Visions, Missions and Values Unit 8 – Creative Media Industry AwarenessAims1. To understand the Visions, Missions and Values of specific companies and why they exist.2. To understand how a creative media company is funded governed and regulated.Objectives1. Produce a ‘New Entry Booklet’ for a fabricated creative media company.
Visions, Missions and Values• What are visions, missions and values?• What might you find in them?Visions• Describe the long term ambition of a company (5-10 years)• Expansion• Target turnover figures• National and international markets• Vision is about what a company intends to be
Visions, Missions and ValuesMissions• Mission statements describe the organisation’s current purpose, products, core values and aimsValues• Core values of an organisation relate to its business ethics, conduct and philosophies• Why are visions, missions and values important to a company?
TASKS1. Read through the visions, missions and values supplied and pair them with a creative media company2. Read through the remits statements and pair them with the corresponding BBC channels3. Write the visions, missions and values for a media company of your choice – you don’t have to like them…
Funding, Governance and RegulationPrivate Ownership / Funding• Owned by an individual, a small group of people or stakeholders• Main purpose is to survive and be profitable in a marketplace• Single Enterprise – usually small scale, one owner, limited to one business• Chain Ownership (horizontal integration) – numerous companies in the same business occupy different media market places (newspapers, radio, TV)• Conglomerate Ownership – HUGE companies with many smaller subsidiary firms• Only need one stakeholder to create a Private Limited Company
Examples of UK Private Media Companies• Guardian Media Group (GMG) – Manchester Evening News, Smooth FM, Century FM• Profit £305m (sale of 49% stake in Trader Media Group)• Founded in 1821 with the birth of The Manchester Guardian, founded by John Edward Taylor• Recently seen operating losses in print and radio
Examples of UK Private Media Companies • Northern & Shell (Richard Desmond) – The Daily and Sunday Express, Channel 5, Television X • Founded in 1974 when Desmond created International Musician and Recording World • Desmond is reportedly worth around £1bn
Examples of UK Private Media Companies• The Economist Group – The Economist, Intelligent Life• Owned by Pearson PLC (through the Financial Times)• Made nearly £68m in 2012• On of the UK’s most profitable publications
Private Media CompaniesPros Cons• Not accountable to • More difficult to find shareholders therefore capital have more freedom • Less input from others• Not under as much may be counter scrutiny productive• You can own property in • Smaller company so the name of the company ceiling is a lower for employees• Smaller amount of employees so better • May not provide a relationship with director balanced range of products
Public Limited Companies• Public company whose shares are sold free on the stock exchange• Can only loose to amount of shares that you put in• A company needs two directors in order to become a PLC• Costs a lot to float a company on the stock exchange• Usually BIG companies• Need two stakeholders to create a PLC• Company directors accountable to stakeholders
Examples of PLCs• Virgin Media Inc.• Total assets = £8b• Formed as a merger between NTL, Telewest and Virgin Mobile• Employs 15,000• Bought by Liberty Global for £19b• Subsidiary of Richard Banson’s Virgin Group Ltd
Pros and Cons of PLCsPros Cons• Limited Liability for • More difficult to set up stakeholders than a private company• Opportunity to raise capital by issuing shares • Would have to share profits with• Easier to sell than a sole shareholders trader • Less say –• May appear more professional shareholders have an and credible input • Taxed heavily
Publically Funded, State Owned • Funded by the public through either a tax or a fee • Not a ‘competitive’ business • Aims to serve the nations interests • Good example is the BBC, paid for by the licence fee.www.bbc.co.uk/historyofthebbc/wherenext • Employs over 23,000 people • Revenues of £5b
Charities / Non-profit Organisations • Run often by volunteers • Student companies • Community radio stations • May be used to promote a charity or charities • Still regulated by relevant bodies • Sometimes operate illegally (pirate radio stations)
GovernanceBoard of Directors• Often chosen by the shareholders• Direct company business• Made up or executive (those paid to direct the company) and non- executive directors (those not paid but offer advice)• Usually a top-down approach (CEO – President – Directors – Chairman…)Committee• Play an advisory role in terms of finance, legality etc• Can be paid or un-paidBBC Trust• Governs the BBC on behalf of the public• Makes sure the BBC sticks to its visions, missions and values• Work independently from the Executive Board, which is headed by the Director General
Regulation• Ofcom (Office of Communications): Regulate the TV and radio sectors, fixed line telecoms, mobiles, postal services, plus the airwaves over which wireless devices operate• Operates under the Communications Act of 2003• Ensure the UK has a wide range of communication services• Protect people from harmful of offensive material• Protect people on television from being unfairly treated and having their privacy invaded• Make sure television and radio are provided by a number of organisations
Regulation • BBFC (British Board of Film Classification: Age ratings body for film, video games, theatre, DVD and video • Protect the public, and especially children, from content which might raise harm risks • Respond to and reflect changing social attitudes towards media content through proactive public consultation and research • Provide an effective service to enforcement agencies • Work also as an educational body • Accountable to Parliament • Part-funded by industry, part-funded by the Government
Regulation• PPC (Press Complaints Commission): A regulatory body that oversees the publishing industry• Deals with complaints, framed within the terms of the Editors Code of Practice, about the editorial content of newspapers and magazines (and their websites, including editorial audio-visual material) and the conduct of journalists.• The purpose of the PCC is to serve the public by holding editors to account.• They strive to protect the rights of individuals, while at the same time preserving appropriate freedom of expression for the press.• Being overhauled on the back of the Leverson Report.
Regulation• BSC (Broadcasting Standards Commission): Works under the Broadcast Act of 1996• Statutory body for both standards and fairness in broadcasting• The only organisation within the regulatory framework of UK broadcasting to cover all television and radio, both terrestrial and satellite• 1. to produce codes of conduct relating to standards and fairness; 2. to consider and adjudicate on complaints; 3. to monitor, research and report on standards and fairness in broadcasting• Now part of Ofcom
Regulation• ASA (Advertising Standards Authority): Regulates advertising across all media• Independent regulatory body who work under the Advertising Codes• Being an effective part of the response to societal issues shown to be affected by advertising• Place more emphasis on prevention rather than cure• Investigate and adjudicate on potential breaches of the Advertising Codes• Monitor compliance with the rules of the Advertising Codes