Diversified Worldwide Industries Debate - Essay Example

Since Diversified Worldwide Industries (DWI) is an active participant in the communications industry as a provider of products and services which range from telecommunication, internet, audiovisual activities, publishing, and multimedia, it should make a stand in the raging debate in the Federal Communication Commission's (FCC) deregulation of the print media and TV industry. With this new policy, the industry players are allowed to consolidate and merge by up to 45% in a geographic market.

The FCC expects that in so doing, it will boost competition among industry players while lowering the costs of television and cable viewing for customers. However, before taking a stand on this issue, DWI should consider the legal and ethical implications of the change proposed by the FCC. Further consolidation and merger among industry players will mean observance of more policies set by the government concerning duopolies and tripolis which are not currently allowed. DWI will also be faced with the challenge of operating in a less deregulated media industry.

If DWI will merge with other media players, it will also be faced with the burden of delineating the responsibilities and ownership within the newly formed organization. Ethically, DWI should consider all its stakeholders including its customers, employees, competitors, lobbying groups, and other public relations. Since consolidation and merger often mean downsizing, DWI should also be ready to legally give fulfill its liability to its employees. In this issue, the company should thoroughly consider its employees, especially now that they are vocally expressing their opposition to the new policy.

DWI's stand will surely have a huge impact on its image. It should be noted that researchers have exposed that free TV does not suffer from losses because most of these companies are connected or even owners of cable stations. Financial statements of media industry players were also exposed which revealed that almost all media companies are reaping substantial profits. If DWI will support the new policy, it will gain bad publicity for those against the new policy. However, if it chose not to support it, its competitors will battle head-on with it if the deregulation is put in place.

There have also been concerns about the issues of impartiality. Mergers and consolidation will lead to the commercialization of news, higher corporate bias, and a decline in the quality of news coverage. The proposed policy by FCC will give DWI the chance to merge with a stronger player and capture a larger market share. The company will also be able to develop more products and technologies to serve its customers. However, it should be noted that mergers and consolidations don't often bring the expected value added.

DWI will also be faced with more stringent competition with larger companies.