Private, public, multinational, and independent are described as types of media ownership. Private ownership means an individual owns a company alone while public ownership means a company is owned by shareholders and trades stock. Multinational companies operate in multiple countries, and independent businesses are small, privately owned firms. Vertical and horizontal integration are also discussed. Vertical integration controls different parts of the production process while horizontal integration involves the merging of similar companies. Synergy within companies allows different business units to cooperatively increase popularity and profits.
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Ownership
1. Task 1
Understand the
structure and
ownership of the
media sector. P1,
M1, D1
EXPLAINING THE
STRUCTURE AND
OWNERSHIP OF THE
MEDIA SECTOR
2. Define the following and given an example of a company
that does this eg Apple for vertical integration:
(This is part 1 of your “ownership of the media sector”
power point. Add these two power points together then
add it to your blog - after completing this try and add
more of these technical terms and definition to your case
study - this will gain you merits and distinctions)
Also you should realistically be doing a full page of
writing AND DON’T CUT AND PASTE OFF WIKIPEDIA
DELETE THIS BIT WHEN YOUR DONE
3. Private ownership is where someone owns something individually and
nobody else is involved. For example, if you owned a TV channel privately
then you could make all the decisions and everything would have to go
through you however, if the audience of the TV Channel didn’t enjoy the
things you decided you were going to air the channel would fail, this is a
disadvantage.
TYPES OF OWNERSHIP: PRIVATE OWNERSHIP
4. Its owned by share holders and trades on the stock market. If you want you
can buy and sell shares. This should be viable to anyone regardless of their
income.
The BBC is an example of public service. It has a variety of rules and
guidelines in which need to be followed. For example only certain things can
be played at certain times.
Disadvantages of Public Service is that their aim is to maximize their profit
not customer satisfaction. However, a advantage of it is that they allow
competition which can be good for ideas and getting them higher up.
TYPES OF OWNERSHIP: PUBLIC SERVICE
5. They operate in more than one country and is a large company that
operates and produces and sells good in other countries.
For example; Sony is one of the biggest multi national companies in the US.
It focuses on electronics.
Because they are such a big company there is a lot of employment and they
will get bigger overtime. However, there are more multi national companies
which specialize in the same things which gives them competition.
TYPES OF OWNERSHIP: MULTINATIONAL
6. Independent business’ are small. They are usually held by private firms.
They are owned by shares in the stock market.
A good thing about being a independent business owner is that they have
the plus of being able to start on a fresh note and be in charge of the
business and how it’s going to be supervised. They also don’t have to worry
about any legal problems that may have occurred from the previous owner.
TYPES OF OWNERSHIP: INDEPENDENT
7. This is where 2 business join completely.
They usually create internal capital markets if the external one is not fully
developed. This helps when the business is trying to go capital.
TYPES OF OWNERSHIP: CONGLOMERATE
8. This occurs when a firm is being taken over by another. (Merging) An
example could be a car manufacturer merging with another car
manufacturer.
The company that is being merged is the one that will go higher up on the
market and will increase in money.
TYPES OF COMPANIES:
HORIZONTAL INTEGRATION
9. There is a lot of management control and each person in the company has a
certain job to do. The products have to satisfy a common need.
An example of vertical integration was the Carnegie Steel company. The
company controlled not only mills where the steel was made but also the
mines where the iron ore was extracted, the coal mines which supplied the
coal, the ships that transported the iron ore and the railroads that
transported the coal to the factory and etc… The company focused on
heavily developing talent internally from the bottom up, rather than
importing it from other companies. Later on, it was established an institute
of higher learning to teach the steel processes to the next generation.
TYPES OF COMPANIES:
VERTICAL INTEGRATION
10. Synergy is used for companies for co operative interaction between different
things within the same company. For example Disney. Every child that
watches Disney films will most probably want the Disney Channel which
then gets the Disney Channel More viewers and in result of more viewers
they get more money. Followed by the Kids watching the Disney Films and
Chanel they will then want to go to Disney Land and if they go to Disney
Land they will use their shops and buy the Disney Official Merchandise
these 2 things will again make Disney More Popular and Result in them
grossing more money.
SYNERGY