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Ownership

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Ownership

  1. 1. Task 1Understand thestructure andownership of themedia sector. P1,M1, D1EXPLAINING THESTRUCTURE ANDOWNERSHIP OF THEMEDIA SECTOR
  2. 2. The company Apple is a great example for verticalintegration. What apple do is they make and selleverything themselves so they get maximum profit, theydon’t reply on anyone else to help them with thereproducts. For example they sell all there hardware likethe macs, or MacBooks and all of the programs used tobuy stuff on are made by Apple e.g. ITunes. Theadvantages of this is that they will get a lot more profitthen over companies like Microsoft, as they sell therehardware and software separately. But the disadvantageis that if one thing fails then all of it will and the companywill suffer a huge loss.EXAMPLE OF VERTICAL INTERGRATION
  3. 3. Private ownership is when you own property or something andthe government has nothing to do with it so they don’t haveany say on what you do with it. The advantages of this is youwont feel pressured into doing anything and you can go atyour own pace. Also you wont have to sign any document thatthe government have given you, another advantage is that ifyou own a business and the government aren’t involved youget more of the profit. The disadvantages though are that ifyou get into any managing problems or financial problemsyou will be the one who suffers in financial losses.TYPES OF OWNERSHIP: PRIVATE OWNERSHIP
  4. 4. Public service broadcasting refers to TV programmes that are broadcastfor the public benefit rather than for purely commercial purposes. Theseprogrammes include local news coverage, arts programmes and religiousbroadcasts. Ofcom’s regulations mean that certain TV and radiobroadcasters are obliged to include a specific amount of public servicebroadcasts as part of their licence to broadcast.The UK has 5 public service television broadcasters. These broadcastersreceive benefits like the licence fee (in the case of the BBC), guaranteedaccess to the spectrum (or section of the airwaves) they need forbroadcasting, and prominence on TV electronic programme guides. Inreturn they commit to providing services that give a benefit to the public,like news, local programming or cultural content.TYPES OF OWNERSHIP: PUBLIC SERVICE
  5. 5.  A multinational corporation (MNC) or multinational enterprise (MNE)is a corporationthat is registered in more than one country or that has operations in more than onecountry. It is a large corporation which both produces and sells goods or services invarious countries.It can also be referred to as an international corporation. They play an important role in globalization. Arguably, the first multinational businessorganization is conjectured to be the Knights Templar, founded in 1120 Although many large companies prefer becoming a multinational company for manyreasons, one of the biggest reasons so the price of labour, and raw material availablein other countries. It benefits a large company to exist multi nationally, howevermaking the move to do so needs to be a carefully planned decision. There are quite afew disadvantages of multinational company, and these factors need to be weighedagainst any potential benefits. Some notable disadvantages are; limited imports, taxedimports, and trade restrictions. These are disadvantages on a governmental level, andthe additional disadvantages of impact on the local are should also be taken inconsideration.TYPES OF OWNERSHIP: MULTINATIONAL
  6. 6. Independent business’ are small. They are usually held by the privatefirms. They are owned by the shares in the stock market.A good thing about being a independent business owner is that they havethe of being able to start a fresh note and be in charge of the businessand how its going to be supervised. They also don’t have to worry aboutany legal problems that may have occurred from the previous owner.TYPES OF OWNERSHIP: INDEPENDENT
  7. 7. A conglomerate is a combination of two or more corporations engaged inentirely different businesses that fall under one corporate group, usuallyinvolving a parent company and many subsidiaries. Often, a conglomerateis a multi-industry company. Conglomerates are often large andmultinational.Conglomerates were popular in the 1960s due to a combination of lowinterest rates and a repeating bear/bull market, which allowed theconglomerates to buy companies in leveraged buyouts, sometimes attemporarily deflated values. Famous examples from the 1960s includeLing-Temco-Vought, ITT Corporation and TransamericaTYPES OF OWNERSHIP: CONGLOMERATE
  8. 8.  Horizontal Integration is where more than one company is involved in themaking process. An example of horizontal integration is Xfactor. Xfactor isowned by Simon Cowell who owns his own record label called sycowhichgroups are signed to if they win the Xfactor. Sysco is a subsidiary of Sonywhich is major company. Simon Cowell also makes Sony record artist whohave already been signed to the record label come and preform on theXfactor. This gains more money for Sony and Simon Cowell. An advantage ofhorizontal integration is that if something goes wrong then more and onecompany faces the consequences. Another advantage is that it makes theproduct or company more diverse because more people are involved. Adisadvantage is that you may not trust part of the company and therefore youmay not have good communication skills. Another disadvantage is that if onepart of the company falls then ever other part of production has to stop andwait for that part of the company to get its self back on track.TYPES OF COMPANIES:HORIZONTAL INTEGRATION
  9. 9.  Vertical integration is where everything is done under one roof, where every aspect ofthe company is done under one roof. An example of this is Apple who build all theirown stuff from the hardware to the iPhone, iMac, iPod, iPad. They also own all theprogrammes which you find on these items such as iTunes. iTunes allows you to buyand download music you wish to listen to this once again gains Apple more money dueto the fact they don’t need to pay any other software designer any money because itwas all done by Apple. Apple also have an app store where you can purchase gameswhich you can pay for or get for free.-An advantage with Apple is that they gain all theprofit due to the fact they don’t need to pay any other company.-Another advantage isthat they also have more control over everything that’s being done with nocommunication lost.-A disadvantage of vertical integration is that if something goeswrong within Apple with part of there software then that’s Apples fault and they have topay out due to the fact there the only company involved.-Another disadvantage withvertical integrations is that if you’re a small company they you need someone to fundyou due to the fact youll need a warehouse to get started. You will also loose skillbecause you need people who specialise in a certain area.TYPES OF COMPANIES:VERTICAL INTEGRATION
  10. 10.  Vertical integration is where everything is done under one roof, where every aspect ofthe company is done under one roof. An example of this is Apple who build all theirown stuff from the hardware to the iPhone, iMac, iPod, iPad. They also own all theprogrammes which you find on these items such as iTunes. iTunes allows you to buyand download music you wish to listen to this once again gains Apple more money dueto the fact they don’t need to pay any other software designer any money because itwas all done by Apple. Apple also have an app store where you can purchase gameswhich you can pay for or get for free.-An advantage with Apple is that they gain all theprofit due to the fact they don’t need to pay any other company.-Another advantage isthat they also have more control over everything that’s being done with nocommunication lost.-A disadvantage of vertical integration is that if something goeswrong within Apple with part of there software then that’s Apples fault and they have topay out due to the fact there the only company involved.-Another disadvantage withvertical integrations is that if you’re a small company they you need someone to fundyou due to the fact youll need a warehouse to get started. You will also loose skillbecause you need people who specialise in a certain area.TYPES OF COMPANIES:VERTICAL INTEGRATION

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