible!courses!of!action!in!solving!the!problem/issues!in!the!case!study.!!
• The!board!writer!lists!4C5!courses!of!action!or!solutions!to!facilitate!further!discussion.!
)
Step#4:#Your#decision#and#reasoning#
!
• Which! course(s)! of! action! would! you! choose! together! for! the! company?! This! should! be!
derived!from!answers!to!the!problem!statement.!!
• Discuss!why!you!would!choose!these!courses!of!action!while!ignoring!others.!
• What!are!the!critical!success!factors!or!risks!involved?!!
#
Step#5:#Implementation#of#your#decision#
!
• How!would!you!implement!the!selected!courses!of!action!into!the!company?!
• Brainstorm!what!can!be!done!in!order!to!carry!out!these!courses!of!action!at!a!functional!
level,! e.g.! sales! &! marketing,! research! &! development,! financial! accounting,! human!
resources,!IT,!operations,!etc.!Map!your!answers!on!the!white!board.!
• Draw!final!conclusions!to!the!case!study.!!
3.5# Detailed#assessment#criteria#
&
3.5.1& Professional&and&personal&competencies&(PP)&StartLup&session)
!
The! professional! and! personal! competencies! are! assessed! on! the! expertise! and! behaviour!
needed!to!be!able!to!collaborate!and!operate!successfully!in!the!CBL!sessions,!the!development!
of!the!analytical!skills,!the!problemCsolving!skills!and!the!student’s!individual!input.!
!
The!student!is!able!to:!
• Carry!out!the!required!preparation!for!the!relevant!case!prior!the!session.!(1)*!
• Activate!his!/!her!prior!knowledge!effectively!to!facilitate!the!discussion.!(1)!
• Carry!out!the!5Cstep!method!correctly!in!the!startCup!session!(step!1&2);!contribute!to!the!
formulation!of!the!problem!statement!and!the!collection!of!case!facts.!(1)!
• Make!a!contribution!to!the!analysis!and!formulation!of!the!learning!goals.!(1)!
• Reflect!on!the!group!process!and!evaluate!a!group!member!in!an!effective!way.!(1)!
!
*!Students!must!bring!the!module!book!to!the!1st!CBL!session!in!order!to!fulfil!criterion!1.!!
!
The&assessment&of&PP&is&based&on&the&following&scale:&
#
Absent!or! Fulfilled!1! Fulfilled!2!of!the!5! Fulfilled!3!of!the!5! Fulfilled!4!of!the!5! Fulfilled!all!5!
disturbing!presence! criterion! criteria! criteria! criteria! criteria!
0! 1! 2! 3! 4! 5!
&
&
3.5.2& Reporting&and&quality&of&(RC)&Homework)
!
Assessment!of!the!contents!of!the!case:!
General!preparation!for!the!learning!outcomes,!use!of!sources,!method!of!reporting!and!existing!
prior! knowledge;! all! of! which! contribute! to! the! acquisition,! retention! and! application! of! the!
knowledge!to!the!case.!!
!
• Hand!in!the!homework!(Step!2)!prior!to!the!session.!(1)!!
(The!tutor!determines!whether!this!is!done!by!email,!on!paper!or!via!Bello.)!
• Answer! all! the! learning! goals! and! the! problem! statement! that! were! formulated! in! the!
startCup!session.!(1)!
• Use!at!least!two!reliable!sources!for!answering!research!questions,!referring!to!the!
compulsory!literature!if!applicable.!(1)!
• Elaborate! the! learning! outcomes! in! his/her! own! words! and! cover! required! theoretical!
contents.!(1)!
• Apply!all!theoretical!learning!outcomes!to!the!case!situation.!(1)!
)
The&assessment&of&CRL&homework&is&based&on&the&following&scale:&
&
0! 1! 2! 3! 4! 5!
!
!
& &
3.5.3& Reporting&and&contents&(RC)&RoundLoff&session&
!
• Share!and!present!his/her!answers!to!the!learning!goals!and!the!problem!statement!with!
the!fellow!group!members.!(1)!
• Apply!the!theoretical!contents!to!the!case!with!sources!and!provide!examples.!(1)!
• Carry!out!step!4&5!in!a!correct!manner.!(1)!
• Draw!final!conclusions!to!the!case!study.!(1)!
• Evaluate!fellow!group!members!and!the!group!process.!(1)!
!
The&assessment&of&CR&is&based&on&the&following&scale:&
#
0! 1! 2! 3! 4! 5!
!
!
!
!
!
Table&3.2&CBL&miniLcases&
!
!
Week# Topic# MiniZcase# Author#
1! Strategic!overview!in!the! Brown&Bag&Films& John!Cullen!
media!context!!
2! Internal!analysis!! MTV& Lucy!Küng!
&
3! External!analysis! Upcoming&competition&within&the& Bastiaan!Nijbroek!
smartphone&industry&
4! Strategy!formulation!and! The&failure&of&Friendster&&&The&rise&of& Jones!&!Hill!/!Fan!
strategic!choice&! Facebook& Ding!
5! Business!&!corporate!level! Corporate&strategy&choices&for&Axel& Johnson,!Scholes!
strategy! Springer&& &Whittington!
6! Global!strategy!and! MTV&Networks:&a&global&brand&goes& Jones!&!Hill!
corporate!governance! local&
7! Strategic!implementation! CNN&and&its&implementations&& Lucy!Küng!/!Fan!
Ding!
8! Managing!strategic!change!! How&Adobe&Systems&benefits&from& J.!Nachtigal!
‘being&green’&
!
!
!
Week#1:#Strategic#overview#in#the#media#context#
#
Session&1.1:&StartingLup&miniLcase&1&
!
Preparation#prior#to#the#session##
Please! visit! the! official! website! of! Brown! Bag! Films,! and! watch! several! product! videos.! Which!
videos! do! you! like! most! and! why?! Please! share! your! opinions! with! your! fellow! students! after!
reading!the!case!together!in!class.!If!you!have!a!laptop!in!class,!please!show!some!features!of!the!
website!and!short!videos!after!reading!the!following!text.!!
!
Actions#during#the#session#
Please!review!the!CBL!5Cstep!method!(mentioned!on!paragraph!3.4!of!this!module!book)!in!class!
if!you!are!not!familiar!with!the!CBL!method!at!the!MEM!faculty,!and!follow!the!process!step!by!
step.!Keep!the!weekly!topic!and!weekly!objective!in!mind!while!analysing!the!case.!In!order!to!
start!up!the!following!case!properly,!you!need!to!follow!step!1&2.!!
!
MiniZcase#1:#! Brown#Bag#Films#!
Written#by:#! Cullen,!John!(2007),!Lecture!in!Communications!&!Knowledge!Management,!
Faculty!of!Business,!Dublin!Institute!of!Technology.!!
Source:!! Johnson,! Scholes! &! Whittington.! (2008).! Exploring! Corporate! Strategy,! Text!
and!Cases.!8th!Ed.,!Prentice!Hall,!Harlow.!p.!766C769!
!
!
MiniZcase#1:# Brown#Bag#Films#
#
This! case! study! explores! a! current! strategic! dilemma! faced! by! a! young,! but! highly! successful!
animation! company! operating! from! Dublin,! Ireland.! The! directors! of! this! profitable! and!
successful!company!are!anxious!not!to!rest!on!their!considerable!achievements!(which!include,!
amongst! other! awards,! an! Oscar! nomination)! but! to! continue! to! grow! and! develop! their!
enterprise.! The! international! recognition! that! Brown! Bag! Films! has! won! has! not! been! easily!
attained!and!the!case!explores!the!current!conditions!in!which!it!operates.!!
!
Background#
We’re)very)worried.)
The)business)is)running)well)and)we)make)strong)and)consistent)profits.)We)have)an)international)
reputation,)and)we’ve)been)told)that)every)children’s)television)station)in)the)world)knows)us.)We’ve)
worked) with) and) for) national) and) commercial) television) stations,) independent) producers) and)
advertising)agencies.)Since)the)Academy)Award)nomination,)we’ve)had)an)opportunity)to)do)some)
high3profile) commercials) with) A3list) clients) such) as) Coca) Cola,) Danone,) Cadburys) and) National)
Lottery)and)have)produced)TV)series)that)have)sold)to)broadcasters)around)the)world.))
But)now)that)everything)is)going)well,)we’ve)started)to)notice)that)we)have)a)habit)of)finishing)each)
other’s)sentences,)as)if)we)are)married)to)each)other!)We)know)instinctively)what)each)of)us)thinks,)
or)what)the)other)would)be)thinking)when)they’re)not)there.)
And) this) can’t) be) healthy.) I) mean,) what) are) we) missing?) The) fact) that) we’ve) gotten) to) where) we)
want)to)go)is)great,)but)now)we’re)here)we)know)that)if)we)don’t)expand)our)perspective)that)we’ll)
be)flattened)by)change)when)it)does)happen.)
What) do) people) usually) do) with) their) business) when) they) get) where) we) are?) Brown) Bag) Films) is)
twelve) years) old) and) as) directors) we’re) completely) different) people) from) when) we) started.) What)
can)we)do)to)ensure)that)Brown)Bag)Films)is)still)around)in)12)years’)time?)
!
Darragh!O’Connell!and!Cathal!Gaffney!formally!started!Brown!Bag!Films!in!1994!following!their!
successful! production! of! a! satirical! series,! which! lampooned! Peig,! an! IrishClanguage! classic,!
which!was!required!reading!for!secondary!school!students.!Prior!to!this,!they!had!both!been!in!
college!together!and!collaborated!on!a!number!of!lowCbudget!short!films.!
!
They!went!to!college!in!the!backdrop!of!SullicanCBluth’s!animation!studios!in!Dublin,!which!had!
opened! in! Dublin! in! the! midC1980s! in! response! to! the! Irish! Industrial! Development! Agency’s!
(IDA’s)! drive! to! attract! large! animation! studios! to! Ireland! (which! promised! largeCscale!
employment!in!an!industry!that!was!nonCexistent!in!Ireland!at!the!time).!By!the!early!1990s!the!
three! main! foreign! studios! attracted! to! Ireland! in! this! particular! drive,! and! which! included!
SullicanCBluth,! had! withdrawn.! Competitive! pressures! within! the! international! animation!
industry! and! unfavourable! global! economic! conditions! had! resulted! in! many! of! the! American!
studios! returning! home.! Many! of! the! Irish! staff! employed! in! the! largest! studio,! Don! Bluth!
Entertainment,! emigrated! and! several! employees! sought! employment! outside! the! Irish!
animation!sector.!However,!following!their!departure,!they!left!behind!not!only!a!wellCdeveloped!
training! infrastructure,! particularly! in! centres! of! excellence! such! as! Ballyfermot! College! of!
Further! Education! and! Dun! Laoghaire! Institute! of! Art,! Design! and! Technology! (National! Film!
School),! but! also! a! cohort! of! young,! highlyCtrained! animators! who! had! seen! how! successful,!
commercially!oriented!animation!studios!worked.!More!than!anything!though,!they!had!exposed!
young!artists!to!the!potential!of!a!choice!of!animation!as!a!career.!!
!
Bolstered!by!the!critical!acclaim!they!had!received!for!Peig!and!by!the!experience!of!successfully!
completing! a! commercial! project,! the! Brown! Bag! directors! invested! in! highCspec! animation!
technology! and! training.! The! directors! were! rapidly! faced! with! a! problem! common! to! many!
entrepreneurs.!During!their!startCup!phase,!as!a!result!of!their!personal!backgrounds,!interests!
and!training!they!selfCidentified!as!artists,!rather!than!businesspeople:!!
!
At) the) start) we) knew) little) or) nothing) about) the) business3side.) We) were) happy) to) doing) what) we)
loved.) We) did) like) the) fact) that) we) were) getting) to) meet) important) people) in) the) entertainment)
industry)and)people)with)certain)levels)of)celebrity)attached)to)them.)Whereas)it)was)enjoyable)to)
be)working)in)animation)and)in)television,)the)problem)was)that)most)of)the)business)mentors)we)
had)at)the)time)were)simply)star)struck.)
)
One) of) the) best) lessons) we) had) early) on) was) when) we) came) across) a) mentor) who) was) able) to)
disconnect)with)all)that)stuff.)I)remember)telling)him)about)a)meeting)with)the)BBC,)and)he)said)‘So)
what?)Did)you)sign)a)deal?’)It)brought)it)home)to)us,)that)from)a)commercial)point)of)view,)it)didn’t)
matter) whether) we) were) making) films) or) selling) baked) beans,) securing) arrangements,) which)
brought)in)profit)was)the)only)important)thing.)It’s)a)key)lesson)for)any)entrepreneur)starting)up)a)
business:)the)ability)to)commercialise)and)not)be)precious)about)your)creativity.))
)
Focusing!on!the!bottom!line!while!still!maintaining!a!creative!edge!has!led!to!the!development!of!
a!high!level!of!commercial!acumen!in!Brown!Bag!Films.!During!the!1990s,!when!television!work!
was!still!hard!to!find,!Brown!Bag!Films!developed!a!strong!competence!in!developing!work!for!
advertising! agencies! and! in! the! area! of! digital! media.! The! company! had! begun! to! expand! its!
‘reach’! and! developed! projects! with! broadcasting! and! advertising! organisations! in! Europe,! the!
USA! and! the! Middle! East.! A! key! milestone! for! the! company! was! a! nomination! for! an! Academy!
Award!in!the!animated!shortCfilm!category!in!2001!for!Give)Up)Your)Aul)Sins,!which!resulted!in!
huge!international!interest!in!the!company.!In!2002,!the!short!series!developed!around!the!‘Sins’!
concept! was! the! bestCselling! DVD! in! Ireland.! Brown! Bag! continued! to! develop! a! range! of!
innovative,!awardCwinning!commercials!and!TV!series.!!
!
Economic#and#sector#profile#
The!story!of!Ireland’s!economic!recovery!and!boom!period!has!been!very!well!documented.!At!
the!time!of!the!origin!of!the!state,!economic!policies,!driven!by!political!and!ideological!concerns,!
were! directed! towards! producing! a! state! of! selfCsufficiency,! but! in! reality! led! to! Ireland! being!
closed! off! from! global! markets.! The! small! nation! was! predominantly! dependent! on! agriculture!
and! poverty! and! emigration! became! the! norm.! During! the! late! 1950s! the! economic! policy!
changed!and!the!economy!was!opened!up!to!international!forces.!Dublin!became!the!commercial!
capital!of!Ireland,!and!rural!populations!gradually!depleted!through!migration!to!the!east!coast!
capital! city.! Ireland! was! highly! susceptible! to! changes! in! global! economic! fortunes,! and! by! the!
late!1980s!high!rates!of!inflation!and!employment!resulted!in!many!young!people!emigrating!in!
large!numbers.!!
!
An!aggressive!strategy!of!attracting!foreign!direct!investment!to!Ireland!was!undertaken.!HighC
tech! companies! such! as! Dell,! Hewlett! Packard! and! Intel! invested! heavily! in! Ireland! and!
developed!large!presences.!Attracted!by!a!low!rate!of!corporate!taxation!and!a!young,!educated!
EnglishCspeaking! population,! many! of! whom! were! familiar! with! the! US! style! of! working,! these!
companies!had!a!massive!impact!on!the!Irish!economy.!Ireland!underwent!a!period!of!massive!
social! and! economic! change! as! the! country! rapidly! modernised! and! caught! up! with! levels! of!
development,! which! would! be! expected! in! a! developed! democratic! state.! The! downside! of! this!
rapid! turnaround,! as! might! be! expected,! resulted! in! infrastructural! inadequacies! (particularly!
with!regard!to!transport)!and!a!high!rate!of!inflation,!which!has!resulted!in!Ireland,!particularly!
Dublin,!to!now!being!a!very!costly!place!to!live!and!do!business!in.!
!
Business#growth#and#development#
Having!survived!the!initial!evolutionary!startCup!period!of!development,!Brown!Bag!Films!has!a!
very! professional! approach! to! sales! and! business! development.! Over! time! the! company! has!
learned!how!to!pitch!and!present!proposals!effectively,!and!to!budget!its!productions!to!ensure!
that!they!are!profitable!and!of!a!high!quality.!Overall,!though,!Brown!Bag!Films!recently!split!into!
two!separate!corporate!entities.!One!focuses!on!the!highCyield!TV!commercials!area!for!domestic!
and! international! clients,! and! the! other! focuses! on! TV! production! work! for! international!
markets.! The! TV! production! wing! of! Brown! Bag! Films! focuses! mostly! on! developing! animated!
series! for! children.! The! company! invests! in! the! R&D! of! original! achieved! longCrunning! success!
with! exploitation! possibilities! beyond! television,! such! as! licensing,! merchandise! and! consumer!
products.! It! has! just! sold! a! longCterm! series! to! the! distributor! HIT! Entertainment! (Bob! the!
Builder,!Thomas!the!Tank!Engine)!and!broadcaster!Nickelodeon.!Gaffney!and!O’Connell!remain!
as!sole!directors!of!the!organisation,!but!they!have!employed!a!director!of!the!commercial!unit,!a!
facility!and!postCproduction!manager!and!a!financial!manager.!Brown!Bag!Films!also!employs!a!
partCtime!financial!director,!who!is!an!experienced!finance!professional!who!offers!mentoring!on!
commercial!issues.!O’Connell!acts!as!Creative!Director!for!both!units,!and!Gaffney,!as!Producer,!
heads! up! the! TV! unit.! At! any! given! time,! up! to! 5C10! projects! are! executed! within! Brown! Bag!
Films,!employing!around!30!individuals,!so!a!professional!management!structure!had!to!be!put!
into!place!to!ensure!that!work!is!delegated!as!effectively!as!possible.!!
!
The!remainder!of!the!staff!are!contracted!freelance!writers,!animators,!designers!and!directors!
who,!in!general,!have!an!enduring!relationship!with!the!company.!The!freelance!staff!has!proved!
themselves!by!producing!highCquality!work!over!the!startCup!years!and!their!talent!is!a!unique!
asset! for! the! company.! Brown! Bag! Films! has! invested! heavily! in! training! for! all! staff! over! its!
years! in! existence! and! this! commitment! to! staff! development! remains! a! key! value! of! the!
organisation.! The! directors,! particularly! Gaffney,! have! undertaken! business! and! management!
training!in!a!piecemeal!fashion,!but!neither!has!completed!a!formal!business!degree.!
!
This! has! enabled! the! directors! to! focus! on! developing! the! company;! largeCscale! international!
collaborative!projects!have!been!commissioned!and!completed!with!studios!in!the!USA,!Canada!
and!the!UK.!They!have!gradually!developed!a!solid!financial!base!and!reputation!with!an!annual!
turnaround!of!approximately!€3.5m!per!annum.!!
!
New#issues#
Brown! Bag! Films! has! a! very! good! record! on! retaining! staff,! but! acknowledges! that! strategic!
talent! retention! is! something! that! it! takes! very! seriously.! The! office! and! studio! in! Dublin! city!
centre! are! rented! at! capital! city! rates.! Dublin’s! city! centre! is! something! of! a! spiritual! home! for!
the!company!as!it!is!reasonably!accessible!by!a!sizeable!proportion!of!the!company’s!talent!base!
and!close!to!its!advertising,!marketing!and!media!communities.!!
!
In! the! earlier! stages! of! Brown! Bag! Films’! development,! the! directors! expressed! concern! about!
the!cycles!of!work,!which!might!have!blindsided!them!to!potential!opportunities.!Animations!is!
heavily!time!dependent!and!when!a!contract!was!secured,!it!would!involve!the!full!attention!of!
all! staff! to! the! detriment! of! developing! further! business.! Now! that! this! issue! is! largely! under!
control,!the!directors!are!faced!with!determining!where!it!is!that!they!want!their!company!to!go,!
how! it! will! grow! in! the! future,! and! where! they! would! like! it! to! be! 12! years! from! now.! The!
broadcast! industry! is! in! the! throws! of! a! complete! renaissance! with! convergence! of! media!
platforms! presenting! many! threats,! opportunities! and! reasons! for! change.! In! developing& this&
strategic& plan,! they! are! concerned! with! the! fact! that! they! have! grown! comfortable! with! their!
current! operating! model! and! organisational! approach.! They! are! selfCaware! to! the! extent! that!
they!appreciate!the!possibility!that!‘groupthink’!is!a!very!real!phenomenon,!which!might!lead!to!
the! loss! of! opportunities! in! the! future,! or! to! the! organisation’s! growth! pattern! becoming!
derailed.!
#
Appendix#1#for#case#Brown#Bag#Film##
Key!Brown!Bag!milestones!
!
December!1994! Established!by!producers/directors!Cathal!Gaffney!and!Darragh!O’Connell.!!
First!production!was!Peig!for!RTE,!Ireland’s!public!broadcasting!company.!
1995!–!1997! Brown!Bag!Films!worked!on!the!production!and!coCproduction!of!television!
series!in!Ireland,!the!UK!and!Russia,!and!designed!and!directed!the!animation!for!
video!games.!
1998!–!2000! ! Alongside!other!television!and!commercial!work,!produced!a!52Cpart!
preCschool!series!Why?,!which!has!sold!to!nearly!40!countries!from!China!to!the!
UK.!Brown!Bag!Development!Ltd!established!to!develop!state!of!television!and!
cinema!projects!with!an!international!outlook.!Developed!over!30!TV!
commercials!for!Ireland,!the!UK!and!the!Middle!East.!
2001!–!2002! Produced!Give)Up)Your)Aul!Sins)based!on!real!audio!recordings!of!children!in!an!
innerCcity!Dublin!school!over!30!years!ago.!Shot!as!an!animated!documentary,!it!
has!won!widespread!acclaim!and!an!Oscar!nomination!for!its!innovative!
approach.!BestCselling!Irish!DVD!in!2002.!
2003!–!2006! Continued!to!grow!and!develop!a!range!of!television!programmes!for!children!
and!highCprofile!commercial!clients!(Coca!Cola,!Danona,!National!Lottery).!
Brown!Bag!Films!(www.brownbagfilms)!and!Brown!Bag!Commercials!
(www.weloveallthisstuff.com)!separated!and!new!organisational!structure!
enacted!(see!Appendix!2).!Growth!continues!in!both!fields.!!
!
Appendix#2#for#case#Brown#Bag#Film##
Organisational!chart!(2006)!
Two!Directors!
Head!of! Facilities!and!
Head!of! Television! PostCproduction! Financial! Head!of!
Commercials! Manager! Development!
Production! Management!
FullCtime! FullCtime!and! Freelance!

freelance! freelance! writers!
animators,! animators,!
directors!and! directors!and!
designers! designers!
#
!
!
!
!
!
!
!
&
Session&1.2:&RoundLoff&miniLcase&1&
!
#
#
Report! and! discuss! the! learning! goals! formulated! in! the! last! session,! and! follow! step! 3,! 4! &! 5!
according!to!the!CBL!5Cstep!method.!!
!
At! the! end! of! the! session,! you! should! be! able! to! answer! the! problem! statement! and! draw!
conclusions!to!the!case!study.!!
!
Extra#preparations#for#the#next#session#
!
Give! a! name! and! a! matching! logo! to! your! moduleCassignment! team,! and! share! your! outcomes!
with!your!fellow!team!members!in!the!CBL!group!in!the!next!session.!!
!
Make!a!time!planning!for!all!the!module!assignments!with!your!team!members.!!
!
Read!case!1:!Blockbuster,)Netflix,)and)the)Media)Entertainment)Rental)Industry)in)2011.)
together!with!your!module!assignment!team!members.!
!
Make!a!few!questions!(2/3)!about!case!1!after!reading!(clarification!of!the!case).!
!
During!the!next!session,!moduleCassignment!teams!will!ask!each!other!one!question!in!CBL.!Each!
module!assignment!team!will!have!to!answer!the!question.!!
Week#2.#Internal#analysis##
!
Session&2.1:&StartLup&miniLcase&2&
!
Carry!out!a!desk!research!by!searching!for!a!business!article!written!about!MTV!network.!After!
reading! the! following! case! together! in! class,! share! your! opinions! about! the! information!
mentioned!in!the!article!with!your!fellow!students.!!
!
Please!keep!the!weekly!topic!and!weekly!objective!in!mind!when!analysing!the!case.!Follow!step!
1&2!of!the!CBL!5Cstep!method.!
!
After!starting!up!the!following!miniCcase,!you!will!introduce!your!module!assignment!team!name!
and!logo!to!the!other!teams.!Briefly!explain!your!time!planning!and!how!you!will!work!together!
in!the!coming!weeks.!Finally,!you!will!ask!the!other!teams!in!class!to!answer!the!questions!you!
prepared!for!case!1.!!
Do!not!forget!to!read!the!preparatory!activities!for!the!debate,!which!will!take!place!in!the!next!
session.!Following!the!instructions!for!the!debate!is!essential.!!
!
MiniZcase#2:#! MTV#!
Written#by:#! Lucy!Küng.!!
Source:!! Küng,!L.!(2008).!Strategic)Management)in)the)Media:)From)Theory)to)Practice.!
SAGE.!London.!p.22C23!
!
!
MiniZcase#2:#MTV#
#
MTV!is!a!classic!example!of!an!organization!created!from!‘unbundling’!a!stage!in!the!value!chain!
that!was!hitherto!part!of!the!integrated!players’!value!chains!–!packaging#C!into!a!discrete!standC
alone! business.! As! such,! it! also! represented! the! emergence! of! a! new! stage! in! the! value! chain! C!
aggregation,! or! the! sourcing! of! external! content! and! packaging! it! into! channels.! This! was! to!
become!standard!practice!for!new!cable!and!satellite!channels!in!Europe.!!
!
In! 1981! MTV! was! founded! by! the! Warner! Amex! Satellite! Entertainment! Company! (WASEC),! a!
joint! venture! between! Warner! Communications! and! American! Express.! The! partners! saw! a!
business! in! packaging! promotional! videos,! a! marketing! tool! for! pop! music,! into! a! music!
television! channel! that! would! appeal! to! young! audiences! and! to! artists! seeking! to! promote!
themselves.!!
!
MTV!is!a!good!example!of!the!way!a!mindCset!(in!this!case!on!the!part!of!the!music!industry)!can!
create!a!selfCinflicted!limitation!on!strategic!growth.!Although!record!stores!were!clear!that!the!
new! channel! had! struck! a! chord! with! young! audiences,! so! to! speak,! and! was! having! a! positive!
impact! on! sales,! the! music! majors! and! advertisers! persisted! in! doubting! the! appeal! of! music!
videos.! Attitudes! changed! only! in! 1985! with! the! worldwide! broadcast! of! the! Live! Aid! charity!
concerts!on!both!sides!of!the!Atlantic.!These!demonstrated!the!size!of!the!market!for!pop!music!
and!MTV´s!ability!to!promote!record!sales.!
!
The! Original! MTV! product! was! an! idiosyncratic! combination! of! videos! and! video! jockey!
commentaries!about!bands!and!performers.!It!sought!to!create!a!counterCculture!image,!typified!
by! its! graffitiCstyle! logo.! As! music! videos! became! more! expensive! the! channel! gradually!
abandoned! its! alternative,! low! budget! roots.! In! 1984! MTV! networks! went! public! and! in! 1985!
American!Express!sold!its!interest!to!Warner,!who!later!sold!MTV!to!Viacom.!!
!
As! the! popularity! of! MTV! grew,! a! vicious! circle! was! created! whereby! as! record! companies!
recognized! the! potential! of! the! network! as! a! marketing! medium,! they! invested! more! in! the!
quality!of!their!videos.!As!content!improved,!viewers!increased!and!MTV!grew!into!a!major!force!
in! cable! television! and! in! the! music! industry.! However,! by! 1987! interest! in! continuous! music!
videos! was! waning! and! the! channel! moved! towards! more! standard! programming! such! as!
documentaries,! including! reality! television! shows! such! as! The! Osbournes,! live! broadcasts! and!
series!such!as!Beavis!and!Butthead.!
!
In! 1987,! MTV! Europe! was! launched! and! thereafter! the! company! gradually! expanded!
internationally,!eventually!reaching!90!countries!on!five!continents.!In!recent!years!its!policy!has!
been!to!localize!content!as!far!as!possible.!Presenters!use!native!language!and!show!local!artists!
as! well! as! international! ones.! Digital! television! allows! MTV! to! target! even! smaller! niches,!
allowing!it!to!attract!both!international!and!local!advertising.!!
!
The!strengths!of!MTV´s!business!model!has!brought!rival!music!channels!into!the!field!on!every!
continent.! Internet! and! mobile! platforms! are! also! potentially! serious! competitors! and! the!
company! is! investing! heavily! in! developing! wireless! and! broadband! businesses,! as! well! as!
developing!its!own!music!download!service.!In!the!future,!growth!may!be!more!challenging,!but!
from!a!strategic!perspective!these!pressures!may!well!be!beneficial!in!that!they!are!forcing!the!
channel!to!shift!its!reliance!away!from!traditional!mass!media!formats!and!develop!business!on!
new!platforms.!!
&
&
Preparation#for#the#next#session:#CBL#extra#activity#Session#2.2#ZZ#Debate##
!
)Read)the)following)instruction)during)the)1st)CBL)session)in)week)2.)Make)sure)you)are)prepared)for)
the)actual)debate)activity)taking)place)in)the)2nd)session)of)the)week.)You)can)gain)a)maximum)of)5)
points)(P&P))for)taking)part)in)the)debate)in)class.))
)
The!debate!will!take!about!35!minutes,!and!afterwards!you!can!take!10!minutes!to!evaluate!the!
team!and!individual!performances!during!the!debate!together!with!the!tutor.!!
!
The! classroom! debates! are! exercises! designed! to! engage! you! in! a! variety! of! cognitive! and!
linguistic!activities.!This!debate!allows!you!to!strengthen!your!skills!in!the!areas!of!leadership,!
interpersonal!influence,!team!building!and!group!problem!solving.!This!classroom!debate!can!be!
defined! as! a! simulation,! in! which! two! opposing! teams! defend! their! given! proposition! with!
argumentation.! The! tutor! will! fulfil! the! part! of! judge,! and! he/she! will! finally! decide! who! the!
winning!team!is.!You!will!be!graded!and!evaluated!on!the!quality!of!your!performance!during!the!
debate.!!
!
Debate#topic:!MTV’s!business!model!CC!reality!TV!shows!for!teenagers!!
Position#statements:##
Pro:!MTV’s!reality!TV!show!targeted!on!teenagers!contributes!to!adding!value!to!the!classic!MTV!
programme!setting.!
Con:! MTV’s! reality! TV! show! targeted! on! teenagers! destroys! the! value! of! the! classic! MTV!
programme!setting.!
!
What&to&do?&
!
• Divide!the!CBL!group!into!2!teams,!one!holds!the!Pro!of!the!position!statement,!and!the!
other!team!holds!on!Con.!!
• The!chairperson!of!the!next!session!will!play!the!role!of!the!host!of!the!debate.!
• Appoint!a!team!leader!for!each!team,!and!assign!the!team!members.!!
• Prepare!the!debate!together!with!your!fellow!members!by!a!thorough!desk!research!on!
the!topic!and!position!statement.!!
!
Actual&debating&in&session&2:&
!
• The!chairperson!(host)!opens!the!debate!by!introducing!the!topic,!and!explains!the!rules!
involved!in!the!debating!process.!!
• Each!team!leader!presents!an!opening!statement!(Max.!2!minutes!each).!
• One!of!the!team!members!of!each!team!presents!the!1st!Pro!and!Con!arguments!(Max.!1!
minutes!each).!!
• Interactive!debate!between!the!teams!with!rebuttal!(10!minutes).!The!chairperson!must!
make!sure!that!every!team!participates!actively!and!evenly!in!the!discussion!–!please!do!
interrupt!when!necessary.!!
• Another! team! member! of! both! teams! presents! the! 2nd! Pro! and! Con! arguments! (Max.! 1!
minutes!each).!
• Another!interactive!debate!between!the!teams!with!rebuttal!(10!minutes).!!
• Team!leaders!make!the!final!statements!on!the!position!of!their!team!(2!minutes!each).!
• Evaluate!the!debate!together!with!the!tutor!and!peers.!Next,!the!whole!class!decides!in!a!
rational!way!which!team!is!the!winner!of!the!debate.!
#
#
#
#
#
!
#
#
Report!and!discuss!the!learning!goals!formulated!in!the!last!session,!and!follow!step!3,!4!&5!in!
the!CBL!5Cstep!method.!!
!
#
Extra#Activity#
#
Carry!out!the!actual!debating!activities!by!following!the!instructions!mentioned!above.!!
!
Week#3:#External#Analysis#
#
!
Interview! a! friend! or! family! member! who! has! a! smartphone.! Which! brand! does! he/she! have?!
How! is! his/her! experience! of! using! the! smartphone?! Ask! him/her! to! show! and! explain! to! you!
some!trendy!features!of!the!phone!that!you!are!not!familiar!with.!Share!your!experiences!with!
your!fellow!students!after!reading!the!following!miniCcase.!
!
Keep!the!weekly!topic!and!weekly!objective!in!mind!when!analysing!the!case.!Follow!step!1&2!of!
the!CBL!5Cstep!method.!
!
MiniZcase#3:#! Upcoming#competition#in#the#Smartphone#industry#!
Written#by:#! Bastiaan!Nijbroek.!!
!
!
MiniZcase#3:#Upcoming#competition#in#the#Smartphone#industry#
!
“This!is!a!day!I!have!been!looking!forward!to!for!two!and!a!half!years.!Every!once!in!a!while!a!
revolutionary!product!comes!along!that!changes!everything.”!(Apple!Inc.,!2007)!After!this!bold!
statement! Steve! Jobs! C! Apple’s! CEO! C! explains! to! the! Macworld! Conference! and! Expo! 2007!
audience! that! the! problem! with! the! most! advanced! phones! at! that! time,! the! soCcalled!
smartphones,!is!‘that!they!are!not!so!smart!and!not!so!easy!to!use’.!In!about!90!minutes!he!then!
continues! to! present! ‘a! leapfrog! product! that! is! way! smarter! than! any! mobile! device! that! has!
ever!been,!and!super!easy!to!use’:!the!iPhone.!Its!revolutionary!user!interface,!operating!system!
and!design!would!come!to!redefine&the&industry!in!such!a!way!that!it!would!turn!the!business!
upsideCdown!and!rapidly!start!to!create!a!mass!market!for!smartphones.!Moreover,!‘the!change’!
would!also!include!the!downfall!for!2006’s!smartphone!market!leader!Nokia.!!
!
2006#
The!smartphone,!a!mobile!phone!with!more!advanced!capabilities!than!a!feature!phone!(Phone!
Factor,!2012),!had!been!available!to!consumers!since!the!introduction!of!the!IBM!Simon!in!1993!
(Associated!Press,!1993).!By!the!end!of!2006,!global!shipments!of!smartphones!accumulated!to!
64! million! units.! At! this! time,! Nokia! dominated! the! rapidly! growing! industry! with! its! Symbian!
operating!system,!shipping!annually!over!50%!of!all!the!smartphones!over!the!world!(Canalys,!
2007).! RIM! with! its! Blackberry! phones! favoured! the! early! adopters! who! were! by! then! mainly!
business!users;!but!the!real!battle!had!yet!to!come.!!
!
2007#&#2008#
Before!Apple!revealed!the!iPhone,!rumours!of!Google!entering!the!smartphone!market!had!been!
spreading! as! well,! mainly! due! to! Google’s! acquisition! of! Android! Inc.,! a! mobile! software!
developer,!in!2005!(Elgin,!2005).!But!by!the!time!the!iPhone!was!released!in!June!2007,!Google’s!
plans! to! develop! a! smartphone! had! still! not! become! concrete.! Despite! growing! speculation,!
rumours!about!the!so!called!gPhone!ended!in!November!2007!when!34!technology!and!wireless!
companies! –! including! Google,! Samsung,! HTC! and! TCMobile! C! announced! the! Open! Handset!
Alliance:! a! partnership! to! develop! and! distribute! open! mobile! market! standards.! Their! first!
flagship! product:! Android,! a! mobile! device! platform! including! an! operating! system! and! userC
interface! (Open! Handset! Alliance,! 2007).! By! the! end! of! 2007,! market! analysts! were! already!
presenting! the! expected! impact! of! the! introduction! of! these! new! smartphones! and! their!
operating! systems.! According! to! Canalys’! estimates! (2008)! one! of! the! Q4! highlights! that! year!
was!a!7%!shipment!share!for!Apple,!resulting!in!2%!share!in!annual!shipments!of!devices.!
!
!Superior! quality! in! operating! systems! and! user! interface! was! not! the! only! competitive!
advantage!that!Apple!and!Google!were!aiming!at.!Both!companies!also!noticed!the!opportunity!
of! allowing! thirdCparty! developers! to! create! applications! for! their! platforms.! This! could!
complement! their! smartphones! and! as! such,! add! value! to! their! products,! just! as! in! the!
videogame! industry,! for! example.! At! that! time! applications! were! already! being! distributed! for!
Symbian!and!other!smartphone!devices,!but!their!development!and!popularity!really!took!flight!
with!the!launch!of!Apple’s!App!Store!in!July!2008.!The!demand!for!applications!for!the!iPhone’s!
iOS!was!so!great!that!by!the!time!Android!became!publicly!available!on!the!HTC!Dream!C!or!G1!C!
in!October!2008,!the!App!Store!was!already!registering!around!200!million!downloads!to!date!
(Apple!Inc.,!2008).!!
!
2009#
The!entrance!of!the!iPhone!and!Android!smartphones!stirred!the!entire!industry.!At!the!end!of!
2009!one!in!four!smartphones!shipped!worldwide!either!operated!on!iOS!or!Android.!Although!
their! market! share! continued! to! grow! in! size,! companies! involved! were! still! benchmarking!
themselves!to!Nokia,!with!a!shipment!share!of!almost!50%!(Canalys,!2011).!However,!according!
to! Canalys! (2010)! the! majority! of! all! smartphones! produced! in! 2009! had! adopted! the! touch!
screen!userCinterface.!Apple!was!leader!in!this!market!segment,!by!shipping!one!in!three!touch!
screen!smartphones!that!year.!!
!
2010#
At!the!start!of!2010,!the!smartphone!seemed!to!be!on!top!of!its!game!with!few!threats!to!topple!
the!industry.!But!Apple!still!had!more!tricks!up!its!sleeve:!instead!of!only!keeping!an!eye!on!the!
smartphone!industry,!Apple!was!focused!on!the!entire!mobile!device!industry,!which,!according!
to! Apple! (2010)! consisted! of! mp3! players,! smartphones,! laptops! and,! arguably,! an! additional!
category! of! mobile! devices! in! between! laptops! and! smartphones.! As! one! of! the! leading!
companies!in!mobile!devices,!Apple!(Apple!Inc.,!2010)!took!the!next!step!to!diversify!its!mobile!
product!portfolio!by!launching!the!iPad:!a!product!that!could!substitute!the!laptop!as!well!as!the!
smartphone.!Once!again,!Apple’s!timing!and!placing!was!about!to!turn!out!perfectly:!the!tablet!
industry!was!on!the!rise!and!Apple’s!successes!with!the!iPhone!and!App!Store!only!made!sure!
that!its!latest!product!would!be!able!to!fit!seamlessly!into!it.!In!reaction!to!Apple’s!success!with!
the!iPad,!Google!followed!early!in!2011!by!releasing!its!first!Android!tablet!in!cooperation!with!
Motorola!(McCullagh,!2011).!
!
Within!four!years,!an!industry,!which!had!been!around!for!almost!seventeen!years,!was!turned!
upsideCdown.! By! the! end! of! 2010! Canalys! (2011)! reported! yet! another! stunning! change! in! the!
smartphone!industry:!Google!had!managed!to!obtain!the!largest!shipment!share!in!the!industry.!
In!roughly!two!years,!the!Open!Handset!Alliance’s!Android!had!managed!to!become!the!largest!
provider! in! smartphone! operating! systems.! Meanwhile! Nokia! was! still! struggling! with! its! own!
Symbian!smartphones.!And!at!the!end!of!2011!the!Finnish!company!reported!a!$1.4bn!operating!
loss.!Strategies!to!maximise!Symbian!business!and!increase!the!focus!on!Windows!Phone!devices!
were!reported,!but!no!plans!to!enter!the!tablet!industry!(Nokia,!2012).!
!
April#12th,#2012.##
Vervest! (2012)! reports! that! Windows! 8! had! to! counter! the! downfall! of! Nokia’s! mobile! device!
capabilities.!Since!2007!the!mobile!mediaCmogul!had!seen!the!shipment!share!drop!from!roughly!
50%!(appendix!1!for!case)!to!16%!(appendix!2!for!case)!at!the!end!of!2011.!These!figures!give!
rise! to! the! question! whether! Nokia! can! regain! its! competitive! advantage! or! whether! its!
competitors! have! surpassed! Nokia’s! early! innovative! strategies.! In! addition,! it! remains! to! be!
seen!if!the!smartphone!industry!will!eventually!settle!on!‘one!or!two!dominant!systems’!as!seen!
in!the!PC!industry!in!past!decades!(Jones!&!Hill,!2009).!!
!
!
!
!
!
Appendix#I.#for#miniZcase#3:!Worldwide!smart!phone!market!shipments!2011.!!!!!!!!
!
!
!
Appendix# II.# for# case# Smartphone# industry:! Worldwide! converged! smart! mobile! device!
shipments!2007.!!
!
!
& &
&
!
#
Report!and!discuss!the!learning!goals!as!formulated!in!the!last!session,!and!follow!step!3,!4!&5!in!
!
!
Can!you!also!discuss!some!scenarios!for!the!Smartphone!market!at!the!end!of!the!session?!!
!
!
#
In! the! next! session,! you! will! challenge! other! moduleCassignment! teams! with! some! questions!
about!case!report!1.!In!doing!so,!you!also!help!each!other!out!in!completing!case!report!1.!!
!
Discuss!these!questions!in!the!next!session,!which!will!support!you!in!finishing!up!case!report!1.!!
!
!!
!
!
Week#4:#Strategy#formulation#and#strategic#choice#
!
#
Open! the! social! network! website(s)! you! have! joined,! and! compare! its! (their)! features! to!
Facebook.!Keep!segmentation!and!targeting!in!mind,!and!draw!a!positioning!map!and!bring!it!to!
the!session!for!further!discussion!after!reading!the!following!miniCcase.!!
!
!
!Keep!the!weekly!topic!and!weekly!objective!in!mind!when!analysing!the!case.!Follow!step!1&2!
in! the! CBL! 5Cstep! method.! After! starting! up! the! following! miniCcase,! you! will! discuss! the!
questions!raised!in!case!report!1.!!
#
MiniZcase#4:#! The#Failure#of#Friendster#&#The#Rise#of#Facebook#
Written#by:# Jones!&!Hill!(part!1)!&!Fan!Ding!(part!2).!!
Source:#! Jones! &! Hill.! (2010).! Theory) of) Strategic) Management.! (8th! Ed.)! SouthC
Western,!Cengage!Learning.!UK.!p.!259C260!
!
#
MiniZcase#4:#Part#1.#The#Failure#of#Friendster#
#
In! 2002,! Jonathan! Abrams! thought! that! he! was! in! the! right! place! at! the! right! time.! With! seed!
money! raised! from! a! wealthy! Silicon! Valley! investor,! the! thirtyCsomething! engineer! was!
developing!a!social!network!site.!This!site,!which!debuted!in!March!2003,!was!called!Friendster.!
It!enabled!people!to!post!their!profiles!online,!to!link!up!with!friends!online,!and!introduce!their!
friends! to! each! other.! Abram’s! motivation! for! starting! Friendster! was! that! he! wanted! to! meet!
girls,!and!he!thought!that!a!social!networking!site!would!be!a!pretty!cool!way!to!do!it.!Friendster)
was)the)firstmover)in)the)online)social)network)market.)#
!
The!site!soon!became!one!of!the!hot!Internet!properties!of!2003.!By!the!fall!of!2003,!Friendster!
had! signed! up! over! 3! million! users.! Publications! including! Time,! Esquire,! Vanity) Fair! and! U.S)
Weekly!were!writing!about!Friendster!before!anybody!had!ever!heard!of!MySpace.!By!November!
2003,! Friendster! had! attracted! significant! investment! from! a! clutch! of! highCprofile! venture!
capitalists! (VCs),! including! the! legendary! John! Dorr,! perhaps! the! most! successful! venture!
capitalist!in!the!history!of!Silicon!Valley,!who!took!a!seat!on!Friendster’s!board.!Dorr!was!joined!
by!several!other!highCprofile!board!members.!!
!
The! buzz! around! Friendster! led! to! a! bid! from! another! fastCgrowing! VCCfunded! Silicon! Valley!
startCup,! Google,! that! wanted! to! buy! the! company! for! $30! million.! The! board,! populated! by!
venture! capitalists! like! Dorr! who! were! all! looking! for! the! next! big! thing,! urged! Abrams! not! to!
sell.!It!wasn’t!hard,!as!Abrams!thought!Friedster!would!be!worth!much!more!in!a!short!time,!and!
he! said! no! to! Google.! Three! short! years! later,! Abrams! probably! regretted! the! decision.! Had! he!
taken!the!Google!offer,!which!was!in!stock,!he!would!be!worth!about!$1.5!billion!today.!Instead,!
Abrams! is! no! longer! at! Friendster,! and! the! pioneering! social! networking! site! has! been! totally!
eclipsed!by!rivals!like!MySpace,!Facebook,!and!Flickr.!In!September!2006,!Friendster!had!just!1!
million!registered!users,!MySpace,!which!went!live!a!year!after!Friendster,!had!55.9!million!!
!
One!of!Friendster’s!problems!was!that!the!site!was!soon!overwhelmed!by!rapid!growth.!With!3!
million!users,!it!could!take!as!long!as!forty!seconds!for!pages!to!download.!Another!was!the!lack!
of! new! features! on! Friendster:! while! MySpace! was! rapidly! introducing! new! features! like! blogs!
and! tools! that! people! could! use! to! jazz! up! their! profiles,! Friendster! stood! still.! Part! of! the!
problem! was! that! new! tools! and! features! would! only! slow! down! Friendster! even! more.! As! for!
why! Friendster! was! so! slow,! in! part! that! was! due! to! Friendster’s! closed! system.! Users! at!
Friendster!could!only!view!the!profiles!of!a!relatively!short!chain!of!acquaintances.!In!contrast,!
MySpace!uses!an!open!system!where!anybody!can!look!at!anybody!else’s!profile!–!which!is!much!
simpler!to!execute.!
!
In!addition,!MySpace,!which!organized!users!around!favourite!bands,!tapped!into!a!much!more!
energetic! demographic:! those! in! their! teens! and! early! twenties.! Friendster’s! users,! meanwhile,!
were!somewhat!older.!
!
Other! observers! wonder! about! management! problems! at! Friendster.! The! highCpowered! board!
was! apparently! preoccupied! with! big! strategic! issues! and! spent! little! time! on! the! mundane!
technology! problems! that! stymied! the! company’s! growth.! There! was! also! a! revolving! door! for!
CEOs.!The!board!felt!Abrams!was!out!of!his!depth,!and!quickly!replaced!him!in!March!2004!with!
one!of!their!own,!Tim!Koogle,!the!former!CEO!of!Yahoo.!Koogle,!always!a!caretaker!CEO,!stepped!
down!after!three!months!to!be!replaced!by!Scoot!Sassa,!a!former!TV!executive,!who!lasted!just!a!
year!before!being!replaced!by!Taek!Kwan,!who!lasted!all!of!six!months.!By!2006,!Friendster!was!
on!its!fifth!CEO,!Kent!Lindstorm.!
!
The! board! considered! shutting! Friendster! down,! but! in! early! 2006,! they! decided! to! keep! the!
company!afloat!and!injected!$3.1!million!into!the!enterprise.!This!was!followed!by!an!additional!
$10!million!of!venture!capital!funding!in!August!2006.!Partly!fuelling!this!new!investment!was!a!
feeling!that!while!Friendster!may!be!down,!it!was!not!yet!out.!Early!on,!Friendster!filed!about!a!
dozen! patent! applications! covering! various! aspects! of! social! networking.! By! midC2006,! the! U.S!
Patent!Office!was!starting!to!grant!some!of!these!patents,!and!Lindstorm!was!clearly!wondering!
whether! they! could! be! used! to! extract! royalties! from! rivals.! The! first! patent! to! be! granted!
covered!“a!method!and!apparatus!for!calculating!and!displaying!and!acting!upon!relationships!in!
a!social!network.”!As!for!Friendster’s!service,!it!had!been!repositioned!as!a!service!for!twentyC
five!to!fortyCyearColds!who!could!not!spend!hours!every!day!online.!
!
!
Part#2.#The#Rise#of#Facebook#
#
In! 2008,! Facebook! reached! 62! million! users.! 2! years! later,! in! February! 2010,! the! number! of!
active!visitors!on!Facebook!dramatically!increased!to!400!million.!This!number!together!with!its!
1,400! +! employees! is! growing! by! leaps! and! bounds! every! day.! Facebook! has! achieved! many!
innovative!results!and!has!developed!features!that!have!provided!transformative!contributions!
to!the!web.!!
!
There!are!many!social!network!websites!finding!smart!ways!of!developing!their!platforms,!and!
seeking! a! larger! amount! of! market! share.! How! did! the! idea! of! a! few! college! dropout! students!
manage!to!win!the!web!and!become!the!market!leader!in!social!network?!!
!
About&the&Company&
“Founded) in) February) 2004,) Facebook) is) a) social) utility) that) helps) people) communicate) more)
efficiently) with) their) friends,) family) and) co3workers.) The) company) develops) technologies) that)
facilitate)the)sharing)of)information)through)the)social)graph,)the)digital)mapping)of)people's)real3
world)social)connections.)Anyone)can)sign)up)for)Facebook)and)interact)with)the)people)they)know)
in)a)trusted)environment.”2)
)
In! February! 2004,! Mark! Zuckerberg! and! coCfounders! Dustin! Moskovitz,! Chris! Hughes! and!
Eduardo! Saverin! launched! Facebook! from! their! Harvard! dorm! room.! It! was! a! poorly! designed!
students’!social!network!website!compared!to!what!it!is!today.!However,!it!became!very!popular!
very!fast!among!college!students.!A!month!later,!Facebook!expanded!from!Harvard!to!Stanford,!
Columbia!and!Yale.!!
!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
2
!http://www.facebook.com/press/info.php?factsheet!!
Without! investment! money,! Facebook! could! not! develop! further! without! the! required!
equipments! and! technologies! to! cope! with! the! fastCgrowing! demand.! Facebook! generated! its!
funding!through!three!rounds!as!a!startCup:!“round)one:)$500,000)from)Peter)Thiel,)Summer)2004;)
round)two:)$12.7)million)from)Accel)Partners,)April)2005;)round)three:)$27.5)million)from)Greylock)
Partners)leading)the)round,)Meritech)Capital)Partners)participating,)and)Accel)Partners)and)Peter)
Thiel)increasing)their)investment)in)the)company.”3!
!
After! a! few! acquisitions,! partnerships,! platform! workingCout! and! social! plug! development,!
“Facebook!revenues!reached!$500!million!in!2009,!up!from!$300!million!in!2008,!according!to!
Fortune! editor! David! Kirkpatrick,! who! cites! "wellCinformed! sources"! in! his! forthcoming! book,!
The) Facebook) Effect.”4!How! did! Facebook! make! such! a! large! revenue?! “Self3service) ads,) which)
appear) on) the) right) side) of) the) screen) on) Facebook,) accounted) for) about) $250) million) to) $300)
million.)Engagement)ads,)which)seek)user3interaction)(and)sometimes)feature)user3endorsements),)
brought) in) $100) million.) As) a) part) of) a) 2007) ad) deal,) Microsoft) sells) some) ads) on) Facebook.) Its)
payment) for) the) privilege) reached) $50) million) in) 2009.) Finally,) Facebook) Gifts) and) other) virtual)
goods) accounted) for) between) $30) million) and) $50) million) in) 2009.) These) figures) are) fairly)
consistent)with)Inside)Facebook's)March)2010)report.”5!
!
Open&Graph&&
According! to! Mark! Zuckerberg’s! keynote! speech! during! the! F8! conference! in! 2010,! the! open!
graph! was! designed! to! slot! into! the! unstructured! links! between! pages! on! the! web.! The! open!
graph!concept!puts!people!in!the!centre!of!the!web,!so!that!the!web!could!become!a!personal!and!
systematically! meaningful! connection! between! people! and! things.! It! was! all! about! managing!
relationships! on! the! web,! for! example,! connecting! with! other! people,! places,! groups,! interests,!
products,!events,!and!etc.!This!enabled!the!possibilities!of!connecting!things!around!a!person’s!
profile!and!activities!via!Facebook!to!multiply,!so!that!personalised!experiences!are!created.!!
!
Instant&Social&and&Social&PlugLins&
The) “Like”) Button! is! a! new! social! plugCin! system! following! the! success! of! the! “Connect”! and!
“Share”!social!plugCins!in!reaching!Facebook!and!mobile!users.!This!single!clickCbutton!enables!
people! to! share! links! or! contents! from! the! web! on! their! Facebook! profile.! It! is! definitely! a!
powerful! distribution! tool! on! the! web,! because! users’! friends! can! access! the! websites! of! the!
original!provider!easily.!
!
“It's) a) simple) yet) powerful) feature,) one) that) delivers) a) significant) blow) to) rival) Twitter.) Once) the)
network)effects)take)hold,)it's)frankly)hard)to)imagine)how)any)company)could)unseat)Facebook's)
social) networking) dominance) in) the) months) to) come.) Without) a) counterattack,) even) Google) may)
one)day)be)dethroned.”6)–)Pete)Cashmore)CEO)of)Mashable's)
))
These! social! network! social! plugCins! were! created! to! provide! Facebook! users! instant! personal!
experiences.! The! “Share”! or! “Like”! button! enables! users! to! share! topics! from! 3rdCparty! sites!
simply,!which!increases!the!volume!of!what!is!shared!from!these!3rd!–party!sites.!All!the!social!
plugCins! are! about! getting! distribution! by! Facebook! back! to! the! 3rdCparty! sites,! that! could!
possibly!enhance!visitor!engagement!and!interactivity.!!
!!
Simple&and&Simpler&
Being! simple! and! user! friendly! is! one! of! the! key! success! factors! of! Facebook.! To! deal! with! the!
credit!issue!on!Facebook,!a!common!Facebook!currency!has!been!introduced!to!all!applications,!
which!will!facilitate!the!sales!of!virtual!goods!on!Facebook.!Other!newly!developed!technologies!
include! accessing! friends’! “Share”! or! “Like”! activities! on! the! 3rdCparty! sites! without! physically!
loggingCin!on!Facebook.!In!September! 2011,!Facebook!introduced! another! powerful! marketing!
feature!for!brands!to!engage!fans!according!to!a!timeline.!While!Friendster!is!redefining!itself!by!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
3
!http://www.facebook.com/press/info.php?factsheet!!
4
!http://www.businessinsider.com/howFdoesFfacebookFmakeFmoneyF2010F5!
5
!!
6!http://edition.cnn.com/2010/TECH/04/22/facebook.won.the.web.cashmore/index.html?iref=allsearch!
penetrating!the!Asian!market!as!a!social!gaming!niche,!Facebook!makes!its!strategic!choices!by!
providing! its! services! to! a! mass! audience! and! leaves! the! opportunity! of! building! communityC
based!networks!to!the!users.!!
!
Web&Identity&and&Trust&Issues&
In!the!virtual!network!world,!you!do!not!necessarily!have!to!be!“real”!or!trustworthy.!This!has!
caused!major!issues!in!ECgovernance!and!profile!effectiveness!on!the!web.!Facebook!has!made!
this! virtual! social! network! more! real! because! if! you! are! not! who! you! say! you! are,! it! becomes!
harder! to! find! your! “real! friends”! on! the! web.! Most! of! the! regular! visitors! on! Facebook! have!
chosen!to!use!their!real!identities,!so!one!can!imagine!the!huge!number!of!personal!profiles!and!
data!that!Facebook!owns!on!the!web.!Maybe!this!has!created!a!search!engine!usage!possibility?!
!
At! any! rate,! Facebook! is! a! young! and! newly! developed! online! social! network! website.! In! May!
2010,! Facebook! faced! major! privacy! issues! on! the! web,! and! yet,! they! responded! fast! and!
professionally.! At! the! same! time,! Facebook! was! all! over! the! news! and! so! gained! even! more!
publicity.! With! the! exciting! launch! of! its! IPO! in! 2012,! Facebook! continues! to! take! risks! and!
opportunities!on!its!growing!journey.!!!
!
!
!
!
!
!
!
#
!
conclusions!on!the!case!study.!!
!
Discuss!how!Facebook!has!used!innovation!to!develop!their!strategies.!!
!
Week#5:#Business#&#corporate#level#strategy#
#
!
1. Watch!the!Techdirt.com!video!‘Implementing!New!Ideas!Quickly’.!To!what!extent!would!
you! say! the! ‘innovators! dilemma’! that! is! discussed! is! also! applicable! to! the! newspaper!
sector?!If!you!look!for!examples!in!newspapers!and!magazines,!what!would!you!do!if!you!
owned!one?!!
!
YouTube!link:!http://www.youtube.com/watch?v=Q1vw23YHFds.!Or!use!‘Implementing!
New!Ideas!Quickly’!as!search!string!on!YouTube.!!
!
https://www.youtube.com/watch?v=yUAtIQDllo8!
!
!
2. Review! and! apply! the! theory! of! the! Ansoff! matrix! (growth! strategy)! for! making!
corporate!level!strategic!choices!in!order!to!understand!miniCcase!5.!!
#
!
MiniZcase#5:#! Corporate#strategy#choices#for#Axel#Springer#!
Source:#! Johnson,! Scholes! &Whittington.! (2011).! Exploring) Strategy,! Text! and! Cases.!
(9th!Ed.).!Prentice!Hall,!Harlow.!p.!233.!!
!
!
MiniZcase#5:#Corporate#strategy#choices#for#Axel#Springer#
!
This)German)publishing)company)has)many)opportunities,)and)the)money)to)pursue)them.))
!
!
In!2007,!Matthias!Döpfner,!chairman!and!chief!executive!of!Axel!Springer!publishers,!had!about!
€2bn! to! invest! in! new! opportunities.! The! previous! year,! the! competition! authorities! had!
prohibited! his! takeCover! of! Germany's! largest! television! broadcaster,! ProSiebenSat.1…! Now!
Döpfner!was!looking!for!alternative!directions.!!
!
Founded!in!1946!by!Axel!Springer!himself,!by!2007!the!company!was!already!Germany's!largest!
publisher!of!newspapers!and!magazines,!with!more!than!10.000!employees!and!over!150!titles.!
Famous!print!included!Die)Welt,!the!Berliner)Morgenpost,!Bild!and!Hörzu.!Outside!Germany,!Axel!
Springer! was! strongest! in! Eastern! Europe.! The! company! also! had! a! scattering! of! mostly! small!
investments! in! German! radio! and! television! companies.! Axel! Springer! described! its! strategic!
objectives!as!market!leadership!in!the!German!language!core!business,!internationalization!and!
digitalization!of!the!core!business.!
!
Döpfner! had! opportunities! for! further! penetration! with! his! existing! markets! and! products.!
Increased!digitalization!of!the!core!newspapers!and!magazines!business!was!clearly!important!
and! would! require! substantial! funding.! There! were! also! opportunities! for! the! launch! of! new!
print!magazine!titles!in!the!German!market.!!
!
However,! Döpfner! was! considering! expanding! also! into! new! markets! and! new! products.! Such!
moves!would!likely!involve!acquisition:!'it!goes!without!saying',!he!told!the!Financial)Times,!'that!
whenever!a!large!international!media!company!comes!on!to!the!market!(i.e.!is!up!for!sale),!we!
will! examine! it! very! closely! C! whether! in! print,! TV! or! the! online! sector'.! Döpfner! mentioned!
several!specific!kinds!of!acquisition!opportunities.!For!example,!he!was!still!interested!in!buying!
a!large!European!television!broadcaster,!even!if!it!would!probably!have!to!be!outside!Germany.!
He! was! also! attached! by! the! possibility! of! buying! underCvalued! assets! in! the! old! media! (i.e.!
print),! and! turning! them! around! in! the! style! of! a! privateCequity! investor:! 'I! would! love! to! buy!
businesses! in! need! of! restructuring,! where! we! can! add! value! by! introducing! our! management!
and!sector!expertise'.!However,!Döpfner!reassured!his!shareholders!by!affirming!that!he!felt!no!
need!'to!do!a!big!thing!in!order!to!do!a!big!thing'.!
!
Additional&learning&goals:&
&
Make! a! BCG! matrix! (portfolio! analysis)! for! Axel! Springer! by! mapping! out! its! various! business!
units.!How!can!you!draw!conclusions!and!develop!strategies!based!on!the!BCG!matrix?!Discuss!
the!limitations!of!the!BCG!matrix.!
!
!
!
!
!
!
!
the! CBL! 5Cstep! method.! At! the! end! of! the! session,! you! should! be! able! to! answer! the! problem!
statement!and!draw!conclusions!to!the!case!study.!!
!
To! conclude,! you! will! ask! the! other! teams! the! questions! you! prepared! for! case! 2,! and! these!
questions!will!be!answered!by!the!other!teams!in!class.!
Week#6:#Global#strategy#&#corporate#governance##
&
#
• The!MTV!story!continues!in!this!week,!but!this!time,!we!will!focus!on!its!global!strategies.!
Watch! a! few! short! programmes! of! MTV! broadcasted! in! various! locations! (e.g.! MTV!
India/The! Netherlands/Germany/Brazil).! Discuss! the! differences! and! common!
perspectives!involved!in!these!programmes,!and!map!them!on!the!board.!!
!
• Watch! this! Ted! talk:! “11! stats! that! suggest! our! world! may! not! be! as! globalized! as!
we!think”,!presented!by!Pankaj!Ghemawat.!Discuss!with!your!peers!what!you!have!learnt!
from! this! talk.! http://blog.ted.com/2012/10/22/11CstatsCthatCsuggestCourCworldCmayC
notCbeCasCglobalizedCasCweCthink/!
Actions#during#the#session!
of!the!CBL!5Cstep!method.!!
!
Finally,!do!not!forget!to!read!the!preparatory!activities!for!the!roleCplay,!which!will!take!place!in!
the!next!session.!Following!the!instructions!for!the!roleCplay!is!essential.!!
!
MiniZcase#6:#! MTV#Networks:#A#Global#Brand#Goes#Local#
Written#by:# Jones!&!Hill!!
Source:#! Jones! &! Hill! (2010).! Theory) of) Strategic) Management.! (9th! Ed.)! SouthC
Western,!Cengage!Learning.!UK.!P.280C281!
!
!
MiniZcase#6:#MTV#Networks:#A#Global#Brand#Goes#Local#
!
MTV! Networks! has! become! a! symbol! of! globalisation.! Established! in! 1982,! the! United! StatesC
based! TV! network! has! been! expanding! outside! of! its! North! American! base! since! 1987! when! it!
opened! MTV! Europe.! Now! owned! by! media! conglomerate,! Viacom,! MTV! Networks,! which!
includes! Nickelodeon! and! VH1,! the! music! station! for! the! aging! baby! boomers,! generates! more!
than! $2! billion! in! revenues! outside! the! United! States.! Since! 1987,! MTV! has! become! the! most!
ubiquitous! cable! programmer! in! the! world.! By! the! late! 2000s,! the! network! reached! some! 450!
million! households,! some! 300! million! of! which! were! in! 140! countries! outside! of! the! United!
States.!!
!
While! the! United! States! still! leads! in! the! number! of! households,! the! most! rapid! growth! is!
elsewhere,! particularly! in! Asia,! where! nearly! twoCthirds! of! the! region's! 3! billion! people! are!
younger!than!35,!the!middle!class!is!expanding!quickly,!and!TV!ownership!is!spreading!rapidly.!
MTV!Networks!figures!that!every!second!of!every!day!more!than!2!million!people!watching!MTV!
around!the!world,!the!majority!outside!the!United!States.!
!
Despite!its!international!success,!MTV's!global!expansion!got!off!to!a!weak!start.!In!1987,!when!
most! of! MTV's! fare! still! consisted! of! music! videos,! it! piped! a! single! feed! across! Europe! almost!
entirely! composed! of! American! programming! with! EnglishCspeaking! hosts.! Naively,! the!
network's! American! managers! thought! Europeans! would! flock! to! the! American! programming.!
But!while!viewers!in!Europe!shared!a!common!interest!in!a!handful!of!global!superstars,!who!at!
the!time!included!Madonna!and!Michael!Jackson,!their!tastes!turned!out!to!be!surprisingly!local.!
What! was! popular! in! Germany! might! not! be! popular! in! Great! Britain.! Many! staples! of! the!
American! music! scene! left! Europeans! cold.! MTV! Networks! suffered! as! a! result.! Soon! local!
copycat! stations! were! springing! up! in! Europe! that! focused! on! the! music! scene! in! individual!
countries.!They!took!viewers!and!advertisers!away!from!MTV.!As!explained!by!Tom!Freston,!the!
former!chairman!of!MTV!Networks,!"We!were!going!for!the!most!shallow!layer!of!what!united!
viewers!and!brought!them!together.!It!didn't!go!over!too!well."!!
!
In! 1995,! MTV! changed! its! strategy! and! broke! Europe! into! regional! feeds.! There! are!
approximately! 25,! including! feeds! for! the! United! Kingdom! and! Ireland;! another! for! Germany,!
Austria,!and!Switzerland;!one!for!Italy;!one!for!France;!one!for!Spain;!one!for!Holland;!and!one!
for! Russia.! The! network! adopted! the! same! localisation! strategy! elsewhere! in! the! world.! For!
example,!in!Asia!it!has!10!feeds:!an!EnglishCHindi!channel!for!India;!separate!Mandarin!feeds!for!
China! and! Taiwan;! a! Korean! feed! for! South! Korea;! a! BahasaClanguage! feed! for! Indonesia;! a!
Japanese!feed!for!Japan;!and!so!on.!Digital!and!satellite!technology!have!made!the!localisation!of!
programming! cheaper! and! easier.! MTV! Networks! can! now! beam! half! a! dozen! feeds! off! one!
satellite!transponder.!
!
Although! MTV! Networks! exercises! creative! control! over! these! different! feeds,! and! all! the!
channels!have!the!same!familiar!frenetic!look!and!feel!of!MTV!in!the!United!States,!a!significant!
share!of!the!programming!and!content!is!now!local.!When!MTV!opens!a!local!station,!it!begins!
with! expatriates! from! elsewhere! in! the! world! to! do! a! "gene! transfer"! of! company! culture! and!
operating! principles.! Once! these! are! established,! however,! the! network! switches! to! local!
employees! and! the! expatriates! move! on.! The! idea! is! to! "get! inside! the! heads"! of! the! local!
population!and!produce!programming!that!matches!their!tastes.!
!
Although!many!of!the!programming!ideas!still!originate!in!the!United!States,!with!staples!such!as!
The)Real)World!heaving!equivalents!in!different!countries,!and!increasing!share!of!programming!
is!local!in!conception.!In!Italy,!MTV)Kitchen)combines!cooking!with!a!music!countdown.!Erotica!
airs!in!Brazil!and!features!a!panel!of!youngsters!discussing!sex.!The!Indian!channel!produces!21!
homegrown!shows!hosted!by!local!veeCjays!who!speak!"Hinglish,"!a!city!bred!breed!of!Hindi!and!
English.! Hit! shows! include! MTV)Cricket)in)Control,! appropriate! for! a! country! where! cricket! is! a!
national!obsession;!MTV)Houseful,!which!hones!in!on!Hindi!Film!stars!(India!has!the!biggest!film!
industry!outside!of!Hollywood);!and!MTV)Bakra,!which!is!modelled!after!Candid!Camera.!!
!
This! localisation! push! reaped! big! benefits! for! MTV,! allowing! the! network! to! capture! viewers!
back!from!local!imitators.!In!India,!for!example,!ratings!increased!by!more!than!700%!between!
1996,! when! the! localisation! push! began,! and! 2000.! In! turn,! localisation! helps! MTV! to! capture!
more!of!those!allCimportant!advertising!revenues,!even!from!other!multinationals!such!as!CocaC
Cola,!whose!own!advertising!budgets!are!often!locally!determined.!
#
# #
Preparation#for#the#next#session:#CBL#extra#activity#session#6.2#–#RoleZplay#
!
Please) read) the) following) instructions) during) the) 1st) CBL) session) in) week) 6.) Make) sure) you) are)
prepared) for) the) actual) role3play) for) the) 2nd) session) of) this) week.) You) can) gain) a) maximum) of) 5)
points)(P&P))for)performing)the)roles)that)you)play)in)class.))
)
The! roleCplay! will! take! approximately! 35! minutes,! and! afterwards! you! can! take! 10! minutes! to!
evaluate!the!team!and!the!individual!performances!during!the!roleCplay!together!with!the!tutor.!
There!is!a!description!of!your!role!and!the!situation!of!the!roleCplay!below.!!
!
You!will!play!various!roles!as!some!key!stakeholders!of!MTV!Network.!You!will!participate!in!a!
major! business! meeting! of! MTV,! where! you! will! discuss! several! important! strategic! issues!
together! during! this! formal! meeting.! At! the! end! of! the! meeting,! you! will! make! decisions!
depending!on!the!power!and!interest!levels!of!different!stakeholders.!!
&
Assignment&&
• Divide!the!roles!among!the!CBL!group!members.!!
• Review!the!theory!on!stakeholder!analysis!and!understand!what!a!stakeholder!map!is.!
• Read!the!description!of!your!role!very!carefully!and!make!sure!you!understand!your!position.!
Place!yourself!in!the!stakeholder!map.!
• Write! down! 2C3! (business)! objectives! for! your! role.! What! do! you! want! to! get! out! of! the!
meeting?!
• Desk!research!your!job!title.!(Gathering!extra!information!from!the!Internet!to!support!your!
argumentations!during!the!roleCplay).!
• Hand!in!1!page!(AC4)!of!preparation!to!the!tutor!prior!to!the!actual!roleCplay.!
• The!CBLCgroup!will!decide!on!who!will!host!the!meeting!(roleCplay).!
• The!host!must!also!make!name!cards!for!each!role.!!
!
Divide!the!following!roles!during!the!1st!CBL!session!in!Week!6,!and!carry!out!the!actual!roleC
play!during!the!2nd!CBL!session!after!reading!the!background!information.!!
!
1. Simon!Guild! ! CEO,!MTV!Europe!(Host)!!
2. Philip!O'Ferrall!! Vice!President,!MTV!Digital!Media!(Optional&role)!!
3. Lois!Curren! ! Vice!President,!MTV!Series!Entertainment!&!Programming! !
4. Joe!Ortiz! ! Senior!Vice!President,!Marketing!+!Brand!Creative,!MTV!
5. Michael!Black! ! President,!Endemol!Studio!Europe!
6. Paul!de!Boer!! ! Secretary,!European!Commission!of!Media!
7. David!Rosenblatt!! CEO,!DoubleClick!Inc.!Google,!MTV’s!digital!advertiser!
8. Lucy!Berkett! ! CEO,!of!Virgin!Media,!UK,!a!major!cable!provider!
9. Sue!Cook!! ! Vice!president,!Media!Consumer!Rights!Commission!EU!
10. Guy!Laurence!! ! CEO,!Vodafone!UK!
11. Fred!Bolza! ! Vice!Present!Strategic!Adviser,!Sony/BMG/EMI,!UK!
12. Ted!Sarandos!! ! Chief!Content!Officer,!Netflix!!
13. Glenn!Enoch!! ! Senior!viceCpresident!of!audience!research,!Nielsen!
! ! !
Actual&roleLplay&
&
• Draw!a!stakeholder!map!on!the!white!board!prior!to!the!roleCplay.!!
• The!chairperson!opens!the!meeting!with!a!small!business!talk!(1C2!minutes).!
• Discuss!issues!mentioned!in!the!roleCplay!instructions!one!by!one!(25!minutes).!
• The!chairperson!should!make!sure!every!role!has!the!chance!to!speak!during!the!meeting;!for!
example,!you!can!try!to!address!questions!to!a!particular!role.!
• Conclude!the!meeting!–!are!you!able!to!make!any!strategic!decisions?!(4C5!minutes).!
• Close! the! meeting! and! position! your! roles! on! the! stakeholder! map,! and! motivate! your!
reasons,!and!draw!a!conclusion!on!the!stakeholder!analysis.!!
Background#information#for#the#roleZplay#
&
Situation:&
!
In!the!month!of!September!every!year,!some!of!the!key!stakeholders!of!MTV!Networks!gather!in!
Amsterdam! to! discuss! several! strategic! issues! challenging! MTV# Europe.! As! an! important!
influencer! of! decisionCmaking! at! MTV# Europe,! you! were! invited! to! this! annual! meeting,! and!
represent!the!voices!and!plans!of!your!firm.!!
!
MTV! Europe! is! aimed! at! viewers! aged! around! 16C35;! it! reaches! more! than! 100! million!
households!in!43!territories.!
!
On!a!clear!sunny!winter!day,!you!arrive!at!the!headquarter!office!of!MTV!Europe!at!10!am.!The!
CEO!of!MTV!Europe,!Simon!Guild!is!hosting!the!annual!meeting,!which!is!followed!by!a!business!
lunch.!During!the!meeting!you!will!discuss!several!issues!concerning!MTV!Europe’s!future.!!
!
On!the!meeting!agenda,!there!are!four!main!discussion!topics:!!
!
Firstly,! as! of! August! 1,! 2010,! MTV! Europe! has! controversially! removed! its! core! music!
programming!and!replaced!it!with!reality!based!programming!from!MTV!US.!The!global!strategy!
of! MTV! Networks! has! always! been! the! mantra! 'think! global,! act! local’.! This! action! has! raised! a!
small!number!of!dissatisfied!consumers!in!Europe.!Endemol!Studio!Europe!is!doing!really!well!in!
producing!popCculture!related!products!on!a!local!level.!
!
Secondly,! MTV! mobile! has! entered! the! European! Smartphone! market! via! various! mobile!
providers.! Will! this! initiative! be! a! success?! The! European! commission! has! strict! rules! for!
advertising!and!competition.!The!digital!privacy!issue!of!consumers!is!on!the!table!as!well.!!
!
Thirdly,! Europe! has! not! yet! recovered! from! the! economic! crisis.! This! results! in! continuously!
lower!advertising!revenues!for!MTV!Europe.!However,!digital!advertising!revenue!has!increased.!
How!to!attract!more!advertisers!in!Europe?!!
!
Lastly,!is!PayCTV!or!Netflix!going!to!be!MTV’s!focus!in!the!near!future?!Can!MTV!Europe!build!up!
more! trustworthy! partnerships! with! cable/digital! providers! and! distributors! in! order! to!
increase!the!number!of!viewers?!!
&
!Read!the!descriptions!of!the!specific!role!that!you!chose!when!preparing!your!role!at!home.!!
&
&
Description&of&each&role:&
!
1. Simon#Guild# # CEO#of#MTV#Europe#(host)#
!
Guild! is! charged! with! all! operational! responsibilities! for! MTV! Networks! Europe! (MTVNE),! the!
number! one! cable! and! satelliteCbroadcasting! group! in! Europe! in! terms! of! distribution! and!
revenue.! Guild! has! been! instrumental! in! shaping! the! company's! European! business!
development!over!the!past!13!years.!He!has!spearheaded!a!number!of!key!strategic!initiatives!
for!MTVNE,!including!acquisitions!of!VIVA,!TMF!and!Game!One!and!expanding!MTV's!portfolio!
of! niche! TV! channels! and! website! offerings! across! Europe.! Most! recently,! Guild! has! overseen!
further! Nickelodeon! expansion! in! Europe! with! launches! in! Germany,! Holland,! Portugal! and!
Turkey,!championing!the!Nickelodeon!brand!to!create!the!biggest!kids’!network!in!the!world.!In!
addition,!Guild!is!advancing!the!network's!digital!media!strategy!to!personalise!the!company's!
relationships!with!audiences!in!compelling!new!ways.!Guild!believes!in!the!power!of!niche!and!
personalisation! in! broadcasting,! his! strategy! is! based! on! adopting! reality! based! programming!
from! MTV! US,! since! there! is! definitely! a! teenager! market! in! Europe,! so! that! other! subCMTV!
channels!can!generate!more!viewers!through!their!musicCbased!programs.!!
!
2. Philip#O'Ferrall# Vice#President,#MTV#Digital#Media##
!
In! 2007,! MTV! Digital! Media! was! founded! to! enlarge! MTV! Networks’! business! portfolio!
aggressively.! Today,! MTV! owns! approximately! 500! digital! assets! offering! dynamic! interactive!
content! to! audiences! worldwide.! Product! integration! is! therefore! gaining! ground! as! a! key!
marketing!strategy,!and!digital!media!have!increased!customer!responsiveness.!MTV!mobile!has!
a!small!base!in!Europe;!applications!need!to!be!further!developed!in!order!to!differentiate!from!
other!competitors.!Digital!advertising,!gaming!and!content!distribution!are!gaining!momentum!
in!the!MTV!Networks.!!
!
3. Lois#Curren# Vice#President,#MTV#Series#Entertainment#&#Programming#
!
Reality!TV!shows!definitely!have!a!market!in!Europe,!but!most!of!the!shows!are!U.S.!based,!and!
therefore!lack!the!involvement!of!local!characteristics.!Usually,!these!localised!reality!TV!shows!
have!high!production!costs,!so!perhaps!a!userCgenerated!content!can!become!a!solution!in!the!
near!future.!MTV!is!also!seeking!cooperation!with!other!local!production!companies!to!expand!
its! programme! diversity! and! become! more! appealing! to! the! local! audience,! in! order! to!
contribute! to! local! popular! culture.! How! should! MTV! Europe! form! sustainable! content!
aggregation!and!production!in!the!future?!Is!user!generated!content!a!possible!solution!for!cost!
cutting?!!
!
4. Joe#Ortiz# # Senior#Vice#President,#Marketing#+#Brand#Creative,#MTV#
!
Marketers! are! aware! that! the! traditional! 30Csecond! advertisement! does! not! have! the! same!
impact! as! it! used! to,! and! product! integration! is! therefore! gaining! ground! as! a! key! marketing!
strategy.! MTV! Networks! Europe! needs! to! attract! more! local! advertisers! by! using! various!
platforms.!Working!with!DoubleClick!(Google)!has!been!successful,!but!how!can!we!bring!this!to!
the!next!level?!How!can!MTV!engage!customers!via!multiplatform!in!the!future?!CrossCplatform!
integration!and!online!advertising!will!continue!to!be!the!priority!at!MTV!Europe.!Tina!is!very!
interested! in! performance! marketing,! for! example,! Real! Time! Bidding! and! product! placement,!
which! have! been! growing! fast! in! the! last! 2! years.! Tina! sees! opportunities! in! working! with!
Google!on!online!marketing!solutions.!!
!
5. Michael#Black# President#of#Endemol#Studio#Europe#
!
Endemol,! a! world! leader! in! entertainment! programming,! focuses! on! TV! format! development,!
production! and! content! distribution.! Endemol! Europe! desires! to! work! with! MTV! Europe! as! a!
content! supplier! with! innovative! crossCplatform! formats.! Endemol! is! looking! forward! to!
presenting! the! programme! to! its! international! broadcasters.! Endemol! Studio! Europe! is! an!
innovative! production! company.! Throughout! the! years,! it! has! produced! many! reality! TV! and!
game! shows,! especially! targeted! at! young! audiences.! Endemol! wants! to! investigate! the!
possibilities!of!partnership!and!content!distribution!with!MTV!Europe.!!
!
6. Paul#de#Boer## Secretary#of#European#Commission#of#Media#
!
The!European!Commission!of!Media!does!not!like!the!idea!that!the!MTV!Europe!channel!is!full!
of! American! reality! TV! shows.! Are! the! contents! suitable! for! young! European! audiences! in! the!
European!cultural!context?!The!commission!argues!that!some!of!the!shows!would!have!negative!
impacts! and! influences! on! the! valueCdriven! society! and! teenagers! in! Europe.! The! commission!
suggests!that!MTV!make!more!efforts!to!improve!on!the!healthiness!and!variety!of!the!contents!
in!order!to!educate!the!young!audience!while!entertaining.!!
!
! !
!
7. David#Rosenblatt## CEO#of#DoubleClick#Inc.,#MTV’s#digital#advertiser#
!
DoubleClick! is! a! global! Internet! advertising! company! owned! by! Google.! DoubleClick! works!
closely! with! MTV! in! Europe! to! enhance! the! MTV! online! experience! designed! to! engage! and!
involve! MTV's! 16! C! 34! year! old! demographic! via! exclusive! musicCrelated! content,! innovative!
interfaces,!interactive!games!and!the!use!of!'intelligent!recommendations'!which!push!content!
most!relevant!to!the!site!visitors.!MTV!Europe!was!looking!for!a!service!provider,!which!could!
offer!both!its!existing!onCair!and!potential!new!onCline!advertisers!a!true!valueCadded!service,!
optimizing! the! synergy! between! its! television! and! online! platforms.! DoubleClick! helps! MTV!
Europe!create!and!offer!new!advertising!vehicles!such!as!sponsorships!on!the!site.!DoubleClick!
is!committed!to!building!the!strongest!network!of!global!brands,!it!is!providing!web!sites,!like!
MTV,! with! the! technology,! marketing! and! sales! tools! to! be! successful! online! and! at! the! same!
time! growing! a! network! of! international! brands! for! advertisers! to! reach! their! consumers!
worldwide.!
!
DoubleClick! works! closely! with! the! MTV! Online! strategy! of! 'regional! expansion'! in! Europe,!
whereby!CC!following!the!same!path!as!for!its!television!operations!CC!MTV!aims!to!get!closer!to!
its! audience! by! becoming! more! regionally! relevant! within! its! key! European! territories.! The!
website! will! include! regional! front! doors! offering! relevant! programming,! chart! and! event!
information.!DoubleClick's!network!and!understanding!of!the!European!market!will!provide!the!
support!and!service!required!by!MTV.!!
!
8. Lucy#Berkett# # CEO#of#Virgin#Media,#UK,#a#major#cable#provider#
!
As!the!only!major!cable!company!in!the!United!Kingdom,!Virgin!Media!competes!primarily!with!
the! other! major! payCtv! operator,! satelliteCbased! British! Sky! Broadcasting! which! currently! has!
more!channels!than!any!other!provider!in!the!UK,!and!with!Freeview,!the!freeCtoCair!terrestrial!
service.!To!maintain!Virgin’s!competitive!position,!MTV!Networks!is!especially!attractive.!Many!
channels!of!MTV!Networks!are!already!broadcasting!via!Virgin!Media!in!UK,!and!they!would!like!
to! expand! this! cooperation! further! to! distribute! more! Viacom! channels! in! the! future,! and!
possibly!expand!together!into!Eastern!European!markets.!Virgin!Media!ranks!as!the!UK's!largest!
provider! of! onCdemand! content,! with! over! 3! million! Video! on! Demand! (VoD)! customers.! The!
company! currently! brands! its! VOD! service! as! "On! Demand".! However,! the! arrival! of! Netflix! in!
Europe!has!caused!new!challenges!for!Virgin!as!it!is!a!strong!competitor.!!
!
9. Sue#Cook### Vice#president#of#Media#Consumer#Rights#Commission#EU#
!
Many! concerns! come! from! parents,! who! perceive! their! teenage! children! spend! a! lot! of! time!
watching!reality!TV!shows.!This!results!in!frustration!and!worries!on!the!part!of!the!parents!the!
parents,! who! would! like! their! children! to! receive! high! quality! and! educational! content! from!
MTV!Networks!Europe.!Secondly,!many!media!consumers!think!the!media!are!overloaded,!and!
they!have!doubts!about!the!direction!they!are!taking.!It!seems!that!the!amount!of!advertising!is!
too!large!on!MTV!channels,!and!advertisements!are!too!long!and!take!too!much!time!in!between!
programs.!Some!consumers!think!advertisements!manipulate!their!product!choices.!!
!
10. Guy#Laurence## CEO#of#Vodafone#UK#
!
Cooperation!with!MTV!mobile!has!been!a!winCwin!situation!in!the!UK!market!so!far.!Vodafone!is!
seeking!new!deals!with!MTV!in!other!European!countries,!which!could!provide!MTV!with!access!
to! some! 700! million! users,! especially! in! the! fastCdeveloping! eastern! European! countries.! The!
smartphone!market!is!still!growing!fast!in!Europe,!and!the!demand!for!watching!TV!programs!
on!mobileCdevices!is!increasing.!MTV!mobile!currently!have!many!mobile!providers!in!Europe,!
for!example,!Orange,!DoCoMo,!and!Hi.!Although!the!future!of!MTV!mobile!is!uncertain,!Vodafone!
would!like!to!make!its!move!before!the!other!competitors,!in!order!to!penetrate!this!young!but!
exiting!niche!market.!Although!mobile!advertising!has!grown,!the!technical!standards!have!not!
been! adapted! by! the! advertising! industry,! and! as! a! network! provider,! there! are! many!
uncertainties!concerning!the!future!transition.!!
!
11. Fred#Bolza# Vice#Present#Strategic#Adviser#at#Sony/BMG/EMI#UK#
!
The! charts! very! often! represent! sales! of! a! record! label! company.! As! a! longCterm! partner,!
Sony/BMG/EMI! understands! the! challenges! MTV! is! facing! as! a! result! of! fast! technological!
developments.!MTV!first!started!as!a!music!promotional!tool!for!label!companies,!and!it!became!
a! standCalong! business! afterwards.! Sony/BMG/EMI! would! like! to! see! more! musicCbased!
programs! on! MTV! Europe! in! order! to! promote! their! artists.! Many! label! companies! lost! their!
ground!because!of!substitutes!and!illegal!downloading,!such!as!on!Youtube.com.!The!goal!is!to!
sell!more!and!engage!customers!via!various!platforms.!Can!we!promote!our!artists!better!with!
MTV?!How!can!we!engage!music!fans!on!various!platforms!together!with!MTV?!!!!
!
12. Ted#Sarandos## Chief#Content#Officer#at#Netflix##
!
Ted! Sarandos! has! led! content! acquisition! for! Netflix! since! 2000.! With! more! than! 20! years'!
experience! in! home! entertainment,! Ted! is! recognized! in! the! industry! as! an! innovator! in! film!
acquisition!and!distribution.!Before!Netflix,!Ted!was!an!executive!at!video!distributor,!ETD!and!
Video!City!/!West!Coast!Video.!MTV!has!opened!up!and!licenced!some!content!(both!film!&!TV)!
to! Netflix! this! year! due! to! the! popularity! of! Netflix! in! the! North! American! region! and! its!
expansion! in! Europe! (first! 6! countries).! Netflix! desires! a! further! content! and! programing!
collaboration! with! MTV! Europe,! and! hopes! to! acquire! more! packaged! music! programs! from!
MTV.!However,!the!challenge!is!that!MTV’s!core!business!is!centred!on!cable!TV!and!prefers!to!
distribute!exclusive!content!first!on!MTV’s!own!channels!and!online!platforms.!!
!
13. Glenn#Enoch## Senior#viceZpresident#of#audience#research,#Nielsen#
!
Nielsen! is! a! leading! global! consumer! behaviour! research! firm! that! studies! consumers! in! more!
than! 100! countries! with! a! view! to! providing! companies! the! most! complete! view! of! trends! and!
habits! worldwide.! A! chart! from! the! Total! Audience! Report! shows! that! adult! consumers! in! the!
U.S.!still!spend!vastly!more!time!watching!television!than!they!do!on!either!their!smartphones!or!
PCs!—!about!36!hours!a!week!for!TV!vs.!7!hours!on!a!smartphone!and!5!hours!on!a!PC.!Even!the!
muchCwanted!18!to!34!age!group!spends!dramatically!more!time!watching!television!than!on!the!
phone!or!the!computer,!according!to!Nielsen’s!survey:!21!hours!for!TV!vs.!10!for!the!smartphone!
and!5!for!the!PC.!
!
TV! viewer! ratings! in! the! U.S.! (summer,! 2015)! have! declined! by! double! digits! at! Viacom’s! most!
popular!cable!networks,!including!Comedy!Central,!BET,!VH1,!Nickelodeon,!Spike,!and!TV!Land.!
At! MTV,! the! company’s! flagship! network,! primeCtime! ratings! are! down! 21.7!per! cent! from! last!
season!and!25!per!cent!in!the!18C!to!34CyearCold!demographic!that!the!network!targets.!
# #
Week#7:#Strategic#implementation#
!
#
Prior#the#session#preparation#
Check! out! www.cnn.com,! and! compare! the! website! to! other! news! websites.! What! kind! of!
differences!do!you!notice?!Discuss!this!after!reading!the!following!texts.!!
!
of!the!CBL!5Cstep!method.!
!
MiniZcase#7:#! CNN&#CNN’s#Recent#Development#and#Strategy#
Written#by:# Lucy!Küng!(Part!1)!and!Fan!Ding!(part!2)!
Source:#! Küng,!L.!(2008).!Strategic)Management)in)the)Media:)From)Theory)to)Practice.!
SAGE.!London.!P.!160C161!
!
#
MiniZcase#7:#Part#1.#CNN##
!
During!the!first!10!years!of!its!life!(from!its!founding!in!1986!to!its!takeover!by!Time!Warner!in!
1996)!CNN!offered!many!examples!of!creativity!in!terms!of!systems!and!strategy.!CNN’s!concept!
has!been!so!widely!adopted!by!the!industry!that!it!is!hard!now!to!view!it!as!exceptional,!but!it!
was!extremely!novel!when!it!first!emerged.!
!
The!idea!behind!CNN!was!to!set!up!a!channel!that!concentrated!only!on!news,!and!broadcast!that!
news! around! the! clock.! The! news! would! be! global,! and! would! be! live.! CNN! would! try! to! cover!
news!as!it!happened,!rather!than!report!after!the!fact.!A!central!element!of!this!was!to!create!“a!
role!in!the!process!for!the!viewers.!This!would!be!achieved!by!avoiding!the!groomed!approach!of!
the! US! networks! in! favour! of! open! sets! within! newsrooms,! and! of! stories! evolving! as! viewers!
watched.! Overcoming! industry! cynicism,! this! unconventional! approach! held! real! attraction! for!
viewers!and!revitalised!what!had!become!a!stale!genre!–!so!much!so!that!two!decades!later!the!
CNN!style!has!become!a!standard!for!news!delivery!worldwide.!
!
The!core!product!can!therefore!be!categorised!as!creative.!But!creativity!was!also!evident!in!the!
systems! and! processes! that! supported! the! content! proposition.! The! concept! of! CNN! was!
designed! to! exploit! a! number! of! simultaneous! technological! advances! –! cable! television,!
communication!satellites,!suitcaseCsize,!satellite!uplinks!and!handy!cams!–!in!order!to!reinvent!
the! way! news! is! produced! and! delivered.! A! number! of! highly! innovative! processes! were!
introduced! in! order! to! implement! this! strategy! against! a! background! of! extremely! limited!
resources! –! both! in! terms! of! time! and! money.! The! most! famous! example! is! probably! the!
invention! of! the! video! journalist! or! VJ.! The! VJ! is! a! ‘oneCman! television! band’! that! is! capable! of!
covering!a!story!without!the!expense!of!a!full!film!crew,!shooting!video!as!well!as!reporting,!and!
then! editing! the! material! too.! Like! many! of! Ted! Turner’s! inventions,! broadcasters! all! over! the!
world!have!now!adopted!this!concept.!!
!
Similar! organisational! creativity! can! be! found! in! CNN’s! network! of! broadcast! affiliates! all! over!
the!world.!The!traditional!affiliate!relationship!is!a!oneCway!street!from!the!channel!or!network,!
to!the!affiliate,!and!most!news!organisations!pride!themselves!on!the!exclusivity!of!their!content.!
CNN! revisited! this! approach! by! establishing! a! reciprocal! network! of! 600! television! stations!
worldwide,! which! both! received! news! feeds! from! CNN,! but! also! fed! local! footage! back! to! CNN.!
This! was! initially! a! pragmatic! solution! for! the! need! to! offer! global! coverage! without! adequate!
resources,! but! it! became! a! strategic! asset! in! that! it! enabled! CNN! to! build! a! global! presence!
quickly,!defray!the!costs!of!its!own!newsgathering,!and!provided!footage!of!breaking!events!all!
over!the!world!far!more!quickly!than!its!competitors!could!get!news!crews!on!the!scene.!!
#
Part#2.#CNN’s#Recent#Strategic#Implementation##
#
iReport&for&CNN&
!
In! January! 2008,! CNN! network! paid! $750,000! to! acquire! the! urls! ireport.com! and! i3report.com!
from!Rick!Schwartz,!who!had!a!reputation!of!being!a!selfCstyled!“Domain!King”7.!He!paid!$70!or!
$100!to!register!the!domains!of!ireport!back!in!1997.!
!
Today,!iReport)for)CNN!is!a!popular!onCgoing!news!programme!on!CNN,!and!every!new!edition!is!
broadcast! on! the! third! weekend! of! every! month.! The! programme! broadcasts! selected! news! in!
pictures!and!videos!made!by!users!(iReporter).!The!contents!of!the!show!are!generated!purely!
by! users,! who! are! often! CNN! audiences.! Anyone! can! register! as! an! iReporter! on! their! official!
website,! and! can! upload! their! selfCmade! newsCvideos! to! be! selected! and! shown! on! the!
programme!iReport)for)CNN.!!
!
“)iReport)is)a)user3generated)section)of)CNN.com.)The)stories)here)come)from)users.)CNN)has)vetted)
only)the)stories)marked)with)the)"CNN")badge.”8))
)
“At)CNN)we)believe)that)looking)at)the)news)from)different)angles)gives)us)a)deeper)understanding)
of)what's)going)on.)We)also)know)that)the)world)is)an)amazing)place)filled)with)interesting)people)
doing)fascinating)things)that)don't)always)make)the)news.)That's)why)iReport)is)full)of)tools)built)to)
share)stories)that)are)happening)where)you)are)and)to)discuss)the)issues)that)are)important)to)you.)
Everything)you)see)on)iReport)starts)with)someone)in)the)CNN)audience.)The)stories)here)are)not)
edited,)fact3checked)or)screened)before)they)are)posted.)CNN's)producers)will)check)out)some)of)the)
most)compelling,)important)and)urgent)iReports)and,) once)they're)cleared)for)CNN,)make)them)a)
part)of)CNN's)news)coverage.”9))
!
iReport!invites!audiences!to!participate!in!the!news!coverage!on!CNN,!and!this!action!of!allowing!
user!to!generate!content!proves!that!CNN!has!stepped!into!the!age!of!the!so!called!“participatory!
/peer!media”!(Küng,!2008,!p.86).!This!is!not!just!a!sign!of!seeing!democracy!and!interactivity!in!
news! broadcasting,! it! has! been! considered! as! an! evolution! in! the! generation! of! media! content,!
with!YouTube!being!a!good!example.!Media!content!has!become!personal,!and!using!the!“free”!
contents!in!the!show!rather!than!producing!them!reduces!production!costs.!
!
Facebook’s&"Like"&&&“Share”&Buttons&on&CNN.com&&
Audiences!want!news!fast,!but!quality!news!is!considered!just!as!important!nowadays.!CNN!has!
been! involved! in! the! niche! media! of! international! news! broadcasting,! and! during! recent! years,!
programmes! have! been! developed! to! focus! on! being! fast! and! at! the! same! time,! having! high!
quality!contents,!which!are!often!linked!to!a!particular!host!of!the!program.!Many!shows!invite!
experts!who!are!able!to!analyse!news!facts!on!a!deeper!and!sharper!level.!!
!
While! social! media! has! become! popular! on! the! web,! CNN! has! been! active! in! grabbing! the!
opportunity.! Almost! every! presenter/host! at! CNN! has! a! blog! on! Facebook! or/and! Twitter! to!
facilitate! audience! participation! in! news! content.! CNN! incorporates! the! “Like”! and! “Share”!
buttons,! and! news! articles! and! videos! are! buttoned! among! friends! on! Facebook.! Rather! than!
searching!for!the!news,!audiences!and!friends!are!reached!via!a!simple!“Like”!or!“Share”!button!
on!CNN’s!websites.!Every!click!of!the!link!on!Facebook!refers!back!to!the!original!sites!(cnn.com)!
shared!through!friends!again,!so!that!online!traffics!are!generated!to!benefit!both!Facebook!and!
CNN.com,! and! it! is! a! winCwin! situation.! Every! social! plugCin! submission! ensures! that! Facebook!
(and! its! partner! sites)! deliver! more! personalized! experiences! for! participants! and! their!
Facebook!friends.!!
!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
7 !http://www.huffingtonpost.com/2008/01/18/cnnCshellsCoutC750kCforCi_n_82210.html!
8
http://www.ireport.com!
9
!http://ireport.cnn.com/about.jspa!
The! userCparticipatory! features! mentioned! above,! which! were! implemented! at! CNN,! engage!
audiences! on! a! personal! level! and! create! extra! value! for! the! audience.! Of! course,! the!
technological!development!of!the!web!has!enhanced!these!possibilities,!but!technologies!are!not!
magical! tools! to! create! successful! implementations,! people! make! the! change! happen! by! using!
appropriate! tools.! Therefore,! the! organisational! design! must! fit! in! with! the! implementation!
process!and!vice!versa,!and!people!must!be!placed!in!the!centre!of!the!plan.!The!fast!changing!
environment!faced!by!the!news!production!and!delivery!sector!requires!a!flexible!and!emergent!
strategic!implementation.!
!!
!
&
!
Report! and! discuss! the! learning! goals! formulated! in! the! last! session,! and! follow! step! 3,! 4! &5!
according!to!the!CBL!5Cstep!method.!!
!
Discuss!the!future!of!news!broadcasting.!!
!
!
#
Read! case! 3:! Google’s) Double) Click—Programmatic) advertising) (See! appendix! 5)! together! with!
your!module!assignment!team!members.!
!
Make!a!few!questions!(2/3)!about!case!3!after!reading.!In!the!next!session,!module!assignment!
teams!each!ask!one!another!one!question.!These!questions!must!be!answered.#
!
Week#8.#Managing#strategic#change#
#
#
Preparation#prior#to#the#session#
• Carry! out! a! desk! research! about! the! case! company! Adobe! System.! What! kind! of! business! is!
the! company! involved! in?! Could! you! describe! its! business! model! and! the! strategies! it! has!
developed?!How!does!the!company!contribute!to!the!ECpublishing!market?!!
!
• Watch! the! film& HOME& (2009)& made& by& Yann& ArthusLBertrand& via! the! following! link:! (the!
film!will!take!about!1.5!hours,!the!link!will!be!shared!on!the!Blackboard)!!
http://www.youtube.com/watch?v=jqxENMKaeCU&feature=BFa&list=FLsO1AOwtvyPFWnxDNy9pMqw!!
!
• Prepare! the! following! questions! after! watching! the! film,! and! discuss! your! answers! with! the!
CBL!colleagues!in!the!startCup!session.!!
1) What! is! your! favourite! scene! or! a! shocking! scene! in! the! film?! Describe! the! scene! and!
explain!why.!
2) How! do! you! relate! the! environmental! issues! addressed! in! the! film! to! business!
responsibilities!in!strategic!decisionCmaking?!
3) What! do! you! think! about! the! current! popular! topic! in! the! business! world! –! the! green!
issue?! Is! it! merely! a! marketing! strategic! movement! by! grabbing! this! opportunity! to!
generate!profit!or!is!it!a!genuine!measure!of!goodwill!for!the!future?!!
4) Can!individual!and!business!awareness!of!these!environmental!issues!make!a!change?!Or!
do!you!think!it!must!be!reinforced!by!political!measures?!Underpin!your!opinions!with!
arguments.!!
#
!
At! the! end! of! the! session,! you! will! ask! the! other! teams! the! questions! you! prepared! for! case! 3.,!
and!the!other!teams!in!class!will!answer!these!questions.!!
!
MiniZcase#8:#! How#Adobe#Systems#benefit#from#‘’Being#Green”#
Written#by:# Nachtigal,! J.! 2006.! It’s! easy! and! cheap! being! green.! Business) Week,! October!
# 16:! 53;! Warner,! J.! Adobe! headquarters! awarded! highest! honors! from! U.S.!
# green!building!council.!Adobe)Press)Release,!December!6;!and,!Juran,!K.!2006.!
# Adobe! wins! top! California! Flex! Your! Power!! Award! for! energy! efficiency.!
# Adobe)Press)Release,!July!3.!!
Source:#! Dess,!Lumpkin!&!Eisner.!(2010)!Strategic!Management:!creating!competitive!
advantages.!(4th!Ed.)!McGraw/Irwin,!New!York,!p.!23!
!
#
MiniZcase#8:#How#Adobe#Systems#benefit#from#‘’Being#Green”#
!
In!June!2006,!Adobe!Systems,!the!$2!billion!software!maker,!became!the!first!firm!to!receive!a!
platinum! award! for! its! buildings! from! the! nonCprofit! U.S.! Green! Building! Council.! Platinum!
certification! of! Adobe’s! buildings! was! based! on! ratings! in! six! categories:! sustainability;! water!
efficiency,!energy!efficiency!and!atmospheric!quality;!use!of!materials!and!resources.!
!
!Adobe’s! San! Jose! headquarters! is! the! greenest! corporate! site! on! record! in! the! United! States.!
What!is!more!impressive!is!that!Adobe!earned!the!honour!by!retrofitting!its!two!existing!office!
towers!(approximately!1!million!square!feet).!Most!of!the!152!buildings!that!have!received!the!
council’s!gold!ratings!(a!“step”!down!from!platinum)!are!new!structures.!!
By! installing! everything! from! motion! detectors! to! waterless! urinals,! the! firm! has! reduced! its!
electricity!use!by!35!per!cent!and!its!gas!consumption!by!41!per!cent!since!2001.!In!addition,!it!
conserves!295,000!gallons!of!water!each!month.!And,!during!this!time,!the!company’s!headcount!
shot!up!by!80!per!cent!!
!
Adobe! is! proving! that! building! “green’’! isn’t! just! good! citizenship,! it! is! profitable.! Adobe! has!
invested! approximately! $650,000! in! energy! and! environmental! retrofits! since! 2001.! The!
retrofits!on!the!two!office!towers!have!resulted!in!approximately!$720,000!in!savings!to!date,!for!
a!total!return!on!investment!of!approximately!115!per!cent.!Randy!Knox!III,!Adobe’s!director!of!
real! estate,! facilities,! and! security,! comments,! ‘’This! isn’t! some! pieCinCtheCsky! kind! of! thing!
enviros!are!pushing.!It!really!works.’’!
!
!
!
!
!
!
#
#
!
#
!
Discuss! how! the! change! took! place! and! how! Adobe! Systems! implemented! this! environmental!
opportunity.!
!
!
#
Extra#activities#
!
#
Thank#you#for#the#hard#work#during#the#past#8#weeks!#
#
Please#carry#out#a#module#evaluation#with#your#tutor#and#fellow#students.#Your#feedback#
and#opinions#on#the#module#are#essential#and#help#us#to#keep#on#improving#the#module#
design#and#planning.#
#
Please!discuss!each!question!on!the!module!evaluation!form,!which!you!can!find!on!Blackboard.!
Appoint!a!CBL!group!member!to!note!down!your!feedback!on!the!module,!and!send!it!to!the!
module!coordinator!via!fan.ding@stenden.com!(module!2!&!4)!or!marc.t.hart@stenden.com!
(module!1!&!3).!!
!
! #
5# Case#reports#and#Module#test##
Instructors:!!
!
Marc!‘t!Hart!! ! marc.t.hart@stenden.com!
Fan!Ding! ! fan.ding@stenden.com!!
Office:!! ! ! 2.21!(Marc)!and!2.18!(Fan)!
Office!hours:!! ! by!appointment!
!
4.1# Introduction#
By! successfully! completing! two! caseCstudy! reports! and! doing! a! module! test! you! can! earn! a!
maximum! 30%! of! the! total! weight! of! the! entire! module.! You! will! write! two! medium! size! case!
studies!(based!on!the!same!case!text)!and!make!a!module!test!in!week!8!or!9,!which!is!based!on!a!
second!case!study.!
These! realistic! case! studies! have! been! especially! selected! for! future! media! &! entertainment!
managers,!who!will!take!on!the!challenges!of!strategic!management!in!the!fast!emerging!media!
field.!!
!
The!two!case!reports!require!both!team!and!individual!efforts.!You!will!work!together!with!your!
module!assignment!team!(3—4!students)!on!the!first!part!of!each!case!report!(8%!of!the!total!
module!weighting),!and!also!complete!the!report!with!an!individual!assignment!(2%!of!the!total!
module!weighting).!!
!
The!case!study!reports!test!your!abilities!on!several!levels!of!learning,!including!comprehension,!
application,!analysis!and!synthesis10.!The!objective!of!completing!the!case!reports!is!to!link!them!
to! the! weekly! topics! by! means! of! analysing! realistic! case! studies.! Students! should! be! able! to!
apply!management!models!and!theories!to!the!case!studies,!and!analyse!a!company’s!situation!
and! its! environment! strategically! in! order! to! develop! future! strategies! and! implement! them!
effectively.!!
!
4.2# Writing#skills##
The! report! should! be! written! in! a! professional! manner! according! to! the! MEM! standards! of!
writing!professional!business!reports!as!described!in!appendix!1.!Your!final!grades!for!the!case!
reports! will! be! reduced! if! the! requirements! for! writing! reports! are! not! met! according! to! the!
assessment!criteria!(see!details!in!appendix!1).!This!requirement!is!only!applicable!to!the!team#
assignment#part!of!the!case!report!1!&!2.!!
!
Table&4.1&Case&report/module&test&deadlines&and&assessor&
!
Assignments# Grade# Norm# Weighing# Week#&#Day# Time# Assessor#
Case!Report!1! 1—10!! 5.5! 8%+2%! Friday,!Week!5!! 15.00!P.M.! Tutor!
Case!Report!2! 1—10! 5.5! 8%+2%! Friday,!Week!9! 15.00!P.M.! Tutor!
1—10! 5.5! 10%! Week!8!or!9!! Check! Fan!Ding!
Module!test! schedule! &!Marc!‘t!
case!3! Hart!
#
Please& attach& the& individual& assignments& at& the& back& of& the& team& assignment& before&
handing&in.&&
!
#
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
10!Bloom’s!taxonomy!
4.3# Case#1:#The#rise#and#fall#of#Blockbuster#
Blockbuster,&Netflix,&and&the&Media&Entertainment&Rental&Industry&in&2011&
(10%)weighting)of)the)entire)module,)for)the)case3text:)see)Blackboard))
!
4.3.1# Part#1:#Team#assignment#1#(8%)weighting)of)the)entire)module)##
!
This! case! report! focuses! on! the! topics! and! learning! objectives! of! week! 1,! 2,! 3,! 4! and! 5.! The!
contents!of!the!report!should!reflect!on!the!process!of!strategic!development,!strategic!internal,!
external!analysis,!strategy!formulation!and!business!and!functional!level!strategies.!You!should!
be!able!to!analyse!the!case!rationally!according!to!the!first!part!of!the!strategic!planning!process!
and!try!to!formulate!and!evaluate!an!alternative!strategy!using!a!SWOT/TOWS!analysis.!
The!detailed!assessment!criteria!can!be!found!in!the!table!in!appendix!1.!The!report!should!be!
written! in! a! professional! manner.! The! number! of! words! included! in! the! main# body!
(introduction,!body!&!conclusion)!of!the!report!should!be!5,000!(+/C!10%).!!
#
Case#1:#Blockbuster,#Netflix,#and#the#Media#Entertainment#Rental#Industry#in#2011#
#
!
!
“ENGLEWOOD,)Colo.)DISH)Network)Corporation)(NASDAQ:)DISH))today)announced)that)its)
subsidiary,)Blockbuster)L.L.C.,)will)end)its)retail)and)by)mail)DVD)distribution)operations)by)early3
January)2014.)The)company)will)close)its)approximately)300)remaining)U.S.3based)retail)stores,)as)
well)as)its)distribution)centres."(2016,)August)26.)Retrieved)from)
http://www.blockbuster.com/newspr.html.))
!
“!When)someone)told)me)the)last)Blockbuster)shop)in)our)neighbourhood)had)closed)down,)I)was)
surprised)to)hear)this.)Not)because)it)had)closed)down,)but)I)had)no)idea)there)was)still)one)left.”!(J.!
Primaux,!personal!communication,!August!22,!2016).!
!
This!first!assignment!will!focus!mainly!on!the!rise!and!fall!of!Blockbuster.!Read!the!case!
“Blockbuster,!Netflix,!and!the!Media!Entertainment!Rental!Industry!in!2011”!(which!can!be!
found!on!Blackboard!in!the!appendix)!carefully!and!write!a!report!covering!all!the!subjects!in!the!
assessment!sheet!below.!You!do!not!have!to!use!any!additional!sources!for!this!assignment:!all!
the!answers!can!(and!should)!be!found!in!the!caseCtext.!Although!the!text!mentions!a!lot!of!other!
companies;!make!sure!the!focus!of!your!report!is!on!Blockbuster.!
!
The!text!covers!a!period!of!approximately!25!years,!from!the!founding!of!the!company!in!the!80s!
to!its!downfall!in!2011.!In!your!report!you!should!analyse!the!whole!period.!So,!for!instance;!if!
you!analyse!the!external!(macroC)!environment,!describe!and!analyse!the!developments!during!
the!whole!period.!Basically!it!comes!down!to!adding!the!sentence!‘during!the!period!described!in!
the!case’!to!each!assignment!in!the!assessment!sheet!(except!for!those!occasions!where!another!
time!frame!is!specifically!mentioned).!
!
A!final!tip:!it’s!the!quality!of!your!report!that!counts,!not!the!quantity.!!
!
The!assessment!criteria!for!this!case!study!can!be!found!in!appendix!1.& !
4.3.2# Part#2:#Individual#assignment#1#(2%)weighting)of)the)entire)module)##
!
How#You#Really#Make#Decisions#Z#BBC&Science&Documentaries&Horizon.!(Published)on)Oct.)8,)
2015.)BBC)One))!
!
Write!an!essay!of!600!C!1000!words!in!which!you!argue!for!or!against!the!following!statement:!
!
“Despite!the!principles!of!prospect!theory,!game!theory!offers!the!most!useful!perspective!when!
thinking!about!strategic!choices.”!!
!
Moreover,!you!should!at!least:!
• explain!the!principles!of!game!theory!
• explain!the!principles!of!prospect!theory!
• offer!three!valid!arguments!for!or!against!the!statement!
• use!one!other!reliable!source!for!these!arguments.!
!
Furthermore,!keep!in!mind!the!general!structure!of!an!essay!as!taught!in!year!one:!start!with!a!
paragraph!that!introduces!the!subject!and!explains!the!structure!of!your!essay!to!the!reader.!In!
the!subsequent!paragraphs,!you!present!your!arguments.!You!end!your!essay!with!a!conclusion!
and! a! summary! of! your! arguments.! Keep! in! mind! that! the! structure! of! the! whole! essay! is!
mirrored! in! the! structure! of! an! individual! paragraph,! i.e.:! you! start! with! a! sentence! that!
introduces!your!argument;!in!the!subsequent!sentences!you!present!information,!which!makes!
your! argument! plausible.! Make! sure! that! you! only! present! information! that! is! relevant! to! the!
subject.!You!end!with!a!concluding!sentence.!!
!
Required!sources:!
!
The!BBCCdocumentary!“how!you!really!make!decisions”!!
https://www.youtube.com/watch?v=7Ha34Vu1zZo!!
Chapter!5.7!!from!Johnson!et!al.!
!
Free!advice:!you!may!find!the!lecture!useful!for!understanding!these!difficult!subjects.!
!
The!assessment!criteria!for!this!individual!essay!can!be!found!in!appendix!1.!
!
!
!
% !
4.4# Case#2#The#Netflix#expansion##
!
Worldwide&dominance&of&video&content&distribution&
))
(10%)weighting)of)the)entire)module))
)
!
4.4.1# Part#1:#Team#assignment#(8%)weighting)of)the)entire)module)##
!
This! case! report! especially! tests! on! the! topics! and! learning! objectives! of! week! 3,! 4,! 5! &! 6.! The!
content!of!the!report!reflects!on!the!application!of!theories!include!scenario!planning,!corporate!
level!and!global!strategies,!and!corporate!governance.!At!the!end!of!this!case!analysis!report,!you!
should! be! able! to! provide! strategic! advices! to! Netflix! on! the! corporate! level! in! the! next! 2! to! 5!
years,!based!on!the!formulation!of!three!relevant!future!scenarios.!!
!!
In!the!previous!report!you’ve!analysed!the!rise!and!fall!of!the!videoCrental!giant!Blockbuster.!One!
of!the!causes!for!Blockbuster’s!downfall!was!the!strong!competitive!rivalry!with!companies!like!
Redbox!and!Netflix.!This!case!takes!off!where!the!Blockbuster!case!ends.!In!the!case!text!you!can!
read!how!Netflix!emerged!as!a!DVDCrental!company!and!gained!market!share!over!Blockbuster.!
!
The!previous!caseCtext!ends!explaining!the!situation!of!the!field!till!2011.!Since!then,!five!years!
have! passed,! and! a! lot! has! yet! happened.! The! success! of! Netflix! so! far! has! been! the! ability! to!
reinvent! itself! throughout! time! and! the! ability! to! catch! opportunities! of! technological!
development! that! gives! consumers! a! better!experience! at! a! lower! price.! Netflix! has! become! a!
mayor!player!–!if!not!the!major!player!–!as!a!video!content!distributor,!which!is!providing!both!
DVDCrental! and! streaming! services! to! consumers.! Furthermore,! Netflix! stepped! into! the! video!
content! creation! business! and! it! has! already! programmed! some! best! selling! original! content.!
Netflix! is! committed! to! continuous! spending! and! efforts! on! the! original! programming,! which!
includes! both! featured! films! and! series! in! order! to! add! value! to! the! target! audiences.! The!
decision! making! of! content! selection! often! centres! at! user! data! analysis! enabled! by! digital!
technology,!which!lifts!general!effectiveness!of!targeting,!personalisation!and!increasing!viewer!
ratings.!!
!
)
!
Figure)4.4.1)Netflix,)Inc.)Stock)Chart,)over)the)last)10)years.)(2016,)August)28).)Retrieved)from)
http://Nasdaq.com.)
!
Netflix’s! stock! price! increases! steadily! (see! figure! 4.4.1)! and! investors’! confidence! boost!
gradually! over! the! years.! Since! Netflix! launched! its! streaming! service! in! 2007,! the! service! has!
expanded! globally,! first! to! Canada,! then! to! Latin! America,! Europe,! Australia,! New! Zealand! and!
Japan! to! include! 60! countries.! Earlier! this! year! in! January,! Netflix! announced! its! further! global!
expansion—simultaneously! launching! the! Internet! TV! network! to! more! than! 130! countries!
around! the! globe.! Netflix! dominates! the! field! of! Streaming! VideoConCDemand! (SVOD)! service!
worldwide,!with!over!70!million!members!in!over!190!countries!(see!figure!4.4.2).!The!company!
expects! to! continue! its! international! subscriber! growth! through! the! rollout! of! localClanguage!
programming! and! regionalized! payment! systems.! Currently,! most! of! the! programming! is! in!
English!and!Netflix!only!takes!international!payments.!Meanwhile,!Netflix!continues!to!milk!the!
cash! out! the! domestic! DVDCrental! business,! and! the! revenue! of! the! streaming! service! segment!
booms!due!to!the!global!expansion!and!domestic!stability.!!!
!
!
Figure) 4.4.2) Regions) where) Netflix) is) available.) (2016,) August) 28).) Retrieved) from)
https://help.netflix.com/en/node/14164.)
!
The!VideoConCDemand!(VOD)!sector!has!become!one!of!the!fastest!growing!sectors!in!the!media!
and! entertainment! field.! It! disrupts! the! traditional! setting! of! the! television! and! the! movie!
industries!in!the!last!years.!Although!traditional!TV!packages!and!cinemas!are!still!very!relevant!
to! global! audiences,! many! viewers! (especially! young! ones)! are! leaving! behind! payCTV! and!
switching!over!to!streaming!services.!The!competition!intensifies!with!many!interested!players!
wanting!to!get!a!slice!of!the!pie.!Amazon!is!trying!to!compete!with!Netflix!by!investing!significant!
resources!in!original!content.!TV!broadcasters!such!as!BBC,!HBO,!RTL!are!responding!to!the!rise!
of!SVOD!services,!notably!skinny!bundles,!playback!services!and!standalone!streaming!services.!
There!is!also!space!for!developing!new!business!models!in!the!sector!since!the!current!players!
are! mainly! subscription! based! or! advertising! supported,! except! for! YouTube! and! Hulu.! These!
two! companies! are! adapting! to! both! revenue! streams.! Since! TV! is! still! one! the! most! attractive!
media! with! the! most! spending! for! marketers! to! advertise! on! the! global! scale,! the! migration! to!
SVOD!services!will!generate!new!insights!to!marketers.!These!changes!in!the!TV!landscape!have!
shaken!the!positions!of!traditional!players!and!the!dynamics!of!the!eco!system,!which!forces!the!
organisations! to! rethink! their! future! perspectives.! As! the! first! mover,! Netflix! faces! exiting!
challenges! and! obstacles! ahead! as! well.! Whether! Netflix! could! maintain! the! current! leading!
position! and! dominate! the! markets! can! still! be! questioned,! since! there! are! many! innovator’s!
dilemmas!with!a!high!degrees!of!uncertainty!to!be!considered.!It!really!depends!on!how!Netflix!
will! develop! effective! strategies! in! the! fast! changing! environment,! to! reinvent! itself! and! to!
sustain!its!success.!!
!
For! this! case! you! can! use! the! last! part! of! the! Blockbuster! case! text! as! the! starting! point,! but!
contrary!to!the!previous!assignment!–!you!will!have&to&use!a!lot!of!additional!sources!to!perform!
a! desk! research! to! get! the! necessary! information.! You! will! not! focus! on! the! past! (historical!
analysis)!of!Netflix!but!you!have!to!dive!into!the!present!situation!and!to!investigate!trends!and!
developments!of!the!external!environment!in!order!to!provide!advices!about!future!perspectives!
to!the!company!based!on!thoughtful!scenarios.!
!
This!assignment!aims!to!test!your!capability!of!setting!up!a!strategic!advisory!report!for!Netflix!
on!the!corporate!level!for!the!next!2!to!5!years!covering!the!following!aspects:!!
• Perform!a!situational!analysis.!!!What!is!the!current!situation!of!Netflix!as!a!company?!
How!has!its!strategies!developed!over!the!years?!Bridge!over!the!gap!of!the!case!study,!
what!happened!to!Netflix!after!2011?!What!are!the!general!challenges!that!Netflix!faces?!!
• How!has!Netflix’s!strategies!developed!over!the!years?!Analyse!Netflix’s!corporate!level!
strategy!and!its!global!strategy!by!applying!theoretical!models.!
• Define!the!sector!of!video!distribution!and!draw!out!a!chart!of!value!network.!What!are!
the!main!competitive!forces!and!how!about!their!power!and!interests?!Who!are!the!
major!players!in!the!ecoCsystem!of!VOD?!How!is!the!VOD!industry!evolving!and!what!are!
the!trends!and!developments!in!the!next!2!to!5!years?!
• Explain!relevant!influences!of!the!Marco!environment!on!Netflix!in!the!next!2!to!5!years.!!!
• Conclude!the!future!opportunities!and!threats!for!Netflix.!Discuss!the!innovators’!
dilemma!Netflix!faces!or!will!encounter!in!the!near!future.!
• Based!on!the!aboveCmentioned!external!analysis,!formulate!3!future!scenarios!and!
explain!how!Netflix!could!possibly!respond!to!these!“what!ifs”.!
• Based!on!the!previous!analysis,!conclude!the!report!by!providing!a!corporate!strategy!
and!a!global!strategy!for!Netflix!in!the!next!2!to!5!years.!!!
• Discuss!your!research!in!terms!of!setbacks!you!encountered,!reliability!of!your!analysis,!
limitations!and!possible!followCup!studies!that!you!may!be!interested!in.!
!
The!report!should!be!written!in!a!professional!manner!and!qualifying!standards!indicated!in!the!
writing! skill! criteria.! The! number! of! words! included! in! the! main# body! (introduction,! body! &!
conclusion)!of!the!report!should!not!exceed!5,000!(+/C!10%).!
!
The!assessment!criteria!for!this!second!case!study!can!be!found!in!appendix!1.!
!
4.4.2# Part#2:#Individual#assignment#(2%)weighting)of)the)entire)module)##
#
The! individual! assignment! entails! a! short! film! reflection! essay.! You! are! required! to! watch! a!
documentary!film!on!the!topic!of!Not)Business)As)Usual.!After!watching!the!film,!you!are!asked!to!
write! an! essay! (at! least! 600! words)! to! express! your! learning! outcomes! and! opinions! on! the!
theme! of! the! film! by! answering! several! given! questions.! The! objective! of! this! individual!
assignment! is! to! give! students! a! different! perspective! on! doing! business! (called! conscious!
capitalism)!and!the!role!and!influence!new!(social)!media!can!play.!!
#
First,!watch!the!following!documentary!film!via!the!following!link:!
http://topdocumentaryfilms.com/notFbusinessFasFusual/!!or!
https://www.youtube.com/watch?v=p_TCDSFV6Aw!
!
Please! write! an! individual! film! reflection! essay! (at! least! 600! words)! after! watching! the! film.!
Express!your!understanding!and!what!you!have!learnt!from!the!contents!by!answering!following!
questions:!
!
• Summarise!the!movie!in!a!short!paragraph:!what’s!the!central!theme,!what’s!the!message!it!
wants!to!convey?!
• What!have!you!learned!the!most!from!this!film!and!the!video?!
• What! are! your! opinions! on! the! issues! related! to! business! responsibilities,! which! were!
addressed!in!the!film?!
• As!a!future!media!manager,!what’s!your!opinion!on!the!view!that’s!being!presented!in!this!
documentary?! Do! you! believe! that! conscious! capitalism! will! have! an! effect! on! big! (media)!
corporations!in!the!long!run?!!
• As! a! soCcalled! “documentary”! film,! do! you! think! it! is! objectively! directed! and! made?! Why!
and!why!not?!
!
Do!not!use!the!aboveCmentioned!questions!as!your!subCheadings,!but!create!your!own!structure!
and! formulate! short! subCheadings! for! this! individual! essay.! Assessment! criteria! for! the!
individual!film!reflection!essay!can!be!found!in!appendix!1.!
4.4 Case#3:#The#Programmatic#Revolution#in#advertising#
(10%)weighting)of)the)entire)module))
&
4.5.1# Module#test#(10%)weighting)of)the)entire)module)#!
!
As! you! can! see! in! programme! rationale! (page! 7)! this! module! combines! the! knowledge! you’ve!
gained! during! the! M&EMClearning! lines! ‘Management’! and! ‘Marketing’.! In! case! 3! “The!
programmatic!revolution!in!advertising”,!the!subject!of!programmatic/performance!marketing,!
and! how! this! adds! value! to! contemporary! mediaCcompanies,! will! be! introduced! to! you.!
Advertising! industry! and! its! relation! to! marketers! form! a! backbone! of! the! media! and!
entertainment! industry,! as! the! main! B2B! customers,! advertising! spending! provides! the! major!
revenue!for!media!organisations!and!funding!for!programs.!The!refashion!of!the!advertising!field!
over!time!has!had!a!big!impact!on!Media!and!entertainment!organisations.!!
!
This! case! will! however! not! be! tested! by! means! of! a! caseCreport.! Instead! you! will! conduct! an!
individual!module!test!at!the!end!of!week!8.!This!will!be!an!‘open!book’!test,!so!you’re!allowed!to!
bring! the! compulsory! books! of! Jones! &! Hill! and! Küng! to! this! test,! as! well! as! the! caseCtext.!
Internet!based!devices!are!not!allowed!to!use!during!the!test.!The!module!test!will!take!2!hours!
and!consists!of!open!questions.!You!will!be!asked!to!apply!the!theory!you’ve!learned!so!far,!to!the!
case.!
!
You!are!strongly!advised!to!visit!the!case!lecture!3,!to!get!a!better!understanding!of!the!case!and!
prepare!yourself!sufficiently!for!the!module!test.!You!will!be!informed!about!details!concerning!
the!module!test!during!the!case!analysis!lecture.!!
!
Besides,!a!lot!of!additional!information!on!the!subject!of!programmatic!Marketing!can!be!found!
on!Blackboard.!Best!of!luck!!
!
!
&
&
#
#
#
! !
5# StudentZled#Seminar#(SLS)##
Instructor&&
!
Marc!‘t!Hart! ! marc.t.hart@stenden.com!!
Office:!! ! ! 2.21! !! ! !
Office!hours:!! ! by!appointment!
&
Introduction&
As! the! title! suggests,! you! will! host! a! seminar! during! this! module.! We! will! start! with! the! first!
seminars!in!week!3!and!finalise!in!week!8!or!9.!In!order!to!carry!out!this!module!successfully!and!
to!get!you!ready!to!become!future!managers!in!the!field,!it!is!important!that!you!learn!to!look!at!
media! companies! and! organisations! from! a! management! perspective.! Companies! will! always!
have!a!specific!goal,!written!down!in!a!vision!and!in!a!mission!statement.!The!main!purpose!will!
indeed!be!‘to!survive’!and!to!grow,!which!means!!C!in!a!western!society!!C!making!profit!that!will!
increase! every! year.! But! do! all! companies! strive! at! this?! Do! NGO’s! and! governmental!
organisations!(or!organisations!subsidized!by!the!government,!like!a!lot!of!public!broadcasters)!
also!have!a!clearly!described!goal,!mission!or!vision?!
!
To! achieve! their! goals,! organisations! must! have! a! general! idea! how! to! get! there.! They! mostly!
translate! this! into! a! strategy.! Although! the! most! visible! and! tangible! result! of! the! strategy! will!
always!be!a!service!or!a!product!that!is!delivered!to!a!client!or!customer,!the!focus!of!managers!
should! always! be! on! the! strategies! needed! to! achieve! their! goals.! How! will! we! become!
successful,! how! will! we! sustain! or! obtain! our! competitive! advantage?! That! are! the! questions!
managers!need!to!address.!Keep!this!in!mind!while!working!on!the!seminar!!
!
For! your! seminar! you! will! select! a! media! company! or! organisation! and! introduce! it! to! the!
audience.! You! will! explain! the! organisations’! goals,! mission! and! vision,! but! also! the! strategies!
implemented!to!achieve!these!goals.!Next!to!that!you!will!come!up!with!a!challenging!question!or!
issue,!connected!to!the!company!and!will!discuss!this!with!the!audience.!
!
Objectives#
The!general!objective!of!the!studentCled!seminar!is!to!activate!independent!learning!by!reflecting!
on!and!synthesizing!strategic!management!in!the!media!and!entertainment!industry!by!applying!
theories!and!models!to!a!real!media!company.!
After!completing!each!studentCled!seminar,!students!should!be!able!to:!
• Apply!strategic!management!theories!and!models!to!realistic!media!companies.!!
• Discuss!onCgoing!business!news!and!impacts!on!strategic!management!in!the!media.!!
• Practise!interpersonal!communication!skills.!!
• Illustrate!teaching!as!a!process!of!learning.!
• Provide!meaningful!feedback!to!colleagues.!!
!
Assignment&&
You!will!work!in!a!team!of!3C4!students!(your!module!assignment!team)!and!host!a!20Cmimute!
seminar! and! discussion! with! your! fellow! students! in! the! module.! During! each! seminar,! two! or!
three!presentations!will!take!place!each!week.!Your!team!will!be!assigned!to!one!of!the!weeks!
after!your!company/subject!has!been!approved.!The!idea!is!that!you!only!apply!your!knowledge!
to!the!company!you!have!chosen!without!explaining!the!theory.!!
!
Preparation&for&SLS&
• Select!a!company!that!you!are!interested!in!or!admire!in!the!media!&!entertainment!industry.!
There!are!a!few!criteria!for!selecting!a!company:!
o You’re!not#allowed!to!select!a!company!that’s!already!covered!in!one!of!the!CBL!
or!Module!Assignment!cases!(so,!for!instance!Facebook,!MTV,!Netflix!and!Google!
are!NOT!allowed).!!
o The!company!must!be!in!business!for!at#least#2#years.!
o Of!course!it!has!to!be!a!media#company.!
o Big! multinational! companies! (Disney,! Sony,! Bertelsmann! etc.)! are! allowed,! but!
choosing!a!SBU!(Strategic!Business!Unit)!of!such!a!big!company!is!advised.!
o Make!sure!you!can!find!enough!information!on!the!company!you!selected!(facts!
and!figures,!annual!reports,!strategies,!organisational!design!etc.)!
• Hand!in!the!name!of!the!company!of!your!choice!and!add!a!short!motivation!in!week#1!of!the!
module!(maximum!of!½!A4).!!
• Handing!in!before#Wednesday,#week#1,#17.00#P.M.#on#Blackboard.!
• Make&sure&the&names&of&all&the&groupLmembers&and&your&CBLLgroup&number&are&in&this&
document.&
• The! company! has! to! be! approved! before! you! can! continue! with! your! preparation.! You! will!
receive!feedback/approval!on!this!before#Friday,#17.00#P.M#week#1.!
• After!the!approval!your!group!will!write!a!short!paper!(maximum!2!A4,!just!text,!no!figures)!
on!the!company!covering!the!following!subjects:!
o Introduction! of! the! company! (history,! financial! situation,! industry! they! are! in,!
strategies,!what!is!(are)!their!competitive!advantage(s)!etc.)!
o What!will!be!the!topic!of!the!discussion!with!the!audience?!
o How!will!you!prepare!for!the!seminar?!
• Hand!in!this!paper!before#Tuesday,#week#2,#23.00#P.M.#on#Blackboard.!
• Make&sure&the&names&of&all&the&groupLmembers&and&your&CBLLgroup&number&are&in&this&
document.&
• This& paper& will& be& assessed& and& the& grade& you& receive& will& be& part& of& the& overall& SLSL
grade.&
• In!week# 2!there!will!be!a!feedback!session!for!each!group.!We!will!discuss!the!proposal!and!
give!useful!tips!and!feedback!for!the!seminar.!!
!
The&seminars&
There!will!be!2!or!3!(depending!on!the!number!of!groups)!seminars!each!week,!starting!in!week#
3.!Here!are!some!tips!for!your!seminar:!
• Start!your!presentation!with!a!nice!icebreaker;!try!to!catch!the!attention!of!your!audience.!!
• Give!a!short!introduction!to!the!company!and!explain!why!you!are!interested!in!it.!How!has!
the!company!sustained!its!competitive!advantages?!
• Talk!about!the!strategy(ies)!the!company!has!been!using!in!reaching!their!vision.!Explain!how!
the!company’s!current!mission!or!actions!match!their!strategy(ies).!!
• You!may!also!discuss!the!failure!of!strategies!employed!by!the!company!if!applicable.!!
• What!future!challenges!will!the!company!face!in!its!competitive!environment!in!3!to!5!years?!!
• End! the! presentation! with! a! challenging! question! or! statement! relating! to! the! company’s!
future!for!the!audience!to!think!about!and!discuss.!
• Host!a!3/4Cminute!discussion!with!the!audience!and!reflect!on!the!onCgoing!business!issue(s).!
• The!seminar!should!not!exceed!20!minutes!including!the!discussion.!!
• You!have!2!extra!minutes!to!answer!questions!from!the!audience!after!the!seminar.!!
!
You!might!find!inspiration!for!your!seminar!on!one!of!the!following!sites:!
!
• www.businessweek.com!
• www.bizjournals.com!!
• ww.bbc.co.uk/news/business/!
• money.cnn.com!
• edition.cnn.com/BUSINESS/!!
• themediabusiness.blogspot.nl/!
• forbes.com!
• theguardian.com/media/mediabusiness!
!
Assessment&method&and&criteria&
You!will!receive!critical!feedback!from!audience!and!tutors!(assessors)!right!after!the!seminar.!
You!can!earn!a!grade! of!1C10!by!participating!and!performing!in!the!seminar!this!module.!The!
StudentCled!seminar!weights!8%!of!the!total!module!load,!which!is!distributed!over!two!parts:!
participation!(3%)!and!actual!preparation!and!presentation!(5%).!
&
Table&5.1&Assessment&overview&SLS&
!
Assignments# Grade# Norm# Weighting# Assessor#
SLS!proposal!(week!1)! S/U! ! 0,5%!
SLS!paper!(week!2)! Marc!‘t!Hart!&!Ronald!Dikkeboom!!
Participation! 1—10! 5.5! 3%! Attendance!&!participation!
Presentation! 1—10! 5.5! 4,5%! Marc!‘t!Hart!&!Ronald!Dikkeboom!!
Total# 1—10# 5.5# 8%# #
!
The! participation! part! is! measured! by! attendance! at! all! the!
seminars!in!the!module.!In!order!to!receive!a!maximum!grade!of!10! Attendance! Grade#
for! participation,! you! need! to! attend! every! studentCled! seminar! Attend!all!sessions! 10!
from!week!3!onwards.!Grades!will!be!deducted!for!absence.!See!the! Miss!1!session! 8!
table!on!the!right!for!receiving!grades!for!participation! Miss!2!sessions! 6!
Miss!3!sessions!or!
! more! 1!
The!assessment!criteria!for!presentations!of!studentCled!seminars!
can!be!found!in!appendix!1.!
&
StudentLled&seminar&highlights&
• You!host!a!seminar,!so!make!it!interesting!and!memorable.!
• You!have!20!minutes,!so!involve!audience!and!make!it!interactive.!
• All! team! members! must! participate! in! the! presentation;! at! least! 2! members! must! speak!
during!the!seminar.!!
• Do!not!overload!the!contents!of!the!seminar,!and!structure!the!presentation!clearly.!!
• Pay!attention!to!interpersonal!communication!skills.!!
• No! show! without! a! valid! reason! during! the! assigned! team! presentation! will! result! in! points!
individually.!
• Provide!the!host!team!with!valuable!feedback!after!each!presentation.!
• You! must! tackle! the! seminar! with! a! specific! problem! statement! and! build! up! your! analysis!
logically.!!
!
% !
6# Business#Economics#
Instructor:&
Harro!Prins! !harro.prins@stenden.com!!
Office:!1.94!
Office!hours:!by!appointment!
#
Overview&of&the&course&
The!Business!Economics!course!is!a!fundamental!feature!of!the!Strategic!Management!module.!
The!course!will!provide!students!with!an!overview!of!the!financial!aspects!of!strategic!business!
decisions.!
!
Course&objective&
Students!will!learn!how!to!apply!appropriate!financial!analytics!in!making!strategic!business!
decisions.!
&
Learning&goals&
After!successfully!completing!this!course,!students!will!be!able!to:!
!
• Explain!the!types!of!business!decisions!that!are!made!in!the!capital!budgeting!process;!
• Demonstrate!an!understanding!of!the!concept!of!the!time)value)of)money;!
• Calculate!the!present)value!and!future)value!of!a!single!sum!of!money!or!a!stream!of!equal!
payments!(i.e.,!annuities);!
• Explain!the!Net)Present)Value!(NPV)!method!of!evaluating!the!attractiveness!of!a!business!
opportunity;!
• Explain!the!key!differences!between!debt!financing!and!equity!financing;!
• Explain!the!term!cost)of)capital!and!its!relevance!for!company!strategy;!
• Estimate!the!cost!of!debt!financing!for!a!single!firm;!
• Demonstrate!an!understanding!of!the!Capital)Asset)Pricing)Model!(CAPM);!
• Estimate!the!cost!of!equity!financing!for!a!single!firm!by!applying!the!CAPM;!
• Demonstrate!an!understanding!of!the!weighted3average)cost)of)capital!(WACC);!
• Calculate!the!WACC!for!a!single!firm;!
• Understand!the!difference!between!the!arithmetic!mean!and!geometric!mean;!
• Apply!the!geometric!mean!in!making!financial!calculations;!
• Explain!the!most!salient!financial!considerations!related!to!a!merger!or!acquisition;!!
• Explain!the!most!salient!financial!considerations!related!to!a!divestiture;!
• Demonstrate!proficiency!in!using!the!software!program!Excel!to!apply!relevant!
mathematical!techniques!in!manipulating,!describing!and!presenting!data;!
• Use!company!and!market!data!to!estimate!the!net!benefit!or!cost!of!a!strategic!business!
opportunity,!as!well!as!to!choose!among!or!prioritize!various!opportunities!when!finances!
are!limited;!
• Determine!the!optimum!capital!structure!of!the!firm!that!minimizes!the!financing!costs!
associated!with!company!strategy.!
!
Required&reading&
Title:!Finance)for)Strategic)Decision)Making:)What)Non3Financial)Managers)Need)to)Know)
Authors:!M.!P.!Narayanan!and!V.!K.!Nanda!
Publisher:!John!Wiley!and!Sons,!Inc.!
ISBN:!9780787965174!
This!book!can!be!purchased!at!the!local!Selexyz!bookstore!or!onCline.!
!
Lind,!Marchal,!and!Wathen.!(2008).!Basic)Statistics)for)Business)&)Economics.!6th!ed.,!pages!71C73.!
Available#on#reserve#in#the#library!#
&
Recommended&reading#(handouts!available!on!reserve!in!the!library):!
Powers,!Needles,!and!Crosson.!(2010).!Accounting)principles.!11th!ed.,!Chapter!28!“Capital!
investment!analysis,”!pages!1208C1224.!
!
Ross,!Westerfield,!Jaffe,!and!Jordan.!(2008).!Modern)Financial)Management.!8th!ed.,!Chapter!12!
“Risk,!Cost!of!Capital,!and!Capital!Budgeting,”!pages!342C361.!
#
Grading&&
This! course! carries! a! study! load! of! 40! hours! (12%)! of! the! total! study! load! for! the! Strategic!
Management! module! (336! hours).! Three! per! cent! (3%)! of! these! points! are! earned! by! class!
participation!(also!homework)!and!nine!per!cent!(9%)!are!earned!by!successfully!completing!the!
module! assignment.! The& introduction& lecture& and& all& contact& hours& are& compulsory.& Your&
attendance& will& be& registered! as& well& as& your& homework& effort.! If! both! are! fine! you! get! the!
participation!point!for!that!lesson.!If!you!missed!1!point,!you!get!an!8,!if!you!missed!2!points!you!
get! a! 6.! Missing! more! than! two! points! means! getting! a! 1! for! participation.! The! module!
assignment!and!the!relevant!assessment!criteria!will!be!posted!on!Blackboard!at!the!beginning!
of!the!module.!!
!
Table&6.1&Assessment&overview&BE&
&
Assignments# Grade# Norm# Weighting# Deadline# Time# Assessor#
Participation! 1—10! 5.5! 3%! ! ! Harro!Prins!
BE!Assignment!! 1—10! 5.5! 9%! Monday,!Week!9! Check!at!LC! Harro!Prins!
Total# 1—10# 5.5# 12%# # # #
)
Course&schedule&
You!have!a!reading!assignment!each!week.!The!weekly!workshops!will!supplement!the!reading!
by! providing! a! more! detailed! discussion! of! central! issues.! If! relevant,! homework! exercises! will!
be! posted! on! Bello! so! that! students! can! practice! applying! the! knowledge! and! skills! they! have!
acquired!in!the!lectures!and!in!the!reading.!See!the!table!below!with!an!overview!of!each!week!of!
the!course.!
!
Table&6.2.&Class&planning&for&business&economics&
!
Week## Topics#to#be#discussed# Reading#&#homework#assignments#
Week!1! • Compulsory!introduction!to!the! Narayanan!&!Nanda,!Ch.!1!
course! Powers,!Needles!&!Crosson!handCout!
• Overview!of!capital!budgeting!
Week!2! • Time!value!of!money! Lecture!slides!&!Homework,!posted!on!Blackboard!
• Arithmetic!mean!versus!Geometric! Find!handCout!on!reserve!in!the!library!
mean! Powers,!Needles!&!Crosson!handCout!
Week!3! • Evaluating!investments!using!the!NPV! Narayanan!&!Nanda,!Chs.!2!&!3!
method! Lecture!slides!
• Why!use!discounted!cash!flows!and! Homework!posted!on!Blackboard!
not!net!income?! Powers,!Needles!&!Crosson!handCout!
• Cost!of!capital! Ross!&!Westerfield!handCout!
Week!4! • Cost!of!capital! Narayanan!&!Nanda,!Ch.!3!
• Debt!versus!equity! Powers,!Needles!&!Crosson!handCout!
• Estimating!the!cost!of!debt!financing! Ross!&!Westerfield!handCout!
Week!5! • No!workshop! !
• Estimating!the!cost!of!equity! Lecture!slides!&!homework!posted!on!Blackboard!
financing!
• The!Capital!Asset!Pricing!Model!
• WeightedCaverage!cost!of!capital! Lecture!slides!&!homework!posted!on!Blackboard!
• Optimizing!capital!structure!
Week!8! • Question!&!Answer!session! Q&A!about!the!literature!and!homework!thus!far!
7## Research:!Writing#a#research#proposal#!
Instructor:&
Floris!Hegger! !! floris.hegger@stenden.com!!
Office:!! ! ! 2.17!!
Office!hours:!! ! Monday,!Tuesday,!Thursday!&!Friday:!9C17!
#
7.1# Introduction#
The!importance!of!research!in!a!number!of!fields!of!applied!economics,!whether!associated!with!
business,!industry,!commerce,!trade!and!services!or!to!the!economy!in!general,!has!
tremendously!increased!over!the!last!decades.!The!extremely!complex!character!of!business,!its!
size,!and!fast!changes!in!technology!has!increasingly!focused!attention!on!the!utilization!of!
research!in!decisionCmaking.!The!key!function!of!management!is!making!decisions,!be!it!
operational!or!more!strategic!in!nature;!without!researching!and!analysing!the!present!and!
future!situation!(forecasting),!decisions!may!not!be!very!effective.!Based!on!research,!
management!can!make!intelligent!and!wellCinformed!decisions.!Thus,!research!replaces!intuitive!
business!decisions!by!more!logical!and!scientific!decisions.!
!
Research!could!possibly!be!applied!to!marketing,!production,!finance,!IT!and!human!resources.!
Research!can!answer!questions!for!various!problems:!getting!a!grip!on!industry!trends,!
identifying!new!products!to!produce!and!deliver!to!the!market,!deciding!on!which!site!to!locate!
an!outlet,!better!understanding!how!to!fulfil!customer!needs.!Research!can!also!help!evaluate!
whether!a!product!is!accepted!by!the!market;!research!aids!expansion!into!new!markets;!
research!helps!in!testing!the!potential!success!of!new!products.!Businesses!have!to!understand!
what!kinds!of!products!consumers!would!like!before!they!market!them.!!
!
Research!pertaining!to!demand!and!market!factors!has!good!utility!in!operating!a!business.!
Provided!information!about!future!demand,!it!is!easy!for!an!organization!or!industry!to!alter!its!
supply!plan!within!the!boundaries!of!its!estimated!capacity.!Business!projecting!which!
eventually!provides!an!estimated!profit!and!loss!account!relies!primarily!on!sales!estimates,!
which!in!turn!is!determined!by!business!research.!Once!sales!forecasting!is!completed,!efficient!
production!and!investment!programmes!could!be!put!in!place.!!
!
Research!assists!the!company!to!find!the!right!supplier!and!partners!at!the!right!price!and!at!the!
right!time.!Appropriate!choices!in!this!matter,!make!it!possible!for!the!company!to!obtain!or!
acquire!top!quality!materials!and!resources,!which!result!in!the!production!of!good!quality!
products!and!services!for!the!end!user.!Additionally,!trustworthy!and!efficient!suppliers!help!a!
company!to!perform!effectively!as!supplies!will!be!available!on!time.!Research!aids!the!business!
enterprise!to!enhance!the!productivity,!reduce!the!cost,!save!time!and!maintain!expertise!of!
their!core!competencies!through!research!discovery!of!the!latest!technology,!which!contributes!
to!innovation!and!future!growth.!!
!
Research!creates!benchmarks!and!helps!a!business!measure!its!progress!–!if!you!don’t!measure!
you!may!not!be!able!to!evaluate!how!well!your!business!is!performing.!Early!research!may!
identify!glaring!holes!in!the!service!or!issues!in!the!product.!Regular!research!will!indicate!
whether!advancements!can!be!made!and,!if!positive,!may!help!inspire!a!team.!Research!is!a!
crucial!part!of!any!business!wanting!to!provide!goods!and!services!that!are!focused!and!wellC
targeted.!Business!decisions!that!are!preceded!by!good!research!can!reduce!risk!and!pay!
dividends!in!the!long!run.!!
!
7.2# Research#Proposal#Writing#Workshops#
Before!any!research!effort!is!undertaken!a!research!proposal!is!usually!required.!Also,!during!the!
fourth!year!of!your!studies,!not!only!will!you!be!doing!your!internship!with!a!company!in!the!
media!and!entertainment!industry,!you!will!be!spending!a!great!amount!of!your!time!working!on!
and!writing!your!thesis.!Writing!your!thesis!starts!with!finding!a!topic!and!writing!a!research!
proposal.!When!doing!research!(writing!your!thesis),!the!proposal!stage!or!research!design!stage!
takes!up!most!of!the!time.!You!could!say!two!thirds!of!the!time!is!spent!on!preliminary!research!
and!research!design,!and!one!third!on!actually!carrying!out!the!research!and!reporting!the!
results.!This!is!why!we!require!you!to!practice!with!this!first!stage!of!the!research!process!(and!
your!thesis):!planning!and!design,!in!your!third!year!of!studies.!You!will!touch!upon!issues!
regarding!the!problem!definition!(including!research!questions,!objectives!and!purpose),!the!
importance!of!literature!in!designing!your!study,!and!methodology!(including!research!
approach,!methods,!instruments!and!procedures).!During!the!workshops,!you!will!work!on!
writing!a!thesis!proposal.!
!
Research(proposal(assignment(
The!specific!objectives!of!the!proposal!assignment!are!to:!
• identify!and!define!a!problem!area!in!the!media!and!entertainment!industry;!
• develop!an!appropriate!research!design;!
• select!an!appropriate!methodology!and!techniques;!
• present!coherent!and!structured!arguments!for!the!research!design!choices;!
• exercise!critical!judgement.!
!
Organisation(
The!research!proposal!assignment!is!an!individual!effort,!though!consulting!with!peers!is!
advised!and!facilitated!in!the!workshops.!To!help!you!complete!the!assignment,!four!workshops!
are!scheduled.!Each!workshop!contains!a!small!theoretical!part,!followed!by!inCclass/homework!
assignments.!There!will!be!a!lot!of!time!allocated!to!discuss!your!progress!and!review!your!
assignment!work!with!your!peers.!
!
Outline&workshop&topics&
Week!2!Workshop!1:!Reading!assignment!&!the!research!process!!
Week!4!Workshop!2:!Literature!review!
Week!6!Workshop!3:!Research!design!and!methods!
Week!8!Workshop!4:!Writing!the!introduction!
!
More!details!about!the!content!of!each!week’s!workshop!can!be!found!on!Blackboard.!!
!
All#workshop#assignments#are#due#on#the#Mondays#before#noon#(except#for#week#2),#in#
the#weeks#you#have#your#workshops!#Upload#assignments#on#Blackboard!#
Week!2!(before!class):!Read!the!two!mandatory!articles!of!your!chosen!subject!
Monday!week!4:!Literature!review!assignment!
Monday!week!6:!Research!methods!assignment!
Monday!week!8:!Introduction!assignment!
!
The!research!proposal!you!submit!in!week!9!as!the!final!assignment!for!research!is!a!
combination!of!the!workshop!assignments.!In!addition,!you!have!to!write!a!critical!reflection!on!
this!course!(critically!reflect!on!your!own!choices,!what!have!you!learnt,!what!are!the!learning!
outcomes!for!you?)!In!a!nutshell,!there!are!4!components!to!your!assignment.!Each!of!the!
components!is!explained!in!a!bit!more!detail!on!the!following!pages.!
!
Assessment&
The!grade!for!the!research#component!is!based!on!attendance/participation!and!your!research!
proposal;!assessment!of!the!participation!component!is!based!on!attendance.!Please!bear!in!
mind!that!you!will!be!allowed!to!attend!the!workshops!only!if!you!come!to!class!prepared!(in!
other!words:!you!submitted!the!required!homework!assignment!before!the!deadline).!If!you!fail!
to!do!so,!your!workshop!teacher!will!not!let!you!attend!class.!If!you!do!not!attend!at!least!3!out!of!
the!4!workshops,!you!will!automatically!receive!an!insufficient!(5)!grade!for!the!research#
component!in!this!module.!
The!deadline!for!handing!in!the!proposal!is!Monday!week!9,!3!PM,!digitally!on!Blackboard.!Your!
workshop!teacher!will!assess!your!proposal!with!a!good!(8)/sufficient!(6)/insufficient!(5)!grade.!!
!
General&preconditions&
Student!has!missed!no!more!than!1!workshop.!
Student!has!missed!no!more!than!1!mandatory!assignment!(see!previous!page).!
Papers!do!not!exceed!10!pages!of!text!in!the!body.!
Paper!adheres!to!the!required!structure!(see!below).!
Proper!use!of!the!English/Dutch!language,!meaning!no!more!than!3!spelling/grammar!mistakes!
per!page.!
!
Structure&and&layout&
• Cover!
• Title!page!
• (Foreword/preface)!
• Table!of!content!
• Introduction!
• Literature!review!
• Specification!of!research!questions!
• Methodology!and!procedures!
• Critical!evaluation!!
• List!of!references!using!APA!
• (Appendices)!
!
The!items!between!brackets!maybe!omitted!and!are!not!obligatory.!
!
The#different#chapters#of#the#proposal#should#contain#the#following:#
!
Introduction#
!
• The!context!of!the!problem,!which!is!essentially!in!part!the!result!of!your!analysis!of!the!
problem!and!in!part!a!summary!of!what!you!have!found!in!the!literature!with!regards!to!
the!issue!you!wish!to!study/!
• Objective(s)!of!the!study!&!main!question!of!the!study.!
• Significance!of!the!study!(rationale/purpose/importance)!
!
Literature#review#and/or#problem#analysis#
!
In!the!literature!review,!you!write!a!critical!reflection!on!the!information!you!have!found!during!
your!desk!research!in,!for!example,!text!books,!academic!and!popular!articles,!and!other!
students’!theses!and!dissertations!about!the!issue!you!want!to!study.!In!other!words,!you!report!
on!what!is!known!about!the!topic/issue!from!prior!research!and!your!analysis!of!the!problem!or!
topic.!This!means!you!will!write!about!the!different!aspects!related!to!your!topic/issue!but!also!
about!how!(what!methods!and!techniques)!others!have!studied!similar!issues!or!what!
models/theories!can!be!used!to!gain!insight!in!the!topic/issue.!By!describing!what!is!known!
about!your!topic,!you!uncover!what!is!not!known.!
! !
# #
Problem#definition#and#operationalization#of#the#research#
!
Identify!your!research!questions!(or!hypotheses)!in!this!section.!Identify!research!units!(subjects!
or!objects).!Who!has!the!information!you!need!or!what!contains!the!information!that!you!need?!
Individuals,!organizations,!documents!etc.!Identify!constructs!(concepts)!that!need!to!be!studied:!
what!are!the!constructs!or!concepts!that!you!are!going!to!measure?!In!other!words,!what!are!the!
qualities!and!characteristics!of!the!research!units!you!need!to!study,!How!can!they!be!divided!
into:!factors!or!variables?!
!
!
Methodology#and#procedures#
!
• Explain!and!justify!general!research!approach:!qualitative/quantitative.!
• Identify!and!justify!data!collection!method(s),!techniques!and!procedures!(e.g.!
questionnaire,!interview,!observation,!secondary!data!analysis,!…).!Instrument!
development,!sampling!design.!
• What!data!analysis!techniques!and!procedures!will!be!used?!
!
Critical#evaluation#
!
Provide!an!evaluation!of!the!research!workshops!and!the!process!of!writing!a!research!proposal.!
What!have!you!learnt!during!these!workshops?!What!could!you!have!done!better!or!differently?!
What!are!the!pros!and!cons!of!your!chosen!research!method(s)?!Are!you!more!or!less!stressed!
about!the!thesis!now!that!you!have!written!a!proposal?!Questions!like!these!should!be!discussed!
in!the!evaluation!(max.!1!page).!
!
!
! #
Sources#
Books:&
!
Castells,! M.! (2000).! The)rise)of)network)society.! Volume! 1&2! The! information! age:! economy,! society! and!
culture.!Oxford:!Blackwell!Publishers.!
Dess,!Lumpkin&!Eisner.!(2010).!Strategic)Management:)creating)competitive)advantages.!(4th!Ed.)!
McGraw/Irwin,!New!York.!p.!417.!!
Johnson,!Scholes!&Whittington.!(2008).!Exploring)Corporate)Strategy,)Text)and)Cases.!(8th!Ed.).!Prentice!
Hall:!Harlow.!
Johnson,!Scholes!&Whittington.!(2011).!Exploring)Strategy,!Text!and!Cases.!9th!Ed.,!Prentice!Hall.!Harlow!
Jones!&!Hill!(2010).!Theory)of)Strategic)Management.!(9th!Ed.)!SouthCWestern,!Cengage!Learning:!UK.!!
Küng,!L.!(2008).!Strategic)Management)in)the)Media:)From)Theory)to)Practice.!SAGE.!London.!
Lynch!R.!(2009).!Strategic)Management!(5th!Ed.)!Prentice!Hall,!Pearson!Education:!London.!P.!795C798!
Mintzberg,! H,! Ahlstrand! B,! Lampel! J.! (1998).)Strategy)Safari:)A)Guided)tour)through)the)wilds)of)strategic)
management.!New!York:!Free!Press.!
!
Online&sources:&
!
Apple! Inc.! (2007,! January! 9).! Macworld! San! Fransisco! 2007! Keynote! Address! [Apple! Keynote! Podcast].!
Apple!Inc.!Retrieved!June!21!2012,!from!http://itunes.apple.com/nl/podcast/appleCkeynotes/!
Apple! Inc.! (2008,! Oktober! 21).! Apple! reports! forth! quarter! results.! Retrieved! June! 26,! 2012,! from!
http://www.apple.com/pr/library!
Apple!inc.!(2010,!January!27).!Apple!announces!iPad![Apple!Keynote!Podcast].!Apple!Inc.!Retrieved!june!
27,!2012,!from!http://itunes.apple.com/nl/podcast/appleCkeynotes/!!!
Associated!Press.!(1993,!November!3).!Keep!it!simple,!Simon!says.!Florida!TimesCUnion!Newspaper,!page!
unknown.!!
Canalys.! (2007).! 64! million! smart! phones! shipped! worldwide! in! 2006.! Retrieved! June! 25,! 2012,! from!
http://www.canalys.com/newsroom/!
Canalys.!(2008).!Smart!mobile!device!shipments!hit!118!million!in!2007,!up!53%!on!2006.!Retrieved!June!
26,!2012,!from!http://www.canalys.com/newsroom/!
Canalys.! (2010).! Majority! of! smart! phones! now! have! touch! screens.! Retrieved! July! 11,! 2012,! from!
http://www.canalys.com/newsroom/!
Canalys.!(2011).!Google’s!Android!becomes!the!world’s!leading!smart!phone!platform.!Retrieved!June!26,!
2012,!from!http://www.canalys.com/newsroom/!
Elgin,! B.! (2005,! August! 17).! Google! Buys! Android! for! Its! Mobile! Arsenal.! Retrieved! June! 25! 2012,! from!
http://www.busniessweek.com!!
Koningsveld,!H.!(2006)!Het)verschijnsel)wetenschap.)Een)inleiding)tot)de)wetenschapsfilosofie.)Amsterdam:!
Boom!uitgevers.!!
Lockwood,!Th.!(2010)!Design)Thinking:)Integrating)Innovation,)Customer)Experience,)and)Brand)Value.!New!
York:!Allworth!Press!(Design!Management!Institute).!!
McCullagh,!Dean.!(2011,!January!5).!CES:)Motorola)reveals)iPad3rival)Xoom)tablet.!Retrieved!July!12!2012,!
from!http://www.cnet.com!
Nokia.! (2012)! 2011! Form! 20CF! Annual! report.! Retrieved! July! 12! 2012,! from!
http://www.nokia.com/global/aboutCnokia/investors/financials/reports/resultsCCCreports/!
Open! Headset! Alliance! (2007,! November! 5).! Industry! Leaders! Announce! Open! Platform! for! Mobile!
Devices.!Retrieved!June!26,!2012,!from!http://www.openheadsetalliance.com/press_110507.html!!
Phone!Factor.!(2012)!Smartphone.!Retrieved!June!25,!2012,!from!http://www.phonescoop.com/glossary/!!
Vervest,!M.!(2012,!April!12).!Windows!8!moet!Nokia!redden!van!de!ondergang.!Metro,!p.!8.!
!
! #
Appendix#1.#Assessment#sheets#
Case&1:&Blockbuster&assessment&sheet&
&
Students:! ! ! ! ! ! ! ! ! Assessor:!
!
!
!
Reporting## Weighing# Grade##
#
• Summarize!the!caseCtext! 5%# !
• Internal!analysis!! # !
o Analyse!and!substantiate!what!the!mission!and!vision!of!Blockbuster! #
would!have!been!during&the&startLup&period!described!in!the!text.! #
o Analyse!Blockbuster’s!resources!and!capabilities.!! 25%#
o Describe!the!value!chain!for!Blockbuster:!how!did!BB!create!value!for!
its!customers!over!the!years?!Also!display!this!value!chain!of!
Blockbuster!in!a!figure/schedule!(choose&a&specific&period).!
o According!to!Jones!&!Hill!(2011)!competitive!advantage!is!mostly!
attained!though!four!building!blocks.!Analyse!which!building!blocks!
are!applicable!to!Blockbuster.!
• External!analysis! # !
o Define!the!industry!Blockbuster!is!operating!in.! #
o Is!it!a!fragmented!or!consolidated!industry!(substantiate)?! 25%#
o Analyse!the!different!stages!of!the!industry!life!cycle!the!industry!is!
going!through.!
o Analyse!the!5!forces!of!Porter!for!Blockbuster.!
o Analyse!the!MacroCenvironmental!developments!discussed!in!the!
case!and!how!they!affected!Blockbuster.!
• Strategies!used! # !
o Apply!one!of!the!following!models:!! #
" Tracy!&!Wiersma,!value!disciplines!! 20%#
" Ansoff’s!growth!strategies! #
" Porter’s!generic!strategies.!!
#
o Explain!which!strategies!Blockbuster!pursued!over!the!years!by!
applying!the!chosen!model.!
• Strategic!options! # #
o Analyse!strengths!and!weaknesses!of!Blockbuster!in#the#final#years! #
when!the!company!was!facing!bankruptcy.! 25%#
o Analyse!threats!and!opportunities!for!Blockbuster!in!the!same! #
period.!
#
o Combine!your!findings!in!a!SWOTCmatrix.!
#
o Using!a!TOWSCmatrix,!try!to!come!up!with!three!possible!strategies!
that!might!have!saved!the!company.!
o Use!the!SAFCmodel!to!evaluate!the!strategies!and!choose!one.!
o Substantiate!your!choice.!
o Conclude!your!findings!(use!what!you’ve!learned!concerning!decision!
making).!
Total:## 100%# #
!
! !
Assessment&criteria&for&individual&essay,&Case&1&&
!
Assessment%criteria% Weighting% Grade%
Awarded%
Prospect!and!game!theory!are!explained;!at!least!three!valid,!objective! 30%! %
arguments!are!presented.!
The!information!used!is!relevant!and!reliable.! 30%! %
The!essay!is!coherent!and!logical.! 30%! %
References!are!done!according!to!APAFstandards! 10%! %
Total%! 100%! %
!
Assessment&criteria&for&individual&essay,&Case&2&
!
Assessment#criteria# Weighting# Grade#
Awarded#
All!the!questions!are!answered.! 40%! #
The!essay!is!clearly!structured!with!subCheadings.!! 10%! #
The!essay!consists!of!at!least!600!words.!! 10%! #
The!essay!reflects!on!both!emotional!and!rational!aspects.!! 20%! #
The!student!has!shown!an!extensive!understanding!of!the!film!and! 20%! #
topic.!!
Total## 100%# #
!
(
( (
Case(study(2:(The(Netflix(expansion(<(Assessment(sheet(
(
Students:! ! ! ! ! ! ! ! ! Assessor:!
!
!
!
Reporting%structure%and%content%% Weighing%
1. Introduction#to#the#case#context## %
1.1(Background(and(current(situation(( %
• Describe!what!happened!to!Netflix!between!2011!and!present.& %
• What!is!the!current!situation!of!Netflix!as!a!company?!Which!major!challenges! %
20%%
does!Netflix!face?!&
• Develop!a!problem!statement/main!question,!and!clarify!the!purpose!of!this!
case!analysis!report.!&
1.2(Research(method(
• Justify!the!research!method!and!its!limitations.!E.g.!which!sources!of!
information!are!suitable!and!effective?!!
2. Situational#Analysis# %
2.1(Strategic(development(( %
• How!has!Netflix’s!strategy!developed!over!the!years?!Analyse!the!current! %
corporate!and!global!strategies!of!Netflix.!!!How!has!Netflix!grown!over!time?! %
Which!opportunities!has!Netflix!caught!to!achieve!today’s!dominant!position?!! %
%
• Analyse!Netflix’s!competitive!advantages.!!
%
2.2(Competitive(analysis(( 40%%
• Map!out!an!industry!value!network,!identify!the!competitive!forces/players!of!
the!VOD!industry,!and!explain!their!powers!and!interests.!Compare!Netflix!to!
the!traditional!TV!business,!which!added!value!has!Netflix!provided!to!
audiences!and!which!value!is!missing?!!!
• How!is!the!VOD!industry!evolving!and!which!direction!is!it!heading!towards!in!
the!next!2!to!5!years?!
2.3 Macro&environment&analysis&
• Explain!a!few!relevant!influences!of!the!Marco!environment!on!Netflix!in!the!
next!2!to!5!years.!!
2.4 Innovator’s&dilemma&!&
• Conclude!opportunities!and!threats!for!Netflix!in!the!next!2!to!5!years!based!on!
the!analysis!above.!!
• Discuss!which!innovator’s!dilemma!Netflix!encounters.!
3. Alternative#solutions### %
• Based!on!the!understanding!of!the!previous!analysis,!identify!some!key! %
uncertainties!of!Netflix’s!business!and!its!environment.!# 25%%
• Identify!and!formulate!3!future!scenarios!and!describe!how!Netflix!could!
possibly!respond!to!these!“what!ifs”.#
4. Conclusion## %
• Conclude!the!findings!and!answer!the!problem!statement.!!In!line!with!aboveC %
conducted!analysis,!which!strategic!direction(s)!do!you!advise!Netflix!to! 15%%
pursue!in!the!next!2!to!5!years?!! %
%
• Reflect!on!the!dilemmas!and!limitations!you!encountered!while!developing!the!
strategies!for!Netflix.!Discuss!possible!followCup!studies,!which!can!be!
continued!in!the!future!research.!!!
% %
Total:%% 100%%
!
& &
Assessment&criteria&for&presentations&of&studentLled&seminars&
&
!
Assessment#criteria# Points# Weighing## Awarded#
Preparation& # # #
• Company!was!approved!by!the!module!coordinator& 2# #
• Document!(2xA4)!was!handed!in!and!discussed!with!module!coordinator! 10%#
or!management!teacher&
Opening& # # #
• Effective!icebreaker!that!relates!to!the!contents!of!the!presentation.!! 1# #
• Introduce!team!members!and!give!the!overview/structure!of!the! # 5%#
presentation.!!
Main&body& # # #
• Give!a!clear!introduction!of!the!chosen!company!and!motivate!your!choice.!! # #
• Explain!how!its!strategy(ies)!developed!over!the!year(s).!! # #
• Indicate!how!the!company!did!or!didn’t!sustain!certain!competitive! 8# 40%#
advantages!(4!building!blocks!).!!
• Present!successes!and!failures!the!company!has!faced!and!indicate!the!
future!challenges!in!its!competitive!environment!in!3C5!years’!time.!&
Discussion&&&conclusion& # # #
• Conclude!the!presentation!and!ask!the!audience!a!challenging! # #
question/statement!that!will!provoke!a!discussion.!! # #
• Host!a!group!discussion!about!a!recent!business!development!that!could! 6# 30%#
possibly!influence!the!company’s!strategic!decision!making.!!
• The!discussion!must!reflect!on!the!contents!of!business)news)sources.!!
• Q&A!performance,!answer!questions!asked!by!the!audience.!!
Interpersonal&communication&skills&& # # #
• The!presenters!use!their!own!words!when!talking!to!the!audience!rather! # #
than!reading!notes.!! 3# 15%#
• The!presentation!was!easy!to!follow!and!interactive.!!
• The!team!pays!attention!to!body!language!and!has!a!professional!manner.!&
Total# 20# 100%# #
&
#
! #
Appendix#2.#Writing#skill#requirement#assessment#
Assessment#Form:#Writing#Skills#in#General#(this#form#applies#to#case#reports#1,#2#&#3#
team#assignment#parts)#
#
Group:!
Students:!
Report!title:!
Tutor:!
#
#
Layout#
The!report!lacks!the!following! 1C!11! The!report!includes!the!following!
components:! components:!
C Cover! C Cover!
C Title!page! C Title!page!
C Foreword! C Foreword!
C Management!Summary! C Management!Summary!
C Table!of!Contents! C Table!of!Contents!
C Introduction! C Introduction!
C Body! C Body!
C Conclusion! C Conclusion!
C Bibliography! C Bibliography!
C Appendices! C Appendices!
C Page!numbers! C Page!numbers!
! !
The!layCout!is!not!consistent! 1!!2!!3!!4!!5! The!layCout!is!consistent!
#
Total#score:#(max#16)#____________________#
#
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Contents,#(dealing#with)#sources#
A!clear!objective!is!absent.!No!clear! 1!!2!!3!!4!!5! The!report!provides!a!clear!answer!to!a!
answer!is!provided!to!the!main! clearly!formulated!main!question.!
question.!
The!author!needs!more!information!on! 1!!2!!3!!4!!5! The!author!is!well!informed!about!the!
the!subject.!The!report!is!too! subject.!The!report!treats!the!subject!in!
superficial.! depth.!
The!author!did!not!use!an!adequate! 1!!2!!3!!4!!5! The!author!used!an!adequate!number!
number!of!sources.*!The!sources!are! of!varied!sources!and!all!sources!are!
oneCsided!and!not!very!relevant.! relevant.!
The!source!references!are!not!in!APA! 1!!2!!3!!4!!5! The!source!references!are!in!APA!style.!
style.!It!is!unclear!whether!a!quotation! Paraphrases!and!quotations!are!clearly!
or!paraphrase!has!been!integrated!into! recognisable!as!such!and!are!effectively!
a!passage.! integrated!into!the!text.!
*!The!minimum!number!of!sources!differs!from!assignment!to!assignment.!In!that!regard,!please!
consult!the!applicable!module!book!or!your!lecturer.!
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Total#score:#(max#20)#____________________#
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Structure#
The!report!is!not!structured!clearly.! 1!!2!!3!!4!!5! The!report!is!structured!in!a!logical!
The!order!of!the!chapters!is!not!logical.! way.!
The!relationship!between!paragraphs! 1!!2!!3!!4!!5! The!relationship!between!paragraphs!
and!sentences!within!a!chapter!is! and!sentences!within!a!chapter!is!clear.!
unclear.!
#
Total#score:#(max#10)#_____________________#
#
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Style,#register,#choice#of#words#
The!author!uses!a!style!that!does!not! 1!!2!!3!!4!!5! The!chosen!style!effectively!matches!
match!the!nature!of!the!document! the!nature!of!the!document.!
(popular!language,!colloquialisms).!
Technical!terms!are!used!in!unclear! 1!!2!!3!!4!!5! Technical!terms!are!used!in!an!
ways.!Technical!terms!are!not! adequate!way.!Terms!are!explained!
explained,!but!common!terms!are.! wherever!necessary.!
!
Total#score:#(max#10)#_____________________#
!
!
Syntax,#spelling#
The!sentences!are!formulated!clumsily! 1!!2!!3!!4!!5! The!sentences!are!clearly!formulated.!
and!unclearly!(inversion!errors,!
congruence!errors!and!improper!
punctuation).!
The!report!contains!structural!and!nonC 1!!2!!3!!4!!5! There!are!no!spelling!errors.!
structural!spelling!errors!and!errors!in!
the!spelling!of!the!verbs.!!
!
Total#score:#(max#10)#_____________________#
!
!
Assessment#
The!maximum!score!is!66.!!
The!table!below!shows!the!deduction!on!your!final!mark!for!every!score.!
#
Score# Deduction#
66! 0!
58! 0.5!
51! 1!
43! 1.5!
36! 2!
!
This!assessment!form!also!applies!to!resit!assignments.!
! #
Appendix#3.#Module#evaluation#form#
Please& discuss& the& following& aspects& concerning& module& evaluation& together& with& your&
colleagues& during& the& last& CBL& session& (8.2).& The& minutesLtaker& should& make& notes& of& the&
discussion&and&send&the&outcomes&to&the&module&coordinator&via&email.&&
#
#
General#feedback#
• What!is!your!opinion!on!the!topics!discussed!during!this!module?!
• Did!you!understand!the!module!rationale?!!
• At!what!stage!in!the!module!did!you!‘get’!what!the!module!was!about?!
• Did!you!enjoy!the!module?!Did!it!meet!your!expectations?!
!
CBL##
• What!was!your!opinion!on!the!various!CBL!miniCcases?!How!do!you!feel!they!related!to!
the!module!rationale?!
• Was!your!background!sufficient!to!take!part!in!the!sessions?!Was!your!prior!knowledge!
activated!effectively?!
• Do! you! think! you! gained! enough! theoretical! and/or! practical! knowledge! during! the!
sessions?!Do!you!feel!you!have!gained!enough!knowledge!to!take!the!Progress!test?!
!
Self#study#
• What!is!your!opinion!on!the!level!of!input!required!for!selfCstudy!during!this!module?!
• Did!you!always!complete!your!selfCstudy!properly?!Did!you!have!sufficient!time!to!do!so?!
• Was!it!difficult!to!find!the!answers!to!your!learning!goals?!
• Did!you!have!sufficient!access!to!resources!to!find!your!answers?!
• Did!you!use!the!resources!listed!in!the!Module!Book?!
• Did!you!attend!many!lectures?!What!was!your!opinion!of!the!lectures!and!guest!lectures!
offered!this!module?!
• Do! you! feel! the! lectures! contributed! to! your! preparation! for! the! CBL! miniCcases,! the!
various!workshops!and!the!module!assignment?!
• Would!you!like!to!have!had!lectures!on!other!topics!relating!to!this!module?!If!so,!which?!
!
Group#work#
• What!do!you!think!of!the!group!process!(during!sessions!and!assignment!work)?!!
• What!do!you!think!of!your!own!participation!and!contribution!to!the!group?!
• Did!the!group!succeed!in!adequately!clarifying!contents!and!theory!during!the!sessions?!
Were!you!able!to!contribute!to!this?!!
• Did!you!have!good!discussions!with!your!group!about!the!theory?!!
• Was!it!easy!to!make!arrangements!with!group!members!outside!of!the!sessions?!!
!
Tutor/Lecturers#
• What!is!your!opinion!of!the!role!of!your!tutor!and!lecturers?!!
• Could!they!be!reached!easily!during!the!module?!!
• Did!you!find!that!they!gave!sufficient!feedback!during!the!module?!
• What,!if!anything,!might!they!improve!or!do!otherwise?!!
!
Module#book##
• Was!the!structure!of!the!module!book!clear?!!
• What,!if!anything,!might!be!improved!about!the!module!book?!
##
SPONSORED CONTENT
THE
PROGRAMMATIC
REVOLUTION
How Technology Is
Transforming Marketing
Realizing the vision for one-to-one engagement
We’ve all heard it before: Marketing is most effective when you’ve achieved the three R’s—the right message, to the right
person, at the right time. The challenge is doing that accurately, in real time, at scale. Traditionally, brands have had to make do
with generic audience segments that blunt targeting and relevance, operational inefficiencies that slow fulfillment and strain
resources, and disconnected systems that make it difficult to deliver insight-driven campaigns across channels. Today, that’s
changing with programmatic buying technologies that leverage data to automate marketing across channels, achieving higher
levels of targeting, relevance, efficiency and impact.
It’s not news that the channels and touchpoints consumers have with brands today are rapidly proliferating. Marketers need
to maintain a consistent view of how people interact with their messages across these devices and platforms. Programmatic
buying is a critical step enabling them to do this by bringing together disparate data points and providing a holistic view of the
consumer across various channels in the sales and loyalty life cycle. This drives better campaign performance as well as media
buying efficiencies that free marketers to focus on more strategic and creative initiatives.
But programmatic buying does not benefit marketers alone. Media companies, with inventory to sell, can unlock the value
of underutilized inventory by optimizing CPMs and building deeper relationships with marketers. As a result, the customer’s
journey becomes more relevant, interesting and seamless across every type of media, from desktop to mobile to TV and offline
display. It may be a few years before such real-time, cross-channel targeting and optimization become the norm, but forward-
thinking brands and media companies are already making rapid progress in this direction and seeing real benefits.
Programmatic buying isn’t for everyone, however; as some entities are waiting for the market to evolve and mature before
investing in it heavily. These marketers and publishers cite concerns around technical complexity, quality, transparency, data
security and fraud. Addressing these issues will be crucial to continuing the growing trend toward programmatic buying.
Across the programmatic landscape, one theme emerges clearly: the need for education. The technologies and models
for highly effective programmatic buying are already at hand. The sooner marketers and media companies throughout the
advertising industry learn to put them to use, the sooner the full promise of programmatic will come to fruition.
most associate with programmatic buying. Beneath the

What we mean by programmatic associated acronyms and buzzwords, the fundamentals of
In a survey conducted earlier this year by the programmatic buying are straightforward: It is the practice
Association of National Advertisers, only 26.0% of of using technology and audience insights to automatically
respondents said they knew what programmatic buying is buy and run an ad campaign in real time to reach the right
and have actually used it. consumer with the right message in the right context.
As investment in advertising technology has increased Regardless of the goal, programmatic buying means simple,
over the past few years, the marketplace has become efficient, effective transactions.
crowded with companies eager to differentiate themselves, There’s no question that programmatic buying is growing
defining programmatic in terms of their own strengths. This quickly. Magna Global, the buying arm of Interpublic Group
has led to considerable confusion. of Companies, projects that programmatic spending will
In Advertising Age’s 2014 Programmatic Buying & Selling reach $9.8 billion in the U.S. in 2014, or about 20% of
Survey, conducted for DoubleClick, 307 respondents the overall digital ad market. More than half of the media
from marketers, agencies and media companies cited respondents (56.3%) in the Ad Age survey reported that
“audience targeting” (40.1%), “real-time bidding” agencies and marketers are requesting a programmatic
(36.5%) and “automation” (30.0%) as the phrases they approach to media buying.
September 2014 GOOGLE | DOUBLECLICK 2

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• Making good marketing better • Helping publishers unlock new revenue

For marketers and agencies, programmatic buying provides The promise of programmatic buying isn’t just for advertisers.
a way to make campaigns more effective at a greater scale Programmatic selling helps media companies increase
by harnessing data for real-time targeting and optimization. profitability both by increasing margins on current sales
It maximizes the impact of each impression within existing through operational efficiencies and by better leveraging the
budgets while driving campaign and operational efficiencies. data and insights they have about their audiences to meet
“Programmatic buying reduces our reliance on human-to- advertiser goals.
human interaction and gets us out of Excel and faxes so we Publishers can now shift attention to meeting marketers’
can become more efficient, freeing mind share to focus on needs in new ways, often using a “barbell strategy,” with
creativity and business performance,” says David Cohen, resources focused on programmatic sales on one end to
chief investment officer of UM. “It’s already a meaningful automate selling and fulfillment of IAB standard units, and
part of our business today, especially in digital—and, high-value custom deals on the other. “Buyers are getting
increasingly, in television in the months to come. We have a more sophisticated. So the most evolved publishers are
goal to automate 50% of our overall media buy by the end focusing direct sales teams on highly customizable, large-
of next year—not just digital, but every format.” scale sponsorships, high-CPM placements and cross-channel
While click-through rate is only one measure of delivery to differentiate and build bigger relationships,” says
effectiveness, the Ad Age survey shows a trend to greater Shane Peros, managing director of U.S. Sales: Entertainment
consumer engagement through ads served programmatically & Consumer Services at Google. With better targeting
(Figure 1). Almost half of the respondents (44.3%) believe backed by robust data, publishers can now also magnify the
that click-through rates have been positively affected by value and impact they deliver to advertisers.
programmatic, and slightly more than half think this rise will Bottom line: Publishers care about revenue and access
continue in the future (51.5%). to buyer demand. Efficient and transparent automated
marketplaces connect publishers with a broader universe
HOW PROGRAMMATIC AFFECTS CLICK-THROUGH RATES Figure 1
How have the current click-through rates for programmatic ads changed over the last year, and how do you expect
them to change in the future?
CURRENTLY ESTIMATED TWO YEARS FROM NOW
22.5% 24.4%
44.3%
51.5%
24.1%
33.2%
n Respondents who said click-through rates increased

n Respondents who said click-through rates decreased n Respondents who said they see no change
Base = 307 respondents

of potential ad buyers, such as smaller agencies beyond to use programmatic; according to the survey, the most
the reach of a publisher’s sales team. Increased competition important factors when choosing to buy online media
for inventory coupled with a smart segmentation strategy through programmatic technology are targeting options
increases yield. “The ultimate benefit that we’re working (76.5%), reporting/insights (73.3%) and performance/ROI
toward is to address the totality of demand in the market— (71.9%). The perceived benefits of programmatic reflect the
something we could never do without programmatic,” says impact marketers expect to realize through these tools. Half
Michael Zimbalist, senior VP- new business opportunities at of the respondents (50.0%) believe that the biggest benefit
The New York Times. “This is becoming an important part of of programmatic buying is being able to more effectively
an integrated yield optimization strategy for any publisher.” target consumers across digital media platforms; many
also cited improving the relevance of marketing messaging
Beyond automation: (30.1%).

With data and audience insights that enable better
Making every audience count targeting, publishers can not only create custom packages at
premium rates but also unlock the value of narrowly defined
Beyond the benefits of automation, both marketers
but previously overlooked segments. “Automation is a nice
and media companies value the segmentation and
benefit, but the real value of programmatic is using our
targeting programmatic buying makes possible. Marketers
data on intent-based traffic to allow [ad buyers] to access
participating in the Ad Age survey emphasized the
inventory against groups, particularly in areas that we haven’t
importance of the fine-grained segmentation and targeting
been able to monetize effectively before,” says Neil Vogel,
programmatic buying enables, along with the improved
CEO of About.com. “By placing our inventory in a real-time
relevance and performance it makes possible (Figure 2).
marketplace with parameters, we can often uncover more
These are the capabilities that most often draw marketers
value than we anticipated.”
Figure 2
FACTORS INFLUENCING PROGRAMMATIC BUYING DECISIONS
Please rate how important each of the following is when [purchasing/selling] digital advertising through
programmatic technology.
Average (Scale of 1 to 10,
“Very/extremely important” with 10 being extremely
important)
76.5%
73.3% 71.9%
64.6% 63.1% 62.5%

57.3% 56.4%
53.7%
49.1%
8.25 8.17 8.15 7.90 7.82 7.66 7.48 7.45 7.33 7.05
Targeting Reporting/ Performance/ Inventory Pricing Transparency Contextual Operational Fulfillment Branded
options Insights ROI quality placement efficiency rates inventory
*Performance/ROI based on 71 media respondents only, and Pricing based on 236 agency and marketer respondents only. Scale of 1 – 10 where 1 = Not at all important and 10 = extremely
important (chart based on 8–10 ratings).

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Barriers to realizing the value of determine the value proposition of different supply sources
and what sets them apart (75.4%); and if there were greater
programmatic buying transparency in the programmatic buying process (72.4%).
Some marketers and media companies see areas }Media respondents agree that they would sell more
that need improvement. Across both groups, the top factors programmatically if there were stronger support for cross-
mentioned as preventing them from using a programmatic platform monetization (71.8%); if they had more visibility
approach to all their buying/selling of digital advertising are: into who’s buying (70.4%); and if they could be assured that
}Budget/cost/price. One respondent commented that their data was secure (67.6%).
programmatic is “too new of a solution—would like to see A common thread running through many responses is
more results before allocating more budget to programmatic the desire for greater visibility and control over the buying
buying.” Others cited the cost of applications and training. process and its participants. As they increase their use of
Strategic factors also come into play, such as a focus on automation, media companies must remain vigilant about
retention rather than acquisition, or sheer confusion on the the quality of ads that run on their sites. The solution set
part of an agency’s clients, making it difficult to justify the for programmatic includes tools to monitor and block
required spend. advertisers, but these require ongoing human attention to
}Complexity/newness/insufficient education. The desire be effective.
for more information ranges from the data used to make Perhaps more serious is the problem of some companies
decisions to what’s involved in building and maintaining misleading sales business practices. “There are companies
the underlying technology infrastructure. Unfamiliarity and with programmatic technology capabilities who have a
inexperience contribute to a lack of trust and confidence reputation for not serving ads in the manner in which
among many respondents, especially as they contemplate you’re buying them. There’s a big problem with ad fraud
the training of both staff and clients that would be required in the digital industry as a whole,” says Zach Friedman,
for programmatic success. VP-digital ad sales at FOX News Channel and FOX Business
}Inventory. One respondent summed up the concerns Network. This includes networks of shell websites flooded
expressed by many about the ability to buy premium with traffic generated by bots—automated software—
inventory and to be assured of the quality of the inventory instead of human consumers.
bought through programmatic: “I believe ‘Programmatic’ is a Media buyers evaluated by their ability to fulfill
black box. Where exactly is the inventory coming from? Who campaigns according to optimization algorithms may not
is viewing? Is this the remnant inventory? How is it targeted? be inclined to investigate the quality of the traffic they find.
Seems like a race to the bottom for impressions, which is “Both buyers and sellers can make money even if it’s a fake
not sustainable year over year.” This is why some buyers and ad, so the industry and IAB need to step in and get it under
media publishers prefer to work directly with each other. control,” Friedman says. The recently released IAB viewability
There are also priorities specific to each side of the market: standard will likely help improve accountability both within
}Agencies and marketers agree that they would buy programmatic and across the larger digital ecosystem by
more programmatically if there were greater emphasis on the helping marketers validate the quality of the impressions
quality of viewable impressions (79.7%); if it were easier to they buy.
“Programmatic buying … [frees] mind share to focus on creativity and business perfor-
mance. It’s already a meaningful part of our business today, especially in digital.”
—David Cohen, chief investment officer, UM

WHOSE RESPONSIBILITY IS PROGRAMMATIC BUYING? Figure 3
What function within your organization is the primary advocate for a programmatic approach?
Who do you believe will advocate for it in the future?
31.6%
Media Buying
23.5%
21.8%
Marketing
25.4%
21.5%
Digital Marketing
24.1%
11.4%
Sales
10.7%
8.1%
Ad Operations
9.1%
2.3% n Currently
IT
3.9% n Estimated two years from now
Other (agency management, 3.3%

direct marketing, media planning, etc.) 3.3%
How marketers are adopting solutions, transactional systems and buy-side forecasting
tools. “It would be wonderful to have a single holistic
programmatic solution from ad call to ad serve, but for the moment we
One of the first questions an organization needs to have to address each of these elements in a piecemeal
answer when adopting programmatic buying is who will fashion,” says Cohen of UM.
lead its efforts. Typically the advocate for programmatic is a Further muddying the picture, these providers run the
senior executive, most often at the director level or higher. gamut, including overly narrow or undifferentiated tools,
While today, media buyers are the most common advocates those unable to deliver promised results and true best-of-
for programmatic, many respondents to the Ad Age survey breed solutions struggling to stand out from the crowd.
believe that this function will shift toward marketers as VivaKi, the ad tech arm of Publicis Groupe, has created a
programmatic buying becomes a strategic investment centralized unit to oversee programmatic buying and provide
affecting almost every element of a marketer’s job (Figure 3). centralized knowledge for all Publicis agencies. “We develop
best practices and evaluate technology partners to make
• Building the programmatic stack: A problem of plenty sure the ones we want to work with meet our standards. By
Much of the perceived complexity of programmatic buying identifying individual providers that are ‘VivaKi Verified,’ we
and selling results from the large number of partners can help simplify the programmatic landscape for Publicis
that can make up an organization’s technology “stack,” agencies and their clients,” says VivaKi Global President of
including demand-side platforms, supply-side platforms, yield Data and Technology Domenic Venuto. “A key part of the
management platforms, data management platforms, data agency’s role in programmatic is to help clients sort through
providers, inventory sources, verification services, viewability the complexity to identify and stitch together the smartest,

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most advanced, highest quality solutions that deliver the

right messages to the right people at the highest moment
WHERE PROGRAMMATIC FITS IN THE Figure 4
BUYING PROCESS
of receptivity.” In determining which providers merit the
As part of your organization’s current purchase process for
VivaKi Verified stamp, Venuto looks at criteria such as digital advertising, when is programmatic made a part of
global scalability, brand protection functionality, viewability the buy?
standards and media performance. “We weed out the 16.1%

bottom two-thirds of the industry and even then work with
only a small percentage of those who pass our standards,”
he says.
41.5%
It’s not just advertisers dealing with this complexity.
17.8%
Publishers, too, are now faced with many decisions to make
around what technology partners to use and how to
efficiently segment their inventory across channels. “There’s
the strategy piece and the execution piece,” says Vogel of
About.com. “The strategy piece isn’t an issue—you put your
inventory in the right places with the right rules and let the
24.6%
right people access it so it works in alignment with your
n It is top of mind when a media plan is being designed.
broader sales strategy. The fear is that you’ll invest in the
n It is part of the consideration set only after most direct sponsor-
wrong tools or partners. Each publisher has its own needs,
ship buys are done.
and different partners are good at different things. You have
n It is top of mind when media is being bought.
to identify the partners that make sense for the inventory
n It is considered only after all buys are made.
you have.”
Given these considerations, it’s not surprising that buyers Filter: Agency and marketer respondents only
in the Ad Age survey tend to express a preference for
working with a robust, unified platform (64.4%) rather than their sponsorship or direct sales negotiations in the future.
an array of individual niche vendors (35.6%) for purchasing This trend contributes to the expansion of programmatic
mobile, video and display advertising. discussions earlier in the buying process. In the Ad Age survey,
41.5% of agencies and marketers indicated they believe that
• Doing more with technology: Bringing programmatic is top-of-mind when a media plan is being
programmatic buying to premium campaigns designed rather than after all buys are made (Figure 4).
While programmatic buying was once seen as an efficient Procter & Gamble Co., for example, made news earlier
way to access remnant inventory—particularly through this year with its intention to buy 70% to 75% of its
real-time bidding platforms—more and more marketers are U.S. digital media programmatically by the end of 2014,
putting reserve buys into programmatic channels as well. an aggressive goal that will depend on the availability of
“To use the power and sophistication of a demand-side premium inventory through programmatic buying. The
platform or audience-buying platform to work only for the company said it plans a similar push into programmatic for
lowest end just doesn’t make sense,” says Damian McKenna, its mobile ad buying next year.
director, DoubleClick Americas at Google. “We see people Marketers are also expanding programmatic beyond
using programmatic now to buy, manage and serve site display into online video, television, multi-screen and
sponsorships and other premium campaigns.” This is already even offline media, using rich audience data to buy more
the practice of 38.6% of the agencies and marketers effectively across channels. Still, this trend is in the early
responding to the Ad Age survey; of those who aren’t stages on both the buy and sell sides. About one in three
already doing so, 63.4% expect programmatic to be part of marketers and publishers in the Ad Age survey reported

using a programmatic approach for digital video or
WHERE PROGRAMMATIC SELLING FITS Figure 5
multichannel/multi-screen campaigns, while almost half
IN THE SALES PROCESS
(48.2%) are using neither approach, most often because As part of your organization’s current selling process for
they either don’t perceive a demand or have yet to make it digital advertising, when is programmatic made a part of
a priority. the selling process?
5.6%
Programmatic direct and
other sell-side strategies
To meet marketers’ rising demand for top-tier 25.4% 40.8%
placements via programmatic channels, a growing number
of media publishers are taking a holistic view of their
inventory and weaving programmatic throughout the sales
process. High-quality inventory is now being made available
through programmatic direct deals to advertisers, but media
execs do cite the need for better forecasting tools to support
this strategy.
This strategy also calls for organizational changes, and 28.2%
some publishers have assembled programmatic teams that
n It is considered only to increase yield from remaining inventory.
work closely with their direct sales teams to coordinate the
n It is part of the consideration set only after most direct
management of large programmatic buying budgets. Others sponsorships are sold.
have merged ad operations, programmatic and sales teams n It is top of mind when responding to RFPs.
to streamline operations and meet buyer demands. However, n It is top of mind when designing the rate card.
the proportion of media companies taking a broader view Base = 71 respondents
Filter: Media respondents only
of programmatic currently lags behind the expressed interest
of marketers, suggesting the potential for competitive
differentiation by publishers that look beyond remnant as well as an integrated ad tech stack, we are evolving
inventory (Figure 5). the business of using our first-party data while helping
In the past, advertisers have typically held the lion’s share advertisers understand they can get much more from their
of data and consumer insight. Programmatic is helping programmatic budgets than they are seeing today,” says
rebalance that, with publishers gaining the ability to use Jason White, VP-programmatic revenue at CBS Interactive.
their own data more effectively and sell against the right Time Inc. used the DoubleClick Ad Exchange to
audiences at fair prices. launch the Time Inc. Global Exchange, giving advertisers
Given programmatic platform capabilities and insights, programmatic access to premium ad inventory on Time,
many publishers are now enabling advertisers to access their People, Sports Illustrated and InStyle, among others, across
inventory based on individual campaign objectives where devices and platforms. A similar strategy is being used by the
it makes the most sense. “As the largest online premium Local Media Consortium, which covers 800 daily newspapers
content publisher with large-scale and valuable audiences, and 200 local broadcast stations.
“Sellers aren’t going to want to give up the control of their upfront model, with the ability to
sell the majority of their inventory at once, but it’ll come. Why wouldn’t you want to make the
whole process more efficient if you could on the digital side?”
—Zach Friedman, VP-digital ad sales, FOX News Channel and FOX Business Network

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Figure 6
PROGRAMMATIC BUYING’S VALUE FOR MARKETERS
What benefits of programmatic buying have you seen in your organization?
More effectively targets consumers across digital media (platforms) 50.0%
Improves operational efficiency 36.9%
Improves relevance of marketing messaging 30.1%
Efficiently values and transacts digital media buys 27.5%
Improves insights on consumers 27.1%
Increases ways to negotiate media deals 25.8%
Delivers a better customer experience 18.6%
Improves speed-to-market 16.1%
Expands yield from owned inventory 11.4%

Filter: Agency and marketer respondents only
Driving impact for marketers,

Overall, CPM rates for programmatically
publishers bought and sold inventory are expected to
“Programmatic has helped us drive performance and double in the next two years, according to
results for our clients in a more efficient way,” says UM’s Ad Age survey respondents.
Cohen. “Legacy practices like sending insertion orders and
using weekly reports to guide optimization can’t continue as
Higher CPMs have indeed been one of the benefits of
the world grows more complex. Programmatic technology
the shift to programmatic, and the reduction of undesirable
helps us execute buys, track the results and optimize in real
inventory through viewability, brand safety and fraud-
time across channels.”
prevention technology will likely continue this trend. Still,
Overall, agencies and marketers say programmatic has
given the improved targeting and relevance that come with
resulted in increasingly effective targeting across platforms,
the higher rates—as well as the ability to verify viewability—
improved efficiency and greater relevance (Figure 6). For
marketers are unlikely to object. More than six in 10 (62.7%)
large publishers, programmatic has made it possible to
of the agencies and marketers in the Ad Age survey believe
monetize vast amounts of inventory efficiently. “It would
they’re seeing higher-quality ad inventory when using
be hard for us to sell out billions of impressions each month
programmatic buying compared to two years ago, and a
without a programmatic strategy,” says FOX’s Friedman.
large majority (86.4%) believe the quality of available ad
“On a big breaking news day, we’d have traffic spikes that
inventory will be even higher two years from now. “Rising
would be impossible to monetize effectively. Now we’ve
price isn’t an issue as long as the quality is there,” VivaKi’s
been able to create competition for unsold inventory in a
Venuto says. “If my ad isn’t getting viewed, it’s worth paying
way to get the biggest yield possible while maintaining our
more to get it viewed. We can’t look at price or performance
direct-sold rate card.”
in isolation of other metrics.”

Looking ahead WHAT’S AHEAD FOR PROGRAMMATIC BUYING Figure 7
While programmatic represents a fraction of the What percentage of your online/digital advertising
do you estimate was, is and will be bought/sold
entire advertising environment, it has gained significant programmatically through programmatic buying?
traction and shows strong momentum. As this growth
continues, several trends will shape the way programmatic
is viewed and used by media companies and marketers,
6.8% Two years ago
including its maturation as a routine, mainstream strategy;

the emergence of viewability as a common currency between 18.9% Currently
buyers and sellers; the consolidation of platforms into more
complete solutions; a growing role for programmatic in 31.9% Estimated two years from now
online video and TV; and the ability to deliver and manage
campaigns across devices while maintaining a unified view
44.5% Best estimate for five years from now
of the consumer.

• Programmatic becomes the norm
Many newer marketers with few legacy investments and
practices to slow them down are getting a fast start with • Viewability enables CPV media buying
programmatic. At the same time, large consumer packaged Programmatic allows for rich data and metrics, providing
goods companies such as Kellogg’s and P&G, as well as a more transparent and accurate viewability-based model
financial services firms including American Express and for media buying and selling to emerge. By using a cost-
Bank of America, are longtime consumers of sophisticated per-view (CPV) model, buyers can pay for what they most
programmatic strategies, making it clear that the technology value, while publishers get the value they deserve for high
has reached the mainstream. performing inventory.
As technologies mature and buyers and sellers gain
expertise, programmatic will likely become the norm. • Platform consolidation
“Looking forward three to five years, people won’t say One key step in the evolution of programmatic buying
‘programmatic’ anymore; it’ll just be the way you buy will be the consolidation of platforms. As mentioned,
audiences, and it’ll be a more sophisticated channel,” says today, many companies must navigate a crowded vendor
McKenna of DoubleClick. universe to assemble their own technology stacks from a
Not every company shares the ambitions of American number of providers that address individual elements of the
Express, which recently issued an RFP asking for strategies overall solution.
to shift its entire $128.5 million online ad budget to While some are willing to undertake this and the risk it
programmatic. Ad Age survey respondents estimated that entails, many more will wait for more complete solutions that
about half of their buys would take place this way within five reduce the number of partner relationships to be managed.
years—a considerable shift (Figure 7).
“The ultimate benefit that we’re working toward is to address the totality of demand in the
market—something we could never do without programmatic.”
—Michael Zimbalist, senior VP of new business opportunities, The New York Times

SPONSORED CONTENT
• Further inroads into online video and TV

As the march of automation continues, programmatic is Amid the ongoing evolution of programmatic
expected to play a role in every type of media, including the tools, strategies and best practices, the funda-
premium inventory typically limited to direct sales. Online mental goal and promise still comes down to
video is already going programmatic in spite of limited high- the three Rs—delivering the right message, to
quality inventory and will make further progress with the
the right person, at the right time.
evolution of digital GRPs and the emergence of viewability
standards. On June 30, 2014, the Media Rating Council
released the final version of its Viewable Ad Impression want to make the whole process more efficient if you could
Measurement Guidelines, developed in collaboration with on the digital side?”
the IAB, which base impression metrics for video on either
time of continuous playback or strong consumer interaction. • Cross-device view of the consumer
Programmatic video advertising will also expand through Perhaps the most exciting space in the industry right now
the rise of private exchanges for quality video inventory. For is around data and cross-platform campaigns. “We’ll finally
example, with initiatives such as Google’s Partner Select, have the opportunity to get unduplicated reach across
traditionally scarce high-quality video inventory is now being devices; that’s truly amazing,” says Mr. Venuto of VivaKi.
sold programmatically by TV broadcasters and premium “That’s when you can really start to maximize your client’s
online publishers, and bought by top-tier brand marketers. media investment.” Given the rapid rise of multiscreen
Online delivery of TV and movie content will increase both behaviors among consumers, including frequent shifts
the supply of high-quality video and the desire of brands to across devices over the course of the day as well as dual-
reach the audiences each channel draws; ABC has already screen experiences for TV and movies, this capability will be
announced that it will allow programmatic buys against crucial for managing and optimizing brand interactions with
some of its digital content. Although relatively few U.S. audiences.
consumers currently own internet-connected televisions, this Amid the ongoing evolution of programmatic tools,
connectivity is quickly becoming standard at all price points, strategies and best practices, the fundamental goal and
a trend that will further fuel this growing market and the promise still comes down to the three Rs—delivering
technologies that support it. the right message, to the right person, at the right time.
While some in the industry voice skepticism about Marketers are gaining better ways of doing this every day,
programmatic gaining a foothold in traditional TV any with the best still to come.
time soon, cable and satellite carriers are already offering Says Mr. Cohen: “I long for a day when we have a
versions of programmatic buying, dynamic insertions or terminal that lets us take a client’s business initiative and
automated targeting against their content. “Sellers aren’t use a wide array of data—syndicated, and the client’s and
going to want to give up the control of their upfront model, our own—to put together a sequenced communications
with the ability to sell the majority of their inventory at once, plan, executed across channels with a few keystrokes and
but it’ll come,” says FOX’s Friedman. “Why wouldn’t you measured as such. Of course, we’re quite far from that today.
But we’re getting closer every day.”
“A key part of the agency’s role in programmatic is to help clients sort through the complexity,
identify and stitch together the smartest, most advanced, highest-quality solutions that deliver
the right messages to the right people at the highest moment of receptivity.”
—Domenic Venuto, global president of data and technology, VivaKi

SPONSORED CONTENT
Best Practices
for Programmatic
Buying and Selling
1. Choose technology partners carefully. verification settings customized to a buyer’s needs, should
As vendors proliferate and practices evolve, the fast- play an important role in your programmatic strategy.
changing field of programmatic advertising can quickly
become overwhelming for marketers and media companies. 4. Make creative optimization part of your strategy.
On one hand, you don’t want to overcommit to a single The data collected and leveraged in programmatic buying
partner that might not live up to expectations; on the other can do more than just refine targeting; it can also fuel highly
hand, working with too many partners can undermine effective real-time optimization of media, messaging and
efficiency and increase technical and operational complexity. creative. Automated A/B or multivariate testing of multiple
Focus on finding a trusted partner with a proven track record images, layouts, messages and calls-to-action can help you
for each element in your platform, making sure that the zero in on the highest-performing ad versions for each
partner’s strengths align with your own priorities. By building segment you target and each channel you use.
stable, long-term vendor relationships, you can establish a
strong base for your programmatic activities and develop 5. Trust the program.
best practices together. Much of the value of programmatic lies in the use of
automated optimization, guided by vast amounts of data,
2. Infuse programmatic across your media mix. to continuously improve the impact of your campaign.
With its origins in RTB, many people have tended to think Programmatic algorithms are designed to learn and make
of programmatic buying and selling in terms of remnant corrections on their own, as well as to recognize the
inventory. This view is increasingly outdated, as marketers difference between a naturally occurring variation and a
and publishers take advantage of the automation, data problem in need of a fix. However, marketers and publishers
integration, analytics and other powerful capabilities of know their brands and audiences better than anyone
programmatic technology to increase the efficiency and else and should closely monitor how well the algorithm is
impact of premium campaigns as well. meeting their goals. Allow the system to run on its own long
enough to get a fair evaluation, and then turn to human
3. Pay attention to quality. expertise to tweak the program as needed.
Many marketers voice reasonable concerns about the quality
of the impressions delivered via programmatic. Aside from About the Survey Advertising Age and DoubleClick commis-
sioned this online research study about programmatic. The study
the risk of monetizing nonviewable inventory, it’s true that
was conducted in January 2014 by third-party research firm
automation can make it all too easy to lose track of where Advantage Business Research. The final findings are based on 307
and how your ads appear. Metrics such as viewability, past respondents made up of 39.2% marketers, 37.7% agencies and
23.2% media companies. The margin of error for the total of 307
performance and brand quality, together with strong respondents of the survey, at a 95% confidence level, is +/- 5.6
percentage points.

The Ad Age Content Strategy Studio, an
extension of Advertising Age and adage.com,
works with companies to help them tell their
brand stories their way. Built on Ad Age’s
heritage of editorial expertise and excellence,
the Content Strategy Studio works to develop
the ideas that create an emotional connection
with customers. Through articles, blogs, video,
microsites, research, events, white papers and
other opportunities, it provides end-to-end
solutions for brands that will create the story
that’s fueling today’s conversations.
Storytelling for your brand by the brand that

knows how to tell stories
WHITE PAPER
Written by J. Daniel Janzen
Designed by Gregory Cohane
Research by Eniko Skintej and Jeff Demarest
CONTACT US
Karen Egolf
Editorial Director
Content Strategy Studio
kegolf@adage.com
Alex McGrath
Senior Account Executive
amcgrath@adage.com
ABOUT DOUBLECLICK
Google’s DoubleClick provides ad management
and ad serving solutions to companies that buy,
create or sell digital advertising. The world’s top
marketers, publishers, ad networks and agencies
use DoubleClick platforms as the foundation for
their digital marketing. With deep expertise in ad
serving, media planning, search management, rich
media, video and mobile, DoubleClick platforms
help customers execute their digital media
strategy more effectively.
GOOGLE | DOUBLECLICK

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most associate with programmatic buying. Beneath the

September 2014 GOOGLE | DOUBLECLICK 2

• Making good marketing better • Helping publishers unlock new revenue

HOW PROGRAMMATIC AFFECTS CLICK-THROUGH RATES Figure 1

CURRENTLY ESTIMATED TWO YEARS FROM NOW

n Respondents who said click-through rates increased

September 2014 GOOGLE | DOUBLECLICK 3

Beyond automation: (30.1%).

64.6% 63.1% 62.5%

September 2014 GOOGLE | DOUBLECLICK 4

September 2014 GOOGLE | DOUBLECLICK 5

Other (agency management, 3.3%

Base = 307 respondents

September 2014 GOOGLE | DOUBLECLICK 6

most advanced, highest quality solutions that deliver the

standards and media performance. “We weed out the 16.1%

September 2014 GOOGLE | DOUBLECLICK 7

September 2014 GOOGLE | DOUBLECLICK 8

More effectively targets consumers across digital media (platforms) 50.0%

Improves operational efficiency 36.9%

Improves relevance of marketing messaging 30.1%

Efficiently values and transacts digital media buys 27.5%

Improves insights on consumers 27.1%

Increases ways to negotiate media deals 25.8%

Delivers a better customer experience 18.6%

Improves speed-to-market 16.1%

Expands yield from owned inventory 11.4%

Driving impact for marketers,

September 2014 GOOGLE | DOUBLECLICK 9

including its maturation as a routine, mainstream strategy;

Base = 307 respondents

September 2014 GOOGLE | DOUBLECLICK 10

• Further inroads into online video and TV

September 2014 GOOGLE | DOUBLECLICK 11

September 2014 GOOGLE | DOUBLECLICK 12

Storytelling for your brand by the brand that

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