Discuss about the Management and Organisations.
This present report would discuss the external environment of the Otago Daily Times in order to identify the possible threats and opportunities from it. In this report, each factor of the external environment such as the impact of customers, suppliers, competitor companies and labour market would be explained in a brief manner for providing a view about their importance to decide the ultimate success of an organisation. At the end of this present report, there would be striking findings upon which an adequate recommendation and implementation plan would be made for better future of Otago Daily Newspaper.
Otago Daily Newspaper (ODT) is published in New Zealand by a renowned press named Allied Press Ltd. The editor of this newspaper is Barry Stewart and headquarter of this newspaper is situated in Dunedin of New Zealand. Otago Daily Newspaper has become so much popular in various regions of New Zealand that the circulation has reached to more than 43,000 ("The Otago Daily Times | ALLIED PRESS LIMITED", 2016). Otago Daily Newspaper was very much active during the formative years. Otago Daily Newspaper appears with tabloid supplement in regular basis. Such inserted supplements are Sport and U-Bet, World Focus and Queenstown Times. This newspaper is operative on online website as well in order to prov9de a broad scope to the viewers and audience from throughout the world.
External environment of a company helps understand in critical manner the ultimate ability of an organisation to function (Hitt, Ireland & Hoskisson, 2012). However, the external environments can be manipulated with the procedure of the marketing by an organisation and with the requirement to make adjustments. The importance of the effective external environment of Otago Daily Times would be discussed in following. Every factor would be justified in separated manner in order to provide a clear and vivid description. After analysing the external environment of Otago Daily Times, it would be possible to suggest possible recommendation and implementing plan for future success of this newspaper agency (Yoon, 2013).
Analysis of the External Environment of the Otago Daily Times
System theory is appropriate to analyse the external environment of the Otago Daily Times, as the approach of this theory is an interdependent one. According to Hacklin & Wallnöfer (2012) System theory clearly determines the fact that an organisation interacts with external environment being an open system and is constant to improve and adapt fundamental functions for providing perfect services to the customers. System theory is relevant for the case of Otago Daily Times as it concentrates on the relationship and arrangements in between various parts that are capable enough to connect every factor of external environment.
System theory also influences the external environment in order to continue the active and operative state. The above diagram also reveals that external environment can affect the operation of an organisation, as every element of external environment is interdependent, interlinked and closely associated with the other. Hanim Mohamad Zailani et al. (2012) have mentioned that System theory is potential enough to generate a holistic view of the secure policies of an organisation. This theory would help Otago Daily Times to diagnose the significant events in order to increase the basic understanding of individuals, who are interconnected with the company.
The definition of customers suggests that an individual, who buys products or perceive services provided by an organisation. Customers are the heart and key factor of any kind of business.
Therefore, the basic goal of every company is to attract the customers with providing best and standard quality product or services for retaining their trust. Holm, Günzel & Ulhøi (2013) have suggested that customers are significant and essential element, which can influence the entire process of business of an organisation. Otago Daily Times, being a newspaper organisation, solely concentrates on attracting its customers with proper and relevant news of New Zealand and throughout the world as it helps to retain customers. Otago Daily Times provide national, local and internal news in the newspaper in order to educate the customers and keep them up-to-date. Otago Daily Times perform the true role and responsibility of news agencies to cater the new edge customers following contemporary trend (Williams, 2013). The higher management of Otago Daily Times operates in small group to identify the problems faced by customers and provide solutions to it accordingly.
The strength includes the current market research of the concerned company, which reveals the fact that the customers prefer to buy Otago Daily Times only because of its easy subscription process ("The Otago Daily Times | ALLIED PRESS LIMITED", 2016). Another strength of this company is that the price of the newspaper is less high considered to the other available publications in the market of New Zealand.
The definition of competitors includes an entity or an individual that play the role of rival against each other. Bharadwaj et al. (2013) have determined that an organisation encounters with the level of competition from a company, which shares a similar industry of a region or in a global manner.
The primary competition Otago Daily Times faces in recent time is from Baby Times, New Zealand News, Times, Gulf News and Queenstown Times in New Zealand. All these newspapers are potential enough to cover the regional news of New Zealand and international news in an adequate manner. The level of competition provides an essential effect on the business procedures of Otago Daily Times, as all of these above- mentioned newspaper agencies are operative in the same industry. The constant failure and success of these competitors are competent enough to determine the next market planning and targeting customers (Wikström & Ellonen, 2012). New Zealand News has encountered a severe financial loss in last year, which helps Otago Daily Times to incorporate appropriate strategies accordingly in order to capture the market position of New Zealand News.
The threats of Otago Daily Times suggest that if the management of this company would not be severe enough to deal with the upcoming and recent completion from Baby Times, then it would capture the targeted market of Otago Daily Times. Another potential threat of Otago Daily Times is it is failing to create attractive and innovative advertisements in order to attract the customers (Chyi & Lee, 2013).
Suppliers are those entities or individuals, which are responsible for supplying the source or raw materials of producing some products or services. In the opinion of Toledo-López et al. (2012), suppliers are considered as sub constructor or constructors, who are responsible for adding proper input to the deliverables.
Otago Daily Times enjoys a large number of suppliers that help the organisation to perform the proper role and responsibility of the society. However, with times, the outcome of the active suppliers becoming small only because of the availability of other competitor companies in the newspaper industry of New Zealand. Some instability and corruption of the government of New Zealand are the primary reason for sure loss of suppliers (Carroll & Buchholtz, 2014). The business of Otago Daily Times sometimes is neglected only because of poor supplier management. This particular newspaper agency solely focuses on to retain the customers and fails to understand the importance of suppliers for more success of the organisation.
The threat of Otago Daily Times regarding its suppliers is the reduction of the price of the newspaper, which is not at all suitable for gathering apt sales revenue after annual year. Another threat of this press organisation is to lose the demand of the newspaper from the customers. These mentioned threats are capable enough to make a drastic shift in the market equilibrium that leads towards the ultimate lower price points (Casero-Ripollés & Izquierdo-Castillo, 2013).
Labour market defines a place that allows both the employees and suppliers to interact with each other. Goyanes & Sylvie (2014) have referred that labour market suggests an apt economic activities with proper and adequate supply and demand of labours.
The labour market in New Zealand is so much constant and is potential to send the positive signals in gradual manner. Labour market determines the success of Otago Daily Times with proper maintenance of opinion about international laws and authoritative insights and visions. Printing and publishing costs are also increasing in gradual manner in today’s competitive business world. Therefore, it is next to impossible for the management of Otago Daily Times to retain its labour market constant with compromising the publishing and printing costs (Schmidt, Ivanova & Schäfer, 2013). The success of this concerned newspaper not solely depended on the longevity of labour market of New Zealand. However, labour market is potential enough to provide a graphical breakdown to the newspaper agencies of New Zealand.
The strength of the labour market of Otago Daily Times includes its positive statistics about the unemployment and employment count in various cities of New Zealand. Another essential strength of the labour market of this newspaper house is its nature of flexibility ("Otago Daily Times Online News", 2016).
From this above-discussed external environment of Otago Daily Times, it is an apparent fact that the organisation has failed to understand the impact of the competitors and suppliers for the future success of the company. The major threats that Otago Daily Times encountered is from its growing competitor companies in the newspaper industry of New Zealand. If the higher management of this company cannot focus to the strategies for solving the threats, then it can affect the entire brand image, market shares in the industry and sales revenue of the company in massivege manner. Even because of the shortage of suppliers, Otago Daily Times cannot reach to its targeted customers, which will be counted as a potential drawback of this company in order to achieve the desired goal.
Recommendation and Implementation Plan
Otago Daily Times should make its position stronger than its previous times in order to prevent recent competition.
Otago Daily Times should target a large number of clients, as they are potential enough to increase sales revenue.
This company should involve more marketing managers to deal with the suppliers in a proper manner.
Otago Daily Times should target entirely new market in order to prevent the competition from available newspaper organisation in New Zealand.
The provided recommendations are time consuming; therefore, Otago Daily Times should make strategies accordingly the implementation plan of these recommendations. In order to meet the first two recommendations, the management of this newspaper organisation should involve at least a group of member that can make effective strategies to make a strong position in the industry and target desired customers. This process can take minimum three weeks. However, while involving marketing managers for dealing with the suppliers, the higher management requires a week to decide the active managers of the organisation. The last recommendation can take four to six months, as it is not an easy task to determine and target an entirely new market for business expansion.
This report is successful to as it clearly discussed the impact of various external environments of Otago Daily Times (ODT). Even in this report, the threat and strength of these external environments such as customers, suppliers, competitors and labour market are elaborated in detailed manner. After analysing these above-mentioned external environments, the potential threats have been found upon which both the recommendations and implementation plan have been provided.
The recommendations are effective and suitable enough for Otago Daily Times for preventing the encountered competition in the newspaper industry of New Zealand. These recommendations are relevant and effective to mitigate the present challenges faced by Otago Daily Times. Although some of the recommendations are little time consuming, still, the management can adjust with the adequate employees and managers of the organisation to follow the recommendations for achieving the desired target in future. Otago Daily Times enjoy its present position in the industry, as it is one of the most leading newspaper sells in the market of New Zealand. However, with the provided recommendations, this organisation can achieve better place in the industry.
Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., & Venkatraman, N. V. (2013). Digital business strategy: toward a next generation of insights. Mis Quarterly, 37(2), 471-482.
Carroll, A. B., & Buchholtz, A. K. (2014). Business and society: Ethics, sustainability, and stakeholder management. Nelson Education.
Casero-Ripollés, A., & Izquierdo-Castillo, J. (2013). Between decline and a new online business model: The case of the Spanish newspaper industry.Journal of Media Business Studies, 10(1), 63-78.
Chyi, H. I., & Lee, A. M. (2013). Online news consumption: A structural model linking preference, use, and paying intent. Digital Journalism, 1(2), 194-211.
Goyanes, M., & Sylvie, G. (2014). Customer orientation on online newspaper business models with paid content strategies: An empirical study. First Monday, 19(4).
Hacklin, F., & Wallnöfer, M. (2012). The business model in the practice of strategic decision making: insights from a case study. Management Decision, 50(2), 166-188.
Hanim Mohamad Zailani, S., Eltayeb, T. K., Hsu, C. C., & Choon Tan, K. (2012). The impact of external institutional drivers and internal strategy on environmental performance. International Journal of Operations & Production Management, 32(6), 721-745.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2012). Strategic management cases: competitiveness and globalization. Cengage Learning.
Holm, A. B., Günzel, F., & Ulhøi, J. P. (2013). Openness in innovation and business models: lessons from the newspaper industry. International Journal of Technology Management, 61(3/4), 324-348.
Otago Daily Times Online News. (2016). Otago Daily Times Online News. Retrieved 13 August 2016, from https://www.odt.co.nz/
Schmidt, A., Ivanova, A., & Schäfer, M. S. (2013). Media attention for climate change around the world: A comparative analysis of newspaper coverage in 27 countries. Global Environmental Change, 23(5), 1233-1248.
The Otago Daily Times | ALLIED PRESS LIMITED. (2016).Alliedpress.co.nz. Retrieved 13 August 2016, from https://www.alliedpress.co.nz/publications/otago-daily-times
Toledo-López, A., Díaz-Pichardo, R., Jiménez-Castañeda, J. C., & Sánchez-Medina, P. S. (2012). Defining success in subsistence businesses. Journal of Business Research, 65(12), 1658-1664.
Wikström, P., & Ellonen, H. K. (2012). The impact of social media features on print media firms’ online business models. Journal of Media Business Studies, 9(3), 63-80.
Williams, A. E. (2013). Metaphor, media, and the market. International journal of communication, 7, 14.
Yoon, Y. (2013). The Research of Story Telling for Infotainment in Newspaper Editing.Jkeia, 7(2), 19. https://dx.doi.org/10.21184/jkeia.2013.06.7.2.19