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The Purposes Of The Public Sector Organizations Business Essay

Paper Type: Free Essay Subject: Business
Wordcount: 3125 words Published: 1st Jan 2015

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News Corporation is one of the most influential and the second largest multinational mass media conglomerates in this globe in terms of revenue. The company is created by Rupert Murdoch in 1979 as a holding company for News Limited. News Corporation is a listed company on the NASDAQ. The company was spread gigantically in the second half of the twentieth century. Firstly, it was in South Australia and then it spread to the UK and then to the USA. Now, it has become a heavy powerful media corporation. The recent scenario of the company is that it is not in a good position considering the image because of some scandals and criticisms. After the scandals of phone hacking the creator of the company Rupert Murdoch was in question of the media and normal people.

This paper will cover the purposes of this company, the responsibilities of the company towards the stakeholders, the impacts of world factors and markets factors. There will be critical analysis with examples of the strategies the company uses and many given situations.

Task 1

1.1 Purpose of different types of Organizations including News Corporation

There are different types of activities in our business world. Different people have to do different things. Thus, various types of business are run by people. But there are main three types of businesses, like- Public sector organizations, Private sector organizations and Voluntary sector organizations. Their purposes are also different from each other as their sectors are different (Bean, 2009).

The purposes of the public sector organizations:

Public service is the main concern of the public sector organizations; their purpose is to provide the best service at any cost.

Utilize the scarce resources to maximize the country’s productivity.

The purposes of the private sector organizations:

Maximize profit


Increase market share

Maximize sales

The purposes of the voluntary sector organizations:

To help different disabled people

Make their life easy

The purposes of News Corporation:

News Corporation is a multinational media corporation. It has various purposes in running their business. It is also a private sector organization. The purposes can be like:

Effective and efficient information flow.

Getting reliability through providing accurate information.

Spinoff to be complete by mid- 2013.

1.2 The objectives News Corporation is meeting of its stakeholders

News Corporation is the second largest mass media company in the world. So, they have a great responsibility to keep the objectives and satisfy the stakeholders. There are a huge number of stakeholders for this firm. The duty of the company is to consider the interest of the stakeholders and investors (Amir-Ahmadi, 2009). The main objectives of News Corporation are:

To provide accurate and transparent information.

Make the public aware by conveying information from reliable source.

Give quality entertainment by their satellite media like Fox network, FX, 20th Century Fox studio etc.

Build strategies which helps to determine the interests of the stakeholders.

Building a vast media empire.

Build strong relationship with the stakeholders.

Keep in regular touch and make reliability.

Focusing on the growth.

Enhancement of communication.

Maintaining the operating cost low.

Making internet as a crucial business.

1.3 Responsibilities of News Corporation and the strategies employed to meet them

The core responsibility of News Corporation is to achieve the company’s goal which is to be the largest media company in the world. The company is spreading their activities day by day. Primarily, it was only a newspaper media. Gradually, it has grabbed the modern way of communication. It was not only confined in newspaper, it is now spreading through internet, satellite, broadcasting, TV channels etc. It is required to build very strong strategies for maintain these huge things. News Corporation has many strategies to maintain all the activities. The strategies can be applied appropriately only if the managers or planners are very much skilled about the market and the business environment (Benati, 2008).

However, News Corporation uses many different strategies including:

Corporate Strategy

Traditional market strategies.

2 sided market strategies.

Performance base strategies.

Corporate strategies

Corporate strategies are the sharing of activities. There are many parts of this strategy which should be considered very carefully. These are:

Behavior based control.

Vertical Integration

Information Goods


Internal SSP remains same

Dirty digger still placing bets.

Traditional market strategies

Traditional market strategies are applied mainly for the newspaper business. The structure of the strategy describes the simplicity of the traditional market strategy.

Figure: The traditional market strategy for News Corporation.

Two sided market strategy

The main feature of the two sided market strategy is it has value in the both sides of the strategic form. It has some benefits:

It creates a cheap advertising for Brands

Every transaction will cost low

End users can enjoy free products.

Performance based strategy

Performance based strategy evaluates the performance of the company and its individual sectors. This strategy inspires the employees a lot because there is reward system. The performance based strategy determines which sectors are the most fruitful sectors, which needs much investment, which is giving the most money etc.

Task 2

2.1 Economic systems in allocating resources effectively

Economic systems are compiled with many processes of organizing and motivating labor, producing, distributing and circulating of the human resources. Productivity is must to use the resources effectively. The method of production and the other things are depended on the different economic systems.

There are three main economic systems which are practiced in the different nations throughout the world. These systems are: Free market system, centrally planned system and mixed market system (Ackley, 2003).

Free market economic system:

In the free market economic system the government intervention is very low. All the economic resources are managed privately. The supply, demand and capability are the three criteria which are decided by the activities regarding to the pricing decisions. Free market system helps the public to make a better choice of purchasing (Jhingan, 2005).

Centrally planned economy system:

Here government takes all the decisions in regarding the allocating of the resources and the distribution of the production. In addition, government runs all the internal and external businesses, take all the pricing decisions. The main purpose of the centrally planned economy system is to improve the lifestyle of the mass people.

Mixed economy system:

This is the mixture of all the systems above. The main idea of this system is that both capitalism and socialism are present in this system. Nowadays, majority of the nations are practicing this economic system. Here, both private and public sectors are inspired to make production with the resources available. Many developed countries including USA, UK, Russia and China are practicing this system.

2.2 Impact of fiscal and monetary policy on business organizations

According to Jhingan, monetary policy is the usage of money supply to determining all the expenditures and measures the economic activities in a country. When there is shortage of money supply the government has to re-plan the monetary policy (Jhingan, 2005).

According to Ackley, fiscal policy is used to measure and spend the government expenditures and taxation system to maintain the economic activities of a country (Ackley, 2003).

The impact of the monetary and the fiscal policy in an economy is very much obvious. These impacts can be following:

The frequent expenditure of the government has impact on the economy’s output.

The capital expenditure of the government has impact on the output.

The level of economic activities is affected by the tax revenue earnings.

The level of economic activities is also influenced by the money supply.

There is significant impact on the level of output by the collective government expenditure, earnings on tax revenue, public borrowing and money supply.

There are several techniques for fiscal policies. The certain economy must find the appropriate techniques for the betterment of the economy. The techniques can be:





The most appropriate technique in the normal situation for a government is the taxation. However, the activities of News Corporation are influenced by the fiscal and monetary policy of the government. The company has to run business in a society, as a result they have to obey the rules and regulations of the community. They have some attachments with the community, too.

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2.3 Evaluation of the impact of competition policy and other regulatory mechanisms on the activities of News Corporation:

In the media world, there is ample competition between the companies. Sometimes, the competitions go for bad practices. So, it is very tough for sustaining in this market. As one of the largest multinational media organization, News Corporation has to be in a tough competition all the time. They need to arrange their workings very sensitively. They need to conduct market research and day by day should enhance their service. If the competition is granted positively by all the businesses inside the industry, the scenario of the media industry would change and it will be beneficiary for the mass people. Good competitions always get good things (Lenza et al., 2010)

Task 3

3.1 How market structures determine the pricing and output decisions

There are various market structures in the different economies. Therefore, the pricing and the output decisions are made. Generally, pricing and output decisions are interdependent. But in case of perfectly competitive market they can merely influence each other because only one firm is very tiny in the comparison to the whole market to influence the pricing decision. In this situation, the firm has to take the price given and decide the amount it wants to produce (Kotler et al., 2005).

On the other hand, if the company is very much influential, holding a handsome market share and has strong positioning in the customers mind, the competition will come low and the company can enjoy a monopoly environment in a competitive industry. Though, it is so tough to create that kind of image to the public.

In case of News Corporation, the market is favorable for them. The Australian, UK and USA market is the most influential media market in the whole world. They are a giant group of companies. They have built an empire in the media market including newspaper, magazine, TV channels, internet, tabloid etc. with different names and different operations.

3.2 Market forces shape organizational responses

Market forces are the interactions between demand and supply in a market. On the other hand, organizational responses are the reactions of any company to a certain economic circumstances. It is very important that how well an organization can react with the different economic conditions because it has a direct impact on the organization. The organization needs to conduct market analysis and research for reacting accordingly and positively. If a company analyzes and researches the market well, it will be able to supply the products according to the quantity demanded and thus the resources will be used appropriately (Boone and Kurtz, 2007).

In case of News Corporation, the company faced some scenario in which situations the company had to respond very quickly and positively. For example- When the 168 years tabloid “News of the World” is about to shut, they need to find a solution for the huge amount of readers. Their response to the situation was moderate. They have lost a community. So, responding to the dynamic conditions is very much crucial.

Again, when the company was facing the scandal of phone hacking, there was a report saying that they are accused of general lack of respect for individual privacy and dignity. This was the worst situation for the company.

3.3 How the business and cultural environments shape the behavior of News Corporation

Business environment depends on the culture practiced within the organization. According to Chorn (2001), there is a strong correlation among the organizational culture, management style and employee behavior in achieving strategic goals. Culture in the organizations is very crucial because the employees get motivation and inspiration from the organizational culture (Artemis and Anwar, 2004). Business environment is the collection of the mature behavior and social practices among the company’s human resources and the other activities. Every company has its own culture and business environment. Sometimes, the culture is practiced within the organization is the basic culture of the nation or the society or it can be adopted from outside. When a foreign company starts business in a nation, they would start a different type of culture which is not like to the existing culture. But practically, when a company goes for foreign business they study the culture of that region very well and try to adopt with the culture. They normally try the significant customs.

However, for a news media like News Corporation, culture and business environment is highly significant. They have to provide information about the happenings around the world. They have to do their job with the direct interaction with the mass people and different types of organizations. Moreover, News Corporation is doing great in studying the culture and the business environment as their successful journey as a company.

Task 4

4.1 Importance of international trade to UK business organizations including News Corporation

International trade is selling and buying products and services beyond the nation’s boundary. In this modern business age, the whole world is interdependent with each other and the interrelation is becoming stronger for international trade. In every country, international trade has a great impact in the internal businesses. In UK, the business organizations are very much interrelated with the outer world. No country in the world is perfect in producing everything. The nature is different in the different corner of the world. In addition, all the countries are not capable of producing all the goods. Earlier, man was dependant only by his circle but now the scenario is completely changed. Every country is now depending on the rest of the world for a better life. Thus, the standard of living is increasing day by day. In the business context, it is an ample opportunity for doing business internationally. The world will be much closer with the time. So, international trade has a great importance to the business sector (Hall, 2002).

In the case of News Corporation, international trade has a tremendous influence over their activities. As a media base organization, it has correspondents and employees throughout the world. The company has to do many contracts and deals with the foreign delegates. News Corporation has some influence over the international media, too.

4.2 Impact of global factors on UK organizations including News Corporation

The global factors that can influence the businesses are political, economic, social and technological. These factors have an ample impact over the world businesses. Firstly, the world politics can hamper the business condition if there is unrest in the political sides. Secondly, the world economy can have severe impact on the businesses. If the economic condition is favorable the business is safe but in the moment of crisis, there is question about survival (Ackley, 2003). Thirdly, social impact includes religious considerations, local communities, environment, ethical considerations and cultural issues. Every single element can have impact on business like News Corporation because every business must conduct its activities within the society. Finally, technology plays a great role in the advancement of the businesses throughout the world as well as News Corporation. Technology is the life of the media sector. The News Corporation is a giant company. They have many businesses. Without technology the business would be disappeared with time.

Moreover, the global factors have direct impact on the business activities of News Corporation.

4.3 Impact of policies of the European Union on UK business organizations including News Corporation

The European Union set policies which affect the businesses in the UK and also there are policies for the external parties who want to conduct business in UK (Amir-Ahmadi, 2009). Everyone internal or external must obey the rules of the EU and its currency system. The European Money Union (EMU) is a component of the policies. Every business must comply with the currency of the EMU.

Similarly, News Corporation has to follow the rules of EU for running their business and transaction and everything. EU expects that all the rules will be followed by the businesses.


News Corporation is the dream of Rupert Murdoch. He runs this business very well so far. But finally there comes a question that he is not fit for running such a big company. This question has come when the scandal of phone hacking was disclosed. Whatever it is, the company is a successful one in the world media. There are many pressures in running such a company. In this paper there was a reflection of the purpose of the company, responsibilities towards stakeholders, and the impacts of different things like culture, environment, rules and policies. There was critical analysis of the strategies used by the company and suggestions for better. The News Corporation still holds a gigantic empire in the world media.


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