Organizational Structure of Channel 4 - Essay Example

Channel 4 was founded in November 1982 as a subsidiary of the Independent Broadcasting Authority (IBA). Its main aim was to offer alternatives to British viewers in terms of diversity of programming and high-quality services. However, due to the diversity of the pressures that dog the television industry such as ever increasing demand for high-quality and popular programming, Channel 4 had to develop an effective strategic management plan that would incorporate superior branding, financial, influencing, and leadership skills.

This would lead to the development and establishment of new and lucrative business avenues. One of its moves included the recruitment of a Chief Executive called Andy Duncan, in 2004, a renowned marketing expert who secured the terrestrial rights of the showing of all past and future episodes of the popular show The Simpsons, which was a major blow to the BBC. To date, Channel 4 is increasingly challenged to come up with even more effective decision-making cross-media program strategies directed towards effective branding, cross media development, ongoing operational matters, diversification as well as channel strategy.

However, Channel 4 is favored by a high level of investment in the making-go programs and it is characterized by high diversification levels. British television is characterized by multiple forces, goals, and programming approaches and is keener in absorption rather than redirection as a response to new and ever-increasing market demands (Catterall 15). Channel 4 caters to specialist and minority groups totaling approximately 10% to 20% of British viewers. Stiff competition has been the major factor that has pushed changes in the British television industry since the early 1980s, due to a multi-channeled system.

Competition has had a major impact on the direction of Channel 4 in key performance areas. This includes the increased investment in public service delivery, promotion of authorship and talent, and the provision of contemporary subject matter that is both controversial and challenging to capture a larger audience. Channel 4 has demonstrated an ability to maintain its strategic fit and compete in the television industry in Britain and beyond. It covers its financial requirements through the sale of on-air advertising, merchandising rights, and programmeprogram content and also through programme sponsorship.

It also redirects profits of its subsidiaries to its mainstream program network. Channel 4's strategy of embracing popular albeit minority programming has led to popularity with a cross-section of viewers. This has been an effective profit maximization and cost minimization approach. Despite the heavy skepticism that met its launch, Channel 4 has been termed as creative and innovative in the recent past. For Channel 4 to ensure its survival in the television industry, it must incorporate appropriate methodologies.

The long-term survival plan is in light of the digital switchover. However, Channel 4 is confident in its ability to cover the switchover costs through license fee revenues, hinting at a successful financial system (Catterall 52). The development of innovative and creative strategies is a more stable option for Channel 4 as it has been more positively received by its audience as it involves This included the launch of the FilmFour was a Channel 4 expansion strategy, which had successful productions such as The Crying Game, The Madness of King George and Four Weddings and a Funeral.

It has also taken ever a 50% stake in Emap TV for a whopping 28 million pounds. The success of this option has been marked by increased viewing at all transmission hours, approximately 9.7%. Recently, the communication channels within Channel 4 were put to task when it was clear to millions of viewers that their favorite show, Big Brother, could all be a sham. The Chief Executive, Andy Duncan, who has been immaculate in his expertise in front of cameras in the past, was unable to cover the gaping differences within the organization. This means that the organization has a lot o work on in terms of staff development programs.