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about this Case Study
Read the following case and answer the questions given at the end.
Television (TV)
Country’s TV is the Country’s premier public service broadcaster with more than 10 transmitters
covering 90% of the country's population across an estimated 3 million homes. It has more than
200 employees managing its metro and regional channels.
Recent years have seen growing competition from many private channels numbering more and
the cable and satellite operators (C and S). As a result the TV's projected growth of revenue is
only 6-10% as against 50-60% for the private sector channels.
TV has three options before it.
1. First, it should privatize,
2. Second, it should remain purely public service broadcaster and
3. Third, a middle path.
The challenge seems to be to exploit TV's immense potential and emerge as a formidable player in the mass media.
(a) Perform a SWOT analysis for TV.
(b) Discuss the competitive situation TV is facing. What is the best strategic option, in your
view and why?
Answers
The external environment includes both political/legal and economic factors. As part of the environment, both of these factors influence organizational performance. For global organizations, these factors become more important and complex because organizations now have to dealwith the political and economic environments of the countries in which they operate. For example, now managers not only have to know what is legal (or illegal) in their home country but also the countries in which they sell or manufacture their products or services.7. Can the GLOBE framework presented in this chapter be used to guide managers in a Thai hospital or a government agency in Venezuela? Explain.Yes, the GLOBE framework discussed in Chapter 3 is applicable to both situations. Managers must first understand the unique cultural characteristics of each country in order to modify management decisions and practices.8. What challenges might confront a Mexican manager transferred to the United States to manage a manufacturing plant in Tucson, Arizona? Will these issues be the same for a U.S. manager transferred to Guadalajara? Explain.The Mexican manager would have to become familiar with the legal-political, economic, and cultural environments of the United States. The cultural environment would be particularly challenging, since the national culture of Mexico varies greatly from the national culture of the UnitedStates in three out of five of Hofstadter’s dimensions. On the individualism-collectivism dimension, Mexico is a more collective society, whereas the United States is more individualistic. In the power distance dimension, Mexico rates high, while the United States rates low. In the uncertaintyavoidance dimension, Mexico again rates high, while the United States rates low.