Sing Tao News Corporation
Instructions: In order to encourage strategic thinking, you are asked to write and evaluate a case-study of approximately 2000 words. This assignment has 2 parts:
1. An explanatory case. This will identify a strategic issue which needs resolution. To provide a context, avoid ‘the usual suspects’ and promote originality, the case will be a real organisation (Private business, Social Enterprise or Public body) based in, or around, the Hong Kong area (this geography can change only with sufficient justification and prior approval by the module leader). It should be based on public domain knowledge only and no contact should be made with an existing organisation. This should be around 1,000 words and accounts for 40% of the mark.
The case must lead to a strategic management issue or problem.
2. A teaching note. Using academic theory and analytical frameworks, this will clearly explain how the case illustrates strategic management theory. This should be no more than 1000 words and accounts for 60% of the mark. Note that marks are awarded for how well the 2 parts integrate. Key theories / frameworks may be selected from within the module or may be selected from other appropriate sources (strategic management text books or journals). Their use must be appropriate and clearly justified. Students are advised to focus on just 1 or 2 approaches – using them to answer the questions and clearly illustrate the strategic methods
Solution.
Sing Tao News Corporation
Sing Tao News Corporation is listed news company listed in Hong Kong (Li & Lui, 2005). The company operates business of media ownership and services, human capital management and broad content and distribution services. Sing Tao news corporation majors mainly on media related operations such as newspapers, magazines, recruitment, books and content services. Sing Tao News Corporation’s main objective is to become a leading news corporation serving all Chinese globally (Fung & Lee, 2010).
The company was formerly known as Global china group holdings limited until 2002 when it was changed to Sing Tao news corporation to better represent their course as media institution that focuses in providing the Chinese people quality and worthy news conten (Barney & Clark, 2007). The company is listed in Hong Kong’s stock exchange and the company recorded a market capitalization of $2.28 billion according to 2010 financial report (Li & Lui, 2005).
Sing Tao News Corporation have also seen significant growth since the adoption of the new systems within its operations. As a result, the company have developed branches in various regions in china, which has enabled it to receive real time information and updates on current events in those regions (Li P. , 2008). The growth of the company have also enabled Sing Tao News Corporation to build a strong relationship with the consumers, especially the youth. The cost of investment has also reduced as the computer system make Sing Tao News Corporation spend less in human power. The system can perform more efficiently and only make employees more productive in doing their services (Hill, Jones, & Schilling, 2014).
Since the incorporation of the new computer system within the operation of Sing Tao News Corporation, the company’s competitive advantage in the media industry has improved. The company is among the most competitive media station in the Chinese market (Rawnsley & Rawnsley, 2003). the competitive advantage of Sing Tao news corporation have also increased the marketshare for the news group as more new customers are tuning to Sing Tao news corporation for receiving up to date information on the current local and global news content (Hutcheon, 2010). Information technology have affected not only the user’s productivity but also the operations of different subsidiaries of Sing Tao group.
Strategic issue
As leading media groups in Hong Kong, Sing Tao news group have invested majority of its investment funds on the information technology systems to stay ahead of the competition. The company holds over 1,200 computer systems connected to the organizations network (Hutcheon, 2010). The invested information technology system comprises with a wide variety of configuration, operating system, installation set-up, office system and business applications. The different types of computer system Sing Tao news group uses is due to the diverse purchasing period over a specific time span. Investment of information technology system within Sing Tao news group have given the group an advantage in rapidly changing media environment. information technology system have benefited Sing Tao news group by creating stability, reliability, security and enhance performance of every section of Sing Tao news group operations (Hutcheon, 2010).
Despite the numerous advantages and important role information technology has affected Sing Tao news group, the group still experience major challenge in maintaining information technology system updates based on the real time basis. The information system environment is rapidly changing. New technological advancement is becoming expensive and rare to find within the Chinese economic environment. Computer system need to be closely monitored in a timely basis for maintenance and updates (Hutcheon, 2010).
The information-technology inventory management is becoming a major problem to the finance and information technology departments (Salaman, Storey, & Billsberry, 2005). The frequent change of information technology devices are even worsening the situation, as the company have to forego manual counting or electronic data fill-in recording practices (Stone, 2000). This makes it difficult for Sing Tao news group to keep pace with the rapidly changing information technology environment. In addition to this, system applications and software upgrades have short-life cycle, increasing the cost on the news group (Rugman & Verbeke, 2003).
Nevertheless, Sing Tao news group have to keep up with rapidly changing information technology environment in order to maintain its leading position in the media world. Due to this, the information technology system are an important tool to facilitate cheap and efficient business operation for the news group (Pearce, 2011). The information technology environment in china is also becoming threat to the news group, as some information technology inventories are not legitimate due to poor market structure (Li P. , 2008). Many information technology companies are finding ways to minimize cost by producing low quality information technology system for business corporations. Sing Tao news group considers information technology as major component in its success in the Chinese economy and globally (Hutcheon, 2010). Therefore, hardware configurations, operating system configurations and legitimate software applications should be the major priority in its upgrading plans.
Sing Tao news group have experienced concerns over human resources, efforts, cost and time (Hoskisson, 2010). This is because only a dozen information technology staff have to support and maintain over 1,200 information technology systems (Hutcheon, 2010). This is major concern because the news group are facing high intensity competition. Lack of high requirements for the information technology system can threaten the survival of the news group in a time-sensitive business environment. In Hong Kong, the media environment is very intense due to high competition. Sing Tao news group relies on time to gain competitive advantage (Li P. , 2008). Therefore, any time delay on the functionality of information system inventories in a critical time can hurt the group’s earnings.
To avoid any downtime of information technology system, Sing Tao news group have to come with an effective information technology strategy that is clearly aligned with its business needs in order to achieve information technology compliance, stability, security and minimum personnel involvement (Li P. , 2008). This means that Sing Tao news group have to acquire information-system management software that is tailored to the group’s needs.
What are the major issues of information technology affecting media industry in Hong Kong?
Hong Kong is the main hub for one of the most advanced media infrastructure in the world. Media and entertainment industry in Hong Kong is mature and extremely competitive sector (Rawnsley & Rawnsley, 2003). Hong Kong also plays host for many electronic, software and information technology companies. This is because of its easier accessibility to the manufacturing and development facilities in mainland china (Hitachi Ltd, 2007). China’s manufacturing, development, processing and under-exploitation of its marketplace offers many opportunities for information-technology system companies (Hill, Jones, & Schilling, 2014). Alternative, this also offers numerous challenges to the media due to the intensity of the competition as companies would like to establish their services within such areas.
Many media corporations have taken advantage of robust information technology infrastructure that Hong Kong possess creating high level of competition (Fung & Lee, 2010) (Barney & Clark, 2007). As the second ranking economies in Asia on digital readiness and internet access capability, media corporations are finding it difficult to keep up with rapidly changing system software and application configurations (Li P. , 2008). Computer system configuration is the top most important information technology tool in media industry, the system upgrades have short life cycle making it expensive for media corporations to keep up with the upgrades.
Information technology inventories have also changed how media corporations operate their business in Hong Kong. Media corporations are using information technology systems to introduce new channels of engaging the consumers, which develops new revenue streams (Hussey, 1994). However, the use of information technology system in Media Corporation is not an easy process to emulate. This is because media corporations in cooperation with information technology experts in Hong Kong are very creative in their approaches (Li P. , 2008). Media corporations will have to develop their own individual approaches to business and innovation in order to remain relevant. Media corporations are utilizing information technology systems through continuous upgrades of operating system configuration, software development, application development and hardware configurations. This is driving traffic to their sites hence improving business performance in the media industry (Rawnsley & Rawnsley, 2003).
How can Sing Tao news group address information-technology asset management issues?
In addressing Sing Tao news group Information technology inventory issues, the group needs to focus the information technology staff on efficiency so as to reduce maintenance work and shift focus on core business (David, 2014). The normal routine work, which involves continuously maintenance of the information technology systems, is time consuming and costing the group a lot of money. Sing Tao news group need to eliminate the simple and repetitive telephone and onsite troubleshooting processes, which has been reducing operational efficiency and cost effectiveness (Li & Lui, 2005). This has cost the news group major financial loss in the market and reducing operational performance.
Sing Tao news group needs to avoid wasting time and effort of information technology staff in information-technology inventory audit. This can be avoided by enhancing the capability of information-technology inventory management. Sing Tao news group will also have to focus on software asset-management capability in order to meet the intensive requirements of inventory management (Li & Lui, 2005).
Furthermore, strengthening security management of IT operation can be essential in responding to increasing number of virus attacks (Li & Lui, 2005). This means that Sing Tao news group will have to upgrade various software patches and list virus on a timely basis. The performance of these strategic needs will enable the group reduce the time of tracking inventory from ninety days to two days. Sing Tao news group is also set to lower information technology support cost, saving the group a lot of money in the long-term (Hutcheon, 2010). Strengthening the security management of information technology will improve efficiency and save the group valuable resource and time.
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