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Ownership

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  • 1. Task 1Understand thestructure andownership of themedia sector. P1,M1, D1EXPLAINING THESTRUCTURE ANDOWNERSHIP OF THEMEDIA SECTOR- CLAYTON SKORSKI
  • 2. Is basically where only one company or individual is in control, other thanit being co-owned by companies or the public; more than one owner. Anmassive and main example of this is Apple as they do not collaborate orjoin with other companies about the their product.The main advantages of having a private ownership is that the saidcompany, in this case, Apple get 100% of the profit because they don’thave any contracts with other companies to share the profits.However the main disadvantage of a private company is that if thecompany takes a hit, they will completely take the loss. Because theydon’t have any backing they can not pick themselves up from their lossand could potentially go out of business (it will more than likely will go outof business if it is a small business as it will affect them too much).TYPES OF OWNERSHIP: PRIVATE OWNERSHIP
  • 3. This is where the company or a shared percent of the company is ownedby the government or measured percent of the public. Complete publicownership of a company is called “nationalization”The main advantages of this is that all vital services are provided by thegovernment and you do not need to waste a percentage of the companiesmoney.Disadvantages of this is that the size of the organizations meansinefficient results and a you would lose a percentage of profits totaxpayer.TYPES OF OWNERSHIP: PUBLIC SERVICE
  • 4. The meaning of Multinational is where a enterprise/company ect iscompletely managed from one main country location, but is operating I nseveral different countiesAn example of a Multinational enterprise is Sony, managed in Tokyo, it isstill operating in more or less every country in the world, and is a massiveworldwide name.Some advantages of Multinational are as followed, employment levels willbe increased as it is operating in many counties, and income level of thehost country increases.A prime example of a disadvantage of Multinational is that investments inforeign countries is more profitable, which may mean it will neglect thehome countries industrial and economic development.TYPES OF OWNERSHIP: MULTINATIONAL
  • 5. Independent ownership is basically a company that is owned by aprivately held body. These businesses are functioned in independently.Independent ownership is usually have one sole holder of the company.The business is passed out within the name of the owner.The best advantage of the business is that the owner can shape thebusiness how ever he see’s fit, and has clear ideas, and will not have tocompromise.However, It is hard to get your business known because you do not havethe power of a public or private ownership to advertise your business.TYPES OF OWNERSHIP: INDEPENDENT
  • 6. What Conglomerate means is that a number of different things or partsthat are engaged together to become a whole for the same result, butremain distinct entities.An example of Conglomerate is within Co-oprative Banking, and BritanniaBanking. They have both merged together to form one task, yet theyremain distinct entities.An advantage of this is that it brings in the brains, experience and ideas ofmore than one company, and with ideas of more than one can generatebetter ideas to improve the overall aim.A disadvantage of this is that as it is merged, it may cause problems withthe internal staff as issues may occur, as they are still technicallycompetitors, they may have different ideas on how to run the placeTYPES OF OWNERSHIP: CONGLOMERATE
  • 7. An example of Horizontal Integration is between two or morecompanies/people such as, Simon Cowell, Sony and ITV.How these 3 all integrate horizontally is with them all having one aim, andthey are all needed equally to complete this aim. The example with thesethree is X Factor. Simon has the idea, he needed in on a national TVstation; along comes ITV, and when they program is done, a record labelis needed for the winning artist…Sony. The upside to having it split threeways is that each of them all split the same risk (rather than all beingrisked by one) so if it a “flop” not only one gets effected big time, they canshare it, which will not have as a big of impact. But this also means if it issuccessful, they all share the praise and profit, and not all going to justone.TYPES OF COMPANIES:HORIZONTAL INTEGRATION
  • 8. This is where one single company owns multiple businesses (but all linktogether in some way down the line). An example of this is that a TVcompany, a radio show and a film producer can all use the same productin their business.An advantage is that the understanding and technology can intercept togive the product a improved chance in the market alongside overproducts.A disadvantage is that the financial side will decline due to the changedphases of production. So the business will not thrive as well as othercompanies.TYPES OF COMPANIES:VERTICAL INTEGRATION
  • 9. This is basically when there is are a range of media platforms combinedinto a single piece of technology. The Xbox 360 is a great example of thisis due to it being a gaming console but also has a DVD player and ainternet modem integrated inside of the console, being a lot of things intoone product.A massive advantage of this is that the customer would see more for theirmoney and straightaway want to buy it, rather buying them separately,they can have it all in on device. Also this helps smaller companies selltheir product. If the DVD company were selling really badly they could mixthere product into the Xbox and take a better share of the productbecause more units would be sold.CROSS MEDIA DIVERGENCE
  • 10.  This is basically where the dissimilar segments of business work side by sidetowards the same outcome and goal (target). An example of this is Disney asall their movies, toys and theme parks all work together to make profit to onebig pot. Synergy “means the whole is greater than the sum of its parts”. A main advantage to a synergy is that the profit is large subject on the amountof parts that are in the business. Also that each sector is altered so they aredirecting at a vast audience. Also, what this also means if one sector failsthen they have the money to back it up or cut it off. Similarly, functioning witha synergetic layout is easier than other methods because you have more thanone person running a certain sector so thee pressure is not on one person.SYNERGY
  • 11. If looking at the film industry compare the American and UK industry.Explain what types of companies they are (horizontal or vertical) Explainthe benefits / weaknesses of thisIf looking at the music industry look at companies from the “big three” toan independent as well as subsidiaries.Look at who is involved and how it is structuredThis site might help… http://www.planetoftunes.com/industry/industry_structure.htmAim to do 500 wordsDESCRIBE THE STRUCTURE AND OFOWNERSHIP OF EITHER THE FILM INDUSTRYOR MUSIC INDUSTRY