Strategic Management Assignment Sample

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STRATEGIC MANAGEMENT

EXECUTIVE SUMMARY
Today news channels are not only providing information about the company but also
avails different kind of knowledge. In such context, the present research report is being framed
which is emphasizing on strategic analysis of MSNBC. It is the America’s largest broadcasting
organization that facilitates different type of information to the customers about several aspects.
The present research report is focusing on the strategic analysis of MSNBC in which the
marketing strategies of its competitors are mentioned. The company is also provided with some
recommendations for the purpose of building the brand image of the company in different
markets. The company has been trying to expand the business in other countries in which they
are framing different marketing strategies as that will also help in getting greater market share.
Based on such analysis, the report is going to use strategic options for business development.

TABLE OF CONTENTS
INTRODUCTION .......................................................................................................................... 1
COMPANY OVERVIEW ............................................................. Error! Bookmark not defined.
MANDATE..................................................................................................................................... 2
Mission and core purpose ............................................................................................................ 2
Vision and major goals ................................................................................................................ 2
Core values and guiding principles ............................................................................................. 3
Shareholder Analysis.................................................................. Error! Bookmark not defined.
EXTERNAL ANALYSIS ............................................................................................................... 3
Competitive forces ...................................................................................................................... 3
Macro environmental analysis .................................................................................................... 4
INTERNAL ANALYSIS ............................................................... Error! Bookmark not defined.
Strengths and competencies ........................................................................................................ 5
Weaknesses ................................................................................................................................. 6
STRATEGIC OPTIONS ................................................................................................................. 7
Expansion of unit in new markets ............................................................................................... 7
Widening the service line ............................................................................................................ 8
Increasing advertising and promotional activities ...................... Error! Bookmark not defined.
RECOMMENDATIONS AND IMPLEMENTATION ............................................................... 10
REFERENCES ............................................................................................................................. 15

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INTRODUCTION
MSNBC is an American satellite and cable channel that is being owned by the NBC
Universal News Group that provides commentary and news about political events. It is a unit of
NBC Universal Television Group and division of NBC Universal. The company has been
growing as a successful and profitable unit since 1996. The company faces several challenges in
maintaining its position in the industry. This is the core reason that leads the company to
emphasize on competitive strategies over the next decades so that they retain their position in
competitive market. The present research report is being made for the purpose of analyzing the
strategic management of MSNBC unit. The report is also focusing on the internal as well as
external analysis of environment and majorly the impacts of external factors of MSNBC unit.
The report is also followed by some recommendations in which the organization is
recommended to use the strategic options effectively for the purpose of enhancing customer
base. In the present research report, researcher has been using major strategic options for the
purpose of identifying company’s strengths and weaknesses. Various secondary sources have
been used in the report for the purpose of collecting authentic and relevant data.
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The channel is useful majorly for those people who desire to get political information about the
country and also for these who want to involve with political parties. The cable network has
different channels such as CNBC, CNBC World, NBC, The Weather Channel, NBCSN and golf
channel. All the channels provides information in same language that is English and of any
customer want to translate it in other language then the company provides them a digital box that
converts the language.
MANDATE
Mission and core purpose
The main purpose of company is to enhance the customer base by providing range of
other channels to the viewers. Company is planning to provide seasonal news to the customers
along with weather information. They are also planning to establish the business in remaining
countries as that will help the business to extend the corporate image. The mission of the
company is to augment people so review live programmes and services that inform, educate and
entertain.
Vision and major goals
The vision of MSNBC is to be the most creative organization in the world. The unit is
focused towards their values and they believe only in delivering quality and value for money.
The unit also believes in developing creativity in the organization for the purpose of giving their
best. People in BBC emphasize on great things by working together with the organizational
members. The unit aims to emphasize on diversity for the purpose of providing best and valuable
services to the people (MSNBC Chief Defends Anchor Apologies: 'We Took Responsibility',
2014). The company’s vision is to enhance the level of sales, net earnings and cash flows by
building their position as a leader in American market and to expand the unit they introduced
many channels under the major unit.

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Core values and guiding principles
The unit has been following proper code of conduct in which they guides to maintain
integrity, reputation, impartiality and objectivity. The organization adopts the same code of
conduct for each and every department and they highly consider the interest of their stakeholders
(MSNBC Chief Defends Anchor Apologies: 'We Took Responsibility', 2014). All the employees
in MSNBC are directed to follow the general guidelines set by the Board members and they have
to protect the assets of company for the purpose of protecting the interest of stakeholders.
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EXTERNAL ANALYSIS
Competitive forces
In order to identify the external environment of the unit, Porter’s five forces model can be
applied as that will also help in identifying the number of competitors of MSNBC in American
market (Linus, 2001). There are number of other cable channels in American market such as
BBC news channel, The Blaze and WFIO TV.All these channels are also involved in providing
English news and live telecast to the people about different concerts. The degree of competitive
pressure is high as so many existing channels are also there in the market which in turn lowers
down the brand identity of the unit. The customers have low switching cost because of lack of

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product differentiation. Moreover, BBC news channel is also posing great threat to MSNBC
because of their greater market share, extensive resources, effective promotional activities and
developed customer base (Kraft, 2005). All the competitors can highly affect the market position
of MSNBC and thus would possess a negative impact on the financial performance. Hence,
competition is intense and also a major risk factor that MSNBC is facing.
Other risk threatening is the potential for new competitors to enter the American market.
New competitors can come in the market because other countries do not have economic and
regulation barriers thus they can enter in the American market. This could highly affect the
business operations of MSNBC because of low capital investment, easy access to distribution
and low service differences. Similarly the third factor that affects the business functions of
MSNBC and its competitive environment is the threat of substitute cable channels. Although the
company is providing range of channels to the customers but the rivalries have the same
competency; therefore the threat is high in this industry (Kelliher and Henderson, 2006).
Consumers can easily switch over to other brand particularly because of high availability of
substitute goods. The last affecting factor is the high bargaining power of customers as because
of low product and service differentiation, customer can switch over to other brands. In other
words because of having range of cable networks customers have more options to get services.
Macro environmental analysis
Here are some of the key macro factors that also possess threat to the organization. The
economic condition of the company can change as per changes in flow of money in the
economy. MSNBC has been trying to serve low priced services to the viewers but that is also
beyond the control as that could impact the profitability factor of the company. Poor economic
conditions also reduce the economic power of suppliers and investors which in turn reduce the
credit opportunities as well (Ivy, 2008). The economic recession in America reduces the
purchasing power of customers and thus they spend low on these products, whereas some of the
customers switch over to other companies. High unemployment, lack of credit facilities, low
power of purchasing and high interest rates adversely affect companies operations. Fluctuations

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in the currency rates highly affect the profitability factor of company as in that time labor costs
seems to be increased and thus it increases the overall occupancy costs (Hunt and Arnett, 2004).
Other than this, technological factors also affect the operations of MSNBC as a slight change in
technological aspect can impact the functionality of business. Disruptions in information
technology could reduce the efficacy of entire operations of MSNBC because it is not possible
that every individual can cope up with technological advancements. The operations of MSNBC
can get affected by the influence from political parties and legal facets framed by the ruling
bodies.
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Strengths and competencies
It is the largest broadcaster in the world with approx 50,000 staff members all around the
branches. It employs more than 10,000 journalists all over the world and this highly underpins
the operations of the company (Harris, 2000). It is the world’s largest broadcast news
organization which avails news and information to people and it generates television output each
day as well as covers online news. Compared to the competitors, the company has penetrated the
market by providing news about different categories at different places. All the channels in
MSNBC are directly linked with the universal network, thus it facilitates them to communicate

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with each other whenever required. It has been seen in various researches where the brand is
getting high recognition as so many viewers commented on its official website. It is the brand
identity of the unit that allows the divisions to operate business in different counties. As per
earlier reviews, it has been seen that the unit is planning to diversify the business in North part
for the purpose of enhancing the customer base (Gundlach, 2007).
Other strength of the company is that it covers information from any part of the world as
all the employees are available with 24 hour services. The company is also focusing on the needs
and demands of kids and thus they are looking forward to introduce some cartoon channels for
the entertainment of kids. One of the most important things about the unit is that it charges
relatively less prices from the customers by availing their services (Yannopoulos, 2011). The
company is also getting huge recognition from the public and because of public demand the unit
is planning to introduce cartoon channels. The unit continuously is expanding the branches
which in turn help in creating a competitive edge over the competitors. The unit is also focused
towards the needs and demands of its customers and thus helps them to enjoy high customer
loyalty. In order to meet the needs of the customers, the unit is planning to cover other news such
as personal interviews of celebrities and about sports also. The unit renders 24 hour services in
which customer can anytime get news about weather or political conditions (Fulford, 2013).
Some of the customer also says that this is the only channel that provides latest, updated and
relevant information to the customers. The unit also provides update information to the potential
customers with free of cost and they are also allowed to access the company’s sources of
information. People can access their user generated content easily and effectively.
Weaknesses
The company has been suffering from low product differentiation in which they most of
the customers are switching over to other brand also because of high product substitutes.
Because of the ITV, customers are getting attracted towards other channels and they get TV
license. As the company is rendering 24 hour news, although it is beneficial but on the other side
they fill the space with unnecessary news which in turn affects the interest of people and when
they get bored they switch over to other channel such as sky news for the purpose of getting

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constant coverage (Fuchs and Diamantopoulos, 2010). Because of the low budget, company is
unable to broadcast the events and programmes that have well known actors as they demand for
heavy investment. In spite of having key competencies, the company is going through with some
weakness that further reduces the profitability ratio. For instance- currently the company is
suffering from low budget in which they are unable to spend on promotional activities and thus it
affects their financial capacity.
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STRATEGIC OPTIONS
Here is the description of some strategic options that could help the company to capture
more market share which in turn directly helps in marinating the competitive advantage over the
competitors. MSNBC has various options to expand the market share with the help of
substantive growth strategies.
Expansion of unit in new markets
MSNBC has been experiencing intense growth in this broadcasting industry since the
establishment of the channel (Salaimeh, 2008). The company is getting several suggestions from
some viewers in which they demand for their channels in other countries as that will help other
people to access news. Generally, all the retail companies adopt this strategic option for the
purpose of expanding the business line which also helps in enhancing the customer base (French,

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2009). Most of the company implements this strategy when get failed to survive in the existing
market. Same as in the case of MSNBC, they can also expand their business in other markets by
introducing range of new channels in the existing line. Company reviewed in its current status
that it earns up to $500 million in every six months which increases its resource capabilities and
thus they can attain high competitive advantage in the same sector (El-Ansary, 2006). In order to
introduce new channels in the existing line, they need more journalists and editors that can
manage those divisions.
Based on the review data, it has been recorded that 50 million people review the channel
on internet for the purpose of getting political information. In order to satiate all these viewers,
company can plan out to establish the branch in other countries. This strategy is further
supported by changing demographics and economic climates (Rosenbloom and Dimitrova,
2011). By doing so the unit can also attract new customers from word of mouth publicity by the
potential viewers. In order to differentiate the unit from its competitors, MSNBC can provide
news in different languages because there are many competitors that have captured the market
through this strategy as they are delivering multi lingual news. Going through with this strategy
allows the firm to get high profits and recognition from the capital market (Doole and Lowe,
2008). This will also help the unit to generate more opportunities for employment.
Widening the service line
Earlier the company was involved in providing English news but to accomplish the
viewer’s choice, they introduced a set top box which helped them to attain revenue of
$200million (Richard and Colin, 2005). The strategy also gets an opportunity of recognition
from its potential viewers which further give them the opportunity to operate the business in
other countries. In order to expand the business in other countries, MSNBC should have to offer
range of creative channels for the customers. The company might involve some promotional
strategies to persuade range of customers towards their channels by providing authentic and
relevant information. MSNBC can also sell direct services to the customers in which the
customers can contact with the team members when not having proper services (Dekimpe and
Hanssens, 2004). By doing so, company can retain its potential customers and thus it reduces the

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level of switching to other brands. In order to survive in the market, the company can offer the
services at low cost as that will also help them to become the leader in telecast services. This
strategy will also help MSNBC to capture new segment of the market with minimal risks and
capital investment.
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The main intension of doing so is to increase the frequency of viewers for their channel.
These are the most effective tool that could help MSNBC to capture larger market share and to
promote the channels amid customers. This is also a sure way to enhance the customer base.
Although the business has been capturing larger market share without having any specific
marketing strategy, but it is also suggested not to ignore the potential threats from the
competitors who have a strong marketing strategy and whose impact can highly impact the
business operations of MSNBC (Chris Christie Is Going To War With MSNBC, 2013). The
business can also put focus on competitors practices as that will also help in determining their
marketing strategies. It is must for the company to find new and innovative alternatives to
persuade range of customers as well as to retain position in the broadcasting area.

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RECOMMENDATIONS AND IMPLEMENTATION
MSNBC is recommended to expand the business in other countries by advertising the
channels with the existing one as that will help the customers to get knowledge about the newly
established channels. The business is also recommended to introduce sports, cartoon and other
entertaining channels for the purpose of enhancing the competency of the business. The above
mentioned strategy would definitely leverage the profitability ratio of MSNBC and thus can also
promote the brand name. Prior to expanding the business in other regions, it is must for the unit
to recognize its own strengths and competencies as that will help them in fulfilling the needs and
demands of its customers of different regions (Buckley, 2002).
The business is also recommended to change the structure of the organization in which all
should be provided with training sessions for the purpose of meeting customer’s queries. In some
of the departments, the business is advised to remain with centralized structure while in others
they can adopt decentralized structure. The manager should also monitor the performance of all
the journalists in order to provide full telecast to the people. They should facilitate new channels
and variety of channels for the purpose of differentiating the business (Trim, 2004). The business
is also suggested to contact frequently with the customers and viewers as that will help in
determining the effectiveness of services. They need to focus on the quality aspects as proper
controlling should be there on content of the news. The company should have to differentiate the
duties and responsibilities to all the employees so that each and every department can perform
their duties effectively (Brooks and Simkin, 2012).
MSNBC is recommended to allow the managerial level employees to give their advices and
views in company’s corporate decisions as that will also help in comprehending the areas where
attention is required to put. The company is suggested to target new customers and to fulfill their
needs and demands; they must look forward to innovations (Proctor, 2013. The business is also
recommended to monitor the external environment for the purpose of identifying the strategies of

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competitors. They could also get certain benefits by doing so such as accessing the external
market could help in getting local talent pool and thus they can employ the best candidates.
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Also if the company opens new channels in the same unit, it may result in inadvertently
over saturating the market and adversely cannibalization which could affect the sales ratio and
therefore it directly could affect the overall financial performance of the company (Narasimhan,
2005). Aside from these operational, there are other factors that may pose greater threat or
difficulty to MSNBC which in turn could affect the brand image and reputation of the firm. In
spite of being an American news organization, they work in the same manner in which they also
require raw materials, technical equipments and skilled journalists and editors. In order to
manage all these aspects, they must put focus on management level (Badur and et.al., 2011).
They should indulge in other marketing practices in which they can promote the services of the
company by focusing on different promotional techniques.

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APPENDIX A
Porter’s Five Forces Competitive analysis
As mentioned in the previous part that risks and threats are high as having substitute
products. Risk of industry rivalry maid established firms is high because of their brand identity
and competitive products. Customers can easily switch over to other channels which in turn
states that they have range of substitute products. Product complexity is also low and
competitor’s dissatisfaction in market position is high. Other players can also enter in the market
because of product differentiation. The American broadcasting industry has several players in
which some are small and some are medium sized. Capital investments costs are also moderate
and thus new entrants can access the market.
Threat of substitute is high which also results in customer switching. Customers prefer
substitute products. It has been seen in the annual report of MSNBC that in a survey customers
are demanding sports and other channels for daily updates. Earlier the greater market share of
MSNBC was captured by BBC because it provides regular updates about different facets which
were highly liked by the customers and they rated it as the top most channel. Customers can
Bargaining power of customers
Threat of new entrants
Bargaining power of suppliers
Threat of substitute products
Risk of industry rivals

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bargain for these products as the company is focused towards differentiation strategy. The impact
on cost of supplier inputs is high and threats of suppliers entering industry is low and it can be
said as forward integration.
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APPENDIX C
SWOT analysis of MSNBC
STRENGTHS
 The largest broadcaster in the world
 Range of other channels
 Strong network
 Number of viewers
 Diversified business
 Covers information from any part of
the world
 About to include other categories in
channels
 Less subscription charges
 High customer loyalty
WEAKNESSES
 Low product differentiation
 Customer switch over
 Range of competitors
 Less efforts in marketing the products
 Technological constraints
 Ineffective employees
 Low budget
OPPORTUNITIES
 Strong supplier network
 Economic growth in American market
 Technological advancements may
provide growth opportunities
 Compliance with legal rules and
policies can help the company to reduce
the level of potential threats
 Organize global events to further
strengthen brand
THREATS
 Changes in economy may reduce the
market share
 Threats from product substitutes
 Disruptions in technical aspects may
affect the business and its financial
results
 Threat from competitor and domestic
news channels

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REFERENCES
Badur, B. and et.al., 2011. Analyzing the Effectiveness of Marketing Strategies. IBIMA
Publishing. pp.17.
Benson, M. and Barclay, I., 2000. New Product Development: Theory into Practice. Leadership
& Organization Development Journal. 11(6). pp.24 – 30.
Brooks, N. and Simkin, L., 2012. Judging marketing mix effectiveness. Marketing Intelligence &
Planning. 30(5). pp.494 – 514.
Buckley, P., 2002. International Business versus International Marketing. International
Marketing Review. 19(1). pp. 16-20.
Chris Christie Is Going To War With MSNBC. 2013. [Online]. Available through:
<http://www.businessinsider.in/Chris-Christie-Is-Going-To-War-With-
MSNBC/articleshow/29027973.cms />. [Accessed on 20th
January 2014].
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Homburg, C, and et. al., 2009. Implementing the Marketing Concept at the Employee –
Customer Interface: The Role of Customer Need Knowledge. American Marketing
Association. 73(4). pp. 64-81.
Hunt, D. S. and Arnett B. A., 2004. Market Segmentation Strategy, Competitive Advantage, and
Public Policy. Australasian Marketing Journal. 12 (1).

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