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• Objectives: – Reach EBITDA profitability (annual 2002). . and local multi-media efforts. – Increase scale among a targeted quality audiencebecome a top 50 network by 2002. and Digital archives. – Expand NYTCo’s audience and . – Realize NYTCo’s two-pronged corporate strategy in global/national.INTRODUCTION • Three operating divisions: – NYTimes.

more than just an online newspaper • Develop an industrial strength infrastructure for the facile creation of digital products • Build robust and diverse revenue streams • Enhance the national and international distribution and reputation of The New York Times .Mission & Strategy • It became a major player in digital content.

Later during the first year. • At first. Martin Niesenholtz was hired as a president and the project consisted of only one webpage. . the company was called the New York Times Electronic Media Company. What is the strategy of NYTD? Are the organization and control consistent with the strategy? Evolution: • New York Times first ventured into the Internet in 1995. Back then. Niesenholtz reported to both the general manager and the editor of the NYTD’s evolution to date. • Mr. NYTimes. the organization included four more employees.

The division encouraged conversation and cooperation to inspire new ideas between groups of people and they used a decentralized organization. • The NYTD aimed to find new and creative ways to utilize the full potential of internet multimedia. An objective for NYTD was also to enhance the geographical reach. Several ideas were realized but then later discontinued if not profitable. can also be seen as a strategy. . Strategy: • The main strategy of NYTD is to convert printed newspapers into website content that would be displayed over the internet. which aimed to be experimental.Cont.…. • To create a distinct “Internet culture”.

NYTD considered its branch to have a positive impact on the Company. Because of this. the newspaper sales force was unwilling to share their key customers. NYTD was considered a credible part of the corporation. staff feared that the online version would decrease subscription sales. • NYTD broke down the “Chinese Wall” that existed between the editorial and business operations in the original Company. • It even increased the number of subscriptions and became a complementary asset instead of a competitive.What impact has NYTD had on the rest of the company? • In the beginning. . Moreover. they encouraged collaboration and communication. • Concerning advertising sales.

there has been no real return on investment.How does the way NYTD is managed compare to the way a venture capital firm manages a start-up? • NYTD can be compared to a venture capital as a lot of money has been invested in the beginning. contrary to the venture capital. . However. this can be described as organic growth.

they are using an external and internal hiring system.What impact do internal perceptions of NYTD’s performance have on its operations? • In NYTD. • As said before. all the ideas are coming from them. This organization allows them to work in a fully creative atmosphere. . there is a very tough selection. the employees are a priority.

a better collaboration between NYTD and the company would reduce the rivalry. indeed they have a good organizational structure. • However we can make some suggestions. increased measurement of financial performance could be a good solution as well as to increase the number of sources of profit. they do not really need change. . • The use of responsibility centers.Would you change in NYTD’s existing organizational structure? • According to themselves. the NYTD division works pretty well.