Strategic Human Resources Management - ITV Company Analysis - Case Study Example

Contents

COMPANY STRATEGY3

Business model3

Future projections7

People aims7

Cost leadership8

THE SWOT ANALYSIS8

THE PESTEL MODEL9

Political9

Economic10

Social10

Technological10

Legal11

Environment11

THE PEOPLE STRATEGY12

Reference13

• COMPANY STRATEGY
• Business model

ITV is the owner, producer and the main broadcaster of content which makes it a unique company in the market. The company gets more than 80% of its commercial audience from broadcasting from within the UK which has made the company to have an unrivaled competition over its major competitors in the UK. Since the company has a large market share in the market, it controls most of the broadcasting and the access to quality information through its large financial resource as a company. The major aim of the business is to maximize value of the business a virtue which cannot be achieved by the company if it has not yet grown in the market. This is going to be achieved by the distribution of content throughout the world which makes the company very unique in achieving its major long term objectives in the market. The content which is found in the companymakes the firm very marketable which has enabled the number of sales of the company to shoot high because of the quality content which the firm is offering. The investment in the company is very high which makes the channels subscribed to be quality. On average, the investments of the company have been more than 1 billion euros which has made the company to be a leader in the market of dissemination of quality information.

The company has majorly focused on creating creativity and content of the company which has made it very strong in the market. The company is involved in selling its services all over the world which has helped the company in growth of its sales structure an aspect which is important in the generation of high profits. Across the many media platforms, the company has put a lot of investments on the third party content of a broadcast. The company has an initiative which has helped it build its production of its services and the distribution of quality information in order to reach out the global markets of the communication industry through growth in its endeavors and also acquisition of quality services which the company aims to offer to the general public (ITV, 2015, p. 11). The assets of the company are limited which makes the company to have a lot of shortcomings when it comes to the competition grounds in the market. The larger the value of the assets which are used by a company, the larger the profits. This value underpins the company greatly which makes the company to have less value than the speculated one in the market. Lack of knowledge has ruled over the market an aspect which makes the company to stand tall over its competitors since the market for offering the broadcasting services is locked in terms of the span of information which is covered.

There are various strategies which are used by the company in achieving its desired objectives. The first strategy which is used by the firm is the maximization of audience and also the share of revenue which helps the company to grow further in the market. Through this strategy, the company will use the free to air broadcast which will reach a lot of people which in turn generates a lot of revenue from its media coverage. Also the company has engaged in the VOD business which makes the company generate a lot of revenue from the sale of the services which it offers. This has also helped the company in growth since it has integrated various aspects which generate more sales for the company which has helped the company to grow further. The second strategy which is used by the firm is the growth of the international business content an aspect which has made the firm to grow. Through its desire to offer its services over the world through the free to air initiative, the company also has been hit by various challenges which has made the global outreach likely to fail. However, through its team of experts, the global outreach of the company is achievable because the company has all the specific requirements which can help it to grow further. The company also has some channels which are not free to air which makes the company to generate some income through the sale of its TV programs. The company globally pays and distributes its services which makes the company very efficient in its initiatives which are aimed at making profits for the organization.

Value creation in the firm is subdivided into various sub categories which assist the firm in differentiating the services which it offers to the general public. The creation of value in the company is generally subdivided into sub categories like the creation of value for advertisers, for the purpose of the audience, for the broadcasters and the value owners in the company, for the shareholders in the company, and also for the other people in the company. All these assist in establishing a proper chain of information which is necessary for the growth of the company. To the advertisers, the creation of wealth is achieved through deliverance of unique services which surpass all the demographic divisions in the economy. The company also assists a lot in the creation of innovative ways which are used by the company to engage itself with the consumers in order to provide a quality brand of the product. The second part of creation of value of the firm deals with audience whereby the firm is given the initiative to offer a lot of programs which are of high quality (ITV, 2015, p. 11). The programs are scheduled in such a way which makes the company to be very unique in its approach. Creation of value to the broadcaster and the platform owners is made effective through delivering programs which are quality. The quality programs which are delivered by the company, assists the firm in the monetization of their own business model which assists the firm in growth. To the shareholders, the creation of value of the firm is made effective through the creation of value of the shareholders and also assisting in the deliverance of returns of the shareholders. The firm has made significant improvements in the market an aspect which has made the achievement of the firm to be very high

Through various revenue streams which are used by the company, the firm maximizes the value which is created for its programs. The various streams of revenue which are used by the company make the company to have a balanced business in offering its services. A lot of revenue is generated from the various advertisements which are made by the company. A lot of the revenue which is generated from the mass audience assists the firm in investment in the TV programs which are offered by the company.

A commercial partnership is another revenue stream which is used by the company in developing itself. The company is able to work with a lot of advertisers and also different advertisement agencies which provide unique commercial services and partnership with the firm. Also the firm provides sponsorship opportunities to its programs which make them to be quality and extent beyond the pure spot advertisement of the company. Through the pay and interact initiative which is provided by the firm, the company is able to earn revenue through licensing most of its HD channels (ITV, 2015, p. 11). The revenue is also earned through the payment of the channels and the video on demand services which are offered by the company. Through these initiatives, the company is able to make a lot of profits. The interaction of the consumers in this company is also monetized with reference to the biggest shows through a thorough process which involves voting and also creation of competition. The production in the company is deemed original an aspect which makes the company services to be quality. There are commissions which are earned from viewing the contents from the various bases of production. The company sells catalogues of programs to the various broadcasters in the world which help the company in developing internationally. The global demand of content provides a very good opportunity for the company which assists in growth.

• Future projections

The company is aimed at promoting talents in the economy an aspect which makes the company to be very unique (ITV, 2015, p. 40). Through this most of its programs are going to be watched by majority of the audience. This will make the company stand a chance in the market. The company also aims at the expansion of the distribution rights of the company which makes its growth noticeable. Through this the company will grow in sales and also the revenues of the firm will increase. The company also aims at achieving success in its future leaders programs.

• People aims

Creation of value of the firm deals with the aim of the company to the people in general. The listeners are the main targets of all the broadcasts and their importance in the society develops a good model of development. The people are satisfied with the services which are offered by the firm through creation of large investments on creativity of the firm which makes the commercials and operations of the business to be very effective. The people who are used in making the broadcast should be very talented which helps the firms in building its revenue base depending on the most watched programs.

• Cost leadership

One of the major aims of the company is to control the cost which is incurred in doing all its activities. The regulation of this cost on this company makes it to be a cost leader. As a result of this, the company has reduced the cost of the company by 90% over its operations (ITV, 2015, p. 49). The various investments which are made by the company put into consideration the various costs which are incurred. Through the various advertisements made by the company, the company has been able to generate more profits with few costs. The minimization of costs which are incurred in this company has made the company become a market leader in providing the broadcasting services which has made the company undisputed in the market.

• THE SWOT ANALYSIS

The analysis of the business is very important since it assists in the growth of the company as a whole. The SWOT analysis is described using a table which shows the various strengths, weaknesses, opportunities and the threats which face this company.

Strengths

• The business has many partners.
• High revenue base
• Global distribution of its network
• Use of the online video on demand initiative
• Strong market positioning of the firm
• High levels of investment in the company
• High returns of the company to its shareholders

Weakness

• Weakness in the monitoring of internal processes of the firm

Opportunity

• Use pay services and other payments of the firm
• Presence of Investment on the creative activities which help in growth
• Presence of diversified services

Threats

• Many competitors in the market
• Cyber threats
• Risk in the business model development

• THE PESTEL MODEL

The business environment which is presented in this firm makes the firm stand a chance in competition in the market. A harsh business environment makes the organization very weak when it comes to achieving its desired objectives. A favorable business environment makes the business to triumph by edging past its competitors through offering quality services.

• Political

The political environment of this company is favorable which makes the firm stand global outlook to be successful. It does not relate to any political organization in any of the countries which it is situated which makes it safe (ITV, 2015, p. 89). Since the company makes news from the various parts of the world, it has a political expenditure provision in its company act which helps to make this environment helpful to the company.

• Economic

The company operates to make sure that it grows in the market and also improve the benefits which are related to the economy. The engagement of the company has been enforced through various strategies which helps in understanding the financial and the economic factors which affect the performance of the company. The various enforcements made to engage the company include the use of intranet, use of newsletters and also various briefings which are made to create a connection between the teams in the firm and also the top management. The economic environment of this firm is appropriate which has helped the firm to develop to gain a competitive advantage over its competitors.

• Social

Creation of an appropriate social environment is important since it helps the firm to establish its relationships with its customers. The company has a social purpose of using the most watched programs on TV for the social good of the public. Through engagement with various social environments, the company has been able to provide ethical services to its clients which makes it one of the most respected companies in the entertainment industry. Provision of free to air services has also strengthened the social environment of the company. A good social environment is good for the business since it helps the company in creating a relationship with its viewers.

• Technological

Technological advancement has helped the company to remain competitive. The online video on demand which is provided by the company is a major push of the company since it has been able to broadcast most of its programs through the internet. The growth of technology generally in the telecommunication industry has brought new challenges in the market which makes the competitive firms only to survive. ITV has invested a lot in technology which has made it have an IT hub which helps in the dissemination of information concerning the company. This is available on 27 platforms which has made the access of information easy (ITV, 2015, p. 8).

• Legal

The licensing of the activities of the company is very important. All the services which are offered by the company must be at par with the legal environment since broadcasting restricted information can lead to huge fines in the company. The company is usually up to date on the legal obligations and fees which affect its operations and maintaining legality has helped it to grow in the competitive field of broadcasting.

• Environment

The internal environment and the external environment have affected the operation of the company in general. Since it has a solid management which is based on trustworthiness, this has helped the internal environment suitable for carrying out business activities. The external environments of the business are good since the company listens to what the public has to say and makes necessary adjustments in order to maintain a good relationship with the society. Despite the competitive environment is harsh, the company has integrated well in the competitive environment which has made it strong over the years.

• THE PEOPLE STRATEGY

The company has been able to relate well with its employees because of the fair treatment it offers to the employees. Through the various managers in various departments of this firm, the management of the employees has been made easier through the provision of training to the employees which helps in the development of the carrier paths. The broadcasters are swift since they can be moved from one department to the next which makes the provision of quality broadcast possible. The engagement of the employees has been made successful through building up of talents. This has been one of the major investments of the company which has seen the workforce of the employees improve to support the activities of the company. Motivation of the employees is done through payment on time, which has assisted the firm to improve the employee engagement to 89% (ITV, 2015, p. 33). The line managers carry out the performance appraisal activities which help the firm in gauging the performance of the workers and rewarding them accordingly. Training the employees has been made mandatory especially on the online activities. This has made most of the employees aware about the various developments in technology an aspect which has made the firm to stay more competitive. Due to a good relationship between the employers and the employees, the employees are free to raise up issues with confidence which helps in the development of the company. The employees are also organized into unions, which assists in voicing out issues which are not followed or in cases whereby they feel oppressed. However, this does not happen often since the company has established a very good relationship with its employees.

• Reference

ITV, 2015. Delivering strong growth and building scale. ITV plc Annual Report and Accounts for the year ended 31 December 2015, pp. 1-176.